Some days our job becomes easier based on others' efforts. Take today for example.
PQ Media just released a report on the future of word of mouth marketing....and you thought oil and gas was a hot investment area!
The headline: "Word of Mouth marketing is the fastest growing segment of the entire media industry".
That's an extremely strong validation of the bet our company Agent Wildfire made 3 years ago in specializing in this space. Reasons given for the movement were the need for companies to create better brand engagement, link efforts to ROI and the word of mouth's industry's effectiveness in integrating strategy, technology and measurement.
Some of the more interesting facts and insights form the press releases:
a) WoM marketing grew almost five times faster than the overall marketing services sector in 2006 and more than six times faster than the overall media industry and nominal GDP.
b) Spending on word-of-mouth (WoM) marketing jumped 35.9% in 2006 to $981.0 million and is expected to grow to $1.35 billion in 2007 (Base: US industry media base - $254 billion).
c) Total WoM marketing expenditures are projected to climb at a compound
annual rate of 30.4% in the 2006-2011 period to $3.70 billion as brand
marketers take advantage of dedicated WoM marketing strategies.
d) PQ Media defined Word-of-Mouth (WoM) marketing as an alternative marketing strategy supported by research and technology that encourages consumers to dialogue about products and services.
e) Brand marketers are responding, and have begun to increase their WoM media budgets, moving from test phase to implementations that support their integrated marketing campaigns.
f) The new media industry axiom, 'only what gets measured gets bought,' has led to a discernible shift in media spending from traditional to alternative advertising and marketing strategies," said PQ Media CEO Patrick Quinn. "The word-of-mouth marketing industry is capitalizing on this trend though its ability to provide ROI to brand marketers in a highly cost-effective platform."
g) "Major brand marketers are moving from just testing word-of-mouth marketing to including it as a growing component of fully-integrated marketing campaigns," Quinn added. "The continued advancement of new word-of-mouth technologies is creating crosscurrents among alternative media strategies, as evidenced by Facebook's recent attempt to bridge the gap between social
networking and WoM marketing."
h) Although no formal split was given, the study mentions that food and beverage, media and entertainment, and sports and recreation are among the heaviest users of WoM strategies.
Wonderfully timely news to have in our quiver as brands put their final touches on their 2008 plans. Can I let out a Howard Dean "Woo Hoo" yet?
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