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  • Writer's pictureFidan Dargahli

The Power of Word-of-Mouth Advertising: Trust and Influence in Consumer Behavior

In the world of advertising, nothing beats the power of word-of-mouth. Nielsen's 2012 Global Trust in Advertising report revealed that 92% of consumers trust recommendations from friends and family above all other forms of advertising when making a purchase decision. This trust in personal recommendations significantly outperforms traditional television, magazine, and newspaper ads, which fewer than half of people found credible.

The rise of online advertising mediums has also been notable. Online banner ads, search engine results, social networks, and mobile devices have seen increased trust from consumers. More creative forms of ads, such as those on company websites and company emails, have also grown in credibility.

Fast forward to 2021, SEMrush's blog post provides more recent data on word-of-mouth advertising. It shows that 90% of customers will choose a product that comes with a person’s recommendation over one lacking this endorsement. Interestingly, millennials are 38% more likely to cite word-of-mouth advertising as the way they discovered a company. Word of mouth may be directly responsible for 9 in every 10 purchases, and it can generate up to five times as many sales as paid ads.

So, how can businesses leverage the power of word-of-mouth advertising? Here are some key strategies:

  1. Incorporate user-generated content: Encourage customers to share their experiences with your brand on social media. This not only costs nothing for your company to make but also comes with clear creator incentives.

  2. Try influencer marketing: Influencers have followers who trust them deeply. When these influencers recommend a product, they're partaking in word-of-mouth advertising.

  3. Highlight your best reviews: Display your reviews from listing sites such as Trustpilot and Google Maps on your website. This approach is a highly effective word-of-mouth advertising tactic.

  4. Establish a referral program: Give your customers an incentive to promote you. Whenever they acquire a new customer for you, they get a discount or reward, and you get a new customer through word-of-mouth advertising.

In conclusion, word-of-mouth advertising is a powerful tool that can significantly bolster your bottom line. By incorporating user-generated content, influencer marketing, highlighting reviews, and establishing a referral program, businesses can effectively harness the power of word-of-mouth advertising.

If you are interested in taking your business to the next level, schedule a free 30-min info session with us. By the end of this video call, you will have a clear understanding of the next steps you can take for your business to start generating consistent and reliable results online with Organic & Paid Advertising:

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