[2] In the early 1970s, psychologist George Silverman pioneered word-of-mouth marketing by creating "teleconferenced peer influence groups" aimed at engaging physicians in discussions concerning new pharmaceutical products.
The Internet's role has simplified communication processes by eliminating barriers like distance and language, encouraging consumers to share their opinions readily and form communities, and sequentially strengthening word-of-mouth marketing.
[4] In October 2005, the advertising watchdog group Commercial Alert petitioned the United States Federal Trade Commission (FTC) to issue guidelines for paid word-of-mouth marketers, requiring them to disclose their relationship and compensation from the company whose product they promote.
[5] The FTC responded by committing to investigate cases where such relationships are undisclosed and could impact endorsements, pledging to take enforcement actions as necessary, including cease-and-desist orders, fines, or civil penalties.
[6] The Word of Mouth Marketing Association, a prominent US trade group representing numerous companies, has since adopted an ethics code prohibiting manufacturers from offering cash to consumers in exchange for recommendations or endorsements.
[7] In 2008, PQ Media stated that companies spent $1.54 billion on word-of-mouth marketing, indicating a significant growth trend compared to traditional advertising channels.
[citation needed] According to the Journal of Consumer Psychology[9] and Jonah Berger's book Contagious: Why Things Catch On,[10] six key factors drive what people talk about and share.
Products that generated strong marketing buzz upon their introduction include Harry Potter, the Volkswagen New Beetle, Pokémon, Beanie Babies, and The Blair Witch Project.
[19] Viral campaigns can manifest as various content formats such as video clips, interactive games, ebooks, brandable software, images, or text messages.
Word-of-mouth marketing plays a crucial role in amplifying the impact of an advertising campaign by effectively navigating consumers' defenses and encouraging discussions about a specific product.
[26] Similarly, engineered word-of-mouth campaigns by internet-focused companies face scrutiny for their perceived artificiality and invasion of privacy, further complicating the dynamics of consumer trust and perception in marketing strategies.