Recommendations From Friends Remail Most Credible Form of Advertising

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New York, September 28, 2015 – Trustworthy advertising most commonly originates from those we personally know and believe in. In 60 countries, 83% of individuals responding to online surveys put their faith in the suggestions of their family and friends, as revealed by the Nielsen Global Trust in Advertising Report published today.

Additionally, online owned channels rank among the top trusted advertising mediums. Faith in branded website ads experienced a growth of one percentage point, reaching 70% in 2015 and securing its position as the second most trusted format, same as 2013. Sixty-six percent of those surveyed show confidence in consumer reviews shared online, ranking third in 2015, a drop of two percentage points from 2013. Moreover, over half of the global participants (56%) trust emails they have subscribed to, maintaining consistency with the 2013 level.

While there is no universal formula to enhance advertising effectiveness in an oversaturated market, beginning with an understanding of consumers' perceptions of ads on their frequently used media platforms is a smart move.

“As advertisers have begun to transition online, around one-third of online advertising campaigns fall short—they fail to raise awareness or enhance buying intent,” stated Randall Beard, President, Nielsen Expanded Verticals. “With consumers dictating the manner in which they interact with content and brands more than ever, understanding ad impact across devices is the sole approach to effectively promote memorability and brand enhancement today.”

The Global Trust in Advertising Survey by Nielsen, which interviewed 30,000 online participants across 60 countries, aimed to understand consumer sentiment towards 19 types of paid, earned, and owned advertising media. The findings shed light on the advertising formats that connect most powerfully with consumers and those with potential for growth.

Despite the constant fragmentation of media, the surge of online formats hasn’t diminished the trust in traditional (offline) paid channels. TV, newspapers, and magazines are still trusted advertising mediums. Over sixty percent of worldwide respondents express complete or partial trust in TV ads (63%), a rise of one percentage point since 2013. Slightly less trust is placed in newspaper ads (60%) and magazine ads (58%), which witnessed a fall of one and two percentage points, respectively, from two years prior.

Trust in paid online and mobile ads has largely stayed steady since 2013. Almost half of global respondents express complete or partial trust in online video ads (48%, unchanged from 2013), ads shown in search engine results (47%, down by one percentage point) and social network ads (46%, down by two percentage points). Around four in ten global respondents trust online banner ads (42%, unchanged) and mobile ads (43%, down two percentage points). Slightly over one third express trust in mobile text ads (36%, down by one percentage point).

“As digital ad spend has seen a steady increase by brands growing more comfortable with digital advertising and its measurement, TV formats still provide the highest unduplicated reach, reaching each viewer just once, of 85%-90%,” stated Beard. “Although digital ads bring considerable advantages—like precision-targeted campaigns, real-time adjustments and more creative possibilities—shifting from TV to an entirely display digital strategy is a daring move for any marketer. A blend of both offline and online channels is recommended for optimal ROI.”

Millennials (age 21-34), who grew up alongside the internet, exhibit the highest levels of trust in online and mobile formats, closely followed by Generation X (age 35-49). Half or nearly half of all millennials trust online video ads (53%), social network ads (51%) and online banner ads (47%). And 41% of millennials trust mobile phone text ads. However, millennials' trust extends beyond just online and mobile ad formats. They demonstrate the highest levels of trust across 18 of the 19 ad formats/channels, including TV, newspapers, and magazines, and are also the most likely to respond to 16 of 19 formats.

“Millennials have a distinct media consumption pattern compared to their elders, dictating the where, when, and how of their consumption of content, and the device they use,” explained Beard. “However, even if they rely less on traditional channels, their trust and readiness to react to these formats remain strong. An integrated, multi-channel strategy is ideal for all generations, but it is particularly crucial when engaging millennials.”

Nielsen’s study indicates that trust and action are evidently linked, but trustworthiness is not always a precondition for purchasing intent. Even ad formats with lower trust can effectively drive consumers towards making a purchase.

The same percentage of global respondents who trust friends and family's opinions claim they act on these opinions at least occasionally (83% each). Similarly, self-reported trust and action are equal for branded websites (70% each).

However, in many paid ad formats, self-reported action surpasses trust. More consumers claim they take action than find the ad trustworthy. This is especially true for online and mobile formats. Self-reported action outstrips trust by more than ten percent for ads served in search engine results (47% trust; 58% take action), social media ads (46% trust; 56% take action) and mobile text ads (36% trust; 46% take action).

“Formats where action overtakes trust by a significant margin have one shared feature: easy access to products/services,” Beard explained. “If consumers like it, they purchase it. Online and mobile formats offer consumers the exceptional convenience to act on an ad impulsively and quickly. Often, consumers just need to click a link to be redirected to a place where they can obtain more information or buy the product.”

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