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Ed Keller, Keller Fay Group (USA)Lynne Robinson, IPA (UK)
ESOMAR WM3 2010
1. The power of WOM
2. Integrating WOM into the IPA TouchPoints3 Hub Survey
3. The results
4. The future
According to McKinsey (April 2010):
◦ “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”
When McKinsey weighs in, you know you’re talking about a topic that has C-Suite attention
What percent of WOM happens on social media, blogs, chat rooms?
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
All forms of WOM◦ Offline; online
All points of view◦ What “talkers” are saying; what “listeners” hear and then do
All people◦ Nationally representative samples (via online interview)
All dimensions◦ Quantity, quality, and drivers of WOM (including advertising)
All brands across categories
Continuous tracking by Keller Fay in the US since 2006
◦ First British study in May, 2010; Australia in April, 2010
Online survey among consumers 16 to 69
◦ Participants re-contacted a day later to answer questions about brands talked about during past 24 hours
◦ 2,578 interviews
◦ May 14–31, 2010
Diary-assisted reporting of a day’s conversations
◦ Respondents first recruited to take notes on conversations in 15 categories over 24 hours
◦ Brand/company names collected on open-ended basis
◦ Covers all forms of WOM: Offline + online
Britain’s WOM Conversation:
5 Key Insights Into Word of Mouth Behaviour
Average Number of Weekly Branded Conversations Per Person
Base: Respondents (Total Public, n=2,578; Men, n=1,284; Women, n=1,294)Source: TalkTrack® Britain (May 14th – 31st 2010)
7066
74
Total Public Men Women
In the U.S., the total
public engages in 65
weekly branded
conversations, on
average.
% of people having conversations by category in past day
18%29%
30%
33%
36%41%
43%
45%
47%
48%
48%
50%
57%
63%64%
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
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)
81% of marketing-related conversations
take place in-person
The remainder are:1. Phone (11%)
2. Email (3%)
3. Instant or text message (2%)
4. Online chat room, blog, SNS (1%)
5. Other (1%)
Source: TalkTrack®, Britain (May 14th – 31st, 2010)
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!
Source: TalkTrack®, Britain (May 14th – 31st, 2010)
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!
% of WOM With or Without a Media/Marketing Reference Containing a Recommendation to “Buy/Try” a Brand or Product
31%
39%
No
Media/Marketing
Cited in WOM
Media/Marketing
Cited in WOM
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)
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
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%
Influencers Talk About Twice as Many Brands Per Week
% of Category Conversation Catalysts™ among the total public
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™ 3
Base: Respondents (Total Public, n=2,578)Source: TalkTrack® Britain (May 14th – 31st 2010)
Deliver an ongoing understanding of how traditional, evolving and emerging communication media fit into people’s daily lives
Provide a complete cross media planning system which helps communications specialists understand individual and combined channel contributions to a plan
A collaborative, continuous and evolving approach to consumer research
A framework for bespoke data fusions
Bought
OwnedEarned
The virtuous circle
c6,000 sample of adults in GB
Undertaken by IPSOS using NRS
re-contact and panels
Telephone recruitment, postal delivery and return
£20 incentive (£25 in London)
TP3 fieldwork Sep’09-Mar’10
Self-Completion Questionnaire e.Diary
VO1a Which of these product categories do you follow closely for new products, new styles, new brands and/or companies, etc.?
VO1b And for which of these product categories do you frequently give advice, suggestions and ideas to other people, such as your friends and family?
Please cross (x) all that applyVO1a
Follow closely
VO1b
Give advice/
suggestions on
VO1a
Follow closely
VO1b
Give advice/
suggestions on
Food and dining Home decoration/DIY
Sport and hobbies Cars
Entertainment and media Financial services
Holidays and travel Shops and shopping centres
Mobile phones Children's products
Computers/computer software Everyday household products
TV, DVD and audio equipment Gardening
Clothes and accessories Jobs and careers
Beauty/grooming products The environment
Health products Public affairs/politics
Home appliances (e.g. washing machines,
microwaves etc) None of the above
VO2 For each of the following, please tell me about how many people there are in your life who you communicate with fairly often...
Please cross (x) one box in each row
0 1 2 3 4 5 - 9 10+
Relatives and family members who live outside your household
Very close friends, not counting family members
Neighbours and acquaintances, not including close friends or family
VO3 And about how many clubs, social or professional organisations, or community groups do you personally belong to?
Please cross (x) one box only
0 1 2 3 4 5-9 10+
76%
64%
28%
9%
0
10
20
30
40
50
60
70
80
90
100
Any advice givers Give advice on 21
specific categories
Category Catalysts Conversation Catalysts
All Adults 100%
Working/studying, 19%
Traveling or commuting 7%
Housework 8%
Childcare , 3%
Washing or dressing, 4%
Preparing food or cooking, 5%
Eating or drinking, 11%Sports or exercise, 2%
Shopping, 3%
Community organizations or clubs, 0%
Relaxing, 23%
Nothing in particular 6%
Socialising, 8%Other, 0%
Communicating60%
Listening tothe radio 10%
Watching TV19%
Newspapers /magazines 2%
Internet 9%
Alone 24%
Partner or spouse 25%
Parent 4%
Children12%
Brothers/sisters or
other family 6%
Colleagues11%
Friends 9%
Other people you know
5%
Other people you dont know
3%
At Home58%
At Work 17%
Somewhere elseindoors
8%
School2%
Travelling8%
Somewhere else
outdoors, 5%
Product 1
Product 2
Product 3
Product 4
Product 5
Product 6
Product 7
Category
Catalysts
Demographics
Product use
Who with
Location
Media
LifeActivities
Source:IPA TouchPoints3
A 360 degree view of Category Catalysts
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
Advertising leads me to search for
product/service online:
Conversation
Catalysts
(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
0 20 40 60 80 100 120 140 160 180 200 220 240 260
DE
C2
C1
AD
65+
55-64
45-54
35-44
25-34
15-24
Female
Male
Source: IPA TouchPoints3
All Category Catalysts Mobile Phones Category Catalysts Gardening Category Catalysts
Source: IPA TouchPoints3
Active Columns Active Row s
Any Category Conversation Catalyst
Food 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 Radio
High 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
Type of category catalyst Most efficient national newspaper
TV, DVD, & Audio Equipment
Clothes & Accessories
Health Products
Gardening
…
WOM and Online Communication
Doing on a weekly basis:
All Conversation
Catalysts
v. All Adults
All Category
Catalysts
v. All Adults
Contributing to a collaborative website 383 165
Typing own weblog / blog 178 136
Downloading / sending photos 179 134
Contributing to someone else's weblog 193 128
Giving advice 193 128
Uploading photos for sharing 150 120
Socialising/ keeping in contract with friends / making friends 115 115
Reading other peoples' blogs 145 114
Making a short video upload 319 114
Contributing to an online chat room / discussion 163 109
Instant messaging 126 108
Source: IPA TouchPoints3
0 50 100 150 200 250 300 350 400
The Environment
Sports & Hobbies
Shops & Shopping Centres
Public Affairs & Politics
Mobile Phones
Jobs & Careers
Home Decoration & DIY
Home Appliances
Holiday & Travel
Health Products
Gardening
Food & Dining
Financial Catalysts
Everyday Household Products
Entertainment & Media
DVD & Audio Equipment
Computer & Software
Clothes & Accessories
Children's Products
Cars
Beauty & Grooming
All
Twitter Social Networking Weekly Blogging Sites
It’s also about understanding the context of communication and the perspective of the channels used
New WOM questions creating great deal of interest for use
Providing fresh context and perspective for WOM and Social Media
Working with subscribers to determine how WOM can be included in the TouchPoints Channel Planner
Establishing a WOM currency in the UK…..
New WOM questions creating great deal of interest for use
Providing fresh context and perspective for WOM and Social Media
Working with subscribers to determine how WOM can be included in the TouchPoints Channel Planner
Establishing a WOM currency in the UK…..
