Beyond advertising: why people are the new media

To identify and explain the causative factors in the ongoing and chronic decline of general advertising effectiveness.

Methodology is Social Network Analysis. Specific tools used multiple regression analysis, AnCoVa, and various proprietary algorithms.

Traditional media advertising has lost significant impact at an accelerating rate over the past 20 years and will continue to do so for the foreseeable future. Referrals are the primary viable alternative for reaching customers and can be used to reinvigorate traditional marketing.

Research was based primarily on author’s extensive work with clients in numerous industries, also on available advertising industry data. No controlled tests were possible.

Organizations that ignore the importance of referral marketing will find markets increasingly expensive and difficult to access and will lose competitive advantage with organizations that do understand and manage the value of word‐of‐mouth marketing.

It explains why traditional marketing is failing and suggests an effective solution.