According to a recent study done by PQ Media, spending on word-of-mouth marketing (WOM) hot 1.54 billion last year.
The research group is claiming that an additional 10.2 percent increase in WOM spending is forecast for this year. The firm also notes that WOM still comprises a small fraction of overall ad and marketing budgets.
What’s really worth noting is the fact that most traditional channels have seen spending slow during the economic downturn.
“Brands value and invest in w-o-m,” said Patrick Quinn, CEO of PQ Media, regarding the study. “Our research indicates that brands are allocating more their budgets to long-term w-o-m campaigns, executing effective online and offline activities that resonate with consumers and their core groups.”
Reaching consumers via online communities like Twitter, Facebook and MySpace has been an obvious priority for marketers beginning in 2008. According to the PQ Media study, spending increased 26 percent in those channels (to $19 million) last year and is expected to continue to rise. Obviously, the Social Network phenomenon plays well with WOM marketing and has helped these numbers spike.
