Babbling is good! Don't discourage it! :)
With my daughter, my wife told me to babble back but always make it a point to slide to normal words. This way the baby eventually 'babbles with sense'. She hated baby talk as it dumbs down the baby. Basically, we encouraged babbling but tried to substitute real words when we have a chance, ie. Da becomes dada becomes daddy, etc.
The effects paid off wonderfully: the first word she completely comprehends was 'mik' at 3 months, and she was well into the whole daddy-mommy-ate(elder sister) vocab by around 4 months. Our angel is turning 2 years old next week and already knows how to sing, read, and write the alphabet and numbers, and she can sing a LOT of nursery rhymes, and even sing Let It Go! :)
Every influence counts, I think, even if seemingly irritating or inconsequential in the beginning. Though I must admit: the patience needed during early morning babbling with her mobile and pillows at 3-4 months is absolutely titanic!