Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Beyond advertising: why people are the new media

Beyond advertising: why people are the new media Purpose – To identify and explain the causative factors in the ongoing and chronic decline of general advertising effectiveness. Design/methodology/approach – Methodology is Social Network Analysis. Specific tools used multiple regression analysis, AnCoVa, and various proprietary algorithms. Findings – Traditional media advertising has lost significant impact at an accelerating rate over the past 20 years and will continue to do so for the foreseeable future. Referrals are the primary viable alternative for reaching customers and can be used to reinvigorate traditional marketing. Research limitations/implications – Research was based primarily on author’s extensive work with clients in numerous industries, also on available advertising industry data. No controlled tests were possible. Practical implications – Organizations that ignore the importance of referral marketing will find markets increasingly expensive and difficult to access and will lose competitive advantage with organizations that do understand and manage the value of word‐of‐mouth marketing. Originality/value – It explains why traditional marketing is failing and suggests an effective solution. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Handbook of Business Strategy Emerald Publishing

Beyond advertising: why people are the new media

Scott Degraffenreid
Handbook of Business Strategy , Volume 7 (1): 5 – Jan 1, 2006
Download PDF
5 pages

Loading next page...
 
/lp/emerald-publishing/beyond-advertising-why-people-are-the-new-media-40L2YmCkbM
Publisher
Emerald Publishing
Copyright
Copyright © 2006 Emerald Group Publishing Limited. All rights reserved.
ISSN
1077-5730
DOI
10.1108/10775730610618666
Publisher site
See Article on Publisher Site

Abstract

Purpose – To identify and explain the causative factors in the ongoing and chronic decline of general advertising effectiveness. Design/methodology/approach – Methodology is Social Network Analysis. Specific tools used multiple regression analysis, AnCoVa, and various proprietary algorithms. Findings – Traditional media advertising has lost significant impact at an accelerating rate over the past 20 years and will continue to do so for the foreseeable future. Referrals are the primary viable alternative for reaching customers and can be used to reinvigorate traditional marketing. Research limitations/implications – Research was based primarily on author’s extensive work with clients in numerous industries, also on available advertising industry data. No controlled tests were possible. Practical implications – Organizations that ignore the importance of referral marketing will find markets increasingly expensive and difficult to access and will lose competitive advantage with organizations that do understand and manage the value of word‐of‐mouth marketing. Originality/value – It explains why traditional marketing is failing and suggests an effective solution.

Journal

Handbook of Business Strategy – Emerald Publishing

Published: Jan 1, 2006

Keywords: Marketing; Advertising effectiveness; Perception; Advertising

There are no references for this article.