Word of Mouth Launches and Controversy

Last week saw the launch of two agencies offering word-of-mouth (WOM) marketing research, Keller Fay and me2u marketing. Meanwhile, the US Federal Trade Commission (FTC) is investigating complaints that some WOM marketers are misleading consumers.

Keller Fay Group
Ed Keller and Brad Fay were previously CEO and MD of MR agency Roper ASW (now part of GfKNOP). Keller is also author of Influentials: How 1 in 10 Americans Tells the other Nine How to Vote, Where to Eat, and What to Buy.

Keller explains the thinking behind the new company as follows. 'We believe that word of mouth research must now extend beyond what is being said on blogs and in chat rooms. At least 80% of word of mouth is now taking place face to face, on the phone and via other forms of person-to-person communication'.

The new company's TalkTrack system aims to measure all marketing-related conversations and 'buzz' about brands. Media network Starcom MediaVest Group, which represents Coca Cola, Kraft, Kellogg's, Procter & Gamble and General Motors, is the first major subscriber to TalkTrack.

Richard Fielding, Starcom's Director of Insight, Research & Accountability, says he appreciates the new company's 'passion to measure all forms of word-of-mouth communication, from online to off-line, and the passion to thoroughly explore this communication medium, so that we can capitalise on untapped marketing channels'.

me2u marketing
me2u marketing, a new division of communications firm Conkling Fiskum & McCormick, aims to provide WOM research and marketing services for consumer products, business-to-business goods and services, and public affairs activities.

The new company offers research services to assess the opinions and behaviours of customers. As part of this assessment, it looks at who is talking, what they are saying, and identifies 'trusted communicators' - those who are willing to share opinions and whom others listen to and trust.

Based on initial findings, the company will create a word of mouth marketing plan, which includes targeting the trusted communicators. Erika Simms, the company's Consumer Specialist, explains: 'We don't pay people to talk. We do share information with trusted communicators so they will continue to talk about products and services they like in an honest, candid way.'

Tom Eiland, Project Leader, states: 'Successful marketing isn't about creating word of mouth conversations. You can't put words in someone's mouth. Rather, it's about learning how to make existing word-of-mouth opinions work within a distinct marketing objective'.

Both companies announced their launches at last week's Word of Mouth Marketing Association event.

FTC investigation
The launches come as the FTC Bureau of Consumer Protection's Division of Advertising Practices is investigating complaints from consumer watchdog group Commercial Alert that word-of-mouth marketers are 'deceiving consumers by failing to disclose that they are paid endorsers' of brands and products.

Commercial Alert wants word-of-mouth campaigners to disclose affiliations, something that is already demanded by the ethics code of the Word of Mouth Marketing Association (WOMMA).

Interestingly, studies also show that disclosure of affiliation can improve the outcome of word-of-mouth campaigns. According to a study from the Department of Communication Studies at Northeastern University, the pass-along/relay rate (the number of people a participant tells after speaking with a word-of-mouth marketing agent) increased when the participant was aware that they were talking to a member of a word-of-mouth marketing team.

The new companies' web sites are at www.kellerfay.com and www.me2umarketing.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.