Forrester Research: Forrester Retail Insights Devices, Media, & Marketing First Look: Research & Event Highlights From Forrester

 06 Sep. 2005
Voice Divorces The Phone
Voice over IP (VoIP) adoption will be slow. We predict total penetration in 2010 to be just over 10% of all US households. But the real value of VoIP is that it makes voice an application, separate from the phone.


Consumers & Innovation
Forrester's Consumer Forum 2005 addresses how companies can use technology to involve consumers in the innovation process. Join us in New York on September 27 and 28 to learn about innovating in a consumer-driven world.


Content Rip-Off Artists
One-quarter of consumers plan to violate copyrights with content they've purchased, and 7% plan to copy the content to CD or DVD and sell it. Who are the most likely to do so? Young adults and technology optimists.


Hot Off The Presses
The State Of Consumers And Technology: Benchmark 2005: Consumer Technographics® North America
by Ted Schadler

Best Practices In Market Mix Modeling
by Jim Nail

Charting The Course Of Marketing Software
by Elana Anderson

What's Driving The Hot Consumer PC Market?
by Ted Schadler

Financial Services Email Marketing Best Practices
by Shar VanBoskirk

The Web's Latest Trend: Fashion
by Luca S. Paderni

Word-Of-Mouth Marketing Needs Ethics Now
by Fiona McDonnell


Five Fascinating Factoids
1. Broadband households spend 31% more online than households with dial-up.

2. More than two-thirds of online households use the Net to research products for purchase.

3. Almost 60% of North American mobile households have two or more phones.

4. Technology optimists are one-quarter more likely to be viral marketers than tech pessimists.

5. About half of US households will be shopping online by 2010.

For more fascinating factoids, check out The State Of Consumers And Technology: Benchmark 2005: Consumer Technographics® North America.


Upcoming Boot Camps
Mark Your Calendars!

Social Marketing: Tapping Into The Power Of Connected Customers
October 13, San Francisco

The Essentials Of Search Engine Marketing
October 27, New York

The Integrated Marketing Tool Kit
November 17, Chicago

Making B2B Marketing Work December 8, Cambridge, Mass.

For details, contact Tenley McHarg at tmcharg@forrester.com.


New! Survey Explorer
Interested in finding out if Forrester has data about your brand? Curious whether we have updated information on how many adults visit comparison shopping sites? Use the Survey Explorer to search our surveys and find out.


Mobile Data Jumps In '04
Mobile Data Jumps In '04

Search
Search Forrester's Web site.

 

Social Marketing Comes In Four Flavors
Consumers' trust in traditional forms of advertising is waning. In 2004, less than 50% of consumers trusted TV and radio ads, and only slightly more trusted print ads. What's more, consumers increasingly say they're bombarded with too many irrelevant ads. These negative attitudes toward traditional marketing have led consumers to take measures to block direct mailers, telemarketers, and TV advertisers from their homes in an accelerating consumer ad backlash.

Social or viral marketing -- with its minimal obtrusiveness and trustworthy sources (often other consumers) -- avoids most of the anti-ad reactions that fuel the backlash. By engaging consumers in a dialogue about their products or encouraging consumer-to-consumer dialogue, marketers inevitably lose some control over the message of their campaigns. But what marketers may lose in control, they gain in audience attention, velocity of communication, and much-needed trust from loyal consumers.

Tools For Social Marketing
How can marketers connect with jaded consumers who avoid traditional campaigns with spam-blockers, DVRs, and Do-Not-Call lists? Four flavors of social marketing can help:


RSS Users Are Info Junkies 1: Word-of-mouth (WOM) Marketing
Disillusioned consumers -- those who've lost trust in marketers -- now turn to each other for trustworthy product information. This consumer-to-consumer "buzz" naturally occurs without the intervention of marketers -- 46% of North American consumers often tell friends and family about products that interest them. When marketers get involved to stimulate WOM activity -- like P&G did when it offered to donate money to an energy-saving charity if Tide Coldwater users sent along product samples -- they must relinquish the control they would have had over a traditional campaign. But this is a small price to pay for the increase in consumer trust created by WOM marketing. While Tide created a buzz around Coldwater based on environmental awareness, Burger King's successful "Subservient Chicken" Webcast created a humorous buzz for its BK Tender Crisp.

2: Blogs
Blogs (think: online journal) provide a venue for marketers and consumers to open a dialogue and facilitate WOM marketing among consumers. Blogs can be a space where corporate executives post their musings and consumers respond, marketers solicit consumers to post reviews of products, or consumers connect and recommend products to each other. Blogs about kids' issues help Stonyfield Farm create a dialogue with parents. Vespa's blogs give its consumers the opportunity to share Vespa scooter experiences.

3: RSS
Really Simple Syndication (RSS) is an XML standard that gives consumers the opportunity to aggregate all of their information into one location. RSS provides marketers with many options to reach consumers: Feed sponsorships, ad placements within feeds, and ad headlines are only a few. Though current adoption of RSS is relatively low (only 2% of North American online adults use RSS today), those who use this technology now are the valuable, information-hungry consumers of tomorrow (see figure above). Marketers like Purina and Apple use RSS to inform consumers about new products, send updates about product support, and disseminate consumer-generated content from their Web sites.

4: Podcasting
Like RSS, podcasting separates media from a single channel, delivering audio content in a new way. For marketers, podcasts provide opportunities for sponsorships, on-air ads, and original product-specific content. The upside? A captive audience. The downside? A small audience (only 10% of online adults are familiar with podcasting) but a growing one, especially with the addition of a podcasting library in iTunes, which lists more than 600 podcasts about technology and 100 about travel. Marketers looking to repeatedly reach a valuable, younger, tech-savvy crowd should actively explore this new medium.

So while traditional one-way marketing campaigns are losing their audience to consumers' ad fatigue, multitasking, and distrust of marketing messages, marketing itself is not dead. It's just gone to the masses. Get involved in the dialogue.

If you're interested in learning more about why social marketing works and how to do it, come to our upcoming Boot Camp. Social Marketing: Tapping Into The Power Of Connected Customers with Charlene Li and Jim Nail will take place October 13, 2005, in San Francisco. For details, contact Jennifer Joseph at jjoseph@forrester.com.

In the upcoming weeks, look for research on Internet video, mature consumers (55+), advergames, young bloggers, local search, consumer security and phishing, social computing, the CE retail purchase process, mobile music, youth and music, and database marketing trends.


Chris Charron
Vice President, Research Director
Devices, Media, & Marketing Research

P.S. If you'd like to suggest research for us to write or if there are data points you're looking to track down, feel free to drop me a line anytime at chrischarron@forrester.com.



Research Referenced In This Issue

Best Practices In Market Mix Modeling (35129)
Blogging: Bubble Or Big Deal? (35000)   
Charting The Course Of Marketing Software (37565)
Financial Services Email Marketing Best Practices (37274)
Getting Real About Podcasting (37473)
How To Build A Word-Of-Mouth Marketing Campaign (37018)
Podcasting For Marketers (37016)
RSS 101 For Marketers (37422)
The Consumer Advertising Backlash Worsens (35123)
The North American Consumer: Online Retail Update (36730)
The State Of Consumers And Technology: Benchmark 2005 (36987)   
The Truth About Teens And Advertising (37574)
The Web's Latest Trend: Fashion (37531)
Using RSS As A Marketing Tool (35005)
VoIP Liberates Voice From The Phone (35749)
What Consumers Plan To Do With Content (36741)
What's Driving The Hot Consumer PC Market? (37050)
What's In Store For Marketing In 2005? (35593)
What's The Buzz On Word-Of-Mouth Marketing? (36916)
Word-Of-Mouth Marketing Needs Ethics Now (37044)


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