plugging the advertising trust gap jim nail principal analyst forrester research
TRANSCRIPT
Agenda
• Consumers are skeptical of advertising
• Even consumers with positive attitudes seek verification of ad claims
• Advertising doesn’t persuade; consumers persuade themselves
Background
• Partners: Forrester Research and Intelliseek’s PlanetFeedback unit
• Methodology: Email invitation to online survey, early December 2003
• Respondents: 470 members of PlanetFeedback
» Skew female, tech-savvy, “connectors”
» Affluent: mean income $62,500
Consumers admit ads have some benefits…
53% 47%
67% 33%
68% 32%
73% 27%
Ads are entertaining
Without ads I'd paymore
Search ads OK ifrelevant
Good way to learnabout new products
Agree Disagree
Base: 470 responses
Source: Forrester Research, Inc and Intelliseek
…but ads and marketers are losing credibility
79% 21%
77% 23%
24% 76%
I research on theWeb to check
claims
I don't believepromise not to
share personal info
Companies tell thetruth in ads
Agree Disagree
Base: 470 responses
Source: Forrester Research, Inc and Intelliseek
One-third admit ads influence their purchases
Agree32%
Disagree68%
“I buy products because of ads for them.”
“Accepters”
“Rejecters”
Base: 470 responses
Source: Forrester Research, Inc and Intelliseek
Consumers understand the ad model, but still want to block ads…
0
20
40
60
80
100
TV ads Radio Ads Online Ads
Accepters Rejecters
“I’d be interested in a product, device, or service that would skip/block…”
% A
gree
so
mew
hat/c
ompl
etel
y
“Without ads I’d have to pay more for TV programs and Internet
content”
0
20
40
60
80
100
Base: 470 responses
Source: Forrester Research, Inc and Intelliseek
…and are blocking them where they can.
0102030405060708090
Do not call list Spam blocker Pop-up blocker DVR
Accepters Rejecters
“I’ve signed up for or use…”
% C
urre
ntly
use
/hav
e si
gned
up
for
Base: 470 responses Source: Forrester Research, Inc and Intelliseek
All consumers feel ad overload
010203040
5060708090
Too many ads Too interruptive Most not relevant Ads lackcredibility
Must eliminateads where I can
My right tochoose
Accepters Rejecters
“What has caused you/would cause you to sign up for services/products that block/skip ads?”
% A
gree
so
mew
hat/c
ompl
etel
y
Only one quarter believe companies are truthful
Agree24%
Disagree76%
“Companies generally tell the truth in ads.”
“Believers”
“Skeptics”
Base: 470 responses
Source: Forrester Research, Inc and Intelliseek
The trust gap in traditional advertising
0
20
40
60
80
100
TV Radio Outdoor Sponsorships Ads beforemovies
Productplacement
Online ads Mobile phonetext ads
Believers Skeptics
% T
rust
so
mew
hat/
com
plet
ely
“Indicate your level of trust in the following types of ads”
Base: 470 responses Source: Forrester Research, Inc and Intelliseek
The trust gap narrows for digital marketing
0
20
40
60
80
100
Otherconsumers
Brand Websites
Permissionemail
Consumerposts onboards
Newspaper Magazine
Believers Skeptics
% T
rust
so
mew
hat/
com
plet
ely
“Indicate your level of trust in the following types of ads”
Base: 470 responses Source: Forrester Research, Inc and Intelliseek
More trust = More data for targeting
0
20
40
60
80
100
More personal data to makeads more relevant
Product usage information tomake online ads more relevant
Product usage information tomake TV ads more relevant
Believers Skeptics
% A
gree
so
mew
hat/
com
plet
ely
Base: 470 responses Source: Forrester Research, Inc and Intelliseek
The story so far….
• Consumers are tired of the volume of interruptive, irrelevant, untrustworthy ads – and they are taking action to block them
• Sneaking around the blocks doesn’t earn trust
• Consumers want trusted sources – like their own eyes
Plugging the Gap #1 – Let go of the hard sell
0102030405060708090
100
Retail Food Soft Drink Personal Care Movies Consumerelectronics
Computer
% T
rust
so
mew
hat/
com
plet
ely
“Indicate your level of trust in ads for the following types of products”
Base: 470 responses Source: Forrester Research, Inc and Intelliseek
Plugging the Gap #1 Let go of the hard sell
0102030405060708090
100
Prescriptiondrugs
Autos Banks Telephone Wireless phone Credit Card
% T
rust
so
mew
hat/
com
plet
ely
“Indicate your level of trust in ads for the following types of products”
Base: 470 responses Source: Forrester Research, Inc and Intelliseek
Plugging the Gap #2Prepare to defend your claims with facts
Base: online consumers
Source: Forrester’s Consumer Technographics® 2003 North American Benchmark Study
0 5 10 15 20 25 30 35 40
Mean
Women, 18 - 34,$75k+
Men, 35 - 54,$75k+
Men, 18 - 34, $25- 75k
Men, 18 - 34,$75k+
Percent of consumers who go online at least once per week to research a product or service purchase
0 10 20 30 40
Percent of consumers who have increased online research activity vs last year
Plugging the Gap #3Engage with consumers in a dialogue about your brand
Weaving together digital and physical channels to
engage consumers’ emotions, deliver brand experiences, and form ongoing relationships
Integrated Marketing
Jim Nail
+1 617/613-5796
www.forrester.com
Thank you
Entire contents © 2004 Forrester Research, Inc. All rights reserved.