Upload
keller-fay-group
View
829
Download
1
Tags:
Embed Size (px)
Citation preview
© 2011 Keller Fay Group LLC@kellerfay
Not to be quoted or distributed without written permission
All Media Are SocialPresentation to WOMMA UK & IPA
By Brad Fay
London
March 4, 2011
www.kellerfay.com
Who We Are
• Research-based marketing consultancy
• Exclusive focus on word of mouth
– Who, what, how and why of WOM
– Only firm to measure all WOM
• Independent advice on how marketers & agencies can capitalize
ARF INNOVATION GRAND AWARD WINNER
RESEARCH EXCELLENCE AWARD WINNER
2
www.kellerfay.com
The Power of Word of Mouth
“The rewards of pursuing excellence in word-of-mouth are huge, and it can deliver a significant competitive edge few other
marketing approaches can match”
“It’s the most disruptive factor in marketing”
“Marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising”
McKinsey Quarterly, April, 2010
3
www.kellerfay.com
Social Media Are Exploding
4
www.kellerfay.com
Word of Mouth Is More than Social Media
5
Word of Mouth:
The act of consumers providing information to other
consumers.
Word of Mouth Marketing:
Giving people a reason to talk about your products and
services, and making it easier for that conversation to take
place. It is the art and science of building active, mutually
beneficial consumer-to-consumer and consumer-to-marketer communications.
For examples of award winning WOM campaigns, go to
http://www.womma.org/WOMMY/
www.kellerfay.com
• What percent of WOM happens on social media, blogs, chat rooms?
But is All the Action Really in Social Media?
Offline, 91%
Online, 7%
US = 7%
Britain = 7%
Australia = 7%
US = 91%
Britain = 92%
Australia = 91%Source: TalkTrack®: US, July 2009 – June 2010; Australia, April 2010, Britain, May 2010
6
www.kellerfay.com
Regardless of Category or Market, Face-to-Face Conversations Dominate
76% 81% 82%75% 79% 82% 83% 88% 90%
74% 76% 78%72% 74% 74%
15%11% 10%
14% 11% 9% 9%6% 5%
14% 11% 10% 20% 18% 16%
8% 7% 7% 9% 9% 7% 6% 5% 5%10% 11% 10% 6% 6% 7%
Face-to-Face Phone Online
7
US
Brit
ain
Aus
tral
ia
Mode of Conversation
US
Brit
ain
Aus
tral
ia
US
Brit
ain
Aus
tral
ia
US
Brit
ain
Aus
tral
ia
US
Brit
ain
Aus
tral
ia
Technology Financial Services
BeveragesBeauty & Personal Care
All WOM
Base: Conversations (US/Britain/Australia Shown: All WOM, n=196,216/16,682/17,653; Beauty, n=9,113/649/634; Beverages, n=16,872/1,630/1,390; Tech, n=15,017/1,203/1,368; Finance, n=10,626/1,063/1,003)Note: Percentages will not add to 100 because “other” not shown.Source: Keller Fay Group’s TalkTrack® US, Britain, and Australia
www.kellerfay.com
Keller Fay’s TalkTrack® Methodology
• Online survey among consumers 13 to 69– Participants re-contacted a day later to answer questions about brands
talked about during past 24 hours– Covers all forms of WOM: Offline + online– 700 surveys weekly
• Diary-assisted reporting of a day’s conversations– Respondents asked to take notes on conversations in 15 categories
over 24 hours– Brand/company names collected on open-ended basis
• Size of database– 36,000 interviews annually– About 350,000 brand mentions per year
8
www.kellerfay.com
TalkTrack®: A Unique Approach to Measuring WOM
9
U.S. since 2006• 36,000
Interviews per year
• 350,000+
Brand conversations
International
• UK - 2010
• Australia - 2010
All People
All Dimensions
Media AudiencesAll Brands
All Categories
All Points of View
All Forms of WOM
© 2011 Keller Fay Group LLC@kellerfay
Not to be quoted or distributed without written permission
Britain’s WOM Conversation:
5 Key Insights Into Word of Mouth Behaviour
www.kellerfay.com
• Average Number of Weekly Branded Conversations Per Person
Britons Like to Talk
Base: Respondents (Total Public, n=2,578; Men, n=1,284; Women, n=1,294)Source: TalkTrack® Britain (May 14th – 31st 2010)
70 6674
Total Public Men Women
In the U.S., the total public engages in 65
weekly branded conversations, on
average.
www.kellerfay.com
% of people having conversations by category in past day
They Talk About Many Categories
Children's Products
Personal Care & Beauty
Household Products
The Home
Automotive
Health & Healthcare
Financial Services
Travel Services
Telecommunications
Shopping, Retail, & Apparel
Technology
Sports, Recreation, & Hobbies
Beverages
Media & Entertainment
Food & Dining
18%
29%
30%
33%
36%41%
43%
45%
47%
48%
48%
50%
57%
63%
64%
Compared to U.S. consumers, British consumers more
conversations in most categories, especially Travel (+24 points),
Shopping/Retail (+12), Financial Services
(+10), & Technology (+10).
Base: Respondents (Total Public, n=2,578)Source: TalkTrack® Britain (May 14th – 31st 2010)
12
www.kellerfay.com
Which Brands Get the Most WOM?
Base: Brand Mentions (n=26,499) Source: TalkTrack® Great Britain (May 14th – 31st, 2010)
13
2.
8.
Two of the top 10 brands in Great Britain are also
top 10 U.S. brands: Coca-Cola, #1 and
Apple, #7.
1.
3.
4.
5.
6.
7.
9.
10.
www.kellerfay.com
•62% of brand references in word of
mouth conversations are “mostly positive”
… Seven times the rate of “mostly negative” references (9%)
Implication: Don’t be afraid to engage in the conversation!
Word of Mouth Is Mostly Positive
Source: TalkTrack®, Britain (May 14th – 31st, 2010)14
www.kellerfay.com
More Consistency in Quality of WOM Across Country than Across Category
15
-21%
-16%
-17%
-20%
-17%
-18%
-11%
-11%
-12%
-14%
-12%
-12%
-16%
-15%
-15%
-13%
-18%
-15%
-9%
-9%
-9%
-6%
-7%
-5%
-3%
-4%
-5%
-9%
-9%
-8%
48%
48%
51%
59%
62%
63%
69%
66%
72%
73%
72%
73%
62%
62%
66%
MixedMostly Negative Mostly Positive
US
Britain
Australia
US
Britain
Australia
US
Britain
Australia
US
Britain
Australia
US
Britain
Australia
Technology
Financial Services
Beverages
Beauty & Personal Care
All WOM
Base: Brand Mentions (US/Britain/Australia Shown: All WOM, n=171,152/13,414/14,939; Beauty, n=7,401/574/441; Beverages, n=17,967/1,439/1,247; Tech, n=13,624/1,077/1,125; Finance, n=8,359/917/904)Source: Keller Fay Group’s TalkTrack® US, Britain, and Australia
www.kellerfay.com
Media Play a Big Role in Driving WOM
16
• Half of consumer brand conversations
refer to marketing or media
…led by: Internet (15%)
television (13%)
newspapers (5%)
magazines (4%)
direct mail/email (4%)
Marketing and media are tools for encouraging WOM!
www.kellerfay.com
In All Countries, WOM Tends to be Driven by TV, Point of Sale (POS), & Internet Touch Points
Base: Brand Mentions (US/Britain/Australia Shown: All WOM, n=170,380/13,414/14,939; Beauty, n=7,361/574/441; Beverages, n=17,822/1,439/1,247)*Up to two media/marketing references can be selected so figures will not add to this total row. Source: Keller Fay Group’s TalkTrack®, November 2009 – October 2010
All WOM
US Britain Aust.
Brand Mentions Involving One or More References*
52% 46% 49%
Television 17% 13% 14%
Internet 15% 15% 16%
Point Of Sale 9% 8% 8%
Promotion 8% 5% 4%
Newspaper 6% 5% 5%
Direct Mail/E-Marketing 5% 4% 5%
Magazine 5% 4% 3%
Radio 3% 2% 2%
Billboard 2% 1% 1%
Media and Marketing References Cited in WOM
(% of WOM conversations citing media or marketing; top 3 references highlighted)
(Comparing Countries)
17
www.kellerfay.com
• % of WOM With or Without a Media/Marketing Reference Containing a Recommendation to “Buy/Try” a Brand or Product
Active Advocacy More Likely in Conversations That Reference a Brand’s Media/Marketing
No Media/Marketing Cited in WOM
Media/Marketing Cited in WOM
31%
39%This is similar to what is
seen among U.S. consumers, with brand
conversations that reference some form of
media or marketing being more likely to contain a
positive recommendation (44%) compared to those
that do not contain a reference (39%).
Base: Brand mentions where someone else provided advice (Media/Marketing Cited in WOM, n=4,008; No Media/Marketing Cited in WOM, n=4,638) Source: TalkTrack® Great Britain (May 14th – 31st 2010) 18
www.kellerfay.com
How Impactful Is WOM?(% rating WOM highly credible/highly likely to inspire action, “9” or “10” on 0-10 scale)
Base: Brand mentions where someone else provided advice (n=8,646)
Source: TalkTrack® Great Britain (May 14th – 31st 2010)
Credibility/Believability of What Was Heard
Likely to Pass Along to Others
Likely to Seek Informa-tion
Likely to Purchase
48%
29%
21%
36%
19
While WOM credibility is similar to what is seen in the U.S., behaviors based on
WOM are considerably lower.
www.kellerfay.com
• 8% of population, influencers engage in 2x as much
WOM as others– Influencer WOM is 3.8x as valuable
• Influencers are “everyday people”
but are distinguished by:– Larger than average social networks
– Keep with what’s new
– Are sought out for their advice
When it Comes to Conversation, Not All Consumers are Created Equal
20
www.kellerfay.com
Influencers Talk About Twice as Many Brands Per Week
• Number of weekly brand mentions per person
Base: Respondents (Total Public, n=2,578; Conversation Catalysts™, n=213)Source: TalkTrack® Britain (May 14th – 31st 2010)
70
143
Total Public Conversation Catalysts™
Total Public Conversation Catalysts
+104%
21
www.kellerfay.com
• % of Category Conversation Catalysts™ among the total public
British Consumers are Catalysts in a Number of Product Categories
Category Conversation Catalysts™Total Public
Technology Catalyst™ 9%
Media & Entertainment Catalyst™ 8
Food & Dining Catalyst™ 8
Retail Catalyst™ 7
Sports, Recreation & Hobbies Catalyst™ 7
Financial Catalyst™ 6
Personal Care & Beauty Catalyst™ 5
Beverages Catalyst™ 5
Health Catalyst™ 5
Travel Catalyst™ 5
The Home Catalyst™ 4
Telecom Catalyst™ 4
Household Products Catalyst ™ 4
Automotive Catalyst™ 3
Children’s Products Catalyst™ 3Base: Respondents (Total Public, n=2,578)Source: TalkTrack® Britain (May 14th – 31st 2010) 22
www.kellerfay.com
All Adults (Hrs)All Conversation
Catalysts (Index)
All Category Catalysts (Index)
Television 3.74 96 96
Radio 2.11 98 102
Internet 1.83 110 105
Newspapers 0.55 93 98
Magazines 0.25 92 100
Out-of-Home 2.29 107 103
Source: IPA TouchPoints3
Time Spent Consuming Media in an Average Day
23
www.kellerfay.com
Advertising leads me to search for product/service online:
ConversationCatalysts
(Index)
Category Catalysts
(Index)
Television Ads 109 106
National Newspapers Ads 159 131
Regional Newspapers Ads 135 131
Magazines Ads 141 129
Radio Ads 162 123
Cinema Ads 161 129
Source: IPA TouchPoints3
Receptiveness to Advertising Compared to All Adults
24
www.kellerfay.com
Correspondence Map of Category Catalysts (Red) v. Media Usage/General Activities (Green)
Source: IPA TouchPoints3
Active Columns Active Row s
Any Category Conversation CatalystFood and DiningSport and Hobbies
Entertainment and Media
Holidays and Travel
Mobile Phones
Computers/Computer Softw are
TV, DVD and Audio Equipment
Clothes and Accessories
Beauty/Grooming Products
Health Products
Home Appliances
Home Decoration/DIY
Cars
Financial Services
Shops and Shopping Centres
Children's Products
Everyday Household Products
Gardening
Jobs and Careers
The EnvironmentPublic Affairs/Politics
High Broadcast TV
High Commercial TV
High Radio
High Commercial RadioHigh TV/Radio
High Commercial TV/Radio
High Internet
High New spapers/Magazines Reading
High Mobile Phone
High Media OOH Out Of Home
High Work/Study Working/Studying
High Housew ork
High HH Admin Household
High Washing/Dressing
High Cooking Preparing Food/Cooking High Eating/Drinking
High Sport/Exercise Sports/Exercise
High Hobbies Hobbies/Pastimes
High Shopping
High Socialising
High Childcare
High Relaxation RelaxingHigh Doing Nothing In Particular
High At Home
High At Work
High At School School/College
High Travel Travelling
High Out Of Home
High Outdoor
High Alone On My Ow n
High Mood Score
High Mind State
Telmar Correspondence
25
www.kellerfay.com
Targeting Media to Deliver Category Catalysts
Type of category catalyst Most efficient national newspaper
TV, DVD, & Audio Equipment
Clothes & Accessories
Health Products
Gardening
…
26
www.kellerfay.com
Does WOM Displace Advertising?• This is the 2005 perspective.
27
www.kellerfay.com
The End of Advertising?
• “As 30-Second Spot Fades, What Advertisers Will Do Next”
– WSJ, 2006
• “In Memorium: The 30 Second TV Spot?”
– Blog post, 2007
• “The death of the 30-second TV commercial: Devices like the new Apple TV box and digital video recorders from TiVo, Motorola and Cisco could help bring an end to the traditional TV ad.”
- CNN/Money, 200728
www.kellerfay.com
Word Of
MouthAdvertising
What We Know Now
29
www.kellerfay.com
Keller Fay Finds About One-Fifth of WOM Directly Stimulated by Ads
• Chart reflects percentage of conversations about brands where participants say somebody directly referred to advertising as a source of brand information in the conversations
• Not included are conversations influenced by advertising that was unmentioned by any conversation participant
30
Industry % of WOM Influenced by Advertising
Entertainment/Movies 30.3%
Telecommunications 29.3%
Personal Care/Beauty 28.5%
Technology 28.1%
Automotive 27.3%
Household Products 26.0%
The Home 25.9%
Shopping/Retail 25.6%
All Category Average 25.1%
Travel Services 24.6%
Food/Dining 23.9%
Children 22.5%
Beverages 21.5%
Sports/Recreation 21.1%
Financial 19.0%
Health/Healthcare 17.5%
Base: Brand Conversations Influenced by Advertising, n=32,496 Source: TalkTrack®, October 2007 through September 2008
30
www.kellerfay.com
Base: Brand conversations across all categories (n=165,352) Source: TalkTrack®, January – December 2010
(Top 10 touch-points shown; % of word-of-mouth driven by media/marketing)
Sports/Concert/Theater Event
Product Sample
Newspaper Advertisement
Product Package
Internet Advertisement
Company Website
Coupon/Circular
In Store Display/Video
Television Program
Television Advertisement
1.7%
2.1%
2.4%
2.6%
2.6%
3.4%
3.8%
4.2%
5.6%
8.5%
Multiple Touchpoints Contribute to WOM
31
www.kellerfay.com
The “two-step flow” (1955)• “Media have only ‘limited effects’
in the process of mass persuasion”– “ ‘Selectivity’ in exposure and perception
used by individuals to ‘protect’ pre-existing cognitive structures”
– “A campaign of persuasion is more likely to reinforce than convert”
• “Messages are filtered through social networks and vetted in the light of group norms”– “Where you find an opinion leader,
you are bound to find a conversation”– “Try to identify the points at which media
enter the conversation”
Re-thinking How Mass Communication Works
32
www.kellerfay.com
All media are “social”
Implication
33
And so are we….
www.kellerfay.com 34
The Power of People
Enabled by Technology
www.kellerfay.com
Keller Fay Group
Keller Fay Group
65 Church Street, 3rd Floor
New Brunswick, NJ 08901
+1-732.846.6800 (Tel)
+1-732.846.6900 (Fax)
www.facebook.com/Kellerfay
Twitter: @kellerfay
Brad Fay [email protected]
Andrew Smith [email protected]
35
Bringing best-in-class tools to word of mouth strategy and measurement
The Keller Fay Group
© 2011 Keller Fay Group LLCNot to be quoted or distributed without written permission