What’s all the buzz? How to generate the right product hype according to science
You could be living under a rock and still know when Apple’s new iPhone will be launched. The simultaneous release of blockbusters ‘Barbie’ and ‘Oppenheimer’ led to the so-called Barbenheimer phenomenon in 2023. The internet was in an uproar over this unlikely film pairing. In fact, the wacky comedy involving the iconic doll reportedly had a EUR 138 million marketing budget – bigger than its actual budget. Now that’s creating buzz.
Publicity machine
The way a company announces a new product or builds up hype can often affect its success when it hits the market, according to research led by Binghamton University, State University of New York, and published in ‘Journal of Product & Brand Management’(opens in new window). The research team examined preannouncement marketing to demonstrate how companies might make the most of it. How a product’s buzz is managed and communicated is key. “New products are the heartbeat of a company, especially those products that are more consumer-facing, so how a company communicates with consumers or stakeholders about new products is the key to future growth and survival,” commented lead author Debi Mishra, associate professor at the Binghamton University School of Management, in a news item(opens in new window). “Do you provide all the information upfront or more toward the preannouncement phase? And depending on how this information is communicated, they create surprise in the marketplace that can prove beneficial.” To evaluate the impact, the researchers gathered data from 149 product launch events and their preceding preannouncements. They analysed what type of information appeared within 1 year prior to a product’s announcement and if it was a costly announcement – the company loses money if the product isn’t introduced – or a costless one. The researchers were then able to compare the outcome on stock across these circumstances. “If companies create all this buzz about a product but never release it, they might benefit from the stock market having gone up initially, but shareholders will suffer down the road,” explained Assoc. Prof. Mishra. “It also makes a difference whether the company makes any kind of guarantee, such as purchasing land worth $20 million [EUR 18 million] for a factory to make the new product. That’s a credible commitment because that money could be lost if they never introduce that product. The market is smart enough to figure these types of things out.” “If you have something really cool to put out – Brad Pitt is starring in some big upcoming movie – you can’t keep it under wraps all the time, but if your intention is truly honest about introducing that product or movie, it still could be a good idea to keep things somewhat secretive,” he concluded. “All of a sudden, you’re in the position to have your audience or the market react by saying, ‘Oh, we didn’t expect that!’”