Advertisers Spend $1 Billion on Word-Of-Mouth Marketing

30 Nov

From Ars Technica:

“PQ Media, which last year brought out some interesting research on TV product placements, recently released a report on word of mouth (WoM) marketing. The goal of WoM is to get consumers talking (to start “buzz” in industry parlance), since research from Keller Fay Group shows that “trusted recommendations” are the single best form of advertising in the US.

80 percent of surveyed consumers trust recommendations offered by friends and family; the remaining 20 percent apparently have friends like my college roommate, who to this day insists that The Net was a fine example of the filmmaker’s art. ”

http://arstechnica.com/news.ars/post/20071129-advertisers-spend-1-billion-on-word-of-mouth-marketing.html

The only problem is monetization. Advertisers can’t seem to quantify their investements. Now I’m not saying money shouldn’t be spent exploring the possibilities, but a healthy dose of scepticism seems to be in order.

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