Trust in TV & print ads declines
NEW YORK: Consumer trust in television and print advertising has declined over the last four years, but perceptions of digital alternatives are improving.
Nielsen, the research firm, polled 28,000 web users in 56 countries, and found 92% had high levels of confidence in “earned media” like word of mouth and recommendations, an 18% increase since 2007.
Online shopper reviews were regarded with similar approval by 70% of interviewees, a 15% leap in the last four years.
Just 47% of participants held TV, press and magazine ads in the same esteem. Within this, scores for television dropped by 25%, newspapers were down by 20% and magazines slid 20%.
Returns dipped to 42% for radio advertising and 41% for the cinema equivalent. Meanwhile, product placement in television shows registered 40% on this measure.
Looking to the web, another 40% of the panel trusted paid search, up from 34% in 2007. Banner ads recorded 33% here, bettering the 26% they scored in the previous survey.
Online video advertising also generated 36%, matching the total for “sponsored” ads on social networks. Mobile banners and display received 33% here, and SMS marketing secured 29%.
Elsewhere, Nielsen’s analysis revealed that 58% of respondents viewed “owned media” like brand websites as credible information sources, and 50% agreed with the statement for opt-in emails.
A further 50% of the sample saw TV spots as “personally relevant” when seeking details about products they “want or need”. This total rose to 65% in the Middle East, Africa and Pakistan, but fell to just 30% in Europe.
Ratings on this metric fell to 42% for paid search, 36% concerning social networking and video ads, and 33% for internet banners.
"While brand marketers increasingly seek to deploy more effective advertising strategies … the continued proliferation of media messages may be impacting how well they resonate with their intended audiences on various platforms," Randall Beard, Nielsen’s global head, advertiser solutions, said.
"The growth in trust for online search and display ads over the past four years should give marketers increased confidence in putting more of their ad dollars into this medium."
Data sourced from Nielsen; additional content by Warc staff, 11 April 2012
CSR could benefit brands
NEW YORK: Two-thirds of consumers around the world would prefer to buy products manufactured by companies with strong corporate social responsibility credentials, according to a report by Nielsen.
The research group, surveyed 28,000 people in 56 countries to assess popular attitudes regarding how businesses approach major issues such as the environment and community relationships.
Exactly 66% of respondents preferred to purchase products from firms which have launched schemes aiming to “give back to society”.
Participants from Latin America posted the highest score here on 77%, beating the 75% logged by the Middle East and Africa, 70% in Asia Pacific, 64% in North America and 55% in Europe.
"While cultural bias is not factored into the survey results, regional differences support previous hypotheses about unique regional perceptions of corporate social responsibility," the study said.
"In parts of Europe, there may still be a tendency on the part of consumers to view corporations primarily as economic players. In Asia, these findings correspond with increasing corporate attention to corporate social responsibility and its impact on performance."
Adopting rigorous CSR policies may also pay off in terms of recruitment, as 62% of the sample expressed a desire to work for organisations with an impressive output in this area, hitting 59% when considering investment.
A further 46% of contributors agreed they would be willing to meet a price premium in order to acquire goods and services from these corporations.
Figures on this metric climbed to 55% in Asia Pacific and 53% in the Middle East and Africa. Latin America also registered 49%, falling to 35% in North America and 32% in Europe.
Nielsen described these shoppers as “socially-conscious consumers”, and reported that the Philippines had the greatest concentration of such individuals on 68%, while the Netherlands recorded just 20%.
When discussing which forms of advertising and communications they trusted, 92% of the panel pointed to recommendations from people they knew, standing at 70% for online user reviews.
Brand websites yielded 58%, as did editorial content like newspaper articles. Outdoor billboards received 50%, while sponsorship, TV spots, magazine ads and opt-in emails all generated 47%.
Data sourced from Nielsen; additional content by Warc staff, 30 March 2012