ADM 2320 Lecture Notes - Lecture 15: Viral Marketing, Ad Blocking, Instant Messaging
Chapter 15
Terms
• Marketing: satisfying market needs through the commercialization of products and
services
• Mass marketing: satisfying widespread market needs with standardized mass-produced
products and services
• Mass media advertising: the promotion of a company or its products and services in
media with large audiences: newspapers, magazines, cinema films, radio, television, and
the Web
• Viral marketing: a persuasive message designed to spread, typically online, from person
to person
• Buzz and word or mouth marketing: initiatives deigned to get people and the media
taking positively about the company, product or service
• Connected marketing: umbrella term for viral, buzz and word of mouth marketing
The Death of Mass Marketing
• 18%: proportion of TV advertising campaigns generating positive ROI
• 256%: increase in TV advertising costs (CPM) in the past decade
• 90%: proportion of people who can skip TV ads who do skip TV ads
• 117%: number of prime time TV spots in 2002 needed to reach 80% of adult population
• 3000: number of advertising messages people are exposed to per day
• 56%: proportion of people who avoid buying product from companies who they think
advertise too much
Word of Mouth Today
• 76%: consumer say that word of mouth is the main influence on purchasing decisions
(2004 UK study)
• 92%: americans say world of mouth is preferred source of product information
• 10: number of times word of mouth is more effective than TV or print advertising
• Word of mouth is credible and cost effective
• 1/3: americans believe world of mouth is now more important in influencing their
purchases than it was three years ago (2002 US study)
• 50%: increase of the influence of word of mouth
• Key points:
o New people communications technology: blogs, instant message, mobile
telephones, email, online reviews (reach and utility)
o Increased marketing literacy: people increasingly dismiss traditional marketing
campaigns as biased propaganda
o Acute advertising clutter: more difficult for traditional marketing campaigns to
“break through” and capture people’s attention
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find more resources at oneclass.com
o Accelerating media fragmentation: more channels, more media making it harder
for advertisers to reach their target markets through traditional campaigns
o Ne ad blocking technology: empowering people to skip, stop or avoid unwanted
advertising campaigns
Myth vs Reality
• Myth: “magic bullet” model of marketing influence
• Reality: “two step” flow model of marketing influence
find more resources at oneclass.com
find more resources at oneclass.com