Global Consumers’ Trust in ‘Earned’ Advertising Grows in Importance

A recent study reveals that 92% of global consumers trust earned media, such as word-of-mouth and recommendations from friends and family, more than any other form of advertising. This figure has risen by 18% since 2007. The second most trusted advertising platform is online consumer reviews, with 70% of respondents saying they trust them, a 15% increase over the past four years.

The survey, which gathered responses from over 28,000 internet users across 56 countries, shows that while nearly half of global consumers (47%) trust paid advertisements on television, in magazines, and in newspapers, confidence in these platforms has declined by 24%, 20%, and 25% respectively since 2009. Despite this, traditional or paid media, such as television, still capture the bulk of advertising spending. In 2011, global ad spending grew by 7% compared to the previous year, with television advertising seeing a nearly 10% increase in spending. Countries like the U.S. and China attracted more ad dollars in 2011 than in 2010.

The growing number of media messages may be making it harder for advertisers to effectively reach their audiences. Although television will continue to be an important platform due to its broad reach, consumers around the world still find recommendations from friends and online reviews to be the most trustworthy. Successful brands will need to find better ways to connect with consumers and leverage their positive feedback and experiences.

The survey also shows that 58% of online consumers trust owned media, such as messages on company websites, while 50% find content in emails they’ve opted to receive credible. In addition, 40% of respondents find product placements in TV programs to be trustworthy, while 42% trust radio ads and 41% trust cinema ads before movies.

Trust in Online Ads

According to a recent study, 36% of global online consumers trust online video ads, and 33% trust messages in online banner ads, up from 26% in 2007. Ads seen in search engine results are trusted by 40% of global respondents, up from 34% in 2007. Additionally, 36% of global consumers find sponsored ads on social media platforms credible.

This increase in trust for online search and display ads over the past few years should encourage marketers to invest more in these ad formats. Many companies are already ramping up their paid ads on social networking sites, partly because consumers place high trust in recommendations from friends and online reviews. Brands should continue to monitor this growing advertising channel closely as it evolves.

Trust in Mobile Ads

The survey reveals that about one-third of global respondents trust video or banner ads on mobile devices like smartphones or tablets. Additionally, around 29% of online consumers trust text ads on mobile phones, which marks a 21% increase since 2009 and a 61% rise since 2007.

Ad Relevance

When it comes to ad relevance, 50% of global online consumers find TV ads personally relevant when seeking information on products they need or want. This is particularly true for consumers in regions like the Middle East, Africa, and Pakistan, where 65% find TV ads highly relevant. In comparison, only 30% of European respondents consider TV ads relevant.

One-third (33%) of global respondents find online banner ads relevant, while 36% consider both social network ads and online video ads relevant. Ads in search engine results are deemed relevant by 42% of global consumers.

Given the high costs of advertising in today's fragmented media landscape, marketers must focus on creating ads that are both effective and efficient. To improve return on investment (ROI), it's essential that the content and message of an ad align with the consumer viewing it. While ads on platforms where consumers actively seek information – like brand websites or solicited emails – tend to have high relevance, there's still significant potential for marketers to effectively reach their target audience with well-crafted, advertiser-driven messages.

About the Survey

The survey took place between August 31 and September 16, 2011, gathering responses from over 28,000 online consumers across 56 countries, including regions like Asia Pacific, Europe, Latin America, the Middle East, Africa, and North America.

The sample was designed with quotas for age and gender based on the internet users in each country. It was also weighted to ensure it accurately reflects internet consumers and has a margin of error of ±0.6%. The survey only included respondents with online access, as internet penetration rates differ by country. To qualify for inclusion, countries needed to have at least 60% internet penetration or a minimum of 10 million online users.