As a first step toward establishing universal metrics for word of mouth advertising, the 6-month-old Word of Mouth Advertising Association has released a terminology framework defining standard terms to be used in discussing and measuring word of mouth advertising efforts.
Word of mouth advertising is increasingly viewed as an important complement to traditional media, notes the report, but “the lack of consistent measurement tools has made it extremely difficult to allocate budgets or plan campaigns using these techniques.” While word of mouth advertising crosses all mediums, the Internet—including blogs, user groups, ratings and review pages and other forms of consumer-generated media—has had unique impact in two respects, according to a Word of Mouth Advertising Association spokesman. It’s exponentially increased the spread of person to person communication about brands and products, and it’s a vehicle that leaves a footprint which can be measured.
The draft framework defines terms used to describe the activities of word of mouth advertising, covering areas such as “participants,” in which "creator," "sender" and "receiver" each play a role in completing a “WOM episode.” From a marketing perspective, defined outcomes of WOM episodes include “conversions,” which is defined as when a receiver completes a desired action after “consuming” a WOM unit.
The terminology framework seeks to provide a common language that brand marketers and media companies can use to describe, buy and measure word of mouth advertising. The framework, according to the association, “will continue to evolve as the industry evolves.” Among other future efforts, the group will seek to identify research methodology for measuring WOM impact online and offline, according to the spokesman.
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