April 16, 2012
Trust Transfers from Outbound to Inbound Arrow
From Nielsen no less comes the news from their latest poll that consumer trust in TV and print advertising has declined, but has risen for digital, especially search. We’ve always said that when Google turned the internet into search, it put the consumer in the driver’s seat and made the Inbound Arrow dominant. Since Ben Franklin established the U.S. Postal Service and published his newspaper in Philadelphia, the Outbound Arrow dominated. We painted red bull’s eyes of which consumers to reach, and then shot messages at them through TV, print, radio and other media. Before the internet, they could walk in or mail in and buy. At the end of the 20th Century the Inbound Arrow grew briskly when call centers proliferated and the consumer could call (Does anyone remember the American Express Card commercials picturing the welcoming customer service agents?). This began brand interactivity, but the dam broke when the internet became search, and the company website became the destination that consumers could touch 7x24 (which we call the Brand Space).
If we don’t think this is powerful, just consider that the retail industry is fighting something called “Show Rooming” in which the consumer looks at the product in the store and buys it online. Or that Apple killed the retail music industry with the iTunes store (When was the last time you bought a CD?). Right now it is books taking the hit (Buy Barnes & Noble stock anyone?).
If we don’t think about this when we plan campaigns, and allocate budgets, we aren’t doing it right.
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