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The (sponsored) word on the street The (sponsored) word on the street
(20 minutes later)
Over 80% of people trust word of mouth By Denise Winterman BBC News Magazine Word-of-mouth marketing, the latest advertising boom in the US, is coming to Britain. Would you be prepared to slip a casual product endorsement into a cosy chat with friends?Over 80% of people trust word of mouth By Denise Winterman BBC News Magazine Word-of-mouth marketing, the latest advertising boom in the US, is coming to Britain. Would you be prepared to slip a casual product endorsement into a cosy chat with friends?
An average we are bombarded by over 3,000 marketing messages a day. From Coronation Street to school sports' day, nearly everything is sponsored by one company or another. On average we are bombarded by over 3,000 marketing messages a day. From Coronation Street to school sports' day, nearly everything is sponsored by one company or another.
But just 14% of regular campaigns now have any effect, according to Marketing Week. The media is too cycnical and media savvy to buy into marketing messages anymore. But just 14% of regular campaigns now have any effect, according to Marketing Week. We are too cycnical and media savvy to buy into marketing messages anymore.
"Consumers are now in control, brand lost the advertising fight," says Tom Himpe, author of Advertising Is Dead, Long Live Advertising! One of the most natural thing we all do is speak about what we've bought and seen Rani Schlenoff onClick="javascript:newsi.utils.av.launch({storyId:6495269, fileLoc: '/player/nol/newsid_6490000/newsid_6495200/', bbram: 1,nbwm: 1,nbram: 1,bbwm: 1});return false;" href="http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6490000/newsid_6495200?redirect=6495269.stm&news=1&bbram=1&nbwm=1&nbram=1&bbwm=1">Hear Rani pitch "Consumers are now in control, brands have lost the advertising fight," says Tom Himpe, author of Advertising Is Dead, Long Live Advertising!
"Consumers are no longer passive and the internet means they can make their moans on a global scale. It's a vulnerable position for brands.""Consumers are no longer passive and the internet means they can make their moans on a global scale. It's a vulnerable position for brands."
It's a situation that has forced advertising to go back to basics - word of mouth. It has always been the industry's Holy Grail, the only question was how to harness it. It's a situation that has forced advertising to go back to basics - word of mouth. It has always been the industry's Holy Grail.
Cue word-of-mouth marketing (WOM). It's when people - called agents, ambassadors or transmitters - are sent new products by companies to try out and tell their family and friends about. It can be anything from mobile phones to sausages. "Advertisers have always been fascinated with word of mouth," says Joe Chernov, CEO of BzzAgent and co-founder of Word of Mouth Marketing Association (Womma). "It just been a case of how to harness it."
Which is where word-of-mouth marketing (WOM) steps in. It's when everyday people - called agents, ambassadors or transmitters - are sent new products by companies to try out and tell their family and friends about. It can be anything from mobile phones to sausages.
'Social currency'
Companies are at pains to point out it is not stealth, buzz or viral marketing. Agents have to disclose that they are involved in a marketing campaign.Companies are at pains to point out it is not stealth, buzz or viral marketing. Agents have to disclose that they are involved in a marketing campaign.
They are not scripted, what they say doesn't have to be positive and they are not paid, but do get to keep the products. They also get what the industry calls "social currency" - the thrill of being the first to try something new.They are not scripted, what they say doesn't have to be positive and they are not paid, but do get to keep the products. They also get what the industry calls "social currency" - the thrill of being the first to try something new.
"That's the beauty of word of mouth, it's raw, real, direct and genuine," says Mr Himpe. "It is the consumer talking, not the brand.""That's the beauty of word of mouth, it's raw, real, direct and genuine," says Mr Himpe. "It is the consumer talking, not the brand."
It's already a big in the US. according to Word of Mouth Marketing Association (Womma) 47% of the Fortune 500 are adopting WOM programmes in 2007. It's already massive in the US. According to Womma 47% of the Fortune 500 companies are adopting WOM programmes in 2007.
Now it is coming to the UK. One of the leading companies in the US, BzzAgent, is joining forces with advertising company GroupM UK on Tuesday to form what is said to be the first WOM company based in the UK. Teenagers are more brand aware
"Advertisers have always been fascinated with word of mouth," says Joe Chernov, CEO of BzzAgent and co-founder Womma. Now it is coming to the UK. One of the leading companies in the US, BzzAgent, is joining forces with advertising company GroupM UK to form what is said to be the first WOM company based in the UK.
"it just been a case of how to harness it." But who get involved? It's easy to see why people would sign up to getting the latest mobile phone but usually the products are far less exciting. That doesn't seem to put people off.
It's easy to see why people would sign up to getting the latest mobile phone but usually the products are far less exciting. That doesn't seem to put people off. In the US people are signing up to BzzAgent at the rate of 5,000 a week. It boasts a network of over 250,000 agents. Before the company even launched in the UK over 160 people had been in contact about joining.
In the US people are signing up to BzzAgent at the rate of 5,000 a week. It boasts a network of over 250,000 agents. Before the company even launched in the UK over 160 people had been in contact about signing up.
Rani Schlenoff is a BzzAgent ambassador in the US and has tried and tested over 18 products, including toothbrushes and candy bars.Rani Schlenoff is a BzzAgent ambassador in the US and has tried and tested over 18 products, including toothbrushes and candy bars.
"One of the most natural thing we all do is speak about what we've bought and seen," she says. "I'm a talker naturally, so this was right up my alley. "One of the most natural thing we all do is speak about what we've bought and seen," she says. "I'm a talker naturally, so WOM was right up my alley.
Ethics
"My family and friends love hearing about what I'm trying. As for strangers, after the initial shock of me injecting myself into their lives, they are usually very happy to hear what I have to say.""My family and friends love hearing about what I'm trying. As for strangers, after the initial shock of me injecting myself into their lives, they are usually very happy to hear what I have to say."
But doesn't the fact businesses are involved corrupt the message? Not according to research by Professor Walter J. Carl, from Northeastern University in Massachusettes.But doesn't the fact businesses are involved corrupt the message? Not according to research by Professor Walter J. Carl, from Northeastern University in Massachusettes.
It found 75% of people didn't care an agent was affiliated with amarketing organistion, what mattered was that they trusted them, believed they were providing an honest opinion and had their best interests at heart.It found 75% of people didn't care an agent was affiliated with amarketing organistion, what mattered was that they trusted them, believed they were providing an honest opinion and had their best interests at heart.
in fact, information was spread further by word of mouth when an agent did disclose their affiliation than when they did not. In fact, information is spread further by word of mouth when an agent does disclose their affiliation rather than when they do not.
But there issues surrounding the industry. Firstly, the ethical question. Agents are asked to disclose their part in a marketing campaign, but how do we know they do? WHO'S USED WOM AOLVWSonyNestleRalph Lauren But there are grey areas in the industry. Firstly, the ethical question - isn't it, well, just a bit sneaky? Agents are asked to disclose their part in a marketing campaign, but how do we know they do?
A code of ethics has been drawn up by Womma, but the industry is basically self-regulating as the Advertising Standards Agency has no rules or guidelines when it come to WOM.A code of ethics has been drawn up by Womma, but the industry is basically self-regulating as the Advertising Standards Agency has no rules or guidelines when it come to WOM.
Also where does spontaneous word of mouth end and manipulated opinion start?Also where does spontaneous word of mouth end and manipulated opinion start?
"It's such a fine line," says Mr Himpe. "But when word of mouth is influenced even slightly it is no longer genuine. " "It's such a fine line," says Mr Himpe. "But when word of mouth is influenced even slightly it is no longer genuine."
And isn't it, well, just a bit sneaky? Some people would see it is selling out. That is often just an age thing, says Mr Himpe. Some people would view it as selling out. Time with family and friends is sacred and the thought of big business muscling its way in is very unpallatble. That is often just an age thing, says Mr Himpe.
"For some it would definitely feel like selling your soul, but they are usually older people. Youngsters today have a very different relationship with brands, they are an accept part of their lives in a way they never been in previous generations." "For some it would definitely feel like selling your soul, but they are usually older people. Youngsters today have a very different relationship with brands, they are an accept part of their lives in a way they have never been in previous generations."
But companies should get too complacent, it not all good. According to research a good message is passed on to five people on average but a negative one goes out to 10... a with more passion. But companies shouldn't get too excited, it not all good. According to research a good message is passed on to five people but a negative one goes out to 10... and with more passion.