Plugging the advertising trust gap Jim Nail Principal Analyst Forrester Research.

Plugging the advertising trust gapJim Nail

Principal Analyst

Forrester Research

Theme

Marketers need a new approach to stitch together shattered consumer trust.

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


One-third admit ads influence their purchases

Agree32%

Disagree68%

“I buy products because of ads for them.”

“Accepters”

“Rejecters”

Base: 470 responses


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


…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


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”


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”


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


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”


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”


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

Plugging the advertising trust gap Jim Nail Principal Analyst Forrester Research.

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