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27 July 2009
Kuala Lumpur
Recommendations by personal acquaintances and opinions posted by consumers online are the most trusted forms of advertising globally, according to the latest twice-yearly Nielsen Global Online Consumer Survey of over 25,000 Internet consumers from 50 countries.
The Nielsen survey, the largest of its kind, shows that nine in every 10 Internet consumers worldwide (90%) trust recommendations from people they know, whilst seven in every 10 (70 percent) trust consumer opinions posted online.
In this new age of consumer control, advertisers will be encouraged by the fact that brand websites – the most trusted form of advertiser-led advertising – are trusted by as many people (70 percent) as consumer opinions posted online (see chart 1).
“The explosion in Consumer Generated Media over the last couple of years means consumers’ reliance on word of mouth in the decision-making process, either from people they know or online consumers they don’t, has increased significantly,” says Wong Mae Suen, Associate Director, Media Group, The Nielsen Company.
She added, “However, we see that all forms of advertiser-led advertising, except ads in newspapers, have also experienced increases in levels of trust and it’s possible that the CGM revolution has forced advertisers to use a more realistic form of messaging that is grounded in the experience of consumers rather than the lofty ideals of the advertisers.”
The Trust in Advertising element of the survey was first conducted in April 2007 and the two years since then reveals that brand sponsorship has seen the greatest increase in levels of trust from 49 percent of Internet consumers in April 2007 to 64 percent in April 2009 – an absolute increase of 15 percentage points (see chart 1).
Brand sponsorships are closely followed by ads before movies which have increased from 38 percent to 52 percent – a 14 percentage point increase – and personal recommendations which have increased by 12 percent from 78 percent in April 2007 to 90 percent in April 2009 (see chart 2).
In Malaysia, four on the Top 5 list of most trusted sources are aligned with global findings. Recommendations from people I know also emerged top, agreed by 93 percent of respondents as a source they trust. This is followed by editorial content (83%), brand websites (75%), and brand sponsorships (75%), which are all trusted by at least three-quarters of Malaysian’s respondents. Tied at fifth position are newspapers and television ads (74%). (Chart 3)
Consumer opinions posted online tend to be trusted most by Vietnamese Internet consumers (81 percent) and their Italian (80 percent), Chinese and French (both 77 percent) counterparts. However, online opinions tend to be trusted the least in Argentina (46 percent) and Finland (50 percent).
When it comes to trusting brand sponsorships, Latin American countries lead the way with 81 percent of both Colombian and Venezuelan Internet consumers and 79 percent of Brazilians trusting this form of advertising. In contrast, sponsorships hold the least sway amongst Swedish (33 percent), Latvian (36 percent) and Finnish online consumers (38 percent).
Brand websites, globally the most trusted form of advertiser-led advertising, hold the greatest sway in China (82 percent). Following China are Pakistan (81 percent) and Vietnam (80 percent). However, brand websites tend to be trusted least amongst Swedish (40 percent) and Israeli (45 percent) Internet consumers.
“The regional differences provide a clear guide to advertisers as to how they should focus their ad strategy in different countries. It also shows that, despite the authority of word of mouth when it comes to consumer decision-making, advertisers still have a major say in the process,” commented Ms Wong.
Although brand websites score highly amongst Internet consumers, the survey shows that other forms of digital advertising are trusted less than ads appearing in traditional media such as TV billboards, radio, magazines and newspapers. Text ads on mobile phones (24 percent), online banner ads (33 percent), online video ads (37 percent) and ads in search engine results (41 percent) are the forms of advertising least likely to elicit a degree of trust.
Consumer Perception on the Key Values of Advertising
Seven in ten global consumers agree that advertising contributes to economic growth, while eight in 10 agree that advertising helps create jobs. Additionally, 68 percent feel that, as a critical driver of competition between companies, advertising leads to better products and lower prices. Consumers’ views on the economic benefits of advertising are broadly consistent across the Americas, Europe, Africa, the Middle East and Asia-Pacific. (Chart 4)
The survey also shows a clear majority of consumers (81%) across all markets understand the importance of advertising and sponsorship as a critical source of funding for exhibitions, cultural and sporting events, including 91 percent of Malaysians. (Chart 5 & 6)
Ms Wong concluded, “The survey also revealed some interesting discrepancies between the attitudes of consumers across regions about advertising as a source of information. European consumers appear to be more skeptical, with only half agreeing that advertising helps them make better choices. Consumers in the rest of the world are much more enthusiastic—four out of five Latin Americans, three quarters of consumers in Asia-Pacific and seven in ten in North America agree”.
When asked whether advertising is entertaining, 79% in Latin America, 76% in Asia-Pacific and 59% in North America agreed. In contrast, almost half of European consumers disagreed.
About The Nielsen Global Online Consumer Survey
The Nielsen Global Online Consumer Survey, conducted by Nielsen Consumer Research, was conducted from 19th March – 2nd April 2009 among 25,420 Internet consumers in 50 markets across Europe, Asia Pacific, North & Latin America and the Middle East. The largest half-yearly survey of its kind, the Nielsen Global Online Consumer Survey provides insight into the opinions and preferences of Internet consumers across the world.
About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in New York, USA. For more information, please visit, www.nielsen.com
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