Putting Their Money Where the Mouths Are: Brands Increase Spending on Word of Mouth Marketing by 14.2% - Ed Keller - MediaBizBloggers

At a time when most forecasters report that spending by marketers is declining spending on word of mouth WOM marketing increased 142 to 154 billion in 2008 And while 2009 is expected to see some moderation WOM Marketing is on pace to grow another 102 in 2009 placing it among the fastest growing advertising and marketing segmentsThe Word of Mouth Marketing Forecast 2009 amp8211 2013 conducted by PQ Media and licensed by WOMMA which has distributed the results to all members provides quantitative evidence not only that brand marketers recognize the growing power of word of mouth but that they are investing in both online and offline strategies and tactics that stimulate consumer conversation and brand advocacy This investment comes at a time when most research including that conducted by agencies such as Universal McCann Zenith Optimedia and Razorfish amp8211 among others amp8211 finds that word of mouth is the most influential form of contact a consumer has with a brand and one that leads to purchase or purchase intentIn 2003 at the same time my book The Influentials was published spending on word of mouth was only a 300 million Since that time as an industry has formed to help brands better engage in conversation with consumers the compound annual growth rate CAGR has been 376Looking ahead the report forecasts growth of another 102 in 2009 meaning that WOM Marketing is on pace to remain among the fastest growing segments of the media and communications industry this year Total spending on WOM is expected to grow at a CAGR of 145 between now and 2013 which would mean spending will top 3 billion by 2013 According to PQ Media39s President Patrick Quinn quotDoubledigit growth in this economic climate is a strong sign of an increasingly prevalent role in the futurequotWho are the leading spenders on WOM Marketing Packaged goods and fooddrink brands accounted for 30 of the spending in 2008 Other leading categories are financial services electronics and telecom and retailFor those wishing to know more about the report and spending trends in this emerging and dynamic industry the report is available from WOMMA John Moore WOM Enthusiast for WOMMA has also prepared a short video available via YouTube that does an excellent job discussing the findings furtherEd Keller CEO of the Keller Fay Group has been called quotone of the most recognized names in word of mouthquot The publication of Keller39s book The Influentials has been called the quotseminal moment in the development of word of mouthquot Ed can be contacted at ekellerkellerfaycomRead all Edamp8217s MediaBizBloggers commentaries at Ed Keller MediaBizBloggers

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Putting Their Money Where the Mouths Are: Brands Increase Spending on Word of Mouth Marketing by 14.2% - Ed Keller - MediaBizBloggers

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