This paper aims to investigate the relative influence of advertising and word of mouth (WOM) for new season TV programmes, both new and returning.
The study’s longitudinal research design tracks individuals before and after possible exposure to advertising and/or positive WOM (PWOM) to model the effects of both paid versus earned media on behaviour.
This study provides contrary evidence to previous research that suggests that WOM has more influence on consumers than advertising. By controlling for viewers’ benchmark probabilities of viewing the TV programme, the effect of receiving PWOM becomes insignificant, whereas the effect of TV advertising remains unchanged. Because WOM is commonly exchanged between people with shared interests, it reaches an audience that is already highly disposed to view the TV programme.
The findings implicate that we need to reinvestigate the power of WOM to avoid misattribution of effects. This study is only study in one category, which means replication and extension to more categories are needed. The limitations of the study include the inability to control for creative differences in the execution of programme promotions or examine possible cross-media synergies for multimedia campaigns.
Findings have implications for how much to invest in WOM-generating activities. Findings also have wider implications for cross-media research and media-mix models, as different media may reach audiences with differing predispositions to act.
This is one of the rare individual-level, longitudinal studies that investigate the influence of WOM in comparison to advertising.
