Tuesday, June 20, 2006

"Word of Mouth is New Ads Message"

In the June 19th issue of The Financial Times there was a front page article ("Word of Mouth is New Ads Message" by Aline van Duyn)about the growth of word-of-mouth advertising and how important it is becoming in the new technology age. What struck me however is the mention of only one word of mouth marketing company; one that I have never heard of before. They are called Starcom Mediavest and they have been doing work with Procter & Gamble helping them orchestrate WOM campaigns and measure the WOM about their products.

According to the article, Starcom Mediavest is telling their clients to move away from traditional advertising venues because they are becoming less reliable, and instead is pushing clients to make WOM the focus of their campaigns. I found this portion of the article particularly interesting as we have often discussed in class how word-of-mouth can best be used in conjunction with traditional media venues. The article mostly discusses the use of referral programs, and the use of social networks such as MySpace, however they do not touch on any of the other WOM techniques we have learned about in class.

I thought this was an interesting article, firstly because it appeared on the cover of “The Financial Times”, and secondly because of the primitive nature of the article. It really goes to show how new the field of word-of-mouth marketing is, and how cutting edge this class is! Definitely take a look at the article if you get a chance.

Thank you to my Dad for pointing out this article to me.



DietPepsi said...

Although I've never heard of that company before (which really doesn't say all that much) I do know that Proctor & Gamble is dealing with a lot right now. I mean, arn't they buying out Gillete? I also agree that it's pretty cool we have learned so much about a topic that is really "in the works".

Jesols said...

I find it interesting as well that the article only focuses on myspace and referral programs. Perhaps that's what Starcom Mediavest focuses on? Also, isn't Proctor and Gamble the company that has Tremor and that program for mothers??

FrankBenway said...

I find it increasingly interesting that the WOM marketing companies try to persuade clients by saying to ditch traditional marketing, while the traditional marketing firms view WOM as an unmeasurable, ineffective tool. I think it's time we bring both parties to the table and try to convince the WOM firms that traditional marketing is necessary for brand recognition, while convincing the traditional marketing firms that WOM gives that recognizable brand a level of credibility needed with today's skeptical consumers. I believe that WOM and traditional marketing efforts can work together to continue promoting recognizable brands in a way that boosts credibility and confidence in the marketplace.