This marketing phenomenon is often referred to as an extension of the traditional word-of-mouth communication. However, with the rise in popularity of the internet and mobile phone technologies, spreading a message by word-of-mouth has become possible on a massive scale through email, instant messaging and text messages (Clark, 2005). Electronic technologies coupled with viral marketing can be very effective in creating a positive atmosphere around a brand, product, or service.
The key element to the success of viral marketing is usage affiliation. Viral marketing conveys an implied endorsement from a friend or associate as opposed to third-party advertising (Jurvetson, 2000). It has been suggested that people have more faith in a recommendation if it is associated with a credible source (Clark, 2005).
A successful viral marketing campaign is founded upon a persuasive message that engages potential viral marketers through creativity, interactivity, fun and intrigue. The message rapidly proliferates as people forward it to their associates and friends who are geographically close, and others scattered around the world in areas of high Internet and electronic connectivity (Jurvetson, 2000). Viral marketing is a marketers dream as it requires a small advertising budget but with the effect of rapid product adoption (Dobele, Toleman and Beverland, 2005).
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The term was inspired by the rapid adoption pattern of Hotmail's launch in 1996. Tim Draper, of Draper Fisher Jurvetson persuaded the company "to include a promotional pitch for its Web-based email with a clickable URL in every outbound message sent by a Hotmail user�? (Jurvetson, 2000). The impact of the promotional pitch was extraordinary. Hotmail grew its subscriber base faster than any company in history, from zero to 12 million users in 18 months (Jurvetson, 2000). Draper Fisher Jurvetson first publicly announced the concept in a 1997 Netscape newsletter, however it was known as network-enhanced word of mouth. (Jurvetson and Draper, 1997)
Although there are different contexts in which a product or service can be shared through viral marketing, the characteristics of this marketing strategy remain the same despite the variations. Viral marketing often involves products or services being given away by spurring common motivations and behaviors of users, and can be carried out from a small to very large scale. Viral marketing also makes use of communication networks so users can "transfer" the products or services to others with ease. Snyder (2004) gives the following variations:
=== Current Situation ===
As media audiences continue to fragment, online advertising and viral marketing are becoming increasingly popular avenues to reach consumers (Wilson, 2000). In an environment where audiences consume multiple media simultaneously, viral marketing is particularly useful for two reasons. Firstly, the advertising message is within the content rather than being between it. This ability to blur the lines between entertainment and advertising and to be seen as independent of the company ensures that the message is not rejected. And secondly, the advertisement is not mere ‘background noise’; the advertisement forces the user to actively view or interact with the message and thus increases its impact.
The fundamental premise of viral marketing is that consumers spread the message, thus makeing it substantially cheaper than other media. The average advertising campaign in Australia costs around $15 000 and up to $30 000 for larger campaigns (Sophocleous and Cubito, 2005, p.6). This saving on media costs may result in the content being of a higher quality. An example of this is the BMW Films which are 8-10 minutes long and use Hollywood directors and actors. Economies of scale can also be achieved as circulation increases, as viral marketing has only fixed costs. This is unlike other media where investment and circulation are directly related.
However this form of advertising isn’t for everyone; advertising agencies believe the content needs to suit the brand character to be highly effective. Also, the technology used to distribute online viral campaigns can be a limitation in that specific media players are sometimes required and broadband connections are often beneficial. Other disadvantages of this form of advertising include becoming lost in the clutter of an email inbox and as it becomes increasingly common, audience members are less likely to share content (Sophocleous and Cubito, 2005, p.6).
The benefits of viral marketing (the blurring of advertising and entertainment, and the reliance on the audience to spread the message) may also be detrimental to its long term use in that pass-on rates may decrease as it becomes more popular and brand equity may not be added to as focus is given to creating interesting content.
=== Future Developments/Considerations ===
As viral marketing further develops in the future, the advertisers and creators of the content are predominantly placing more emphasis on creating interesting content. As such many are attempting independantly Web-based viral marketing, moving away from better known methods (Dobele, Toleman & Beverland, 2005) - primarily the use of email attachments. This method is advantageous for two reasons: firstly, it liberates email messages of the ‘fwd:’ prefix in the subject line, increasing the likelihood that the reciever will open the email; secondly, it removes the waiting time for an email to be received, thus increasing the audience more quickly.
It has been suggested that perhaps the greatest use of such marketing techniques is obtained when combining it with other mediums, such as television advertisements (Walker, 2005). This has been attempted by a number of different companies throughout the years, with one of the most successful being Mitsubishi’s “See What Happens campaign, in which a well-honed combination of TV drama and Internet information created a total effect that far exceeded what either could do alone�? (2005, p.56). However, effectively linking such forms at present is still very unstable, yet it can only be seen to improve through innovative methods in the time to come.
Another future concern for viral marketing is the perception audiences have of email campaigns. Many viral campaigns begin with the company sending the advertisement to a number of email addresses either bought from a third party or put together from other company promotions. Marketers need to ensure that email messages are sent only to people who fully consent to receiving them to avoid customers viewing this communication as spam.
Adam margerison 11:03, 28 Oct 2005 (EST)
