In order to market their products and services, business take the help of various medium of advertising. Advertising not only helps you sell but also enables you to increase your client base with its wide reach. In order to thrive in different geographies, a business needs to understand the psyche of it clientele and strategize accordingly. This article is based on a report prepared by Nielsen Global Trust.
Factors influencing consumers’ trust:
Recommendations from friend and family Trust is the important factor in all types of advertising. As per the report, around 84% of online responders trust recommendations from their friend and family circle which is a Y-o-Y increase of one percentage point since 2013.
People trust editorial content like newspaper articles. Popularity of this type of advertising went up four percentage points to 75% in 2015. It stands second in the most-trusted format of advertising since 2013.
Consumer opinions posted online
74% of respondents trust opinions posted online. Opinions clinch the third spot in 2015. This type of advertising sees a Y-o-Y growth of 7 percentage points. Besides, around 72% of respondents trust branded websites.
Factors influencing decision-making process:
In order to identify which ad format has a remarkable impact on the people, around 30,000 online responder in 60 countries have been polled. 19 types of advertising mediums were used to gauge the sentiment of the consumers.
The poll showed that despite the huge popularity of online formats, people still trust traditional format of advertising. Around 70% respondents trust ads since 2013. 67% trust ads in radio and television, an increase of 4% and 3% respectively since 2013.
Word of Mouth
Word of Mouth is one of the factors that plays a very crucial role in a consumers’ decision making process. With the increasing popularity of social media in the UAE, importance of WOM has increased remarkably.
Online Paid Ads
It is observed that online and mobile ads are consistent since 2013. 57% of the responders trust online videos which is an increase of 11 percentage points since 2013, 54% trust on search engine results (up 8 percentage points) and 59% trust on social networks (up 8 percentage points). 55% trust online banner ads (up 10 percentage points) and 54% trust mobile ads (up six percentage points)
Self-reported action surpasses trust on online media
Trust and action is always interlinked, however, it trust is not always necessary for purchase. Even lower-trust ad formats can be very effective in driving sales. In many paid advertising formats like online and mobile ads, self-reported actions outperform trust. 54% of responders trust while 66% take action on ads on search engines, 59% trust whereas 70% take action on social media ads, and 50% trust while 64% take action on mobile ads.