Beyond advertising: why people are the new media
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.
Keywords
Citation
Degraffenreid, S. (2006), "Beyond advertising: why people are the new media", Handbook of Business Strategy, Vol. 7 No. 1, pp. 81-85. https://doi.org/10.1108/10775730610618666
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited