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    Ian Schafer.com

    Nielsen: Ad Spending and Online Buzz Go Hand-in-Hand

    Posted by on July 17, 2007 @ 10:45 pm.

    According to a recent report by Nielsen BuzzMetrics and BASES, “there is a strong correlation between ad spending and buzz generated in the blogosphere, one that shouldn’t be ignored when it comes to making media planning decisions.”

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

    That means that the more money is spent on online media, the more likely there is to be “buzz” around that new brand or product.

    The study does caveat this statement by saying that some brands are just prone to more buzz.

    While some of this is common sense (heavy online spend = more online awareness), the conclusion can be drawn that if paid media and word-of-mouth management are both managed by the same entity, the resultant buzz can be much greater than if these tactics were executed individually, by different entities.

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