Word of mouth marketing set for growth

Word of mouth marketing is set to grow considerably over the coming years as brand marketers realise the benefits of encouraging consumers to talk about their products and services.

According to figures from PQ Media, spending on word of mouth marketing rose by 35.9 per cent last year to reach $981 million. This growth was some five times faster than the overall marketing services sector, which includes direct marketing, public relations and branded entertainment.

This year it is expected to grow by a further 37.7 per cent to $1.35 billion as brand marketers shift to alternative strategies and take advantage of word of mouth marketing to boost their return on investment.

PQ Media chief executive Patrick Quinn said: "Major brand marketers are moving from just testing word of mouth marketing to including it as a growing component of fully-integrated marketing campaigns."

Research shows that consumers are more likely to respond to word of mouth advertising than other forms of brand promotion because they believe those talking about the product or service have no ulterior motive, unlike a TV advert for example.

Types of word of mouth marketing include viral marketing, product seeding, influencer marketing, and brand blogging. The internet is increasingly being seen as a key tool in these strategies thanks to social networking sites like Facebook.
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