Before examining how and why it is important for advertisers to understand the process of electronic word of mouth, we must first understand what word of mouth (hereby stated as WOM) is and how it enhances traditional forms of advertising and promotion. WOM refers to the unpaid personal communication between consumers with some form of endorsement or influence. Extensive research and literature has shown that this act has the ability to affect a consumers’ purchase behavior (Brown & Reingen, 1987) so much so that it is commonly recognised as a crucial element to the success of a business (Chevalier & Mayzlin, 2004). Those who’ve worked in a customer service position before, will understand the emphasis placed on keeping the customer happy. ‘One unhappy customer will tell ten friends about their experience and that’s ten customers lost from one bad experience’ is a phrase that Employers will tell their employees. Similarly, if a consumer expresses satisfaction with a product or service and tells their friends, then it equates to positive exposure and potentially more customers gained. Since the source of WOM is traditionally from somebody we know personally, this style of connection makes the recommendation trustworthy and more authentic than advertising and promotions alone (Duhan, Johnson, Wilcox, & Harrell, 1997). According to a survery, only 14% of people trust ads whereas 78% of people trust consumer recommendations (Nielson Global Trust in Advertising Survery, 2007). With the advent of online communication and social media, consumers are able to communicate their opinions effortlessly and to a wide network of people. WOM occurs in a social space and since the Internet has fundamentally impacted the way society operates, so goes the translation of WOM to eWOM. Where Word of Mouth advertising implies person to person communication, Electronic Word of Mouth advertising implies person to people communication.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52% of viewers take an action in response to viewing an online video advertisement, whether it be visiting the company website, sharing the video or making a purchase (online publishers associate, 2007). For this reason, online video advertising is a prominent vehicle for dissemination across the web and a necessary tool to be utilised by Internet Marketers. If every person who views a video shares it to more than one person, fast exponential growth occurs in the number of recipients (Hsieh, Hsieh & Tang 2012).

 

However, in order for an advertisement to be a viral success, it relies on the viewers’ forwarding behaviour, which, without understanding the manners of a digital native, is relatively unpredictable (see: Virality). It is essential to investigate what kind of content influence a viewer’s decision to forward a video.

A verbal poll around university demonstrated that people who choose to share content often do so if it evokes a type of emotion: if it is funny, sad or confusing most typically. Since peers are an important reference group for young adults, when consumers are directed to content from their peers, they are more likely to engage with it. Advertisers should design their online videos with an aim to satisfy the particular gratifications that consumers expect: pleasure, affection, inclusion, escape, relaxation and control (Lee et al. 2013). If content is clouded with too much information and contains little entertainment value, users a unlikely to engage or share. Take a look at our case studies to see the kind of video that goes viral.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In the fashion and beauty sector, creators upload makeup tutorials and review products. Michelle Phan, a pioneer of the beauty guru community on YouTube is a makeup artist and content creator with over 6 million subscribers. Viewers who consume this kind of content place credibility and trust on these people. If PewDiePie plays a game and he likes it, chances are, his subscribers will investigate and think about purchasing it. Similarly, if Michelle Phan gives a makeup product a good review or even uses a product in one of her tutorials, her subscribers will trust that the product is good and therefore be more compelled to purchase it. 

 

Furthermore, before making a purchase, it has been shown that a majority of consumers will finalize their decision by researching reviews online and discovering what people with that product have said, whether it be in the form of a YouTube video, an online forum or a blog (Hsu, Lin & Chiang 2013). For this reason, not only is it important for companies to encourage Electronic Word of Mouth, but it is also important for them to track what consumers are saying about them. It's as if every person with a Social Media account is a critic. Brands should interact with those who are unhappy because their dissatisfaction has weight and has the ability to deter potential consumers.

 

Viewers are aware of the fact that advertisers and marketing professionals’ aim is to sell. For this reason, advertising alone is not enough to encourage a viewer to become a consumer. A positive referral from someone other than the people who want to sell the product means more sales. In the context of online communication, a positive referral from one individual through social media can reach a vast amount of people rapidly. When an individual sees their peer share brand information they are more likely to trust the source as credible and therefore engage with it. This is how eWOM enhances advertisements and why encouraging information dissemination through e-WOM is so valuable for advertisers.