In yet another example of how companies need to reconsider the way they market to consumers, the DM Bulletin has come up with an interesting ranking of sources consumers consider ‘trustworthy.’

Somewhat of a surprise is the ranking of celebrity endorsements.  It came in 14^th place, behind Government Departments (12^th) but one above leaflets dropped off at home (15^th).  This brings up the recurring theme of this blog; in what area should companies be spending their marketing budget?

Consumer watchdog groups and family and friend recommendations were ranked two and three on the list, respectively.  In essence, the most trustworthy sources are people you know, and people who are independent of any agenda.

How much is your company spending on those word-of-mouth recommendations?  No longer is this an abstract concept; it’s what could make or break your company’s bottom line.

Full story here

A recent article on the front page of the Companies & Markets section of the Financial Times headlined: Word of Mouth is new ads message.

Haven’t we been saying that all along?  Sometimes even the best newspapers in the world need time to catch up.  The article went on to point out that Starcom Mediavest, a company that advises others on how to advertise, has now developed a system that ‘can now track the word of mouth effect.’

Starcom Mediavest’s research has shown that the effect of conversations about brands and shows is even more important than previously thought.  Email and online connections increase the speed that information is passed on and shared, and plays a vital role in sales.

This isn’t a secret; what’s new is the emphasis being put on word-of-mouth advertising and the switch away from traditional advertising.  After all, when Starcom finds that 76% of people talk about at least one brand a day, shouldn’t your company tap into that market?