The Evolution of Word-of-Mouth Marketing

Remember last week when we talked at length about the impact the social media influencers have on our lives? Well, here we are again!

This week in my class, we covered “Interpersonal Influence, Opinion Leadership and Diffusion of Innovations,” and read about Word-of-Mouth Marketing. This actually relates very linearly with last week’s topic of Opinion Leadership. You see, these social media influencers, our opinion leaders, are successfully using word-of-mouth marketing every single day! The Influencer occupation has changed drastically in the last few years, and today I want to talk about those changes.

First, we are going to cover the three different types of Word-of-Mouth influencing. The “organic interconsumer influence model” is traditional word-of-mouth marketing. An example of this would be if I were talking to my friend and telling them about a product or idea. The “linear marketer influence model” is when you have one opinion leader influencing consumers to buy products. These are your social media influencers. They use platforms like YouTube and Instagram to post about products, and their followers will buy those products. The “network coproduction model” in a way combines the first two models. Instead of having an opinion leader reviewing products, this model encourages everyday consumers to review products. This model is not as black and white as the other two. Researchers understand that word-of-mouth marketing is not linear. One consumer may tell a friend about a product, and in turn that friend may tell someone else. It is a cycle that goes on and on.

While the “network coproduction model” could still encompass social media influencers, most of the time those sharing their reviews on the internet have not actually gone out and purchased the product. This can make some consumer who listen to the reviews wary that the influencers are not giving accurate information. A person is more likely to listen to another consumer who has actually spent their own money on the products that they are talking to you about.

In 2010, this article was written by a group of students and professors. It covers word-of-mouth marketing online. When it was published, blogging was popular, but since then, vlogs and other forms of video have becoming more popular. In 2010, there were some people beginning to create content on YouTube that involved reviews and sponsorships, but it was really the very beginning of a new industry. In 2010 there were no guidelines for content creators when it came to sponsorships or PR being sent to them. It created a lot of mistrust when it came to online product reviews. Influencers did not have to disclose when their videos were sponsored or when products were sent to them, so most just led consumers to believe that everything was bought by the influencer. Instagram was released in 2010, so it wasn’t popular when this article was written.

Today, most of the “opinion leaders” that you will come across are on YouTube or Instagram. There are still people that write blogs, but most of them also put content of Instagram or YouTube. There are also now rules for social media influencers when it comes to posting certain content. They now must include an FTC disclaimer when a video or a post is an advertisement, sponsorship, or items are sent for free. They must additionally note when links on videos or posts are “affiliate links.” According to the FTC, an affiliate link means that the influencer will receive money when purchases are made using that link.

Grace Beverly is a YouTube and Instagram influencer who has built an entire fitness company from her success on the platforms. Grace, who operates under the handle “GraceFitUK” has been on YouTube since 2015 and has 520,000 subscribers. She does a great job of making it apparent when videos or photos are sponsored. Her disclaimer on a recent YouTube video says, “I use affiliate links! These are links where I get a tiny bit of commission from anything purchased through them (aka. when you click on them and end up buying something) - this is really helpful for my relationship with the brand and gives me a few pennies but doesn't cost any more to the customer. As always, my opinion is always MY honest opinion. Thank you SO much if you use my links!” This is more than most influencers will say, as many will try to get away with not always being transparent. In her sponsored Instagram posts, Grace had the first word visible “ad” before going into the caption for the photo. Many influencers are not as transparent as Grace. A lot of them, along with their managers and PR representatives from companies will find loopholes in the FTC laws so that it looks like the influencer is buying the products themselves.

Grace uses what the linked article calls explanation She explicitly states that, while “X” company may have sent her a product for free, she is giving an honest review. There are a few other ways opinion leaders review products. Some are evaluating. They will focus on the product itself but avoid talking about being sent the product for free. Influencers who are endorsing will acknowledge that they are receiving the product will be completely transparent in their participation in the PR campaign, but they will justify this, saying that they needed the product. Endorsers will typically use talking points that have been provided by the company. Others will be embracing. These influencers will also use talking points, and they will have sponsorships frequently. They will embrace being the voice between the consumer and the company, but not always outright say that they are being sponsored.

The biggest difference between these types of word-of-mouth marketing is that evaluation and explanation tend to used more for the good of the consumer. The influencers who use these strategies are reviewing the products. On the other hand, embracing and endorsement influencers are accepting these sponsorships for personal gain. They might need the help financially or feel like they deserve it.  

Like it or not, opinion leaders are a part of everyday life. It is difficult to scroll through any type of social media without seeing a post promoting a specific product, and a lot of times it is hard, at least at first glance, to tell if it is a sponsored post or not. We, as consumers, have to be conscious of the fact that not all product endorsements (or reviews) are done out of the good of the influencers heart.