In Peer Review We Trust: Consumer Reviews vs. Other Ad Tactics

IN PEER REVIEWS WE TRUST CONSUMER REVIEWS OTHER AD TACTICS Vs. Consumer confidence in advertising has been swiftly shifting over the past five years; 7 in 10 Internet users now trust brand websites and consumer opinions over traditional forms of marketing and advertising. Where else has consumer confidence in advertising shifted? WHICH TACTICS DO YOU TRUST? According to the "Global Online Consumer Survey" by Nielsen, more users are likely to trust website and consumer opinion than editorial content, brand sponsorships, TV, and magazine ads. This means consumers rely more on word-of-mouth in decision-making processes and less on traditional forms of advertising. This may force advertisers to use a more realistic form of messaging. LEVEL OF TRUST IN MARKETING AND ADVERTISING TACTICS ACCORDING TO INTERNET USERS KEY TRUST COMPLETELY TRUST SOMEWHAT DON'T TRUST MUCH DON'T TRUST AT ALL 0% 20% 40% 60% 80% RECOMMENDATIONS 100% FROM PEOPLE 34% I KNOW 56% 9% 1% BRAND WEBSITES FO 13% 57% 26% CONSUMER OPINIONS IE 13% 57% 5% POSTED ONLINE 25% 5% EDITORIAL 10% 59% CONTENT BRAND SPONSORSHIP 27% 4% 9% 54% 31% 6% TV ADS AD 8% 53% 33% 6% NEWSPAPERS O 7% 54% ADS 34% 5% MAGAZINES 196% 53% ADS 36% 6% RADIO 6% 49% ADS 38% 7% BILLBOARDS 5% 49% EMAILS I SIGNED R 7% 48% 39% 6% UP FOR 37% 8% ADS BEFORE MOVIES U 5% 47% 41% 7% ADS IN SEARCH ENGINE RESULTS 4% 37% 48% 11% ONLINE VIDEO | 3% 34% ADS 51% 11% ONLINE BANNER ADS I E3% 30% 51% 16% MOBILE PHONE TEXT 2% 22% ADS 47% 29% 0% 20% 40% 60% 80% 100% * Not all percents add up to 100% due to Nielsen rounding error. CHANGES IN TRUST From 2007 to 2009 the media and advertising forms that have seen the greatest increase in trust levels are brand sponsorships, ads before movies, and recommendations from known people. Internet users are growing more and more doubtful of advertisements seen on newspapers, radio, magazines, and email subscriptions. Text message ads still remain the least trustworthy method of advertising, even though it has seen some growth. CHANGES IN LEVELS OF TRUST IN ADVERTISING APRIL 2007-2009 KEY 100% TRUST LEVEL TRUST LEVEL 90% IN 2007 IN 2009 PERCENT CHANGE 11%-15% 80% INCREASE 70% 70% 64% 62% 78% 6%-10% INCREASE 63% 1%-5% INCREASE 59% 55% 60%- 60% 61% 61% 54% 52% 0%--2% INCREASE 56%) 49% 56% 54%) 49% 41% 40% 33% 38%) 34% 24% 20% 26% 18% 0%.. -20% ...... .............. NEWSPAPERS ADS \AGAZINES UP FOR ADS BEFORS FROM PEOPN RADIO ADS ONLINE RECOMMENDATIONS TEXT ADS EMAILS I SIGNED ADS IN SEARCH BANNER ADS MOBILE PHONE SOURCES: "GLOBAL ONLINE CONSUMER SURVEY", NIELSEN.COM, 2009 Flowtown. In Partnership with Column Five ШШ ««««• BRAND WEBSITES CONSUMER OPINIONS POSTED ONLINE SPONSORSHIR TV ADS LO ENGINE RESULTS