WOMMA 2010 - The Economic Value of Word of Mouth
33
Quantifying the Economic Value of Word of Mouth Conversations Julie Propper, ESPN Ed Keller, Keller Fay Group WOMMA Summit November 17-19, 2010
-
Upload
keller-fay-group -
Category
Business
-
view
1.315 -
download
1
Transcript of WOMMA 2010 - The Economic Value of Word of Mouth
Quantifying the Economic Value of Word of Mouth
Conversations
Julie Propper, ESPNEd Keller, Keller Fay Group
WOMMA Summit November 17-19, 2010
Why is WOM Important to ESPN?
Sports is a Key Driver of “Social Currency”
• Fulfills need to be “in the moment”– Enabled by media technology
• Ultimate engagement– Passion & Relevance
• Brand strength– Ultimate Navigator
• Fantasy sports has elevated the “conversation”
Sports Fans are a Growing Population that Consumes More Media Than Average
201
210
219 222
150
160
170
180
190
200
210
220
230
240
250
2002 2004 2006 2008
Source: ESPN Sports Poll, 2009/Knowledge Networks/SRI
10:07
8:57
7:12
7:26
7:40
7:55
8:09
8:24
8:38
8:52
9:07
9:21
9:36
9:50
10:04
10:19
Total U.S. ESPN Fans
Sports Fan Population
P12+ (in millions)
Media Hours per DayFall 2009
Word Of
MouthAdvertising
Marketing Plays a Big Role in Driving WOM
~ Half of consumer brand conversations refer to marketing or media
…led by advertising (22%)
Marketing and media are tools for encouraging WOM
Source: TalkTrack®, January 2008 – January 2009
Ad-influenced word of mouth
is 20% more likely to include
a strong recommendation to buy or try a product
+ 20%
Ad-Influenced WOM is More Powerful for Brands
Multiple Media Touch Points Contribute to WOM
Base: Brand conversations across all categories (n=155,999) Source: TalkTrack®, November 2007 – October 2008
(Top 5 advertising touch-points shown; % of word-of-mouth driven by media/marketing)
2.7%
3.4%
3.4%
6.7%
9.2%
Magazine Advertisement
Newspaper Advertisement
Internet Advertisement
Television Program
Television Advertisement
ESPN Viewers Are More Reliant on Advertising for WOM Topics
(% of WOM conversations citing marketing or media)
22%
28%
Advertising (TV, Online, Print…)
Total Public ESPN Male Viewers
Base: Brand Conversations (All Categories, n=158,841; ESPN Male Viewers, n=20,968)Note: Respondents are able to select up to two media/marketing references.Source: Keller Fay Group's TalkTrack®, January 2008 – January 2009
ESPN and Keller Fay: Measuring WOM Impact of NFL and CFB Sponsorships
• Measure offline and online word-of-mouth as an outcome of sustained advertising campaigns on ESPN
• Compare/contrast WOM impact of advertising on multiple platforms (TV, online, etc.)
• The research makes a persuasive case• Word-of-mouth is an important and measurable
outcome of advertising, extending the reach and value of advertising beyond the “first hand” audience
What We Have Learned
• Advertising on ESPN during CFB and NFL season generates substantial lift in word-of-mouth conversation about advertised brands
• The spike in conversation can be linked clearly and directly to the media plan
• Word-of-mouth is highest among dual users (ESPN TV and ESPN.com), which further supports the power of the cross platform strategy employed by ESPN on behalf of our advertisers
• Ad messaging does not end with the exposure. Engagement and share of mind continue
- WOM proves cumulative effect of integrated campaign
ESPN Audience WOM:Contains Stronger Recommendations
Male ESPN Viewers Had 3 Billion More Conversational Mentions of NFL Advertisers than Non-Viewers
(Projected total weekly brand conversations about 14 NFL advertisers)
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
2008
W/E
Aug
24
2008
W/E
Aug
31
2008
W/E
Sep
07
2008
W/E
Sep
14
2008
W/E
Sep
21
2008
W/E
Sep
28
2008
W/E
Oct
05
2008
W/E
Oct
12
2008
W/E
Oct
19
2008
W/E
Oct
26
2008
W/E
Nov
02
2008
W/E
Nov
09
2008
W/E
Nov
16
2008
W/E
Nov
23
2008
W/E
Nov
30
2008
W/E
Dec
07
2008
W/E
Dec
14
2008
W/E
Dec
21
2008
W/E
Dec
28
2009
W/E
Jan
04
2009
W/E
Jan
11
2009
W/E
Jan
18
2009
W/E
Jan
25
2009
W/E
Feb
01
Nu
mb
er o
f W
eekl
y W
OM
Men
tio
ns
ESPN Viewers/Users of ESPN Platforms ESPN Non-Viewers
Base: Brand mentions among male respondents during average 4-week period (ESPN Male Viewers, n=6,487; Male Non-Viewers, n=2,699)*Estimate excludes alcoholic beverages Miller and Coors.. Source: TalkTrack®, August 2008 – January 2009
From late August to January, Male viewers of ESPN had an additional 3
billion mentions of NFL advertisers, as compared to non-viewers.
ESPN Viewers Show Greater Brand Advocacy;CFB Sponsor A Receives Stronger Advocacy From
ESPN Fans
-10%
-7%
-20%
-16%
-6%
-15%
-11%
74%
79%
53%
62%
ESPN Viewers
College Football
Advertisers (Net)
Non-Viewers
ESPN Viewers
CFB Sponsor
A*
Non-Viewers
MixedNegative
Positive
Net Advocacy(Positive less mixed & negative)
35
18
72
58
Base: Brand Mentions among Males (ESPN Viewers/Non-Viewers Shown: College Football, n=853 / 385;, n=115 / 72)*Months of February – April 2009 were included in the analysis for Sponsor A, in an effort to provide stable base sizes. Source: TalkTrack®, CFB Advertisers Net August 2008 – January 2009; August 2008 – April 2009
Advertisers Want to Know More:
• Are we sure that WOM has impact on “listeners”? – Especially sales impact.
• More detail on how media impacts WOM
• Beyond talking about advertised brands, does the ESPN viewer carry more credibility?
• In short, what is the “social value” of our the ESPN viewers WOM?
New Research from ESPN and Keller Fay
• To answer these questions, ESPN engaged Keller Fay to undertake a new study with an innovative methodology• 4500 males were interviewed about recent WOM activity
• 3000 were part of ESPN audience• 1500 are “non audience”
• In addition, 750 “conversational partners” were interviewed
• What did they do as a result of the WOM• Online interviewing from October 29th – December 7th,
2009• Model to determine “social value” of WOM activity: ESPN
viewers vs. other males• Based on empirical data from the study• With Prof Barak Libai as consultant
In-Depth WOM Analysis in 3 Categories
RestaurantsMen’s & Sports/ Athletic Apparel
Technology/ Electronics
Key Findings
ESPN Audience: More Likely to Be WOM Influencers
Media Plays an Important Role in WOM Among ESPN Audience
Media Plays an Important Role in WOM Among ESPN Audience
ESPN Audience: More Apt To Be Early Adopters Within Social Circles
Following The Conversation From The ESPN Audience & Non-Audience to Their
Peers… Person 1 receives email invitation
and completes Survey A Person 1 receives email invitation
and completes Survey A
Person 2, 3, 4, etc., receives email invitation for Survey B
Person 2, 3, 4, etc., receives email invitation for Survey B
Person 1 provides email address of Person 2, 3, 4, etc.
Person 1 provides email address of Person 2, 3, 4, etc.
ESPN Audience: 23% Wider Reach for WOMESPN Audience:
12.2 Average WOM ReachNon-Audience
9.9 Average WOM Reach
Word of Mouth Reach:(Three Category Average)
Generation 1: 3.6 people
ESPN Audience:
1 person
Generation 2: 8.6 people
Word of Mouth Reach:(Three Category Average)
Generation 1: 3.2 people
Non- Audience:
1 person
Generation 2: 6.7 people
ESPN Audience WOM Leads to Purchases
ESPN Audience’s Peers Spend More & Talk About More Expensive Items
+23%
+28%
+80%
ESPN Audience and Their Peers:More Early Adopters
For ESPN Audience, Sports are Social,Commercials Drive Conversation
ECONOMIC VALUE OF INFLUENCERS STEMS FROM THE FOLLOWING:
Calculating the Economic Value of WOM
A) Probability of person to be affected by television (Reliance on Television)
B) Number of conversations they have about products (Volume of
Conversation)
C) Persuasiveness of readers word of mouth (Credibility & Persuasiveness)
D) Expected profitability of their friends (Profitability)
Volume of Conversation
Credibility & Persuasivene
ss
ProfitabilityReliance on Television
Credibility & Persuasivene
ss
2.9more WOM value to marketers: ESPN viewers vs. non-viewers
ESPN Viewers Deliver More $$’s to the Bottom Line
Volume of Conversation
ProfitabilityReliance on Television
How Does That Translate to the Bottom Line?
$100AverageMale
ESPNMales
$100 $100$100
Conclusions• There is a substantial social value associated with media audiences,
based on the degree to which the audience engages in word of mouth, relies on advertising for WOM advice, and has the ability to persuade an attractive audience of "peers.“
• A survey of these "peers“ on the receiving end of word of mouth provides compelling evidence of the persuasive power of word of mouth, and also of its impact on purchasing.
• Sports audiences generally, and the ESPN audience specifically, contain larger numbers of consumer influencers who rely on advertising to inform the advice they give.
• This research provides marketers even more evidence of the power of word of mouth, and of the ability of television and other media to stimulate conversations that occur during, and after, exposure.
• The model provides a unique way to reinforce the message that WOM is not just “nice to have,” but drives bottom line impact via “social value.”
