May 22, 2012
Word of mouth (WOM) has the power to quickly build up or tear down the reputations of products, services and organizations.
What is Word-of-mouth?
Word-of-mouth (WOM), also called word of mouth advertising, is an unpaid form of promotion oral or written in which satisfied customers tell other people how much they like a business, product, service, or event. Word-of-mouth is one of the most credible forms of advertising because people who don't stand to gain personally by promoting something put their reputations on the line every time they make a recommendation.
Trust earned media
92% of consumers around the world say they trust earned media, such as Word-of-mouth (WOM) and recommendations from friends and family, above all other forms of advertising—an increase of 18 percent since 2007.
Online consumer reviews are the second most trusted form of advertising with 70 percent of global consumers surveyed online indicating they trust this platform, an increase of 15 percent in four years.
Of more than 28,000 Internet respondents in 56 countries shows that while nearly half (47 percent) of consumers around the world say they trust paid television, magazine and newspaper ads, confidence declined by 24 percent, 20 percent and 25 percent respectively since 2009. Still, the majority of advertising dollars are spent on traditional or paid media, such as television. In 2011, overall global ad spend saw a seven percent increase over 2010, according to Nielsen’s most recent Global AdView Pulse. This growth in spend was driven by a nearly 10 percent increase in television advertising, with countries, including the U.S. and China, attracting more advertising dollars versus the year prior.
Word-of-mouth through Social media
Word-of-mouth spread very rapidly through social media. In order to leverage the power of Word-of-mouth or WOM brands need to understand the dynamics of this intangible and often elusive form of marketing.
Tomaj at Interactive Solutions, expert on social media and Word-of-mouth marketing "- The fact that 92% buys into what their friends recommend isn't all that surprising. Who doesn't trust their friends?" says Tomaj.
" - The interesting part is that we now have reliable, professionally surveyed statistics that clearly points to the strengths of utilizing Facebook as a natural marketing channel."
Tomaj Sangchi holds lectures and educates businesses about social media like Facebook, Twitter, and Instagram, for Interactive Solutions. Word-of-mouth naturally thrives in social network settings, but there's a great number of marketing techniques that one should be aware of to tap the true marketing potential of social media sites.
If you want to know more, contact Tomaj Sangchi to book a meeting.