Quantifying the power of individuals and word of mouth.
Here is the Peer Influence Analysis from Empowered. Modeled after Forrester’s 10,000 person survey, the Peer Influence Analysis counts every instance in which a person influences another person online about a produt or service.
There are two types of influences.
First, there is influence from people posting within social networks: Facebook, Twitter, MySpace and so on. These are known as influence impressions. Empowered estimates that people in the US create 256 billion influence impression on each other in social networks every year. Of these influence impressions, 62% come from Facebook.
Second, there is influence created by posts: blog posts, blog comments, discussion forum posts, and ratings and reviews. Empowered refers to these as influence posts. People in the US create 1.64 billion influence posts every year. Blog post and blog comments account for about 40% of these posts.
If you add it all up, there is more than 500 billion impressions about products and services a year.
What does this mean? Empowered came to the following conclusions.
- People’s influence on each other rivals online advertising. For comparison, for a 12-month period ending September 30 last year, Nielsen Online estimates advertisers created 1.974 trillion online advertising impressions, compared to the 500 billion impressions people make on each other about products and services. So people’s online impressions on each other about products and services are about one fourth of the online advertising impression. And peer impressions are more credible than advertising, since they come from friends.
- A minority of people generate 80% of the impressions. Take a look at the graphic below. 6.2% of the online adults generate 80% of the influence impressions. 13.4% of the online adults generate 80% of the influence posts. We call two groups Mass Connectors and Mass Mavens.
- You can do peer influencer analysis for any type of product or service. In an analysis of consumer electronics mass influencers, the influencers were far more concentrated, somewhat more affluent and quite a bit more male than the general mass influencers.