This week, it’s survey time, and time for us to write blog posts on slightly different issues. I choose to glance over an article in the Journal of Marketing Research titled Dynamic Effectiveness of Advertising and Word of Mouth in Sequential Distribution of New Products. The PDF can be found here, if you have a subscription (you can purchase a 24-hour one, I did), and the executive summary can be found here, if you don’t feel like paying for it.
Honestly? The research itself may be way above my head. However, the goal was to determine how Word of Mouth advertising affected movie ticket sales for Hollywood. Effectively, in the 2-bit summary, WOM and traditional advertising have a strong tie in, to the point where more advertising actually increases positive WOM coverage, as opposed to decreasing it. Or at least it’s true at the beginning of the movie cycle, when the title and actors are announced for it, and then when the movie is just released. Advertising after that decreases WOM effectiveness, it starts waning in positive messages. The article also goes on to say that when there is less pre-movie advertising, the movie is likely to be out of theaters faster.
Thats…pretty close to what I expected, actually. Movies tend to do better when advertised well, WOM tends to be more prevalent when more advertising exists. This seems to not always be the case though, John Carter of Mars, a recent movie release from Disney, BOMBED because of WOM negative press, even though it was one of the more heavily marketed movies of the year.
Honestly? Would you agree with me that sometimes a survey like this is just there to justify a person’s budget or job? Or do you think it’s important to do a survey like this either way?
Secondly: WOM is effective even when 0 dollars have been used to market the video. With the advent of Youtube and social media, pretty much everyone could buy a video phone and post videos that end up being hugely successful, and that includes bigger budget movies. Do you think we’ll eventually see the end of Hollywood production facilities?