Consumers 50% more likely to be influenced by WOM than radio/TV ads, says
Intelliseek
CINCINNATI, Sept. 26 /PRNewswire/ -- Consumer trust toward traditional
advertising is being challenged by growing confidence in consumer-generated-
media (CGM) and the recommendations of other consumers, according to a new
study of consumer behavior by Intelliseek Inc., a leader in word-of-mouth
measurement.
A follow-up to a 2004 "Trust in Advertising" study, the "2005 Consumer-
Generated Media (CGM) and Engagement Study" finds that, compared to
traditional advertising, word-of-mouth (WOM) behavior continues to grow in
importance in consumer awareness, trial, and purchase of new products.
Consumers are 50 percent more likely to be influenced by word-of-mouth
recommendations from their peers than by radio/TV ads -- a slightly higher
level of influence/trust than found in the 2004 study co-authored by
Intelliseek and Forrester.
Intelliseek's research also finds important correlations between consumers
who regularly skip over or delete television or online ads and those who
shape, create, and absorb consumer-generated media (defined as experiences,
opinions and advice posted on the Internet by consumers for others to read and
share). "Active ad skippers," for example, are 25 percent more likely to
create and respond to CGM on Internet message boards, forums and blogs.
Key findings from the research will be presented by Intelliseek CEO Mike
Nazzaro during Advertising Week events this week in New York City, including
OMMA and the Word-of-Mouth Marketing Association (WOMMA) conferences.
Additional phases of the research will be released in October and November,
respectively.
"The advertising landscape is changing, forcing marketers to broaden and
redefine the concepts of media, influence and audience reach," said Nazzaro.
"If consumer-generated media is in fact the most effective and trusted form of
advertising, it's critical that marketers begin to measure, manage and
influence it and, equally importantly, heed the consequences when consumers
turn the message against brands."
Key findings from the analysis:
During August 2005, Intelliseek polled a representative online sample of
660 online consumers and explored attitudes and opinions across key CGM
venues, including Internet message boards, forums, blogs, direct company
feedback and offline conversation.
Word-of-mouth behavior among "familiars" trumps all forms of advertising
and is more trusted than news or "expert commentary," the study finds. In
addition, positive word-of-mouth from a personal acquaintance carries just as
much impact as negative word-of-mouth. This has "critical implications for
brands that nurture evangelism, brand loyalty, and advocacy," Nazzaro said.
Interestingly, WOM/CGM has more impact on consumer attitudes about
products than positive or negative news coverage.
To what degree would your decision to purchase a product or service be
influenced by:
Mean Score Index*
(1/low
10/High)
Positive word of mouth from someone you knew
personally 7.7 134
Negative word of mouth from someone you knew
personally 7.0 121
A negative news story on TV or radio or in a
newspaper or magazine 5.7 99
A TV or radio commercial 4.7 82
An advertisement in a newspaper or magazine 4.6 80
*100 represents the average score
Public comments by employees also carry important credibility compared to
traditional ad vehicles, a point underscored in a recently published white
paper on employee blogging by Intelliseek and Edelman.
Other Key Findings
- Attitudes of Ad-Skippers: While fewer than 20 percent indicated they
use or own digital video recorders or TiVo-like services that permit ad
skipping, a majority of respondents indicated that they "deliberately
skip over advertising on the television." In addition, "ad skippers"
are more likely to learn about new product trends and brands than
consumers who do not regularly skip ads. They are 25 percent more
likely to want to "create a dialogue" with others on Internet message
boards and forums, especially to learn new information and have
questions answered.
- Teens and CGM: Teens lead all segments in overall CGM creation but
remain more trusting of advertisers. Nearly 30 percent of teens now
actively create CGM by sending photos via their cell phones, 45 percent
have experimented with or created a blog, and nearly 10 percent
subscribe to RSS feeds.
- Bloggers vs. Non-Bloggers: Bloggers create an enormous amount of CGM
across numerous sources, elevating their overall influence, the study
finds.
- Women vs. Men: Men are more likely to spend time on Internet message
boards, forums, and discussions, while women expressed a higher
tendency to "forward something (they) had found on the Internet to
others," especially "things like scams or computer viruses." About
equal numbers of men and women create blogs.
- Total Recommendations on the Web: Consumers are on track to post close
to 2 billion comments on the Internet by the end of 2005, a significant
increase over the previous year, according to Intelliseek estimates.
- Key Industries Susceptible to CGM Impact: Health/medical, auto,
electronics, video games and music categories have the greatest
likelihood of being influenced by CGM.
- Negative reaction to Shill Marketing: Intelliseek's research also
looked closely at consumer attitudes toward artificial buzz or so-
called "shill" marketing, in which consumers are paid or offered
incentives to recommend products or brands. One-third would be
disappointed if a trusted contact did not carefully disclose a paid or
incentive-based relationship, 26 percent said they would never trust
the opinion of that friend again, and 30 percent said they would be
less likely to buy a product/service.
"Trust is the currency of effective advertising, but it's highly fragile,"
explained Pete Blackshaw, Intelliseek's Chief Marketing Officer who oversaw
the study.
Study background
The full 2005 Intelliseek Consumer Generated Media (CGM) and Engagement
Study, including cross-tabulated data, breakouts and recommendations, will be
available for purchase in early November. Companies can pre-order it from the
Intelliseek web site (http://www.intelliseek.com) later this week or download
podcast versions of its recommendations. Blackshaw and Nazzaro will co-lead an
Oct. 26 webinar to review the findings and will discuss them in early November
at Ad:Tech New York.
About Intelliseek
Intelliseek (http://www.intelliseek.com) is a marketing intelligence firm
that helps marketers promote and protect brands through real-time monitoring
and analysis of Consumer-Generated Media (CGM), as expressed through online
boards, forums, communities, blogs, search engine results, and direct company
feedback. Its BrandPulse(R) solution analyzes internal and online data, and
its BlogPulse portal provides timely, daily analysis across more than 16
million blogs. In 2004, Intelliseek co-founded the Word-of-Mouth Marketing
Association (WOMMA) with BuzzMetrics and BzzAgent. Intelliseek's clients
include Canon, Gateway, P&G, Microsoft, Nokia, Ford, Sony Electronics and
Toyota Motor Sales. Intelliseek maintains headquarters in Cincinnati with
offices in New York and California, and an Applied Research Center in
Pittsburgh.
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