(c) 2006 Word of Mouth Marketing Association.

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A Word of Mouth Media Plan
Joe Pilotta PhD, VP of Research / BIGresearch
Don Schultz PhD, Northwestern University
Martin Block PhD, Northwestern University
Media Consumption &
Consumer Purchasing
Slide 3
Where Were We?
1st study launched in 2002
Over 10,000 respondents
9th study in field/average 15,000
respondents
Slide 4
Today
Media Consumption Clusters
Experiential time by day part (ET)
Simultaneous media usage (SIMM)
Media influence on purchase decision by
product line and retailer. Influential
Engagement (IE)
Slide 5
SIMM Database
8 Survey = 115,000 observations
33 Media
12 In-store Media
35 Leisure Time Activities
8 Major Product Categories
37 Products
266 Retailers
39 Automotive Brands
50+ Cable TV Channel
15 TV Formats
17 Radio Formats
5 Newspaper Categories
50 Magazine Titles
5 Day Parts
12 Search Engines
35 Websites
10 Video Game Platforms
12 Disease States
23 Present and Future Spend
Questions
13 Demographics
14 Age & Sex Cells
Weight to US census:
Automatic cross tabs and simultaneous balancing:
From field to client 10-15 days
Verbatim/object recognition software
Nationally projectable sample:
Predictive
Slide 6
Consumer Centric Elements
Holistic: Methodological: a.) Reciprocal relations between
parts and potency. b.) How things hang together;
coherence, continuity, potency.
Media: a selective embodied source of expression and
perception.
Influence: Generalization of acceptance or inclination to
carry out some action creating chains of linkage and
expectations.
Consumption: An appropriation; a bodily investment of
time, money, knowledge, information, trust and taste.
Slide 7
WOM Concepts Deployed
Relay: The receiver redistributes the
WOM
Propensity: The likelihood a consumer
will take action
Topicality: Degree that the marketing
message is contained in the WOM Unit
Credibility: Ability to impact the
behavior or opinions of others
Slide 8
WOM Dynamics
WOM
Face to Face, Email, IM, Text Message, Picture
Phone, Blogging, Etc
Key Features
Ephemerality
Recursive and incursive relays
Audial structure vs. visual
Speech paradigmatic / syntagmatic / context
How and what is said?
Slide 9
First Defining Variable
Experiential Time
Usage is for an average hour across
dayparts for weekdays and weekends,
expressed as a probability (could be
multiplied by 1440 to estimate overall
average minutes)
Slide 10
Second Defining Variable
Media Influence
Influence is the average score of each
media for purchasing across eight
product categories
Slide 11
Third Defining Variable
Networking or Simultaneous Usage
Averaged across all pairs of
simultaneous usage (both foreground
and background)
Regularly consume simultaneously
assumed to be 70%, occasionally 30%
of the time
Slide 12
8 Clusters Based on Media Consumption
Old School High mass media (TV, magazines, newspaper) influence and low in search
media (online). Average overall media consumption and simultaneous usage.
Active Explorers High promotion (inserts, coupons, direct) and search media influence
media consumption.
New Mediacs Low mass media and promotional media influence. High electronics media
consumption. Low print consumption.
Simultaneous Readers Average overall media influence. High network simultaneous usage.
High Print Consumption
Independents Average search media influence. Low media consumption.
Ravenous High overall media influence. High network, print and electronic consumption.
Persuadables High mass and search media influence. Average promotional media
influence.
Opportunity Minded High promotional influence. Average to low media consumption.
Slide 13
Experiential Time Factor
Average Hour Across Dayparts
0.006 0.037 0.034 0.030 0.047 0.087 0.091 Total
0.004 0.041 0.036 0.038 0.051 0.071 0.090 Oppty.
Minded
0.008 0.044 0.044 0.034 0.059 0.105 0.107 Persuad.
0.026 0.070 0.089 0.057 0.097 0.229 0.211 Ravenous
0.003 0.026 0.017 0.019 0.031 0.043 0.055 Indpts.
0.014 0.071 0.091 0.075 0.083 0.123 0.130 Simult.
Readers
0.006 0.029 0.026 0.015 0.045 0.155 0.123 New
Mediacs
0.008 0.044 0.040 0.035 0.052 0.109 0.097 Active
Explorer
0.005 0.037 0.037 0.029 0.053 0.096 0.103 Old
School
Satellite Direct Mail Magazines
News-
paper
Radio Internet TV Clusters
SOURCE: BIGresearch SIMM8 - 2006
Slide 14
Experiential Time Factor
Average Hour Across Dayparts Cont.
0.062 0.036 0.006 0.031 0.085 0.009 Total
0.059 0.012 0.002 0.020 0.080 0.004 Oppty.
Minded
0.079 0.039 0.009 0.040 0.101 0.012 Persuad.
0.165 0.142 0.029 0.111 0.188 0.043 Ravenous
0.038 0.010 0.002 0.013 0.052 0.004 Indpts.
0.116 0.027 0.013 0.048 0.123 0.019 Simult.
Readers
0.062 0.108 0.009 0.056 0.118 0.011 New
Mediacs
0.073 0.031 0.009 0.043 0.104 0.013 Active
Explorer
0.064 0.040 0.006 0.033 0.093 0.007 Old School
All Radio Games Blog IM E-mail Web Radio Clusters
SOURCE: BIGresearch SIMM8 - 2006
Slide 15
Influence Media
Percent across 8 Media Consumption Categories
11.73 7.03 8.10 12.14 22.92 17.04 17.04 23.31 10.47 17.32 Total
9.86 3.72 6.34 6.50 42.50 28.10 17.08 39.17 8.36 25.97
Oppty.
Minded
37.93 32.59 31.73 45.27 32.48 31.46 40.28 30.87 29.42 31.30
Persuad.
28.15 18.26 18.89 27.97 39.66 30.90 35.94 41.47 20.79 33.49
Ravenous
4.98 2.96 3.88 6.37 8.75 7.07 8.42 11.20 5.83 8.10 Indpts.
11.83 6.17 7.64 10.89 22.25 18.72 18.20 23.24 10.28 15.55
Simult.
Readers
5.95 3.50 4.03 9.75 11.28 6.85 10.47 15.69 6.56 10.24 New
Mediacs
26.25 28.52 35.86 61.27 46.51 42.44 42.42 51.43 61.94 51.84
Active
Explorer
27.93 10.83 7.92 9.20 35.29 29.63 33.49 26.28 5.59 20.53
Old
School
Radio
Out of
Door
Yellow
Pages
Internet Inserts Newspaper Magazines Coupons Email
Direct
Mail
Clusters
SOURCE: BIGresearch SIMM8 - 2006
Slide 16
Influence Media
Percent across 8 Media Consumption Categories Cont.
1.97 2.23 1.74 16.90 18.87 33.40 14.81 24.82 1.94 2.44 Total
0.74 0.90 0.62 23.60 23.25 40.38 7.42 21.67 0.78 1.00 Oppty.
Minded
6.02 6.98 5.27 36.78 42.29 61.21 54.44 68.60 6.36 8.84 Persuad.
8.04 9.37 7.96 40.37 39.06 57.27 40.56 55.28 8.98 8.92 Ravenous
1.03 1.16 1.01 5.89 8.41 17.95 4.19 10.26 1.15 1.55 Indpts.
2.65 2.99 2.46 16.42 20.78 32.40 11.42 21.27 2.59 3.22 Simult.
Readers
1.72 1.71 0.87 10.42 12.22 28.94 6.82 14.44 1.09 1.24 New
Mediacs
7.94 8.70 7.45 32.90 39.19 55.54 20.54 36.86 6.47 8.01 Active
Explorer
1.32 1.72 1.31 32.27 33.46 57.95 61.57 75.79 1.47 2.18 Old
School
Blog IM
Picture
Phone
In-Store
Read an
Article
Word of
Mouth
Cable TV
Web
Radio
Satellite
Radio
Clusters
SOURCE: BIGresearch SIMM8 - 2006
Slide 17
Word of Mouth Influence
100.0 33.4 All
20.9 40.4 Opportunity Minded
5.1 61.2 Persuadables
3.9 57.3 Ravenous
37.6 18.0 Independents
6.8 32.4 Simultaneous Readers
14.4 28.9 New Mediacs
3.4 55.5 Active Explorer
7.9 58.0 Old School
Percent
Market total
Percent
WOM Influence
SOURCE: BIGresearch SIMM8 - 2006
Slide 18
Seek advice from others before buying?
10.2 75.1 14.8 All
6.8 82.1 11.1 Opportunity Minded
6.5 76.6 16.9 Persuadables
6.2 76.6 20.2 Ravenous
14.3 72.4 13.3 Independents
9.7 76.0 14.4 Simultaneous Readers
10.0 70.4 19.3 New Mediacs
8.4 74.1 17.5 Active Explorers
5.9 76.5 17.7 Old School
Never Occasionally Regularly
SOURCE: BIGresearch SIMM8 - 2006
Slide 19
Give Advice to Others?
5.8 67.1 27.1 All
3.8 73.7 22.5 Opportunity Minded
2.1 63.4 34.6 Persuadables
3.5 52.4 44.0 Ravenous
9.6 69.5 20.9 Independents
5.0 67.9 27.1 Simultaneous Readers
4.4 61.1 34.5 New Mediacs
2.5 60.7 36.7 Active Explorers
2.0 61.9 36.0 Old School
Never Occasionally Regularly
SOURCE: BIGresearch SIMM8 - 2006
Slide 20
Men Who Regularly Give Advice -
Electronics
2.8 13.9 24.2 4.1 10.9 5.3 16.6 4.1 Web Radio
5.4 15.4 18.9 5.6 10.6 4.7 28.1 4.0 Satellite Radio
16.7 51.7 44.5 15.2 21.6 14.2 47.3 36.9 Radio
3.7 28.9 19.2 3.0 3.6 5.9 34.6 9.4 Outdoor Billboards
6.3 26.4 18.5 5.0 7.7 4.1 28.2 2.9 Yellow Pages
29.2 82.2 63.9 29.4 37.0 47.9 71.6 30.6 Internet Advertising
60.9 38.3 58.0 17.1 25.7 19.2 46.3 41.7 Newspaper Inserts
37.6 32.2 41.4 13.4 29.2 13.7 43.5 31.7 Newspaper
42.5 70.1 81.9 28.1 43.1 49.6 61.9 67.1 Magazines
38.3 28.7 55.8 11.4 29.6 21.5 58.0 27.5 Coupons
30.3 58.7 46.6 20.6 26.2 25.3 87.0 13.0 Email Advertising
29.3 39.8 51.2 15.2 18.7 18.0 67.9 21.2 Direct Mail
Opportunity
Minded
Persuadables Ravenous
Indepen-
dents.
Simult.
Readers
New
Mediacs
Active
Explorers
Old
School
SOURCE: BIGresearch SIMM8 - 2006
Slide 21
Men Who Regularly Give Advice
Electronics Cont.
4.7 13.2 18.1 3.1 8.7 6.9 20.8 4.5 Blogging
2.3 11.2 15.1 3.8 10.2 4.7 15.5 5.9 Instant Messaging
1.7 9.0 10.3 2.5 5.8 3.1 15.4 3.3 Picture Phone
37.3 56.3 65.4 13.1 27.5 27.1 47.0 48.6 In-store Promotion
49.3 68.8 66.7 29.4 56.2 46.6 53.4 60.1
Read Article on
Product
59.6 77.6 75.3 37.6 52.3 58.2 67.9 73.5 Word of Mouth
18.4 61.0 61.0 10.9 27.7 20.1 44.6 76.5 Cable
35.3 78.1 76.6 19.7 35.9 28.3 58.1 87.4 TV/Broadcast
Opportunity
Minded
Persuadables Ravenous
Indepen-
dents.
Simult.
Readers
New
Mediacs
Active
Explorers
Old
School
SOURCE: BIGresearch SIMM8 - 2006
Slide 22
Women Who Regularly Give Advice -
Electronics
2.5 9.6 23.7 7.9 7.5 5.9 12.5 2.0 Web Radio
2.5 14.2 27.1 7.9 10.8 6.4 13.2 3.8 Satellite Radio
11.9 39.7 44.7 13.2 25.7 12.1 37.3 36.9 Radio
4.9 39.5 26.4 7.1 9.1 4.5 32.8 8.8 Outdoor Billboards
8.4 35.6 24.0 9.4 5.9 5.7 42.1 4.4 Yellow Pages
16.8 59.6 46.4 22.0 26.9 22.0 76.5 25.5 Internet Advertising
50.2 41.1 49.9 23.0 27.2 23.4 62.3 47.7 Newspaper Inserts
27.6 29.1 37.2 12.7 21.0 10.2 54.3 32.1 Newspaper
16.6 44.0 47.9 17.6 21.2 23.9 55.5 43.3 Magazines
35.3 32.3 56.5 13.4 19.5 26.6 59.0 27.8 Coupons
16.0 48.9 37.3 20.0 17.1 24.5 81.4 9.2 Email Advertising
25.9 38.3 41.6 16.9 25.5 22.4 65.6 24.6 Direct Mail
Opportunity
Minded
Persuadables Ravenous
Indepen-
dents.
Simult.
Readers
New
Mediacs
Active
Explorers
Old
School
SOURCE: BIGresearch SIMM8 - 2006
Slide 23
Women Who Regularly Give Advice
Electronics Cont.
3.3 14.8 28.3 5.0 7.7 5.6 16.3 3.3 Blogging
6.0 17.6 26.8 5.4 4.1 10.6 12.5 0.9
Instant
Messaging
4.0 10.1 24.9 6.0 4.0 6.5 15.3 3.1 Picture Phone
41.3 64.0 56.9 20.1 27.6 21.1 46.2 49.7
In store
Promotion
46.7 57.4 62.7 28.8 36.8 28.0 50.7 51.3
Read Article on
Product
63.7 78.4 79.5 40.3 48.1 44.9 67.8 69.6 Word of Mouth
11.3 71.2 47.4 15.4 11.8 17.4 30.7 67.5 Cable
33.7 78.2 70.4 24.5 37.6 34.3 47.6 80.6 TV/Broadcast
Opportunity
Minded
Persuadables Ravenous
Indepen-
dents.
Simult.
Readers
New
Mediac
s
Active
Explorers
Old
School
SOURCE: BIGresearch SIMM8 - 2006
Slide 24
Influencers
T.V.
Word of Mouth
Read an Article
New Mediacs Independents
Coupons
Email Ads
Magazine
Newspaper Inserts
Internet Advertising
Email / Ads
Slide 25
New Mediacs Independents
6-10 a.m. Send Email / IM / IPOD Radio (Sirius)
Surf the net / IM / IPOD Read and Send email / cell phone
Watch TV / Cell phone
Radio / Online
10-12 p.m. Read / Send email / IPOD / IM Read / Send email / IPOD
Surf Internet / IPOD / IM Surf Internet / IM
Watch TV (TIVO)
12-4:30 p.m. Surf Internet / IM / IPOD / Cell Read / Send email / IM / IPOD
Read / Send email / IM / IPOD / Cell Surf Internet / IM
Watch TV (TIVO) / Cell phone
4:30-7:30 p.m. Surf Internet / IPOD Read / Send email / IPOD
Watch TV (TIVO) / Cell phone Surf Internet / IM
Read / Send email / IM
Video Gaming
7:30-11:00 p.m. TV / IM / IPOD / Cell Phone Read / Send email / IPOD
Send/Read email / IM / IPOD /
Cell phone
Surf Internet / IM / IPOD /Cell phone
Video Gaming
11:00 p.m-6 a.m. Watch TV (TIVO) Read / Send email
Read / Send email / IM
Surf Internet
Media Plan Men Electronics
Slide 26
BIGresearch ROI Analysis
BIGresearch SIMM
WOM Media Consumption Center
WOM Merchandise Category
WOM Retail Channel
WOM Media Influence
WOM Simultaneity
WOM Day Parts
Number of Stores
Open / Close
Company Historical Advertising &
Spend by Media Channel
Company Historical Sales by
Category
INPUT ANALYSIS OUTPUT
Seasonal
Adjustment,
Time Period,
Analysis, Etc.
Future Returns,
ROI
Slide 27
How WOMMA / SIMM is Used:
Measure complex media consumption with simultaneous media usage
Anticipate influence of synergistic effect through probability and
catalytic effects.
Inspire ROI through our front end media/purchase analysis, utilizing
synchronic data.
Know which retail channels are the most important of media marketing
by products, category; Wal-mart 1st choice is groceries, Wal-mart 1st
choice is HBA
Track target groups by cluster or within their cluster holistically and
synchronistically e.g. high value.
Utilize common metrics across the spectrum
Slide 28
WOM ROI Key
Focus on the consumer: their media
consumption, needs, taste, preferences,
and constraints and accelerators on
purchases
Strategic as well as tactical
What if becomes Will be
Continuous course with real time
anticipation of whats next
Slide 29
What Next
Determining the Value of the WOM
Networks and Relays
Determining the Growth of the WOM
Network (SIMM applied to Metcalfe &
Reeds Law)
Real Time Thematic Analysis of all
natural language visually and / or
audibly tied to consumer purchasing
and media consumption (proprietary)