Word of Mouth Rules

This is not a knock on the advertising business, it's simply the truth of how we as humans operate.

Who do you trust?

So if you can find a way to make your advertising resemble trustworthy word-of-mouth, you win.

This is from RBR.com:

Shoppers say WOM is biggest influence

When it comes to buying apparel and electronics, shoppers are most interested in hearing from their peers about products, retailers and past shopping experiences. In a recent survey, conducted for the Retail Advertising and Marketing Association by BIGresearch, consumers say that word of mouth is still the number one influencer in their apparel (34.3%) and electronics (44.4%) purchases.

In addition to first-hand knowledge, product reviews (36.8%) and retail advertising inserts (29.2%) – or circulars – will also resonate with consumers in their electronics purchases this holiday season. Shoppers looking for the best deal on apparel items, from new jeans to winter coats, will check out circulars (33.3%) and in-store promotions (30.4%).

“Retailers offering great deals will use many channels this holiday season to make sure their customers aren’t left in the dark.” said Mike Gatti, Executive Director, Retail Advertising and Marketing Association. “If retailers can’t get the word out to shoppers about their sales and promotions this holiday season, the lowest prices in the world won’t bring customers into the stores.”

The study also found traditional advertising vehicles like broadcast television (25.9%), direct mail (20.0%) and emails (20.6%) still remain steady influencers for consumers’ electronics purchases. Shoppers say that newspaper ads are more influential this year compared to last year (22.9% vs. 20.2% in 2007) as consumers continue to be diligent with bargain hunting.

Product placement is another huge driver in adults’ purchase decisions. When it comes to electronics purchases, 13.2% say it influences their decisions, while 11.5% say it influences their apparel purchases. Blogging also influences 6.0% of the average population’s electronics choices and 3.3% of their apparel purchases.

Young adults are often much harder to reach in terms of advertising and marketing campaigns. Many surf the web while watching television; some engage in other activities, such as text messaging, while reading the newspaper, and even more watch television while reading their mail. According to the survey, 45.0% of 18-34 year olds watch television while browsing the web, 25.8% engage in other activities while watching TV and 26.0% surf the internet while listening to the radio.

“Americans are serious multi-taskers,” said Gary Drenik, CEO, BIGresearch. “Retailers need to communicate through the right channels this holiday season to ensure shoppers hear them.”

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