Take a look at this presention of Jan van den Bergh, author of "The Recommender Revolution". He shows you how to leverage word-of-mouth marketing and what the impact can be for mayor brands.

1. This is how “marketing and advertising”
work these days. Through Word of
Mouth.

2. That’s why we should all become
recommenders of “The Recommender
Revolution.”

3. And that’s the reason why I am
here

4. Recommenders influence 20-50% of all
purchasing decisions.

5. Positive reviews influence 90% of
consumers’ buying decisions.

6. Recommenders recommend more and
more.

7. Recommenders
recommend,
repurchase and
…forgive.

8. Recommenders do it mainly online

9. While retailers were initially terrified of what bad reviews could do to their bottom line,
they've since witnessed the power of a rave review and embraced the practice. Despite initial
fears, says Craig Berman, Amazon's vice president of global communications, product
reviews have only served to increase their customer loyalty. "It helped us build customer
trust," he says. "It put us in a special place with customers in that they could come to the site
and get honest and comprehensive — and over time, very substantial — firsthand knowledge
from other customers." Berman says the company has some reviewers who take online
shopping to heart. "There are some customers who are extraordinarily proud of being one of
our top reviewers — they take their job really seriously." Some of Amazon's customers are
voracious readers who consider it their duty to review one or two books every single week.
While the company may have come a long way from its roots, the company's original
specialty has not been forgotten.
Read more: http://www.time.com/time/business/article/0,8599,2004089,00.html#ixzz2TvUHmQBF
July 16, 1995
“
“

11. Reviews do the job!

12. Recommenders buy and sell
simultaneously

13. In China recommenders influence
more than wherever else in the world.

14. In which field do recommenders count?

15. Why do they recommend?

17. Why has advertising lost its influencing
power?
“Don’t trust it. Nothing but lies. I’ll ask my friends or colleagues”
“I don’t care. Will search when I need
something.”
“Haven’t even seen it.”
“Nice ad, but so what?
Not relevant for me.”
“So stupid”.
“Too many ads.
I avoid them”
“Not for me. I just bought my stuff”

18. 1980-1990:Advertising +10% = +2.2% marketshare
2008:Advertising +20% = +2.2% marketshare
“ …. the authors conduct a meta-analysis of 751 short-term and 402 long-
term direct-to-consumer brand advertising elasticities estimated in 56
studies published between 1960 and 2008. the study finds several new
empirical generalizations about advertising elasticity. the most important
are as follows: the average short-term advertising elasticity is .12, which
is substantially lower than the prior meta-analytic mean of .22; there has
been a decline in the advertising elasticity over time.”
Gerard Tellis, PhD Michigan, is Professor of Marketing, Management, and Organization, Neely Chair of American Enterprise, and Director of
the Center for Global Innovation, at the USC Marshall School of Business. He is Distinguished Visitor of Marketing Research, Erasmus
University, Rotterdam and has been Visiting Chair of Marketing, Strategy, and Innovation at the Judge Business School, Cambridge University,
UK. Tellis specializes in the areas of innovation, advertising, global strategy, market entry, new product growth, promotion, and pricing.
Prof. Dr. Gerard Tellis

19. US-market 1997 >< 2007

20. Up and up it goes.
(Except for a dip in Europe)

21. Why do these costs continue to grow?
+7% +3,8% +3,8% +4,6% +5,2% YOY-growth
2010
2011
2012
2013
2014
Amazon spent
$500 million 
$557 billion in 2012

22. It continues to grow because advertising has
been an important pillar in profit
maximisation.
* Produce @lower cost.
* Sell in more markets
@lower cost @higher
salesprice/-volume &
@higher margin.

24. The difference between a “recommended
beer” and an “advertising beer”.
http://www.ratebeer.com/

25. The difference between the fortune
earned with each of the 2 beers is
huge.
€ 270 million
$11 billion

26. Correlation between defence(war-) industry,
advertising spending and inequality.
0.474 or 0.61?0.469

27. Greece. The end of advertising.
Winter 2013-De Morgen
Thanks for listening. Mail questions to jevedebe@gmail.com