Internet Can Drive Word Of Mouth Even Better Than Television
There’s no arguing that word of mouth WOM marketing impacts sales. And while a large number of people talk about content they found online, three-quarters of the time those conversations take place offline.A recent study from Yahoo on WOM marketing demonstrates that the Internet has grown more influential when it comes to informing people through conversations about brands, even more so than TV in certain categories. The study also finds that the best vehicles for influencing WOM come from consumers who play in social networks. These “Conversation Catalysts” drive a disproportionately higher percentage of WOM activity.While many marketers have little doubt that the Internet can influence WOM marketing nearly as much as TV, the huge gap in budgets for online versus television tells a different tale, says Radha Subramanyam, Yahoo vice president, who heads corporate and media research. “There's a bit of an intellectual gap in how marketers spend their budget that doesn't exactly tie to ROI,” she says.Although only 7% of all brand-WOM conversations occur online, 38% of people have brand-WOM conversations both online or offline influenced by the Internet, which Yahoo estimates at 74 million people.Among the media channels influencing WOM, the Internet has grown while others like television and print remain flat. The level of Internet references rose to 15% in January 2010, compared with nearly 12% during the same time in the year-ago period.Despite the buzz around social media and its role in WOM, most conversations take place face to face. Media — both online and off — are influential in driving these conversations, but it's important to note that 76% of WOM conversations take place in person.