Conversational Marketing Set to Surpass Traditional Marketing

The Society for New Communications Research (SNCR) released a study indicating that spending on social media and conversational marketing will exceed the spend on traditional media by 2012.  The study is a joint effort between SNCR and advertising guru Joseph Jaffe.  The study results are incorporated in Jaffe's new book Join the Conversation.  Driving the need for conversational marketing is the new prosumer.  From the book website:

"the “prosumer” (or producing consumer) comprise a small fraction of the people who buy your product but have a disproportionate ability to create, harvest and - electronically or otherwise - disseminate an enormous raft of uncensored messages about your brand to their “closest strangers”.

As part of the study, SNCR, assisted by TWI Surveys Inc., surveyed senior PR, marketing and marketing communications professionals.  Key findings:

• 70% of the respondents reported they are currently spending 2.5% or less of their communications budgets on conversational marketing
• Two-thirds of the respondents plan to increase their investment in conversational marketing within the next twelve months
• 81% of the respondents project that by 2012 spending on social media and conversational marketing will equal or exceed the spend on traditional media.

While Jaffe's book focuses on large corporations and major brands, the same shift towards conversational marketing is impacting small businesses. 

Disclosure:  I'm a board member and Senior Fellow at the Society for New Communications Research.  I was not actively involved in this study, but I did review the research plan and study methods.