David Ogilvy wasn't kidding around when he said, "Half my advertising works, I just don't know which half."
Today, as in Mr. Ogilvy's pioneering days, marketers are looking for the right message and medium to get consumers to buy their products and shop at their stores.
A new study conducted for the Retail Advertising and Marketing Association (RAMA) by BIGresearch, explores how different forms of advertising influence consumer shopping during the Christmas holiday season.
The single most effective form of advertising, according to the research, is word-of-mouth. Forty-one percent said they were most influenced by what others said. They also said that, when it came to word-of-mouth, they were not only influence by family, friends and co-workers, but complete strangers posting reviews on web sites. When it came to consumer electronics, 33 percent said articles and product reviews influence their decision to purchase.
"With the strong influence that product reviews and word of mouth are making in buying decisions, it's no wonder that many retailers are exploring viral marketing to attract customers this holiday season," said RAMA executive director Mike Gatti in a press release. "By promoting merchandise using the vast array of communication vehicles available, retailers are sure to see increased traffic both in their stores and on their Web sites."
In addition to the word-of-mouth and product reviews, more traditional advertising media are effective in attracting customers looking to purchase electronics. Nearly an identical amount said they looked to newspaper inserts (27.7 percent) and online advertising (27 percent) before buying consumer electronics.
When it came to holiday clothing purchases, word-of-mouth was king with 31.4 percent relying on what others had to say before going out to buy. Newspaper inserts (31.4 percent), direct mail pieces (21.9 percent) and coupons (20.7 percent) also played a role in attracting shoppers.
As might be expected, the research shows older adults are more attuned to traditional media vehicles, such as TV, radio and newspapers. Younger adults made greater use of newer technologies.
Slightly fewer than 70 percent of those between 18 and 35 regularly use a cell phone, 37.9 percent use instant messaging on a regular basis and nearly one-in-three uses an MP3 player. Consumers in this age group are also adept in avoiding advertising. Nearly 23 percent use Digital Video Recording, enabling them to watch broadcast content without having to watch the commercials.
"Retailers need to be aware of how consumers are receiving information about specials, sales and promotions," said Phil Rist, vice president of strategy at BIGresearch. "By offering shoppers multiple vehicles to receive their information, retailers essentially increase their odds of winning that customer over."
Discussion Questions: What do you see as the implications of the Retail Advertising and Marketing Association/BIGresearch study findings? Do you see any new media techniques gaining ground this holiday season?