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Consumer-Generated Media (CGM) 101 - Brandchannel

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CONSUMER-GENERATED<br />

MEDIA (<strong>CGM</strong>) <strong>101</strong><br />

Word-of-Mouth in the Age of<br />

the Web-Fortifi ed <strong>Consumer</strong><br />

<strong>CGM</strong> and Infl uencers<br />

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E<br />

ACH TIME TECHNOLOGY ADVANCES,<br />

the world’s behavior changes<br />

accordingly. Just as the printing press and<br />

copy machine revolutionized the publishing<br />

world, the World Wide Web in a very short<br />

time has dramatically altered how people<br />

communicate, shop, work, learn and stay<br />

connected.<br />

The Web also has fundamentally changed<br />

one of the well-entrenched concepts for<br />

marketers: word-of-mouth behavior. Before<br />

the Internet, word-of-mouth behavior<br />

was pretty much that—behaviors and<br />

experiences shared orally with others.<br />

People talked individually or in small<br />

groups on the phone, over the backyard<br />

fence, at the ball fi eld or at the water cooler<br />

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The Value Profi t Chain (Heskett, Sasser 01/03)<br />

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The Internet is signifi cantly amplifying the power of brand apostles and owners,<br />

affording them many more venues and “megaphones” for sharing their views with<br />

others. This underscores the critical importance of companies and brands managing<br />

and nurturing customer segments.<br />

at work. One-on-one or in small groups,<br />

they exchanged stories of products,<br />

shopping experiences, politics, sports, rec-<br />

ommendations, jokes and the like.<br />

But the Internet changed and turbocharged<br />

word-of-mouth behavior in ways that<br />

marketers have not been able to capture,<br />

understand or learn from—until recently.<br />

The Internet has transformed the intimacy<br />

of word-of-mouth behavior into a<br />

broadcast-like ability to communicate with<br />

the masses, whether a group of friends<br />

or hundreds and thousands of online-<br />

but-connected strangers at computer<br />

keyboards.<br />

In essence, the Internet has exponentially<br />

supercharged the concept of word-of-<br />

mouth behavior, giving it a power that<br />

marketers have only begun to understand.<br />

Intelliseek dubs this phenomenon<br />

“consumer-generated media” (<strong>CGM</strong>).<br />

The evolution has been gradual but quick.<br />

Initially, email made person-to-person<br />

communication instantaneous and novel.<br />

When early computer users discovered<br />

the “reply to all” and “forward” keys,<br />

email’s impact became voluminous and<br />

far-reaching, giving the “word-of-mouth”<br />

concept much more power, potential and<br />

breadth.<br />

Today’s technological word-of-mouth<br />

behavior stretches far beyond email, and<br />

new evolutions and formats occur over<br />

periods of months, not decades. Web-<br />

enabled word-of-mouth behavior—or<br />

<strong>CGM</strong>—now includes the ability to post<br />

send photos, video clips, audio clips and<br />

<strong>Consumer</strong>-<strong>Generated</strong> <strong>Media</strong> (<strong>CGM</strong>) <strong>101</strong>: Word-of-Mouth in the Age of the Web-Fortifi ed <strong>Consumer</strong> An Intelliseek White Paper 3

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