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Talk Outweighs Advertising

JANUARY 24, 2007

Being full of hot air may not be such a bad thing.

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First, a study released by BIGresearch, "Simultaneous Media Usage," confirmed what a number of earlier studies have found. More and more Americans are consuming media in bulk, not concentrating on any one medium at a time.

The poll of 15,000 consumers discovered that 68% of them use other media while watching TV, 69% while reading newspapers and 71% while online.

Select Media Activities of US Adults While Simultaneously Using Other Media, November-December 2006 (% of respondents)

At 57%, radio has the least amount of simultaneous media usage, probably due to the fact that many people listen to the radio while driving.

But when it comes to the question of which medium influences consumers most, the big advertising media all took a back seat to humble word-of-mouth (WOM), which may be far less manageable than conventional ad-supported media, but which also seems to be more effective.

"New digital options make it easier to give and receive options on products and services and it's no longer confined to one-to-one conversations," said Joe Pilotta of BIGresearch. "Online search, blogging, email, texting, video, streaming and social networks such as MySpace and YouTube have expanded the word-of-mouth universe and made traditional advertising less relevant for many."

WOM outperformed other media in two major product categories: electronics and automobiles.

Top Five Most Influential Media on Electronics Purchasing Decisions of US Adults, November-December 2006 (% of respondents)

Top Five Most Influential Media on Vehicle Purchasing Decisions of US Adults, November-December 2006 (% of respondents)

BIGresearch reports that 94% of consumers regularly or occasionally give advice about products and services they purchased and 91% regularly or occasionally seek advice about products and services before making a purchase.

For information on WOM, read eMarketer's E-Mail and Word-of-Mouth: Connecting with Your Best Customers report. 

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