Advertising Age today announced marketers dedicate one billion dollars to Word of Mouth (WOM) advertising. Spending has increased from $76 million in 2001 to a whopping $981 million in 2006, and is expected to grow to $3.7 billion by 2011. WOM grew 35.9% in 2006 alone.
WOM has taken off as marketers have emphasized the ROI on viral marketing campaigns. Brands benefit from having their campaign spread through trusted networks of friends and family, because 78% of people trust recommendations from other consumers.
These numbers suggest WOM is here to stay, but measuring its ROI still remains elusive as brand marketers face the challenge to measure the “buzz” around campaigns.