Public Relations & Social Marketing Insight

Greg Daniel AM, national practice leader of KPMG SR7, discusses how social media has changed the way people respond to advertising and PR.

In 1997, direct marketing guru Lester Wunderman talked about a new definition of brand: “It represents a cluster of consumer needs. It is each customer who is becoming a brand. I am a brand – and each of you is a brand.”

At that time, he said there were 260 million individual people brands in the US alone. More than 15 years later, the rise of social media has seen Wunderman’s prediction become a reality – in ways no-one expected.

This new reality represents the biggest single opportunity the PR industry has ever had – at the expense of advertising.

According to Nielsen, only 16% of people are influenced by advertising they see on the Internet while 84% are influenced by what people tell them on social media. While the growth in online advertising is dramatic – it is still advertising!...

Among consumers who sometimes or always recommend brands to others, sharing information face-to-face (80%) remains by far the most popular method of doing so, far ahead of email (51%) and social networks (39%), per results from a COLLOQUY.com study. Still, recommendations appear to be slowly moving online: the proportion using face-to-face conversations has gradually while those using social networks have edged up by 4% points since 2010.

One group appears to be leading the charge.The study identifies a subset of consumers dubbed “WOM Champions” – those who are highly likely to recommend their favorite brands and who are also well-connected and communicative – comprising 28% of the general population. Among WOM Champions who are also loyalty program members, 60% are using social networking platforms to discuss products and services, up from 48% in 2010. Half also use mobile messaging to discuss brands....

When it comes to American consumerism, a 2015 study by Mintel says: Americans not only use the internet to stay connected to work, family and friends, but 69 percent seek out advice and opinions on goods and services before purchasing. Of those who seek out advice, shoppers are equally likely to visit user review sites or independent review sites before making a purchase (70 percent), while 57 percent use social media networks for recommendations.

Yet even though so many of us put stock in what our digital friends tell us, it isn’t always so cut and dry....

Why do you read the updates you read?

Why do you browse the products you browse?

There are hidden motivations behind a lot of the actions we take online, especially so with social media. The influence of friends and family has a big impact on what we click, view, share, and like.

Researchers have discovered some specifics behind why friends impact us the way they do. These insights cover the way we interact and reciprocate, the time we spend online, and the buying decisions we make. It’sfascinating to learn, and helpful for marketers to know, too....