NEW YORK: Word-of-mouth marketing is currently worth around $1 billion (€684m; £490m) a year, according to a new report unveiled at this year's WOM convention in Las Vegas.
The estimate, produced by researcher PQ Media, suggests that the sector has grown from £76 million in 2001 and is expected to be worth around $3.7bn by 2011. It grew 35.9% in 2006, far more than both the overall marketing-services category (7.7%) and US GDP (5.7%), PQ says.
Declares vp-research Leo Kivijarv: "When you compare word-of-mouth as a strategy [to other methods], trusting a friend or influential person is the most determining factor when someone decides to purchase a product."
Data sourced from AdAge.com; additional content by WARC staff