Understanding the role of advertising in word of mouth.
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There has been an awakening. Understanding the role of advertising in word of mouth.
Athens | Dec 21, 2015 There has been an awakening. Understanding the role of advertising in word of mouth. 1
Julian Erben, Strategic Planning @ BBDO Proximity Worldwide
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Advertising Word of Mouth The action of calling something to the attention of the public by paid announcements in newspapers and magazines, over radio or television, on billboards, and online.
An oral or written communication process, between a sender and an individual or group of receivers, regardless of whether they share the same social network, with the purpose of sharing and acquiring information, on an informal basis.*
*Ana Margarita Barreto, The word-of-mouth phenomenon in the social media era, International Journal of Market Research, 2014
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Let’s start from the beginning...
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Katz and Lazarsfeld‘s Two-Step Flow Model (1955)
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„Mass Media“
Opinion leaders
Wider population
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„Advertising can not sell against personal influence“
ERNST DICHTER
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The Mad Men… enamoured of their brilliant creativity and their ability to persuade the mass market through the power of their ideas…
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to October 2015
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8
Ad agency models are breaking. Measurement models are outdated. The term advertising should be dumped.
BRAD JAKEMAN, PEPSICO
Source: Adage.com, Oktober 2015
“ „
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We live in the too-much-
information age. Athens | Dec 21, 2015 There has been an awakening. Understanding the
role of advertising in word of mouth. 9
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10
IT‘S GETTING HARDER AND HARDER TO CONTAIN
ATTENTION.
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Source: 1PageFair and Adobe 2015 Ad Blocking Report, 2Fractl & Maz, Inbounc vs. Outbound: consumer perspectives on Marketing, 09/2015
Nearly 2 in 3 millennials (18-34) use
ad blockers2
21.8 bn in ad revenue blocked in
20151
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„You have a world where a wealth of information creates poverty of attention. The way people get
through is by turning to people they trust.“
KEN MEHLMAN
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People talk.
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The average American talks each day about roughly 10
brands.*
The truth is: Brands are a major currency of conversation.
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*Source: Keller and Fay, 2012
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Yes, great experiences get people talking, but...
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Source: Keller and Fay, 2012
...so does advertising and marketing
25%
30%
45%
telling someone about an ad
telling someone about other forms of marketing (retail, coupons, direct mail, PR) other
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There is an either-or-misperception between advertising and WOM
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The reality is: the typical conversation about a brand stimulated by advertising is
between 3 and 5 minutes in length
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Source: Keller and Fay, 2012
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75% occur face to face 15% happen by phone
just 10% are online
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Source: Keller and Fay, 2012
90%
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All media are social, so is the most effective advertising.
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Who are the advocates at the centre of the conversation?
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Influencers Current customers
BRAND ADVOCATES
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„Not only do influencers generate far
more word of mouth than noninfluencers do, but each message has four times
more impact on a recipient‘s purchasing decisions“
MCKINSEY & COMPANY
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Believability
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Believablitiy of WOM on a scale from 0 to 10 55%
25% 20%
9 to 10 7 to 8 lower than 7 Source: Keller and Fay, 2007
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How does this impact our understanding of the advertising model?
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Half the money I spend on advertising is
wasted; the trouble is I don‘t know which half.
JOHN WANAMAKER
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“
„
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„We believe advertising works primarily by generating conversations among informed people who then spread the news — and their
recommendations — to new customers.“
AD
Prospect
AD
Informed People
Prospect
NOT: INSTEAD:
Source: Keller and Fay, 2012
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Advertisers should target two key types of people:
Influencers Current customers &
Advocates who are already rallied to the cause
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Planning to spark and retain
conversations
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Direction Momentum
Planning and Strategy for giving a brand...
1. Be interesting 2. Be objective 3. Be useful 4. Know your cues
1. Earn trust and respect 2. Be disruptive 3. Utilize emotion 4. Make talking easy 5. Use data
[ [ ] ]
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Giving a brand direction
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1. Be interesting: have a strong brand story, and know your topics
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„You should try _____, it‘s _____.“
„Can you believe _____ did _____?“
„There‘s nothing better than ____ for_____.“
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„If bar staff can tell a story to a drink, it gets a bigger tip“
ANDY ENGLAND EVP and CMO @ MillerCoors
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Image source: images.derberater.de
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2. Be objective about what consumers need…
…from you.
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„Marketers need to stop trying to control what their brands stand for, and listen to their
customers. We are operating in what is very much a ‚let go‘ world.“
Ed Keller
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3. Be useful: communicate solutions provide answers that consumers want to pass on to others
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Two common myths about WOM:
A) Word of mouth is only for the latest, hottest thing.“
B) The best way to get Word of mouth is through stunts and
gimmicks, such as outrageous TV ads, web-sites, PR events.
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Source: Keller and Fay, 2012
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It’s not about the “sizzle” it’s all about the steak
Top reasons why people join BZZAgent: • To learn about the latest products • Because they „like being one of the first people to know about a new
product“ • Because they „enjoy sharing new products and ideas with friends and
family“ • For the opportunity to give feedback to the manufacturers of the products
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Source: Keller and Fay, 2012
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4. Plan to have cues.
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Giving a brand momentum
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1. Earn trust and respect
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Always be
honest.
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Follow the rules.
1. Say who you are representing 2. Only say what you really believe
3. Never lie about who you are
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Source: Andy Sernovitz, 2015
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Say thank you
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Go after negative WOMlers!
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2. Be disruptive.
disrupt culture. disrupt cognitive schemas.
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85% Believe that global brands have the power to make the world a better place
Source: McCann Worldgroup Study — Truth About Global Brands 2015
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As a fast-food restaurant It‘s still privately held and owned Restaurants have never been open on a Sunday („It‘s the recipe for our success“) Local markets with daddy-daughter date night
Success indeed: 43 consecutive years of positive sales growth 2010 overall sales growth more than 11% More than 80% of conversations about the brand are positive (category average: 66%)
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3. Utilize emotion.
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4. Make talking easy. Give them words to use and things to share.
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4% of conversations are about something from packaging In 5% of conversations, people mention something from brand website
When designing websites, social, packages, coupons, newsletters: use FORWARD thinking — make it easy to find, digest and forward.
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Source: Keller and Fay, 2012
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5. Use data. And not just digital data.
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Four key roles: 1) to identify the influencers
2) Regular brand health tracking 3) To monitor effectiveness
4) To drive your creative
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Source: 1942 June 3, Florence Morning News, Mutt and Jeff Comic Strip, Page 7, Florence, South Carolina. (NewspaperArchive)
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Plan to have direction
Plan to have momentum
1. Be interesting 2. Be objective 3. Be useful 4. Know your cues
1. Earn trust and respect 2. Be disruptive 3. Utilize emotion 4. Make talking easy 5. Use data
Influencers
Current customers & Advocates who are already rallied
to the cause Plan for the right target
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Thank you
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Recommended for further reading:
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Contact
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Julian Erben, Strategic Planning @ BBDO Proximity Worldwide