November 2007 Archives

Not surprisingly, there's an increasing number of privacy and advocacy groups jumping on the  the "blast Beacon" bandwagon.

For those who don't know, Facebook rolled out a new service a couple of weeks ago called Beacon which publicizes a user's on-line purchases to their friends.

The service, which users have to opt out of rather than opt-in, is drawing fire because of privacy concerns.  Even Moveon.org recently launched a protest site to draw awareness of Beacon's seemingly sneaky intentions.

Be interesting to see where all of this shakes out.  On one hand, I'm thrilled that more and more marketers are realizing the power of influencer marketing and word of mouth advertising.  On the other, boundaries are being tested.  Facebook can, and is, arguing, that users can opt-out if they don't want their buying habits broadcast to their friends.  In many ways, however, people are becoming unknowing brand ambassadors. 

I'm willing to bet that Facebook will be forced into refinining Beacon to make it more transparent.  True word of mouth marketing and brand recommendations only occur when consumers consciously and willing share their experiences. 



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That's how much marketers supposedly spent on word of mouth marketing programs in 2006, according to a study by PQ Media.

The study, which is being formally released today at the WOMMA(womma.org)summit today in Las Vegas, was the lead story today in AdAge.com.  The study also reports that this figure is likely to increase to $3.7 billion by 2011.

I'm thrilled seeing the attention that our industry is getting -- and the seriousness in which it is now being given as an impactful and measurable marketing discipline.  The excitement at the WOMMA  event is notable, as people talk about everything from buzz marketing to managing negative word of mouth and online communities.   This is getting to be a lot of fun.



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Yeah.  Sounds a bit optimistic to me too.

But a new study by TWI Surveys, Inc. on behalf of Society for New Communications Research (SNCR),points out some stunning findings.  At the head of the list: 81% of all marketers believe that in five years they'll be spending as much or more on conversational -- or WOM -- marketing vs. traditional marketing. 

Whether they call it Word of Mouth Advertising, Buzz Marketing or influencer marketing, I do see an increasing number of sophisticated marketers working to integrate WOM into their marketing mix. 

Other finding from the study:

  • 70% of marketers are currently spending 2.5% or less of their communications budgets on conversational marketing
  • Two-thirds plan to increase their investment in this area in the next twelve months
  • 57% project that in five years they'll be spending more on conversational marketing than traditional marketing

In addition, Joseph Jaffe, a Senior fellow at SNCR says that conversational marketing investment will make up the third pillar of the new marketing model -- with Community and Conversation being added to the four P's of marketing: product, place, price and promotion.

Maybe it's wishful thinking.  But when marketers see that more than 90% of all consumers rate friends, family and colleagues as their #1 influence on purchase behavior, you know they have no choice but to pay attention to the power of this emerging discipline.  



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