Sabe aquela expressão “o gostinho da natureza”? Ela foi levada bem a sério pela Fischer América, do Equador, ao desenvolver esta ação para o suco Quintuples.

Para mostrar que o suco realmente tem o gosto da fruta, uma fotografia do produto foi colocada em 1600 árvores, dando a impressão de que a embalagem estaria saindo da boca de uma dessas máquinas de refrigerante (no caso, de suco!). Abaixo da foto, a frase completava a peça: “Refréscate con lo más natural”.

Uma idéia simples, mas que gerou um aumento de 22% nas compras do Quintuples, durante o período da ação. Mais um exemplo para mostrar que a publicidade convencional muitas vezes já não é mais suficiente, e que fugir do tradicional, com originalidade, traz resultados.

*Via

A De Combinatie van Factoren, de Amsterdã, desenvolveu uma promoção muito legal para a Heineken. A fim de agradar seus consumidores e aumentar as vendas, uma caixa promocional foi montada para ser vendida em supermercados.
Nela, além de 6 latinhas da cerveja, um par de auto-falantes que podem ser conectados a qualquer computador ou diretamente ao seu mp3 player.
Os “Speaker Crates” são pequenos – mas potentes – auto-falantes que se assemelham à grade da Heineken que vem com 24 garrafas.

O objetivo da promoção é criar um prêmio que associe a marca à música e seja um daqueles famosos “wannahave” (objeto de desejo que todos querem ter).
Acho que conseguiu, hein? Eu adoraria ter um desses. E você?!

*Via

Para o lançamento do novo Vectra GT, da Chevrolet, a McCann Erickson resolveu inovar com um teaser muito interessante. Foi desenvolvido um energético, de nome GT, com uma embalagem de design arrojado – que, inclusive, lembra bastante a de óleo de motor – e que será distribuído em bares de São Paulo e outras importantes cidades do país. A idéia é fazer o consumidor “sair da linha” (o mote da campanha) e associar o novo modelo à energia, emoção e ousadia. Além disso, o grande objetivo da ação é aproximar o consumidor à marca, criando uma maior identificação e gerando o desejo de compra. Para deixar a campanha de pré-lançamento redondinha, ainda foi criado um site para as pessoas deixarem seu email e serem as primeiras a ficar sabendo do lançamento do carro e da campanha completa.

Sabemos que a Chevrolet manda bem em teaser, mas vamos torcer pra que esta campanha não tenha o mesmo triste fim da anterior.

Ah, já ia esquecendo. Para os curiosos, aí vai uma foto do novo Vectra:

Esses anúncios são um pouco velhos, do final do ano passado, mas achei tão legais que resolvi postar assim mesmo. Eles foram desenvolvidos pela Duval Guillaune, de Bruxelas, na Bélgica, para a loja de decoração de interiores Top Interior.

O texto, que diz “Offers you don’t think twice about”, ou seja, “Ofertas que você nem pensa duas vezes”, completa muito bem as imagens, que mostram um sofá, um carpete e um closet ultrapassando o espaço disponível para eles na sala.

Bastante convincente, não acham?!

*Via

Um dos comercias mais falados neste final de semana foi o vídeo para a Cadbury, que mostra um gorila tocando bateria para promover seus chocolates(???).
Seguindo a onda do “non-sense”, um novo viral muito louco está se espalhando rapidamente pela internet, desta vez para a Burger King.

O vídeo foi lançado pela The Onion – site de notícias e paródias – e mostra um cliente da lanchonete afirmando ter encontrado uma cabeça humana no meio do hamburger Double Whopper. Ele diz que não vai processar a BK porque acha os sanduíches deliciosos, e a loja ainda é próxima à sua casa. Mas isto não é tudo. Reparem que, no final do vídeo, aparece a suposta gerente do estabelecimento sendo entrevistada, e ela diz que “isso não é ruim de jeito nenhum, comparada à cabeça de cavalo”(!). Confiram:

Até que ponto esses virais malucos podem trazer benefícios para a marca? Será que o “falem mal, mas falem de mim” vai ser a nova regra? Vamos esperar para ver.

*Via

Você já reparou como as pessoas costumam deixar livros espalhados por aí? Em estantes, na mesa de cabeceira, debaixo da cama, dentro do armário…? Baseada nisso, a Bounce Agency, dos Estanos Unidos, desenvolveu uma ação de guerrilha muito interessante para a Greenville Literacy Association. Ao mesmo tempo em que incentiva a doação de livros, ainda divulga a “Giant Book Sale” que ocorre anualmente em Greenville, na Carolina do Sul.

A ação consistiu em livros que foram colocados no meio de prateleiras em supermercados, blocos de post-it que foram transformados em mini livros – com informações sobre a feira na contra capa e colocados em lugares estratégicos-, degraus de escadas que viraram uma estante, e a faixada de uma garagem que passou a ser uma prateleira de livros.

Confira abaixo algumas imagens, e clique nas menores para ampliar:

Não tenho números sobre o resultado da ação, mas acredito que tenha chamado muita atenção e atentado as pessoas para os tais livros espalhados por aí.

*Via

Depois de falar sobre o remake do famoso vídeo da Parmalat aqui, entitulado Mamíferos, que agora chegam em tamanho G (cerca de 15 anos), claro que não poderia faltar por aqui o resultado final. Ou seja, o próprio vídeo dos tais mamíferos que cresceram, de tanto beber leite Parmalat! Rsrs

Sem mais delongas, vamos a ele:

Uma coisa é certa: o primeiro foi um grande marco e o segundo tem de tudo para ser uma continuação muito bem sucedida. Resta saber se a Parmalat conseguirá “limpar” seu nome com tanta fofura.

Quem não conferiu a primeira parte da história pode dar uma lida aqui.

1 Introduction

For a long time, advertising and promotion have been used by marketers to disseminate brand’s messages through the globe. Television, radio, magazines, journals, indoor and outdoor media are some of the traditional channels used to propagate brands, products and services throughout the world (Smith; Taylor, 2004). They have constantly been valuable devices responsible for reaching the consumers and their impact has been reasonably persuasive.

 

By means of mass media advertising, customers used to get to know about a new product, service or brand through these channels and they were used to rely on them for that. Word of mouth has always existed and had a great influence on the purchase decision, but the relevance of the two communication methods was not equal: “Although word of mouth was important, the purchase decision was normally made by analysing the product’s different marketing activities” (Sant’Anna, 2002).

 

In recent times, however, this perception has been changing. For an enormous amount of the population, the internet has already become the main source for all kinds of (re)search, including products and services (Henninger, 2007). Word of mouth (especially online word of mouth) is becoming even more important, and frequently new online means of getting to know about new products and services are taking the place of the old, traditional marketing.

 

Over time, the rise of new technologies have made possible the creation of further marketing instruments. When the radio was first invented, for instance, its purpose was not meant to be used for publicity, but soon it became another distribution channel for promotional communication. Every couple of years, the same happens with many others, such as the television, and now it has happened with the advent of the internet (Sant’Anna, 2002).

 

It has brought within its essence the cause of a number of innovative online devices that are used as promotional tools. Happening once again in the history of technology, the internet made possible the creation of innumerous different ways of broadcasting information, and a quite recent one has caught the attention of many companies: the viral marketing. It is growing to be an essential part of a good marketing mix and precious gadget to develop a closer relationship with customers (Scott, 2007).

 

1.1 The concept

In 1996, Steve Jurvetson and Tim Draper, from the venture capital firm Draper Fisher Jurvetson, became history with the now world-wide known, personal email service provider: Hotmail (Perry; Whitaker, 2002). The company wanted to launch the service with a creative and innovative style and was looking for a different way to advertise it, using more than just traditional marketing tools.

 

To make this free online service known, they have decided to add a simple ‘P.S.’ message onto the end of each email that was sent by the Hotmail users – which included a link to the website. Although the expectations were not high, the now infamous tag line “Get your free, private email at Hotmail” spread its message so efficiently that “Hotmail spent a mere $500,000 on traditional marketing and still grew from zero to 12 million users in 18 months” (Leskovec et al. Jurvetson, 2000).

 

Goldsmith (2002) states that it was called “subtle implied endorsement by the sender. Their belief was that the recipient knew that the sender was a Hotmail user and that this new free email thing seemed to work for them. Each new user became a company salesperson and the message spread organically”. This way, Hotmail users were then associated with the service provider, and therefore were recognised as brand advocates. Every time they sent an email, the virus was spread.

 

As a result of that, a new marketing tool arose. The name viral marketing was first coined at that point and its description, according to Wilson (2000), involves “any strategy that encourages individuals to pass on a marketing message to others, creating the potential for exponential growth in the message’s exposure and influence. Like viruses, such strategies take advantage of rapid multiplication to explode the message to thousands, to millions”.

 

Of course that exponential growth was only possible because of the internet, which can connect geographically distant people instantly, but viral marketing was still essential. This apparently new marketing tool, in reality, is still evolving; nevertheless, it has already come a long way from being a few hundreds of emails sent across the internet or a tagline at the bottom of an email (Goldsmith, 2002).

 

Viral marketing can now range from a simple sampling campaign that uses a referral strategy or even those few hundreds of emails sent through the internet, to a funny, tragic or even clearly commercial video that has been watched hundreds or millions of times on YouTube[1]. This phenomenon is growing and developing with an incredible speed, and its origins may help understand how it is possible, such as the Hotmail case, that will be discussed in details during Chapter 4.

 

However, many factors were certainly involved in the great success of Hotmail, such as the aspect of service innovation and therefore very little competition at that time. Still, viral marketing played a major role in disseminating and letting everyone know about this new service, using a simple link to the email provider website.

 

It is important to notice, though, that all the details are important for a viral marketing campaign to succeed. If the wrong message is passed on, if it opens margin to be changed in the middle of the way, if the target is not located in the distribution channels chosen, or even if an inappropriate initial sender is chosen, the company’s reputation can be destroyed (Kirby; Marsden, 2005).

 

1.2 A powerful instrument

Taking into account that the main point of this new, contagious marketing instrument is to make everyone talk and know about a brand/product/service, this makes viral marketing potentially powerful, either for a brand or against it. Many factors have to be considered before embarking on a viral marketing campaign, because the damage it may cause might be hard to recover from.

 

That is easier to understand when you think about the negative experiences you have had with products, services or brands. Perry and Whitaker (2002) state that “a bad customer experience will be communicated eight times, compared to a good experience communicated just once”. This way, the amount of power that rests on the influence caused by word of mouth is concentrated on the sender and how trustworthy his word is (Godin, 2002).

 

A very usual example can be described as any kind of common day-to-day recommendation. When you get to know about a new – and also about an old – product/service from someone close to you, someone you know and trust, the chances of that message getting through and you eventually buying that product/service are much higher than any other traditional advertising impact.

 

This impact, by the way, is decreasing rapidly and it is actually one of the main reasons that allowed viral marketing to become necessary and, in fact, so famous. With the huge amount of advertising surrounding consumers, they had to start being selective and choosing what was going to be absorbed by them (Scott, 2007). Even though original and creative advertisements were produced, different ways of blocking them have been developed, such as pop up blockers for the internet.

 

Thus, the big companies that had been spending millions on traditional mass advertising, from some point on – when consumer saturation started affecting sales – were not seeing significant growth in return, no matter how much more money they invested on conventional marketing and advertising (Chaffey; Mayer; Johnston, 2003). Kirby and Marsden (2005) state that “throwing money at the problem doesn’t seem to help – doubling campaign budgets for established products can lead to an increase in sales of just 1-2%”.

 

Subsequently, marketers started realising that they had to turn to alternate strategies in order to be able to reach this ‘blocked’ target. The changing needs and requirements of this fresh, ‘connected’ generation are demanding a great transformation especially in the dissemination area (i.e. the distribution channels).

 

Like so, the promotional tools had to be improved to match the online ambience’s prerequisites and also new marketing tools had to be developed in order to be capable of catching this group’s attention. They now have to be much faster and aimed at the right target, apart from being delivered at the right time, which is not an easy job.

 

Scott (2007) states that “unlike the days of the old rules of interruption marketing with a mainstream message, today’s consumers are looking for just the right product or service to satisfy their unique desired at the precise moment they are online”. Hence, the internet is another, or even the most important reason for the success and effectiveness of viral marketing.

 

Actually, not just the internet should take the credit by itself. The adoption of broadband has also played an important part in this popularisation, since it has enabled a much vaster and faster online content. Combined, they have deeply changed the way people communicate and also interact with each other.

 

As Kirby and Marsden (2005) affirmed: “One of the most significant contributing factors to the vogue for word of mouth marketing is the rapid uptake of digital media – particularly the internet and its peer-to-peer technologies”, such as instant messaging programmes, emails, blogs, social networks and forums that “have enabled messages to spread faster and more exponentially than ever before”.

Consequently, that has affected the way businesses are expected to pass their messages on (Scott, 2007). A great number of factors have to be considered if the aim is to succeed. Marketers now have to pay a great deal of attention to the most relevant and also the irrelevant issues. Everything has to be positioned in the right way. The speed, the cost, the time, the way they are distributed and even type of the message that customers are demanding to receive has changed.

 

And that is what is dictating the new marketing communication able to penetrate the saturation of traditional mass media. Godin (2002) states that “in a world where products are screaming for attention, the most precious commodity is attention. And attention is harder and harder to achieve”. This way, these new channels have to be explored and understood in its essence in order to succeed. Each one of them is better suited to a different target, a different product or service, in a different time.

 

1.3 Objectives

The main objective of this study is to show the point of view of the agency that deals with viral marketing. It is going to concentrate on the distribution channels used to spread this virus and their relevance to the whole of a viral marketing campaign. Each one is going to be detailed in order to stand out its main characteristics.

 

By making use of a granted access to key players on the market, interviews were accomplished in order to obtain more information on the matter, highlighting the agency side. The criteria that are used to choose the right channels is one of the topics discussed in the interviews, covering not only the aspects related to the target audience, but also the product, service or brand’s individuality.

 

Another objective is to describe the main points regarding viral marketing, comprising a list of the advantages and also the disadvantages when choosing to embark on a viral marketing campaign. Additionally, illustrating the viral marketing characteristics, which are going to be detailed during Chapter 2 (Literature Review), by making use of some cases of famous viral campaigns, is the preceding objective.

 

What makes this study and research distinctive, nevertheless, is the attention concentrated on the agency perspective, as most of the material produced associated to viral marketing does not explore the agency point of view but only the consumer’s.

 

1.4 Structure

The subsequent chapter contains the literature review that is going to critically analyse some of the existing theories that surround and also that lead to viral marketing. It initiates with a broader research, explaining the uses of some of the traditional marketing communications tools, and how they are changing and evolving. Then, theories like the Long Tail and also the Touching the Void phenomenon are contextualised in order to explain the mechanics of viral marketing.

 

In addition, the benefits and risks of this marketing instrument are exposed. They establish the good and bad points of viral marketing and may be used as a guide to follow the right steps into a successful campaign. Along with it, the existing distribution channels which are used to spread a viral message are analysed in details.

 

Afterwards, Chapter 3 explains the research methodologies that were used in this study: interviews and case studies. It gives details about what and why it was done and describes the advantages and also disadvantages/limitations of the approach taken. Additionally, this section explains how the data was analysed.

 

Subsequently, Chapter 4 encloses the analysis and findings of this study. It advances on the initially proposed objectives, detailing the research outcomes and also describing and analysing the case studies that were selected. In the end, a brief summary of the key issues arising is presented. As a last point, the final conclusions and recommendations are exposed in Chapter 5.

2 Literature Review

2.1 Introduction

For being a quite recent “event”, not a very extensive list of materials exist about viral marketing, especially academic ones. Although some books discussing the subject have been published and many articles have been written, very few of them relate it to the agency point of view, which is one of the proposed objectives of this study.

 

Thus, a general research regarding some of the main marketing communication tools and their recent changes will be analysed in this chapter. A few theories that surround viral marketing and also the ones that lead to it will then be examined. After that, some fragments of consumer psychology will be used to make clear specific consumer behaviour premises that apply to viral marketing.

 

Finally viral marketing itself will be examined, bringing up its characteristics, such as the benefits and risks that are associated with it. They will give a better understanding of the subject and might be used as a guide in order to achieve success and avoid failures. Additionally, the distribution channels used by viral marketing will be exposed, explaining the qualities and uniqueness of each channel.

 

2.2 Marketing communications tools

In the near past, consumers were used to find out about new products and services by means of the traditional marketing communications tools. Advertising, sales promotion and public relations are some examples of those instruments. Each one has a different use and is directed to several kinds of organisations, products or services. They can be used either isolated or integrated – the latter being most frequently utilised (Sant’Anna, 2002).

 

Advertising is normally used when the intention is to create brand awareness, generate sales and increase market share. There are several types of advertising, such as institutional, informational or cooperative advertising, each one destined to a different kind of objective wanted to be achieved. They use a number of distribution channels intended to reach specific target markets (Sampaio, 1999).

 

Sales promotions schemes “are used for both products and services in consumer, business-to-business and industrial markets […] and tend to affect the later stages of the communications/buying process” (Smith; Taylor, 2004). There are also different types of sales promotion, such as consumer or business-to-business sales promotion.

 

Finally, public relations refer to the communication between companies and consumers: it “helps an organisation and its publics adapt mutually to each other” (Scott, 2007). It involves a company seeking to keep in touch with its consumers and the public in general. Normally, a more traditional and renowned media is used, such as newspapers or press conferences (Sant’Anna, 2002).

 

The main marketing communications tool associated with the dissemination of new ideas and trends used to be advertising (Cappo, 2004). It was (and still is, but in a more connected way) largely used by companies not only for launching new products, but also for making the brand recognised. This way, most consumers were used to look for information through advertising when considering a new purchase as much as asking for their friends and family’s recommendations (Jobber, 2004).

 

This perception, however, is changing. Advertising, however, is changing. It is “going through a period of exciting change […] (when) better-disciplined clients demand more measurement, more integration, more dialogue from their communications” (Smith; Taylor, 2004). Consequently, advertising that still follows the old model of communication, and especially if it is used single-handedly, is not going to be enough anymore.

 

The same has been happening to the other marketing communications tools. Sales promotions, for instance, has been decreasing its effectiveness dramatically for the past few years (Fill, 2007). Although listening to your customers and getting to know what they want is still important, approaching them with an interruptive and intrusive kind of communication is no longer the better method to reach your audience.

 

For the public relations, this advent has brought a whole new way of communication. Corporate websites and especially blogs have unrestricted power on the internet. Customers share information about your company, make good and bad comments about your products and may even ruin your reputation.

 

Therefore, companies need to be aware of this new environment, as Scott (2007) verified: “Something may go viral that you (as the company) didn’t start, and it may show you or your products in either a positive or negative light. You need to be monitoring the web for your organisation and brand names so you are alerted quickly about what people are talking about”.

 

Kirby and Marsden (2005) affirmed that “the reality is that consumers are increasingly taking control of the marketing communications landscape. There are already millions of consumers talking about your products in internet forums, or expressing and spreading their opinions far and wide to their friends via email” or instant messaging programmes. Considering this, the most reasonable thing for a company to do is to try and interact with those consumers.

 

Scott (2007) says that “it has always been true that what a brand means is determined by a consumer, the end user. Now there is a feedback loop that didn’t exist before” – the internet. That is why the way agencies do advertising and companies do their marketing is shifting. According to IBM’s recent report (The end of advertising as we know it - November 2007), “the next five years will change advertising scenario worldwide more significantly than the last 50 years have” (Vaz, 2007).

 

The report also says that the investments that used to be addressed to traditional media will now be dedicated to online media. Like so, marketers need to focus on this new media and its evolving channels. In Brazil, for example, the amount of money invested on online advertising is supposed to double in 2008 (Vaz, 2007) and that reflects the importance of alternate strategies, such as viral marketing.

 

They allow the organisations to reach their current and also potential consumers, creating involvement and developing a closer relationship with them. Additionally, those alternate strategies make use of a reactive and non-interruptive form of communication, which tends to be spontaneously multiplied.

 

2.3 Leading to viral marketing

The explanation for viral marketing efficiency – apart from the advent of the internet and the downtime of traditional advertising, both reasons already explained in Chapter 1 – may also lay on the Long Tail. This concept, formulated by Chris Anderson (2006), shows that an infinite number of non-hits products are being consumed by the long tail of the online environment, as Figure 1 shows:

Figure 1 – The Long Tail                                  

The long tail represents the huge number of small, niche markets that have “always existed, but as the cost of reaching it falls – consumers finding niche products and niche products finding consumers – it’s suddenly becoming a cultural and economic force to be reckoned with” (Anderson, 2006). This means that the niche markets – that used to be “the outsiders” – can now be considered as important as the mass markets on the internet, as they generate an unlimited demand.

 

This tail is populated by the huge number of different niche markets that have always existed. Only now, however, their demand can be fully met. On the internet, the more products you make available, the more you will sell. This way, the emerging digital economy will soon be radically different from the mass markets that used to prevail over the niche markets. The online sales have been gradually making possible a certain degree of personalisation that will finally encounter the unlimited demand that has been there all the time (Anderson, 2006).

 

However, while Anderson’s theory focuses on product availability on the web, the concepts described can be equally relevant to marketing, as Scott (2007) asserts: “As marketers understand the web as a place to reach millions of micro markets with precise messages just at the point of consumption, the way they create web content changes dramatically”. And that is the entrance door for the viral marketing.

 

The possibility of small and medium companies becoming as big as Hotmail, for instance, is real on the web. There are no distribution costs and therefore the opportunities are equivalent for both, as the case of Alacra, a company in the crowded field of professional information services “of about 100 people, competes with much bigger players such as Thomson (40,500 employees) using corporate blogs in the company’s marketing and communications strategy” (Scott, 2007).

 

The power of the instruments such as blogs, that allow feedback from the consumers and may even have a consumer-generated content, is growing rapidly, as they attend to the increasingly powerful niche markets previously mentioned. Jennings (2007) agrees with that by affirming that “the technologies known as Web 2.0 provide a platform that enables and accelerates social explorations, which reach into the corners of our culture that mass media have largely ignored”.

 

A good example refers to what is known as the ‘Touching the Void phenomenon’ (Gladwell, 2000). The book that was a modest success when first published became a bestseller over a decade later. That was possible because of a new book with a similar story that came out about 10 years after Touching the Void was launched. Amazon automated referral system associated them, which made the readers of the first book start writing reviews about it and encouraging people to buy the two of them together. Those actions stimulated the “reselling” of the book until it became a bestseller.

 

This occurrence might have been just an ‘accident’ possible due to a snowball effect, which was created by word of mouth and online recommendations that took place through Amazon website (Jennings, 2007). However, the exponential effect results in the same exponential growth generated by viral marketing: viruses that are spread from one to another until it reaches the total from “ones” to millions.

 

On the contrary of Gladwell (2000), that defined epidemics as “another example of geometric progression” saying that “when a virus spreads through a population, it doubles and doubles again”, the virus that viral marketing is surrounded by is not so mathematically perfect. Leskovec, Adamic and Huberman (2000) studied this progression with an analysis “consisting of 4 million people who made 16 million recommendations on half a million products” and came to a different conclusion.

 

They realised that “not all people that accept a recommendation by making a purchase decide to give recommendations”. Furthermore, they affirm that “only about a third of the people who purchase also recommend the product forward” (Leskovec; Adamic, Huberman, 2000). That reality was measured considering a person-to-person recommendation network. On the internet, however, this scenario is changing.

 

One aspect regards the online purchases that do not necessarily mean an actual acquisition. In this case, a person who watches a video on Youtube, for instance, and forwards the link to a number of friends, is theoretically buying the video’s idea (Vaz, 2007). Then the friends who watched the video and sent the link once again to several other friends are all “buying” the video as well. The recommendations process, for this reason, can then happen in a more broad way then it was ever possible to.

 

Another side is the “product selling” process that is migrating from B2C (business-to-consumer) to C2C (consumer-to-consumer) on the internet ambiance. A simple case in point would be the online auction and shopping website eBay. It is an online trading community that enables consumers and also businesses to act as vendors and purchasers at the same time (Korper; Ellis, 2001).

 

Thus, consumers are taking control of the whole process. They are not simply buying and selling online, but they are now interacting with each other more – and faster – than it was ever possible before. As a consequence, the velocity of this communication turns recommendations into instant epidemics (Godin, 2002).

 

It is known that “verbal consumer-to-consumer communication, often referred to as simply ‘word of mouth’ has long been recognized as an important factor in consumer behaviour […] and using the internet, consumers can now easily publish their opinions, providing their thoughts, feeling and viewpoints on products and services to the public at large” (Haugtvedt; Machleit; Yalch, 2005).

 

That gives significant potential power for marketers – and therefore for viral marketing. An example would be The Blair Witch Project[2]. After the success of the use of internet buzz in promoting the movie, which turned out to be a big hit, studios are increasingly relying on online word of mouth and therefore viral marketing to develop interest in new films (Haugtvedt; Machleit; Yalch, 2005).

 

2.4 Viral Marketing Advantages

As Kirby and Marsden (2005) affirmed, “consumers have learned to tune out a lot of marketing communications and they have become more involved than ever before in controlling message delivery globally, thanks to the rise of digital media such as blogs and forums”. That has made increasingly difficult for marketers and advertisers to reach this fragmented audience using traditional media.

 

Nevertheless, viral marketing has arrived in this “dark period” to help solve the problem. It brings about the possibility of getting in touch with the new, connected generation in many different ways. Although its benefits do not apply to all the cases, the most common and useful points can be summarized in order to be used as a guide that will help to accomplish a successful campaign.

 

2.4.1 Cost-effectiveness

In the middle of all the advantages, the major point that marketers make use of to argument a viral marketing campaign is based on its cost. When traditional advertising is used, a big share of the advertising budget is directed to the channels’ expenses (Fill, 2007). Taking into consideration that the distribution channels used by viral marketing, such as YouTube or Social Networks, are online and free of charge vehicles, the costs are vastly reduced.

 

Thus, the production fees will then be responsible for the most expenses. This cost, still, can be diluted in the case of an integrated campaign that uses different marketing activities, as they will require a production cost that might be divided between them all. As a result, the cost-benefits of using this online instrument are very rewarding.

 

Perry and Whitaker (2002) affirm that viral marketing “offers marketers an additional weapon in their armory. On shoestring budgets, successful viral marketing campaigns can increase sales, improve market penetration or market share and enhance brand awareness.” This way, even if there is only a small amount of money left on the budget, viral marketing can still be implemented.

 

That, however, does not apply to all the cases. There are big, renowned companies that still choose to spend thousands on conventional and also online marketing. This is called ‘encouraged’ viral marketing: campaigns that require a high level of user involvement and are meticulously planned with their profile and interest in mind (Kirby; Marsden, 2005). Yet, they increasingly tend to be minority.

 

2.4.2 Speed and Reach

Another important advantage of viral marketing is related to its speed. The dissemination of the message does take place much faster when the online environment is used, like it was acknowledged by Perry and Whitaker (2002): “The speed in which the information travels cannot be matched by any other communication means. Its exponential effect is unique. Within seconds a message can reach countless people, spread all over the world”.

 

That was possible not only because of the internet, which eliminated the physical distance, but also due to the broadband adoption that increased the velocity and facilitated enlargement of the online content. Also, the innovative instruments, such as blogs, emails, forums or instant messaging programs have enabled the messages to be passed forward with great speed (Kirby; Marsden, 2005).

 

Another aspect regards the limitless reach of viral marketing. Jennings (2007) affirms that “with the massive adoption of the internet, there is an online population of millions just waiting to be reached”. And they can be accessed with the simple click of a button. Once planned correctly, this additional benefit holds a great power of attraction when considering implementing viral marketing in a campaign.

 

Perry and Whitaker (2002) state that “viral marketing offers a unique opportunity to supplement (or even replace) these traditional activities with a campaign that offers results at a uniquely low cost, targeting an audience with near-limitless reach”.

 

In this way, when these two characteristics of viral marketing work together, like in the Virgin.net example (See Case Studies, topic 2.2.4), the results achieved can be impressive. Perry and Whitaker (2002) also affirms that “when successful, through the self-perpetuation of the viral marketing initiative, exposure of the message can reach levels unparalleled elsewhere in the marketing world”.

 

2.4.3 Branding

Viral marketing can both improve brand advocacy and increase brand awareness: “When a recipient chooses to forward any message they have received, they advocate or endorse its content, by associating their name with the message content” (Perry; Whitaker, 2002). Therefore, when a viral message is spread it carries the brand name within it and turns the sender into an advocate. Since successful campaigns can get to millions of people in a very short period of time, the brand becomes well-known.

 

Kirby and Marsden (2005) say that “the logic is that if you can create advocacy among the 10% of your target market who tell the other 90% what to think, say and buy, then you can kick-start an epidemic of demand”. That also relates to Godin (2002) theory about what he calls the sneezers. When the right people are chosen to start spreading the idea, the virus is more likely to be accepted.

 

2.4.4 Control

Additionally, Kirby and Marsden (2005) state that “one of the reasons consumers find viral marketing campaigns appealing is because the campaigns tend to be non-interruptive, so they enable consumers to choose to interact proactively with a communication (and the brand behind it), or not, rather than be passively dictated to. This ‘bottom-up’ approach respects that the consumer is in control”.

 

Most viral marketing campaigns are ultimately driven by consumers themselves and that is what the new generation is looking for. Consumers are increasingly getting tired of that old dictating model of advertising and feel much more comfortable to share a content that is there, just waiting for them, rather than one that is thrown at them (Haugtvedt; Machleit; Yalch, 2005).

 

Thus way, viral marketing “involves someone choosing to send a message to a friend or colleague and therefore being in control” (Goldsmith, 2002). It is by far the most user-friendly type of marketing because it allows the users to decide whether they want to pass the communication on or not. And when they choose to do so, there is the brand advocacy created by sending on the message, which gives instant credibility to the company or product/service (Perry; Whitaker, 2000).

 

2.4.5 Trustworthy and Involvement

A different attribute of viral marketing is that it is more trustable than any other traditional advertising, as acknowledged by Sweeney (2006): the effect is “similar to how a positive testimonial from a reliable source can add credibility to a product or service, as the opinions of friends, business associates, and family can also help influence a consumer’s purchasing decision”.

 

Consequently, the virus “allows marketers to tap into people’s existing networks, allowing them to take advantage of the trusting relationship that already exists” (Perry; Whitaker, 2002). The influence of a person you have this trusting relationship with is much more valuable than commercial initiatives.

 

Sweeney (2006) illustrate this by considering websites that have a ‘Tell a friend’ button: “because the message is personalised from a friend, the recipient is more apt to open the email and visit the site to find out more about the product than he or she would be if the email came from a traditional corporate email campaign”.

 

Think about your own experience, take a look at your email box and you will realise that this is indeed true. Most trash and spam folders are filled with corporate emails that haven’t even been opened (Baggott; Sales, 2007). When you go to your inbox it is natural to open the emails that you have received from your friends at first and then simply delete most of the others – which are normally advertising and spam.

 

Another aspect of great importance for viral marketing is the closer relationship that it allows products or brands to have with their customers. Along with the type of the distribution channels used by this marketing tool, which are genuinely less invasive than traditional media vehicles, the message formats that they carry are quite singular and different from the conventional ones (Kirby; Marsden, 2005).

 

Blogs, for instance, don’t come “knocking on your door” when you least expect. They are just there, available on the internet for the ones who decide to visit it. The messages, subsequently, tend to be more inviting and attractive than compulsory (Scott, 2007). They follow the trends and try to be comic, unusual or either extreme.

 

2.4.6 Equivalence

Another point, as stated in Chapter 2, regards the fact that companies can be equally perceived on the online ambiance. Small or medium businesses can look as “first-class” as the big corporations. One aspect that makes it possible is that “with no high street presence required, a website can make any sole trader appear to be as big as a multinational organisation” (Goldsmith, 2002).

 

Also, the infinite online shelf space verified by Anderson (2006), and explained in Chapter 2, can deliver all types products to all kinds of targets, including extremely specific niche markets. This way, the demand for “non-hits” can turn a small into a big company, such as Amazon or Rhapsody.

 

2.4.7 Measurable and “endless”

Furthermore, a key aspect for the agency – and therefore, naturally, the client – is viral marketing’s traceability, which is responsible for generating its accountability. On the contrary of what many people think, there are a number of techniques that make possible the tracking of this marketing instrument’s outcomes, as stated by Kirby and Marsden (2005): “Viral marketing, due to its online nature, is probably the most measurable of all the work of mouth marketing approaches”.

 

Different channels have different ways of being measured and presenting ROI[3]. Some of those measurement tools quantify the number of ‘unique visitors’ or ‘click rates’ for web sites, track the views and elements downloaded from the web, also following contents spread by email from user to user (Henninger, 2007).

 

Furthermore, Jennings (2007) acknowledges that “word of mouth on these (digital) platforms leaves a trace that is measurable to some degree”, as supported by Kirby and Marsden (2005): “Tools also exist to track the viewing of and interaction with elements downloaded from the web and spread by email from user to user”.

 

In addition, “viral campaigns have no fixed cut-off point, so they can provide an ever-increasing ROI” (Kirby; Marsden, 2005). That means that the online content that is available during the campaign can still be available even after the promotion period has finished. A website that is created for a campaign’s purposes, for instance, will probably be available on the internet for along time.

 

That is not possible with traditional advertising, however, for the reason that the traditional distribution channels have to be paid constantly to be used for that product (Sant’Anna, 2002). An outdoor, for instance, will hold a certain campaign only for a determined (and paid) period of time.

 

2.5 Viral Marketing Disadvantages and risks

Goldsmith (2002) states that “just as a viral campaign can work for a brand, it can just as easily work against one too”, so the most common disadvantages and risks of a viral marketing campaign will now be exposed. The same way as the benefits, they may also not apply to every case, but they should be analysed with a great deal of attention in order to be avoided.

 

2.5.1 Modification

Considering the online environment to be an open ambiance, the viral marketing content may be easy to modify. There are cases of viral campaigns that have been changed in the middle of its course, especially with the email as a distribution channel. An example that describes the negative side of using a simple text email is Calrsberg’s viral email passed on during UEFA Euro 2004 football tournament.

 

The ‘probably the best’ slogan ended up next to ‘shame their lager tastes like piss’ (Kirby; Marsden, 2005). Kirby and Marsden also state that “often this user input makes the agent more entertaining and viral, but not necessarily to the benefit of the brand behind it”. Like so, the content form of a viral marketing campaign has to be carefully prepared in order to stay untouched, unaltered.

 

Additionally, the same risk is associated with the use of digital image files and other easy to modify formats which can be doctored easily by users (Sweeney; Dorey; MacLellan, 2006). When it happens, the original messages can be lost or take on new meanings that may – and probably will – distort the campaign’s idea.

 

2.5.2 Wrong choices

Making wrong choices is a significant fact that may compromise a viral marketing campaign. Every little detail has to be analysed correctly with the aim of succeeding. The agency has to choose the exact distribution channels where the target audience is, the attractive message that will grab the attention and encourage consumers to pass it on, and the precise time to catch them online when initially releasing the message.

 

Like so, the distribution channels have to be sensibly chosen to reach the precise audience the company wants to target, at the right time (Goldsmith, 2002). The company needs to have a great understanding of its target characteristics in order to discover where they are. Otherwise, there is no point in launching a viral marketing campaign if you have no idea where to find your target.

 

Also, Sweeney (2006) considers that “viral marketing will only be successful if the content is good enough or valuable enough to be passed along.”. For that reason, the message has to be cautiously structured, and it has to have a ‘catchy’ attribute – to be funny, remarkable, exotic, crazy, unexpected, provoking, horrible or beautiful – in order to be worth passing forward.

 

Finally, a common choice that may compromise a viral marketing campaign regards the initial distributors of the message. Godin (2002) calls them sneezers and affirms that they need to be meticulously selected in order to have a successful campaign. They must be chosen in the middle of the audience the campaign wants to target and can not be discovered as ‘seeders’, otherwise the campaign will be ruined.

 

Masterman and Wood (2005) states that it is needed “to identify suitable ‘seeds’ or opinion leaders, to understand their preferences and contacts and to gain their permission to send them the ‘idea’”. They need to be influential individuals who have the power to persuade other people to follow their thoughts and behaviour.

 

2.6 Distribution Channels

The knowledge era is just beginning. What used to be stuck at your home or your office, connected through a cable on the back of your desktop computer can now walk around in your pocket or in your bag (Vaz, 2007). Notebooks and mobile phones have wireless access to the internet, and the internet has made possible the development of a number of new tools that are used as distribution channels to make companies get closer to their target markets through them.

 

2.6.1 Email

The first and most common way of spreading a corporate message on the internet is through email. Primarily starting with the company’s database of clients, emails were sent containing newsletters, the current business advertising and also information related to new products and services (Baggot; Sales, 2007).

 

It is a very effective online instrument, as Perry and Whitaker (2002) state: “Email as a communication channel is perfect for the fast dissemination of information, which is a key factor in how viral marketing achieves the results it does”. When it is used as part of a viral campaign, it “is started by sending an email to a target group that is likely to propagate the virus” (Chaffrey; Mayer; Johnston, 2003).

 

This target group may or may not be part of the company’s database of clients. Generally, agencies choose the ‘sneezers’ to initiate the dissemination. They are “the ones who when they tell 10 or twenty or 100 people – people believe them” (Godin, 2002). They are powerful and influential and this is why it is important to seed the right people to turn a viral marketing email into a success.

Another aspect relates to the fact that “email creates and sustains secondary friendship levels and you may find yourself communicating with people who, in day-to-day life, you may not have the time or opportunity to keep in touch with” (Perry; Whitaker, 2002). That second level of contact great increases the exponential number of forwarded messages, which is essential to the viral marketing.

 

On the other hand, the amount of spam is increasing. Goldsmith states that “as the market has developed from those early days of the launch of Hotmail, companies know they need to be innovative to ensure that they cut through the mass of other emails that arrive in someone’s inbox each day”. This way, the email content has to be carefully considered before starting the viral marketing through this channel.

 

2.6.2 Instant Messaging

This new way of communication has changed dramatically the way people interact. Instead of grabbing the telephone, people go online and look for their friends on instant messaging programmes. Belk (2006) reveals that “recent studies suggest that instant messaging is replacing both phone calls and emails with a new modality that combines the two forms. The IM modality is quicker than email and easily allows multitasking and real time multi-person online conversations”.

 

This way, a message can spread much faster through this new channel than with any other traditional media. People do communicate instantly using IM programmes and therefore can exchange ideas, share contents and multiply good or bad news in real time. And they do that: “The second annual AOL Instant Messaging Survey showed that a whooping 59 percent of internet users use instant messaging on a regular basis” (Sweeney; Dorey; MacLellan, 2006). 

 

Godin (2002) uses a simple example that describes this. He says that, in the old times, if you liked a movie you could tell a friend or two and end up influencing three or four people. Today, you can immediately communicate your opinion to a number of friends that are online, who will tell it to their friends and so on. You can also post comments on a variety of online movie sites (or blogs) or later, when the video comes out, post a review on Amazon, where hundreds or thousands of people might read it.

But do not think that it is a new technology for the young generation. Indeed they are the majority of the users, but Sweeney, Dorey and MacLellan (2006) state that “instant messaging is being used by 90 percent of online 13 to 21 years old, 71 percent of 22 to 34 years old, 55 percent of 34 to 54 years old, and an amazing 48 percent of those over 55”. Thus, all kinds of products can enjoy the use of this channel with the aim of reaching any target, no matter the age.

 

Additionally, “these virtual environments offer many opportunities for consumers to interact and inform our knowledge of consumption both online an off. Consumers interact and create consumption practices with their digital environment and they also communicate and ‘do’ other things virtually with one another” (Belk, 2006).

 

2.6.3 Blogs

Seen initially as an online, public diary, blogs have improved and are becoming to be seen more and more like an important instrument. Risdahl (2006) states that “blogs can help raise brand awareness, communicate their corporate or marketing message, serve customers or potential customers and the world at large. Blogs can even be used to entertain and attract an audience, which can translate into brand loyalty and sales”.

 

Regarding the corporate purposes, blogs can be used not only to communicate and interact with the outside customers, but also with the inside ones: the employees. Risdahl (2006) verifies that “managers can use blogs to keep their staff updated on company and client news that directly affects them, reducing the communication gap between management and the rest of the company”.

 

Another point of view regards the largely consumer-created information on blogs that offers insights and influences readers. There are targeted, precise, influential comments and feedback on products and brands, sometimes with specific complaints and suggestions for their improvement (Belk, 2006).

 

As detailed during Chapter 2, blogs can also build stronger and closer relationships with the customers, as supported by Risdahl (2006): “Unsolicited opinions from bloggers can also hold far more credibility with general consumers than company-generated comments”. Considering that “there are millions of these online journals, growing at a rate of tens of thousands per day, linking together to form a vast network” (Sweeney; Dorey; MacLellan, 2006), it is not possible or either reasonable to ignore the immense power of this tool anymore.

 

Jennings (2007) affirms that “the scale and reach of the (inter)net are such that we need only a minority within a minority group to be active in order to create rich and sophisticated material”. This way, the blogs can also perfectly attend the niche markets, as a blog and its choice of content can be generated and decided by anyone.

 

Also, when analysed correctly, Belk (2006) says that “blogs can offer a sophisticated and often relevant source of consumer information and feedback that marketers and researchers can view as an important source of counter information […] that tends to offer rich, detailed, longitudinal data about individual consumers and their consumption practices, values, meanings and beliefs”.

 

2.6.4 Social networks

Social networking sites “include online communities like MySpace, Facebook and LinkedIn, free online image-sharing sites like Flickr and Youtube, virtual communities like Second Life and sites that invite user-generated content like blogs and forums” (Anderson, 2008). As the name says, they link individuals socially into a ‘parallel universe’ (especially when discussing games like Second Life).

 

Godin (2002) says that “we’re far more connected than we ever were. And now, we’ve got second or third or forth order connections. There’s an email in my box from someone who is married to someone I went to summer camp with twenty years ago who got my email address from a third friend”.

It works as a mathematical progression: “As people accept your invitation, your network grows. As your network grows, your potential reach increases from your friends, to whom your friends know, to whom your friends’ friends know. This shows the power of networking” (Anderson, 2008).

 

Additionally, some original implementations are being developed in order to improve the marketing and advertising aspect of those social networks. Jennings (2008) affirms that “the ease, the speed, and global reach of digital platforms mean that buzz can grow faster and penetrate further than ever before. Consequently, marketers are exploring ever more seriously how to spread digital text, audio and video through social networks to raise awareness for their clients”.

 

As a result, Facebook and “other sites have tried to commercialise these social connections by allowing outside developers to build applications that access user’s networks. Facebook also advertises to a user’s contact in accordance with the user’s online buying habits” (Naone, 2008).

 

2.6.5 Mobile/SMS

The mobile marketplace is gowning rapidly and is “a truly powerful medium, more powerful perhaps than email could ever be. Let’s face it, when we leave home now, we check for our keys, our wallets and our mobile phones!” (Goldsmith, 2002).

 

Mobile marketing numbers are already significant, as “there are over 1.8 billion people out there with a mobile device capable of voice, text, image, and internet communication. This number is increasing at a rapid pace […] and we are seeing swift and wide acceptance with over 350 billion text messages exchanged over the world’s mobile networks each month” (Sweeney; Dorey; MacLellan, 2006).

 

Consumers and companies “are adopting technologies that combine the most important communication innovations since television: the mobile phone and networked computer” (Haugtvedt; Machleit; Yalch, 2005). Therefore, the mobile marketing adoption and growth is due to the integration of these technologies, as they allow “direct, personal communication in real time with the opportunity for immediate, direct response.” (Sweeney; Dorey; MacLellan, 2006).

 

When used suitably, mobile marketing can reach consumers at the exact time they have their mobile phones in hand, as Goldsmith (2002) states: “if the initial SMS send is timed correctly, for example, hitting teenagers as they leave school in the afternoon, you can watch the viral effect work immediately”.

 

2.7 Key issues arising

Many aspects of viral marketing have been detailed in this chapter in order to demonstrate the increasing power and influence of this relatively new marketing instrument. The internet has made possible a whole new style of interaction that allows instant communication, eliminating physical distances.

 

Even though the online means are being used to bring customers closer to the brand, most people keep seeing this environment just as an extra channel to advertise based on the same traditional way. There are still many kinds of unwanted online advertisements, such as banners and pop ups, inserted on news and articles just like in the conventional media, like journals or magazines.

 

They are ever more being ignored by consumers, as one of Microsoft’s new release, for instance, shows. The Internet Explorer 8 has a feature called “InPrivate”, which is activated by the user, that allows him or her to block third-party contents, such as ads. No matter how creative and “interactive”, no matter how beautiful and well designed, no matter how far technology goes to make these adverts interesting – flash animations or banners that expand when you pass the mouse – the old is dying out.

 

As a result, the companies that are already discarding this old, interrupting form of advertising will choose to further invest on different and innovative strategies, such as viral marketing. Therefore, this instrument’s power only tends to grow in reputation, soon becoming an indispensable activity when implementing a marketing campaign.

 

The existing channels and the techniques used on them tend be further explored, especially when considering the most recent ones. For instance, more and more people are buying and also changing mobile phones in a fast pace, as a global trend. Everyone wants to have the most up-to-date handset that exists, which now integrates telephone, computer – with internet – and also television.

 

Therefore, new innovative ways of reaching the consumers through mobile marketing will be invented. A video can now be watched on your mobile phone screen, and you can send it to a friend as soon as you finish watching it. It is important to notice that the limits of integration are being watered down and original methods of associating channels and communication formats are being developed.

 

Emails are an example. When the email was first created, it was not possible to attach an image or any kind of file to it, only text was recognised. Today, however, you can add anything you want to your message. New technologies are created and upgraded every day, and they are advancing faster than ever before. Different tools and channels are therefore created with impressive speed.

 

Just to give an idea, social networks started to appear one after the other. MySpace was ready to launch in 2003, Facebook was introduced in 2004 and Youtube was created a year later. Instant messaging programmes, as well, began to take off in 1996, with ICQ, followed by AOL Instant Messenger, in the next year. After that, other companies started developing their own applications, such as Microsoft that created and distributed MSN Messenger, in 1999.

 

What’s more, mobile phones as we know – small and light – were only developed in the late 1990s. Mobile marketing, however, has just become popular with the rise of SMS, in the early 2000s in Europe. Goldsmith (2002) affirms that SMS has become the most popular branch of the mobile marketing industry with several 100 million advertising text messages sent out every month in Europe alone.

 

The mobile network’s technology, on the other hand, is developing faster. The first generation (1G) was initially introduced in 1984. The second (2G), in 1991, which was the first “modern” digital network technology; and the third (3G), in the early 2000s, that includes video and TV services (Sweeney; Dorey; MacLellan, 2006). In view of that, the fourth generation seems to be on its way.

 

The tendency is to reach your friends and use the internet wherever you are, at any time. Since mobile phones are practically integrating a whole computer inside, connected all the time, the communication finds its own way: computer-to-computer, computer-to-mobile, mobile-to-computer or mobile-to-mobile.

3 Methodology

3.1 Introduction

Considering the literature review that was previously presented, the need to show the agency point of view was recognized. Many studies relate viral marketing to the point of view of the consumer, but the agency’s is rarely mentioned. For that reason, this study is focusing on the agency side, using interview as the chosen social research method, taking into consideration that the outcomes will help to have more in-depth information and therefore get a clear picture of the subject.

 

Additionally, a few case studies were analysed with the intention of demonstrating how viral marketing can be applied in real life situations, using famous, remarkable cases of viral marketing campaigns. They illustrate some of the characteristics of viral marketing that were detailed during the previous chapter, such as its benefits and risks and also the use of its distribution channels.

 

Thus, this chapter will talk about the details of the preferred methodology. The reasons for selecting interview are going to be outlined along with how the interviewees were chosen. The interview approach is then going to be described, explaining the type of interview selected and how they were taken, as well as running through a brief description of the questions that were asked.

 

Afterwards, some of the advantages and limitations of this method that apply to this study will be explained, followed by some details of the interviews outcomes’ analysis. As a final point, the case studies will be detailed, comprising why this method was select and the approach taken, as well as how it was analysed.

 

3.2 Selecting interview and interviewees

Interview seems to be the most appropriate method of research for this study because it can provide a more in-depth and precise information, considering that it comes from experienced professionals in the area. Denscombe (2007) states that the justification for interviews is “based on the value of contact with key players in the field who can give privileged information”.

 

In this way, Bruno Delfino, the Content and Seeding Manager, and also Ian Black, the Planning Director from Riot were interviewed. Riot is a Brazilian medium size agency, one of the few in the country that is specialised in viral marketing.

 

This agency was chosen because of its reputation, since it is known to have run a great number of successful viral marketing campaigns. Besides, there is a granted access to the staff mentioned, who have agreed with the interviews and confirmed that they are willing to share as much as they can.

 

3.3 Interview approach

A semi-structured type of interview was the selected type of research, because of the fact that it allows flexibility and permits the interviewees to develop ideas and speak more widely on the issues raised. As a result, in depth and further detailed information can be obtained, and it can also produce best value given that the informants work exclusively with viral marketing.

 

Considering the geographical distance limitation that exists, all the interviews had to happen online, through a video conference that was arranged to take place during the weekend. They were accomplished throughout two sessions, with the aim of covering all the points substantially. The questions asked were selected taking into consideration the agency side, which was the main focus of the interviews.

 

They involved the benefits of deciding to go for a viral marketing campaign, talking about what are the basic “selling points” of viral marketing to the clients. Additionally, the main risks that can lead to a failed viral marketing campaign were discussed and identified to serve as a “non-guide”, as they should always be avoided. Also, the distribution channels came into conversation, considering which are most appropriate for each type of product/target and how they are chosen.

 

3.4 Advantages and Disadvantages

For being a flexible method, especially when using a semi-structured type of research, the interviews allow a developing line of questioning, giving the interviewees freedom to extend the topics as much as they are able to. Moreover, based on the depth of information already mentioned and on the understanding of the key informants about the matter, “the researcher is likely to gain valuable insights” (Denscombe, 2007), which might be constructive to advance on the queries.

 

Another advantage is the little equipment needed, especially when using the online ambiance: a computer with internet connection and an adequate program installed is enough. An additional good factor regarding interviews is also related to the internet, since it allows geographical freedom. They can be taken anywhere, and there is no need for physical contact, which would be a significant limitation for this research.

 

Also, interviews are normally “prearranged and scheduled for a convenient time” (Denscombe, 2007). This way, the interviews will not come across any other commitments previously scheduled by the interviewees and therefore they will hardly have any problems or drawbacks to attend them.

 

A disadvantage, however, is the time-consuming aspect of interviews, as Denscombe (2007) states: “Analysis of data can be difficult and time-consuming (and) data preparation and analysis is ‘end-loaded’”. Although the internet has helped a lot with the limitation of resources, as it shortens the geographical distances, the transcribing process is still required for a better analysis.

 

The interviewer effect is also a bad point for interviews, as the data collected is “based on what people say rather then what they do” (Denscombe, 2007). This way, the influence of the interviewer might change the answers by intimidation or even the interviewer appearance. Additionally, in this case, there is a personal association, as the interviewer knows the interviewees. Though, it is not believed that it will interfere in the results, as the interviewees are going to respond as professionals.

 

3.5 Interview analysis

The outcomes of the interviews will be detailed in Chapter 4. They were analysed using triangulation, which is described by Denscombe (2007) as “the practice of viewing things from more than one perspective. This can mean the use of different methods, different sources of data or even different researchers within the study”.

 

For this study, data triangulation will be used. By this means, the validity of the data was checked using both different interviewees and different types of data. In view of the latter, the interviews were contrasted with the literature previously examined in Chapter 2, which corroborated most of the answers, even though they had a different point of view – the agency and the consumer.

 

In addition, for the first one, although the two informants were interviewed at the same time – since a video conference was used rather than a one-to-one interview, due to the distance limitation – each one of them had a different opinion about some of the issues discussed, which added great value to the research.

 

3.6 Case studies

Finally, the case studies were used in order to illustrate the practical application in real life setting of some of the aspects regarding viral marketing that have already been described in Chapter 2. The selected case study approach was focus on relationship and processes, for the reason that within this approach “there is a tendency to emphasise the detailed workings of the relationships and social processes, rather than to restrict attention to the outcomes from there” (Denscombe, 2007).

 

In this way, the outcomes and results of the case study certainly remain important; however, the attention is focused on the processes that led to those outcomes. The explanation of why those outcomes might happen, more than just finding out what they are, is the point of interest for using this type of research.

 

At last, the case studies were analysed the same way as the interviews, also by means of triangulation, which used the comparison of data obtained from different sources, as well as using the literature already explored in Chapter 2, in order to validate it.

4 Analysis / Findings

4.1 Introduction

The objectives of this study have been exposed during the introduction, topic 1.3, and involve making use of famous successful viral case studies in order to illustrate some of the benefits and risks of viral marketing, previously presented during the literature review, in Chapter 2, as well as to point up the right use of the distribution channels.

 

Four case studies are analysed in this chapter, along with the outcomes of the interviews, always focusing on the point of view of the agency. They discussed the good points of a viral marketing campaign, focusing on the arguments used to sell this instrument to the agency’s clients, as well as the bad points that may lead to a failed campaign, concentrating on the identification – in order to avoid them.

 

Additionally, one more issue discussed during the interviews is related to the distribution channels and how the agency chooses them, taking into consideration which is the most appropriate for the different targets and products they work with.

 

4.2 Cases

4.2.1 Orange

One of the first interesting viral mobile marketing campaigns, the ‘Orange Wednesdays’ used cinema tickets to generate loyalty, build customer data and attract new customers for Orange, a mobile telephone network in the UK. The campaign, started in 2004, chose to use a ‘pull’ rather than a ‘push’ strategy, since the customers did not receive uninvited advertising from Orange.

The promotion involved SMS messages voluntarily sent by their customers to Orange, with the purpose of receiving a buy-one-get-one-free cinema ticket. This attractive appeal allowed Orange customers to invite a friend to any cinema in the UK every Wednesday. They would receive an instant SMS reply to their handsets with the voucher and could convert them immediately.

 

This campaign’s virality, as Kirby and Marsden (2005) stated “lies in the fact that it transforms existing customers into promotional agents for the mobile network – by giving them promotional offers to share with friends”. This way, existing customers also attract new consumers that end up charmed by the ‘gift’. Furthermore, this viral campaign also uses the mobile phones – which are, do not forget, the company’s products – to connect with customers and stimulate word of mouth advocacy.

 

This campaign was such a great success that the promotion still exists, although it was set to run for only three years, which demonstrates the power of this relatively new marketing channel. If we analyse this campaign as an isolated case, the brand involvement generated seems to be of great significance.

 

However, many other companies in the UK use cinema tickets as an incentive to develop a closer relationship with their customers. Studentubeans.com, for instance, is a website designed for students, which offers discount vouchers, including cinema tickets. It is no longer a unique type of motivation and therefore the involvement that it generates has no such strong ties, although the results achieved are still good.

 

Taking into consideration that cases such as this are very simple and easy to catch, and that they generate valuable outcomes, even though they are not innovative or exclusive anymore, more and more companies are realising the importance of including viral initiatives in their marketing activities.

 

4.2.2 The Blair Witch Project

Considered to be the first high-profile online campaign that combined advertising with entertainment (aka advertainment), the Blair Witch project website was created in 1999 with the intention of promoting the blockbuster movie that has the same name. The initial page contained information about three student filmmakers that had apparently disappeared in the woods near Burkittsville, Maryland, while shooting a documentary. It also affirmed that “their footage was found a year later”.

 

Creating great interest and curiosity, the website “used mystery and intrigue to stimulate word of mouth anticipation for the movie. The site attracted 75 million visits on the first week of the film’s release” (Kirby; Marsden, 2005). Costing only $15 000 to produce, the website turned out to reach an immense number of customers, using online word of mouth that generated high rates of visits.

 

This case study shows that a simple website can generate enough incentive to make consumers purchase – in this case, go to the cinema and watch the movie, as it was a big hit. It is not every website, nevertheless, that has the right ingredients to attract such a great numbers of visitors.

 

The grand magnetism of this campaign is the fact that it was presented as a real story. The movie was promoted as if it was a documentary, and that helped increasing the website traffic. Users were intrigued and attracted by the mysterious disappearances and therefore felt compelled to forward the website link to their friends to see if anyone can find out what all the mystery was about.

 

4.2.3 Dove

This viral sampling initiative, executed in 1998, intended to turn loyal users of Dove into active brand advocates. An advertisement was sent to Dove users that invited them to send an email with the name and address of a friend, including a personal message that would be incorporated in the gift certificate the friend would receive.

 

This way, they would ‘Share the Dove Secret’ with this friend when he or she received the certificate, which would allow the person to collect a free Dove pack of soap and also discount vouchers. The friend would then be able to provide his or her own name and invite another friend. A certificate for the gift pack was also sent to the initial Dove user, as a thank you from the brand.

 

The campaign was such a success that “90% of people who participated in the offer supplied the contact details of a friend, some 80% higher than Unilever had expected, and during the promotion Dove’s market share rose 10%” (Kirby; Marsden, 2005). Additionally, Dove generated a database of names and addresses provided by users.

 

This case study supports the theory that users like to share information and recommend friends, especially if the incentive is a free gift reward. It also shows the effectiveness of the email as a marketing channel.

 

4.2.4 Virgin.net

This viral email promotion is a clear example that demonstrates the speed of viral marketing. The UK ISP (Internet Service Provider) sent out an email offer to its marketing database to only 25 people, requesting them to forward the email to a friend. The result was that, in just three hours, 20 000 people signed up to the service.

 

A compelling incentive for signing up was offered, the same one Orange used (actually, Orange used the same incentive as Virgin.net, as this campaign took place in 2000 and Orange’s started in 2004), free cinema tickets. It spread just like a virus, “infecting” an immense number of customers in a very short period of time, which allowed Virgin.net to create a CRM (Customer Relationship Management) database.

 

4.3 Interviews

The interview’s objective was to establish the point of view of the agency. This way, Bruno Delfino, the Content and Seeding Manager, and also Ian Black, the Planning Director from Riot were interviewed. The aspects discussed involved mainly the arguments used to make the client incorporate viral marketing in the advertising and marketing mix, how to avoid the failure of a viral marketing campaign and also the way the agency selects the distribution channels – which is more adequate to each type of target and product/brand they work with.

 

The interviewees started discussing that viral marketing is progressively becoming an essential part of the marketing activities, though it has been used more and more as an integrated rather than isolated approach, combining traditional methods with innovative actions. Taking into account that this instrument’s distribution costs are fairly small, Bruno says that “it frequently ends up being added to the marketing mix because there is still some money available on the budget”.

 

Although that is still true for a good number of cases, especially in Brazil, Bruno and Ian affirm that the companies are starting to realise that they need alternate strategies, such as viral marketing, to get more involvement from the customers. Consequently, “they are allocating in advance a reasonable amount of money in the budget to those activities, which helps a lot with the planning of the campaign”, states Ian.

 

Those two arguments, cost and involvement, are in point of fact the most common aspects firstly presented to the clients when selling a viral campaign’s idea. The clients are always looking for a new way to save money, Ian gives away, but at the same time they want to keep their customers close to their brands. He also says that “viral marketing is, a very cost-effective tool as it uses online distribution channels (such as Youtube or Facebook) to spread its message”.

 

The distribution charges of these channels are very low and the production cost is mostly responsible for the budget designed to viral marketing, which can also be minimised when using an integrated campaign. Those channels are free and influential media that create a closer relationship with the customers, as they use a non-interruptive sort of communication that is preferred by the customers.

 

The message is there just waiting to be seen, as Ian complements: “the users talk about it and, depending on the channel used by the campaign, they might even be able to leave comments about the campaign, the brand or the product for everyone to see”. This way, the message is spontaneously and exponentially spread from one to millions, which brings as a consequence a qualitative parameter for the brand.

 

In quantitative means, the reach and speed of viral marketing are massive. An enormous number of consumers might be exposed to the message in a matter of days, or even just hours, as the Virgin.net case study shows (See topic ***). The online environment makes possible the incredible rapidity and extent achieved by this marketing tool and is able to generate a regular and important feedback from the users, which should be constantly monitored by the companies.

 

That is another good point of viral marketing that is exposed to the clients, Ian continues. It makes possible for the brand to create a dialogue with its consumers. Once your company receives a feedback from a customer, it has the option to carry on the conversation. The more you do it, the more a customer will feel as part of the company and this way a closer relationship is established. Kirby and Marsden (2005) agree with that: “Ultimately, in this media-saturated world, the winners will be the brands that stimulate the flow of conversation between consumers”.

 

Also, the accountability is possible, which is an important factor for the clients, Bruno and Ian agree. Many measurement tools exist that may provide ROI, as described in Chapter 2. Another important aspect that is discussed with the client, they both comment about, regards the target audience. As every activity, viral marketing requires an immense knowledge of the target market in order to succeed. Thus, the right message can be spread to the right target, and be initiated at the right time.

 

Goldsmith (2002) states that “for viral marketing to work, you must understand what will motivate your target audience to pass on a message to someone of similar mind and interest.”. In order to acquire this knowledge, market research is needed – and it should be used by all marketing activities, this way it also dilutes the cost.

 

When creating a viral marketing campaign, you need to know exactly who your audience is and where to find them, and also what will entice them to take interest in your brand or product. Those are extremely important points that may ruin a campaign if a great amount attention is not dedicated to them. Bruno states that “when you are able to analyse these points, you will then be able to find out which is the most appropriate channel to spread your message through”.

 

He adds: “A shampoo campaign, for instance, could be perfectly viralised through a beauty or hair care community on Orkut[4]. Once the viral is directed to the right target through the right channel, the chances of it spreading are higher. If it is associated with the right message, the success is nearly granted”. In view of that, taking care of the minimum aspects is extremely important for a campaign to succeed.

 

On the other hand, if the agency does not carefully analyse those details, there is a great likelihood for the campaign to fail. When a viral campaign is not viralised in great scale at first, the client tends to ignore the signs and keep pushing the message to the consumers, which may lead the brand to receive negative comments, says Ian.

 

Damaging commentary may also be generated by a common activity used by viral marketing agencies, when launching a new campaign, called ‘seeding’. Bruno explains that “they release the material in first-hand for some influential opinion leaders and may even pay blog owners to post the campaign information for them”. Although it does happen a lot, there is always a risk of being disclosed, as not only the brand/product/service but also the blog might lose credibility.

 

5 Conclusions and Recommendations

The imposed type communication that companies use to pass their messages on to consumers created an obstruction between them. Customers started building a barrier to block the unwelcome marketing and advertising communications, which decreased the amount of messages that were being absorbed. In that instance, brands and consumers were in opposite sides. The internet, however, has made it change.

 

As stated by Gao (2004), “through the internet, for the first time in human history, consumers can make their thoughts, feelings, and viewpoints on products and services easily accessible to the global community of internet users. The internet becomes a sort of super-megaphone, giving any individual’s word of mouth the kind of reach way beyond anything previously possible”.

 

Thus, customers feel increasingly free to express opinions and communicate with the brands, as the internet opened a two-ways channel where consumer and brands can dialogue. This new form of interaction is straightening the distance between them and the internet is progressively more allowing the process to happen spontaneously. Through marketing instruments, such as viral marketing, companies are able to reach the mass of customers that populate the online environment.

 

Cost-effectiveness, astonishing speed, limitless reach, possible measurement and capacity to generate customer involvement are some of viral marketing’s qualities. For being based on a non-interruptive kind of communication, which allows the users to be in control, this marketing instrument has the ability to walk past the barriers and make the messages arrive at the consumers.

 

It can be distributed through a number of channels, such as blogs, social networks or instant messaging programmes that allow the message to be spread spontaneously and exponentially. Once attracted by the message, the user tends to pass it on to friends, who will then forward it to other friends and so on, which illustrates the ‘magic’ of one of the tools of this new age of communication: the viral marketing.

 

The integration of those channels and its communication tools is also unparalleled. Increasingly, mobile phones technology develops, relating it to computers and the internet. You can check your emails, chat with your friends, write on your blog or even watch a video on Youtube through your handset.

 

For that reason, mobile marketing needs to be further developed. Orange case study (See topic 4.2.1) shows one example of how mobile marketing can be used in order to create a closer relationship between brand and customers. There strategies are progressively more becoming a fundamental approach to reach consumers and therefore attention has to be paid to this relatively new channel.

 

 

 

 

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[1] YouTube is a video sharing website where users can upload, view and share videos.

 

[2] This case will be detailed in Chapter 4, topic 4.2

 

[3] Return of Investment, a common term used in the marketing and advertising area.

 

[4] Orkut is another social network, like Facebook, that is most commonly used by Brazilians.