The marketing industry has long understood that peer recommendations hold the most power over purchasing decisions. When a consumer makes a recommendation to a peer it is the most effective form of advertising for a brand. As consumers spend more time on the internet it raises an interesting question. How do digital recommendations compare to verbal recommendations? According to a recent study by CrowdTap, digital recommendations have overtaken verbal recommendations.
The finding is great news for digital advertisers who rely on peer recommendations and viral spread to make an impact. The study says that 70% of consumers made a purchasing decision based on an online recommendation while 61% made a purchasing decision based on a verbal recommendation. Traditional advertisements came in with a lower 49%. How can online video advertisers leverage this new data?
There needs to be an increased focus on creating video content that is worth sharing with peers. Steer clear of traditional advertisements that do not give consumers a reason to tell their friends. We have made it an internal focus to build technology that increases the shareability on Viral Videos. Our Viral Video Marketing Platform is built to ensure digital recommendations between consumers are taking place.
Let’s illustrate this example with the most shared Viral Video of the week. DC Shoes’ Gymkhana Five has generated a whopping 1.3 million shares in the last seven days. The share-frenzy has resulted in an equally impressive 18.9 million view total.
Big time kudos to DC Shoes for pulling off a successful mega viral hit. Additionally, the viral clip is a long form video as it boasts ten minutes of play time. Imagine if DC Shoes attempted to buy this level of exposure through the television set. The idea is far from practical.
The company released the Viral Video to the web and allowed the consumers to do the work. I am not going to attempt to assign a dollar value to the incredible feat of achieving one million peer recommendations in the last week. The brand created high levels of equity for itself through the Viral Video and got consumers telling each other about it. I conclude the viral video represents the most effective and efficient digital advertising spend possible.