Word of Mouth, Direct Mail and Discounts

A former co-worker and I were discussing advertising over dinner recently. I was telling her about the folks in Second Life who set up an island where marketers aren’t allowed, and she said:

“People don’t want advertising. The only time it’s effective is when it advertises price.”

I concur, and so does the research from Joe Pilotta of BIG Research. Today he released the findings of a December study revealing which media most influences shopping. No surprise to see word of mouth ranking #3 at 29% behind coupons (38.7%) and newspaper inserts (34.9%). Even more not-so-surprising is that word of mouth is even more powerful when coupled with newspaper inserts and coupons.

Note: Apparently this new template, much like most coders who use standards, HATES tables. Scroll down, I’m hoping to have the bug fixed shortly.

People influenced by: Also influenced by Newspaper Also influenced by Coupons Also influenced by Word of Mouth
Coupons 57.1% 44.5%
Newspaper Inserts 63.3% 42.6%
Word of Mouth 51.4% 59.5%

Source: BIG Research

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