trust: the $1 trillion advertising & marketing problem
DESCRIPTION
There's a growing inverse relationship between corporate expenditures on advertising and marketing versus consumer trust that presents an unsustainable future threat to how businesses have traditionally acquired and grown their customer base.TRANSCRIPT
TRUST: THE $1 TRILLION
ADVERTISING & MARKETING
PROBLEM
The growing inverse relationship between corporate expenditures on advertising and marketing against consumer trust presents a future threat that needs to be addressed
By Hollis Thomases, 4/27/2014
ADVERTISING & MARKETING WORLDWIDE
IS A $1 TRILLION BUSINESS
"Advertising [$500B]is only about half of marketers' budgets… $400B more spent on direct marketing and another $150B spent on agency fees + Nielsen ratings/market research [$40B just by itself] + marketing tech/automation systems”
Dan Salmon, BDO Digiday 2013 Exchange Summit
TRUST IN ADVERTISING IS AN ISSUE
“Just 22% of consumers trust
emails from companies or
brands, 13% trust ads on Web
sites, and only 32% trust ads
in any channel” MediaPost, April 2014 citing new Forrester Research
IF ADVERTISING IS NOT
TRUSTWORTHY, IS IT
EFFECTIVE? WHAT IS??
UNPAID MEDIA IS MORE TRUSTED…
…AND GAINING MORE GROUND
INFLUENCING DECISIONS
Measures consumer reliance on respective media sources now versus five years ago
FOR MILLENNIALS, USER GENERATED
CONTENT INFLUENCES 50% OF DECISIONS
EXPERT & PEER REVIEWS OUT-PERFORM
BRANDED CONTENT
FAKED & MANIPULATED UGC HARMS
CONSUMER TRUST
Business Insider reveals Ellen Degeneres’ selfie at the Academy Awards was a sham, 4/5/15
Search Engine Journal covers new allegations, 4/10/14
AMERICANS’ TRUST IN LARGE INDUSTRIES
IS WANING
EVEN BRANDS CAN’T TRUST SOME MEDIA!
THERE’S NO PILL FOR THIS PROBLEM
Throwing more money at the problem alone is
not the solution (how much of the growing $1
trillion spend is just waste?)
Consumer trust cannot be bought; it needs to be
earned, and more so than ever
Like diet and exercise can remedy many modern
diseases that instead get over-medicated because
that’s easier, companies need to face real truths
To win and retain customers, brands need to go
on a “health plan” to get to and treat consumer
distrust (root cause) and waning ad efficacy
(symptom)
HOLLIS THOMASES – DIGITAL LIAISON
In 1998, multi-time award-winning entrepreneur Hollis Thomases founded Maryland-based Web Ad.vantage, providing strategic digital marketing and advertising solutions. In 2013, Hollis became a sole practitioner focused on digital marketing awareness and advocacy – ensuring clients are educated and avoid the pitfalls, wasted revenue and missed opportunities resulting from the fast-changing digital landscape.
In January 2010, Hollis authored the book, “Twitter Marketing: An Hour a Day,” by John Wiley & Sons, and has been a columnist with Inc.com, Social Media Marketing Magazine, and ClickZ. Hollis also frequently speaks at industry conferences and association events.
Hollis Thomases graduated from Cornell University with a BA in Social Relations. You can find her in the Twittersphere @hollisthomases, on LinkedIn, by email or by old-fashioned phone: +011-484-679-6364.
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