WOMMA/Summit - Day 2: Word-of-Mouth Marketing Forecast 2007-2011
This session covered the state of the industry, looking at not only the overall size but projections of what the future holds. The session is based on the new PQ Media "Word of Mouth Marketing Forecast 2007-2011".
In 1970 40% of the media spend was on advertising. In 2006, 0.4% spent on Word of Mouth, but grew significantly faster than nominal GDP and overall marketing services spend in 2007
Most controversial subject of the research: What IS word of mouth marketing.
Segments
* Content & Services (83%)
*** Strategy and Consulting
*** WoM agencies
*** Online Communities
*** WoM Media
* Ancillary Products (17%)
*** Research and Measurement
*** Technology & Tools
(Both segments growing quickly and in a similar position)
WoM spend reached $981 million in last 5 years
Major drivers behind this growth
* Broadcast TV has lost 1/2 of it's viewing hours in last 25 years
* Consumers are not as engaged (media multi-tasking, skipping ads)
* Consumers spending more time out of the home
* WOM is trusted
3.5 billion WOM conversations per day in United States. 90% of WOM takes place offline.
"Only what get measured gets bought", and as such there's a need to standardize the industry on a Return on Experience metric.
