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Integrating Word of Mouth  Into Media Planning Presentation to By Ed Keller (@kellerfay) March 31, 2011 © 2011 Keller Fay Group LLC Not to be quoted or distributed without written permission
The Power of Word of Mouth “The rewards of pursuing excellence in word-of-mouth are huge, and it can deliver a significant competitive edge few other marketing approaches can match” “It’s the most disruptive factor in marketing” “Marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising” McKinsey Quarterly, April, 2010 2
Social Media Are Exploding 3
What percent of WOM happens on social media, blogs, chat rooms? But is All the Action Really in Social Media? US = 7% Britain = 7% Australia = 7% US = 91% Britain = 92% Australia = 91% Source: TalkTrack®: US,  July 2009 – June 2010; Australia, April 2010, Britain, May 2010 4
We See Two Opportunities in “Social Media” “Traditional media” that have “social value” Television Radio Print “Traditional” internet “Straight up” social media Facebook Twitter FourSquare Linkedin And so many others…. It’s all about starting productive conversations! 5
Leading Sources of “Social Value” The “Audience” Well connected Frequent recommenders Reliant on media/advertising Trusted sources The Message WOM only happens when the message is talkworthy The Medium Makes sharing easy Reaches people in “social context” Reaches people in “relevant context” Social networking sites excel at some, but not all these values 6
Does WOM Displace Advertising? ,[object Object],7
Word  Of Mouth Advertising What We Know Now 8
Keller Fay’s TalkTrack®:A Unique Approach to Measuring WOM 9 All Forms of WOM U.S. since 2006 ,[object Object],Interviews per year ,[object Object],Brand conversations International ,[object Object]
Australia - 2010All People All Points of View All Categories All Dimensions Media Audiences All Brands
Source: Keller Fay Group’s TalkTrack® How Much WOM? 10 ,[object Object]
3.3 billion brand impressions via word of mouth each day in America,[object Object]
Which Brands Win? Which brands get the most WOM in America? 12 1.	 6.	 2.	 7.	 3.	 4.	 8.	 9.	 5.	 10.	 Base: Brand mentions across all categories (n=346,804) Source: TalkTrack®, January – December 2010
Big Differences in “Sociability” of Brands, Online & Offline 13 ,[object Object]
Biggest disconnect, Android:  #4 in social media, #397 in TalkTrack®.Sources:  The Vitrue 100: Top Social Brands of 2010 (www.Vitrue.com), Keller Fay’s TalkTrack®
Media Play a Big Role in Driving WOM ~ Half of consumer brand conversations refer to marketing or media …led by television (18%) Internet (15%) point of sale (9%) newspapers (6%)  magazines (5%) direct mail/email (5%) Marketing and media are tools for encouraging WOM  Source: TalkTrack®, January – December 2010   14
One-Quarter of WOM Directly Stimulated by Ads Base: Brand Conversations Influenced by Advertising, n=32,496  Source: TalkTrack®, January – December 2010  15 15
8% of population, influencers engage in 2x as much WOM as others Influencer WOM is 3.8x as valuable Influencers are “everyday people”but are distinguished by: Larger than average social networks Keep with what’s new Are sought out for their advice When it Comes to Conversation, Not All Consumers are Created Equal 16
Targeting Media to Deliver Conversation Catalysts™  17
Linking Brand Conversation with Media Use(Top Indexing Channels Among 32 Cable Channels Measured) Source: TalkTrack®, January – December 2010 18
Linking Brand Conversation with Media Use(Top Indexing Channels Among 32 Cable Channels Measured) Source: TalkTrack®, January – December 2010 19
(Projected weekly brand conversations about Apparel Brand “B,” among ESPN Viewers & Non-Viewers) Using Word of Mouth to Measure Campaign Effectiveness 20 Male viewers of ESPN generated an additional 91 million more conversations about Brand “B” than non-viewers.  Base: Brand mentions among male respondents during average 4-week period (ESPN Male Viewers, n=6,487; Male Non-Viewers, n=2,699) Source: TalkTrack®, August – December 2008
All Media Are Social! The “two-step flow” (1955) “Media have only ‘limited effects’ in the process of mass persuasion” “A campaign of persuasion is more likely to reinforce than convert” “Messages are filtered through social networks and vetted in the light of group norms” “Where you find an opinion leader, you are bound to find a conversation” “Try to identify the points at which media enter the conversation” 21
Implications ,[object Object]

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Integrating Word of Mouth into Media Planning

  • 1. Integrating Word of Mouth Into Media Planning Presentation to By Ed Keller (@kellerfay) March 31, 2011 © 2011 Keller Fay Group LLC Not to be quoted or distributed without written permission
  • 2. The Power of Word of Mouth “The rewards of pursuing excellence in word-of-mouth are huge, and it can deliver a significant competitive edge few other marketing approaches can match” “It’s the most disruptive factor in marketing” “Marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising” McKinsey Quarterly, April, 2010 2
  • 3. Social Media Are Exploding 3
  • 4. What percent of WOM happens on social media, blogs, chat rooms? But is All the Action Really in Social Media? US = 7% Britain = 7% Australia = 7% US = 91% Britain = 92% Australia = 91% Source: TalkTrack®: US, July 2009 – June 2010; Australia, April 2010, Britain, May 2010 4
  • 5. We See Two Opportunities in “Social Media” “Traditional media” that have “social value” Television Radio Print “Traditional” internet “Straight up” social media Facebook Twitter FourSquare Linkedin And so many others…. It’s all about starting productive conversations! 5
  • 6. Leading Sources of “Social Value” The “Audience” Well connected Frequent recommenders Reliant on media/advertising Trusted sources The Message WOM only happens when the message is talkworthy The Medium Makes sharing easy Reaches people in “social context” Reaches people in “relevant context” Social networking sites excel at some, but not all these values 6
  • 7.
  • 8. Word Of Mouth Advertising What We Know Now 8
  • 9.
  • 10. Australia - 2010All People All Points of View All Categories All Dimensions Media Audiences All Brands
  • 11.
  • 12.
  • 13. Which Brands Win? Which brands get the most WOM in America? 12 1. 6. 2. 7. 3. 4. 8. 9. 5. 10. Base: Brand mentions across all categories (n=346,804) Source: TalkTrack®, January – December 2010
  • 14.
  • 15. Biggest disconnect, Android: #4 in social media, #397 in TalkTrack®.Sources: The Vitrue 100: Top Social Brands of 2010 (www.Vitrue.com), Keller Fay’s TalkTrack®
  • 16. Media Play a Big Role in Driving WOM ~ Half of consumer brand conversations refer to marketing or media …led by television (18%) Internet (15%) point of sale (9%) newspapers (6%) magazines (5%) direct mail/email (5%) Marketing and media are tools for encouraging WOM Source: TalkTrack®, January – December 2010 14
  • 17. One-Quarter of WOM Directly Stimulated by Ads Base: Brand Conversations Influenced by Advertising, n=32,496 Source: TalkTrack®, January – December 2010 15 15
  • 18. 8% of population, influencers engage in 2x as much WOM as others Influencer WOM is 3.8x as valuable Influencers are “everyday people”but are distinguished by: Larger than average social networks Keep with what’s new Are sought out for their advice When it Comes to Conversation, Not All Consumers are Created Equal 16
  • 19. Targeting Media to Deliver Conversation Catalysts™ 17
  • 20. Linking Brand Conversation with Media Use(Top Indexing Channels Among 32 Cable Channels Measured) Source: TalkTrack®, January – December 2010 18
  • 21. Linking Brand Conversation with Media Use(Top Indexing Channels Among 32 Cable Channels Measured) Source: TalkTrack®, January – December 2010 19
  • 22. (Projected weekly brand conversations about Apparel Brand “B,” among ESPN Viewers & Non-Viewers) Using Word of Mouth to Measure Campaign Effectiveness 20 Male viewers of ESPN generated an additional 91 million more conversations about Brand “B” than non-viewers. Base: Brand mentions among male respondents during average 4-week period (ESPN Male Viewers, n=6,487; Male Non-Viewers, n=2,699) Source: TalkTrack®, August – December 2008
  • 23. All Media Are Social! The “two-step flow” (1955) “Media have only ‘limited effects’ in the process of mass persuasion” “A campaign of persuasion is more likely to reinforce than convert” “Messages are filtered through social networks and vetted in the light of group norms” “Where you find an opinion leader, you are bound to find a conversation” “Try to identify the points at which media enter the conversation” 21
  • 24.
  • 25. Consumers value most the advice they get from other people, and are highly engaged in seeking recommendations
  • 26. It is part of what makes us human, and it’s always been an important part of how mass communications work.
  • 27. All media are social
  • 28. A wide variety of media are able to reach “social” consumers
  • 29. Look for audiences with lots of social relationships—offline as well as online
  • 30. Audiences containing more “influencers” have the most social value
  • 31. “Social network” investments should be integrated with broader strategies for media, marketing, and advertising22
  • 32. Thank you! Ed Keller, ekeller@kellerfay.com Facebook.com/kellerfay Twitter.com/kellerfay
  • 33. The Keller Fay Group Bringing best-in-class tools to word of mouth strategy and measurement © 2011 Keller Fay Group LLC Not to be quoted or distributed without written permission