In a tough economy, why should businesses be focusing more on word of mouth in their marketing campaigns?

1. The Value of Buzz Why Businesses Should Care 1

2. What is Word of Mouth? The sharing of product and brand information amongst people. 2

3. Traditional Advertising In 2009, advertisers in the U.S. spent an estimated $119 billion, according to The Nielson Company. 3

4. Super Bowl Ads In 2010, the cost of an ad during the Super Bowl ranged from $2.5 to $2.8 million for 30-second commercials. 4

5. Pepsi Skips the Super Bowl In the last decade, Pepsi spent $142 million on Super Bowl ads. This year, Pepsi decided not to air an ad and started a $20 million social media campaign called the Pepsi Refresh Project. 5

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7. Honey Bees and WOM Honey bees communicate through dances that describe the direction and distance of nearby nectar sources or new housing locations.

8. Why is WOM so great? In 2007, Edelman Trust Barometer ranked “a person like me” as the most reliable source of information about a company. The average American will talk about roughly 70 brands each week. Recommendations are stronger influences on consumer purchase behavior. 8

9. Why is traditional advertising not? Expensive! People don’t trust ads! Too much noise= no one pays attention! Low return on investment! 9

10. Can WOM be measured? In 2006, Keller Fay Group asked 100 people a day to record conversations they had about products and brands. Since then, they have amassed around 36,500 reports annually.

11. Paranormal Activity, 2009 Driven by strong word of mouth, Paranormal Activity earns $7.1 million in its opening box office without any expensive marketing campaign.

12. WOM won’t go away Twitter, Facebook, and Yelp are examples of how WOM will continue to stay strong. 12