The marketing industry has long understood that peer recommendations hold the most power over purchasing decisions. When a consumer makes a recommendation to a peer it is the most effective form of advertising for a brand. As consumers spend more time on the internet it raises an interesting question. How do digital recommendations compare to verbal recommendations? According to a recent study by CrowdTap, digital recommendations have overtaken verbal recommendations.
The finding is great news for digital advertisers who rely on peer recommendations and viral spread to make an impact. The study says that 70% of consumers made a purchasing decision based on an online recommendation while 61% made a purchasing decision based on a verbal recommendation. Traditional advertisements came in with a lower 49%. How can online video advertisers leverage this new data?