Strong Correlation Between Ad Spending and Buzz Generated in the Blogosphere

Here's more proof that integrated advertising works. Since the dawn of advertising, multi-media campaigns (television, radio, newspaper, magazines, and now online and buzz marketing) have shown the best results for advertisers.

Now, a new study reports that for new brands, there is a strong correlation between ad spending and buzz generated in the blogosphere.

A report by Nielsen BuzzMetrics and Nielsen's BASES research division shows that traditional advertising and online word-of-mouth are very closely connected. After analyzing 80 consumer packaged goods brands launched in 2005 and 2006, Nielsen found that the top 10% of products with the most buzz spent on average about four times as much on advertising than those in the bottom 50%.

From Mediaweek:

Among 80 consumer packaged goods brands launched in 2005 and 2006 that Nielsen studied, the top 10 percent of products with the most buzz spend nearly $20 million in advertising. In contrast, the products that accounted for the bottom 50 percent of buzz generated spent roughly $5 million, or a quarter of what the most buzz-generating brands spent.

However, ad spending is not the only factor in play, found the report, as certain brands simply lend themselves to more buzz. Just 10 percent of the brands studied accounted for 85 percent of total buzz generated, indicating that select brands drove more than their share of interest. Nielsen said it discovered that over the counter drug brands - given consumers' high involvment with them - along with brands with edgy image drove a disproportionate amount of buzz.

“Most CPG products are everyday items, lacking in distinction and therefore propensity for buzz,” said Kate Neiderhoffer, director of methodology, Nielsen BuzzMetrics. “However, there are some exceptions to the rule, as evidenced by brands like Red Bull, Altoids, Crystal Pepsi and Viagra. The CPG industry should challenge itself to bring more innovative products to market, cultivated with more innovative marketing. The buzz will follow.”