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BizReport : Blogs & Content : July 18, 2007
Bloggers are important to product launches
A recent study from Nielsen BuzzMetrics reveals that bloggers may be more influential than originally thought - to both consumers and to advertisers. The report indicates that ad dollars spent online are directly influenced by the blogger buzz surrounding different products.
Robert Mooth, one of the study authors and vice president of product development, for BASES said, that though traditional media still play an integral role in a product's rollout, the influence of new media - blogs, vlogs and social networks - are becoming even more important. "Online buzz and consumer expression have entered the fray," he said. "Resulting in a complex yet inseparable relationship within the overall marketing mix for many types of products."
Researchers studied the launches of 80 new consumer packaged goods (CPG) brands from 2005 to 2006. They found that brands with the most buzz spent about $20 million on paid media for the launch. Only about 10% of products launched spent this amount. Roughly 40% spent $15 million on paid media and about 50% spent $5 million on paid media.
The more money that was spent online, the better the products did, according to the study.
Therefore, marketers launching a new product should spend a sizeable amount of their ad dollars for the launch. By coordinating paid media with word-of-mouth offerings - blogs, vlogs, RSS feeds and other new media - marketers will have a better chance of building the buzz needed to sustain a product launch.
Tags: blogs, online advertising, social marketing, vlogs
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