Trust, Value and Engagement in Advertising

those same dimensions, consumers are most receptive to the humorous qualities in TV and online video ads. Asian and Middle Eastern consumers are the most likely to nd the intended humor in a TV ad, while Latin American consumers are the most likely to nd in4ormative those TV ads that are intended so. Latin American consumers are the most receptive to online video ads in terms o4 all three dimensions: humor, emotion and in4ormation.<br><br> Trust Us Understanding consumer trust in advertising is as important as ever. Social media are expanding consumers 9 " positive and negative infuences regarding brands. Two-thirds o4 the global Internet population visit member communities online (Source: Global Faces and Networked Places: A Nielsen Report on Social Networking 9s New Global Footprint, March 2009).<br><br> Economic pressure is driving greater " attention to ROI, and advertisers have a vested interest in marketing investments, underscoring the importance o4 trust and engagement in advertising like never be4ore. Beyond earning their trust, advertisers and media companies want consumers to understand the value o4 advertising 4 a less concrete sentiment that can broadly a44ect consumer receptivity to advertising in all media. Overview Nielsen recently surveyed over 25,000 consumers online across more than 50 markets 4rom Europe, Asia Paci c, the Americas and the Middle East on their attitudes toward trust, value and engagement o4 advertising.<br><br> 2 Copyright © 2009 The Nielsen Company. Trust, value and engagement in advertising should be measured in a variety o4 ways. For the purposes o4 this paper, Nielsen recently launched a global online consumer survey to measure trust in advertising among consumers, partnering with the World Federation o4 Advertisers (WFA) to also examine the value o4 advertising.<br><br> This approach succeeds in gauging general consumer perceptions o4 advertising, while services such as Nielsen IAG, Nielsen 9s advertising engagement measurement and consultancy, can gauge similar perceptions and engagement on an ad-by-ad, channel-by-channel basis. In this paper, we discuss only the general and global perceptions measured by the survey. What we 4ound is, while trust and value perceptions can vary greatly by market and media, global consumer trust in advertising is on the rise and most consumers acknowledge the value advertising o44ers.<br><br> In this report, we extrapolate the results o4 our recent global survey to provide insights into consumer trust in advertising, the value consumers see in advertising and certain dimensions o4 engagement across TV and online video ads, in particular. Trust in Advertising Nielsen measured consumer trust in 16 di44erent marketing channels by asking consumers cTo what extent do you trust the 4ollowing? d Across all channels, an average 56% o4 respondents indicate that they trust advertising ccompletely d or csomewhat. d Peer recommendations top the list, trusted by 9 out o4 10 consumers; while text message based ads per4orm the lowest, trusted by just 24%. Across the 16 measured channels, non-media channels are more trusted than paid media channels.<br><br> A4ter peer recommendations, consumers trust brand websites, consumer opinions online, Figure 1: Global Consumer Trust in Advertising by Channel 20 % 0 % 40 % 60 % 80 % 100 % Trust completely Trust somewhat Don 9t trust much Don 9t trust at all Recommendations from people I know Brand websites Consumer opinions posted online Editorial content such as a newspaper article Brand sponsorships Ads on TV Ads in newspapers Ads in magazines Ads in radio Billboards and other outdoor advertising Emails I signed up for Ads before movies Ads served in search engine results Online video ads Online banner ads Text ads on mobile phones 34 56 9 1 13 57 26 5 13 57 25 5 10 59 27 4 9 54 31 6 8 53 33 6 7 54 34 5 6 53 36 6 6 49 38 7 5 49 39 6 7 48 37 8 5 47 41 7 4 37 48 11 3 34 51 11 3 30 51 16 2 22 47 29 editorial content and brand sponsorships ahead o4 a broad list o4 paid advertising channels. This importance o4 peer recommendations and consumer opinions online justi es the attention marketers continue to pay to the use o4 social and consumer-generated media. O4 the paid advertising channels o4 online, outdoor, newspaper, magazine, radio, TV and theatrical, TV and newspaper are the most trusted media: 61% o4 global consumers say they trust TV advertising 4 the same percentage that trust newspaper advertising.<br><br> Online and mobile advertising have perhaps the steepest hill to climb 4or consumer trust: in addition to text message advertisements, online search, banner and video ads are the only channels trusted by 4ewer than hal4 o4 2007 2009 Recommendations from people I know Brand websites Consumer opinions posted online Brand sponsorships Ads on TV Ads in newspapers Ads in magazines Ads in radio Emails I signed up for Ads before movies Ads served in search engine results Online banner ads Text ads on mobile phones 78% 90% 60% 70% 61% 70% 49% 63% 56% 56% 61% 61% 63% 59% 54% 55% 49% 55% 38% 52% 34% 41% 26% 33% 18% 24% NB: Editorial content, billboards/outdoor advertising and online video ads not covered in April 2007 survey. Figure 2: Consumer Trust in Advertising by Channel (Trust Somewhat/Completely) 2007 vs. 2009 3 Copyright © 2009 The Nielsen Company.<br><br> respondents globally. The good news 4or online is that consumer trust in that medium is growing. The percentage o4 global consumers trusting banner ads grew 27% between 2007 and 2009 (4rom 26% to 33% o4 consumers).<br><br> The percentage trusting ads in search engine results grew 21% (4rom 34% to 41% o4 consumers). Consumers today are more trusting o4 every marketing channel tracked when compared to two years ago, save newspaper advertising, trust in which declined a marginal 3%. Theatrical advertising saw the greatest growth in trust 4increasing 37% since 2007, 4rom 38% o4 consumers to 52%.<br><br> Trust Varies by Region Though TV and newspaper are the most trusted advertising channels overall, trust in ads across both media varies considerably by region. Trust in TV advertising is much higher than average in Latin America, where 74% o4 consumers trust it, and lower in Europe, where just hal4 (49%) trust it. Similarly, trust in newspaper advertising, which tied as the most trusted paid advertising vehicle globally, varies as a trusted source by region.<br><br> As with TV, Latin Americans are the most trusting o4 newspaper advertising (75%), while just hal4 o4 Europeans trust it. The higher-than-average trust that Latin American consumers exhibit 4or TV and newspaper advertising is consistent across almost all measured channels. In all but one channel 4 cE-mails I signed up 4or d 4Latin American consumers are the most likely to trust advertising; North American consumers are the most likely to trust such e-mails.<br><br> Trust in online advertising is only evident among 4our-in-ten global consumers (41%). But again, Latin American consumers exhibit the highest level o4 trust (53%), whereas Europeans are the most hesitant (36%). Figure 3: Global Trust in TV Advertising Trust completely/somewhat Don 9t trust much at all 74% 26% 67% 33% 61% 39% 49% 51% 62% 38% LA APIMEA NA EU Global Average Trust completely/somewhat Don 9t trust much at all 75% 25% 66% 34% 62% 38% 50% 50% 61% 39% LA NA APIMEA EU Global Average Figure 4: Global Trust in Newspaper Advertising Trust completely/somewhat Don 9t trust much at all 53% 47% 42% 58% 43% 57% 36% 64% 41% 59% LA NA APIMEA EU Global Average * Includes search engines, email subscriptions, online banner ads and online videos.<br><br> Figure 5: Global Trust in Online Advertising * 4 Copyright © 2009 The Nielsen Company. Theatrical Venezuela74% Philippines70% Brazil69% Colombia69% South A4rica67% Magazine Venezuela82% Colombia79% Brazil76% Philippines75% Vietnam75% South A4rica75% Newspapers Venezuela81% Pakistan79% Philippines78% UAE78% India77% Brazil77% Radio South A4rica78% Venezuela78% Colombia73% Brazil72% Mexico72% Figure 7: Territories Showing the Most Trust by Paid Advertising Channel Search Engine Vietnam62% Brazil62% Indonesia57% Philippines56% Venezuela56% TV Colombia82% Venezuela80% Pakistan78% Philippines77% Brazil77% Outdoor Venezuela71% Philippines69% South A4rica 69% Pakistan69% Colombia69% Brand Sponsorships Colombia80% Venezuela80% Brazil79% South A4rica78% Pakistan78% Emails Portugal69% Brazil67% US67% UAE66% India65% Online Banner Ads Vietnam67% Venezuela62% Turkey57% Colombia53% Mexico52% Online Video Ads Vietnam63% Colombia56% Venezuela56% Brazil54% Philippines53% Mobile Text Ads India43% Venezuela43% Vietnam42% Brazil36% Pakistan35% Number of countries 16 14 5 14 1 2 Emails I signed Brand Ads in Ads on TV Ads in Ads on radio up for sponsorships newspapers magazines * Most trusted marketing channel by market, amongst online banner and video ads, ads served in search engine results, outdoor, theatrical, brand sponsorships, magazine, radio, TV, newspaper and e-mail subscriptions The 4ollowing tables present a 4urther breakdown o4 which countries 9 consumers express the most trust in each o4 the paid advertising channels. Figure 6: Most Trusted Paid Advertising Channel by Market 4Top The most trusted medium varies by market.<br><br> 5 Copyright © 2009 The Nielsen Company. The Value of Advertising In addition to wanting consumers to trust advertising, advertisers and media companies want them to understand the value that advertising provides. New this year to our study, we analyzed international perceptions o4 the value o4 advertising.<br><br> In partnership with the WFA, we measured consumer perceptions on eight values 4or advertising. We asked i4 advertising: Increases value 4or consumers (through " competition) Promotes consumer choice (helping " consumers exercise their right to choose) Powers economic growth (by helping " companies succeed) Creates jobs (through economic growth " and as an industry in itsel4) Is the li4eblood o4 media (4unding a " diverse, pluralistic media landscape) Funds sports and culture (through " sponsorship) Helps make a di44erence (through public " service advertisements) O4ten gets my attention and " is entertaining Globally, most consumers agree that advertising delivers these types o4 value. Across all eight, more consumers than not agree with the statements.<br><br> Most prominently, consumers understand that advertising helps to subsidize the cost o4 sporting and cultural events: 81% o4 consumers agree with that value. Consumers are less convinced o4 the value o4 advertising in providing use4ul in4ormation on issues such as sa4ety and health through public service announcements, although even here, 63% o4 consumers agree that it does so. While the perception o4 advertising value appears consistent across age and gender groups, there are considerable regional di44erences, as with trust in advertising.<br><br> The most notable regional variation is on the subject o4 advertising 9s ability to help consumers make more in4ormed choices, by providing in4ormation. Globally, two- thirds o4 consumers agree that advertising provides value this way. In Latin America, eight out o4 10 consumers agree, but only hal4 o4 European consumers do.<br><br> 20 % 0 % 40 % 60 % 80 % 100 % Strongly agree Agree Disagree Strongly disagree I don 9t have an opinion Advertising and sponsorship are important to fund sporting events, art exhibitions and cultural events 22 59 10 3 6 13 50 23 7 7 13 53 21 7 5 14 53 18 4 11 13 58 17 3 8 15 65 12 2 7 16 52 22 5 6 14 53 22 6 5 Advertising provides useful information on important issues in society, such as safety and health Advertising often gets my attention and is entertaining Advertising funds low cost and free content on the Internet, TV, newspapers and other media By providing me with information, advertising allows me to make better consumer choice Advertising stimulates competition, which leads to better products and lower prices Advertising contributes to growth of the economy By helping companies succeed, advertising creates jobs in those companies and in the advertising industry Figure 8: Global Consumer Sentiment on Key Values o4 Advertising Strongly agree/Agree Strongly disagree/Disagree 82% 16% 72% 22% 72% 21% 50% 44% 67% 27% LA APIMEA NA EU Global Average Figure 9: By Providing In4ormation, Advertising Allows 4or Better Consumer Choices 6 Copyright © 2009 The Nielsen Company. Engagement with Advertising To consider whether advertising is achieving its intended audience engagement, Nielsen measured general advertising engagement with a 4ocus on TV ads and online video ads. Global respondents were asked to rate their levels o4 agreement with statements on three aspects o4 engagement: 4unny, emotionally touching, and in4ormative.<br><br> Overall, online consumers are most receptive to the comedic qualities in a TV or online video ad. About six in ten o4 them (59%) cstrongly agree d or cagree d that they understand the humor in TV ads that are meant to be 4unny, while about hal4 (49%) share the same understanding 4or online video ads. In our survey, TV ads surpass online video ads in engagement along all three dimensions measured.<br><br> The tide may be shi4ting a bit, though. Recent research by Nielsen IAG, Nielsen 9s advertising engagement consultancy, showed that teens are on average 146% more likely Funny Emotionally touching Informative 10% 9% 8% 49% 36% 42% 29% 35% 36% 9% 15% 11% 3% 5% 3% Strongly agree Agree Neutral Disagree Strongly disagree Funny Emotionally touching Informative 8% 6% 5% 41% 27% 32% 36% 41% 43% 11% 20% 16% 4% 6% 4% Strongly agree Agree Neutral Disagree Strongly disagree Figure 10: Global Engagement with TV Ads Figure 11: Global Engagement with Online Video Ads 7 Copyright © 2009 The Nielsen Company. to recall an advertised brand and key message 4rom an in-stream ad they have viewed during a 4ull TV episode watched online, compared to an ad 4rom a commercial airing on linear TV (4or the same brand/product).<br><br> Other age groups show higher levels o4 recall to ads during TV shows online, too, though to a lesser extent. The relationship and di44erences o4 online video and linear TV ads is currently being explored by Nielsen IAG. Looking at di44erences by region, with regard to TV ads, Asian and Middle Eastern online consumers most o4ten resonate with the intended humor (67%), while Latin Americans are the most likely to 4eel in4ormed (68%), both above the global average.<br><br> All three dimensions 4humorous, emotional and in4ormative 4 resonate least with Europeans. Online video ads are the most engaging among Latin American consumers across all three aspects o4 measurement, at levels solidly above the global average. Once again, Europeans register the lowest in terms o4 the emotional qualities (22%).<br><br> Funny Emotionally touching Informative 59% 44% 50% 49% 33% 37% TV ads Online video ads 63% 55% 68% 63% 44% 52% 67% 50% 29% 42% 59% 60% 50% 44% LA NA APIMEA EU Global Average Funny Emotionally touching Informative 55% Figure 12: Global Comparison o4 Engagement (Strongly agree/Agree) Figure 13: Engagement with TV Ads by Region (Strongly agree/Agree) Figure 14: Engagement with Online Video Ads by Region (Strongly agree/Agree) 63% 45% 55% 47% 27% 34% 55% 43% 22% 32% 49% 46% 37% 33% LA NA APIMEA EU Global Average Funny Emotionally touching Informative 40% 8 Copyright © 2009 The Nielsen Company. Conclusion The Nielsen Global Online Consumer Survey shows that consumer trust in advertising has risen since the previous survey was conducted in 2007. Consumers continue to trust the opinions o4 other consumers (either people they know or consumer opinions posted online) more than paid advertising, including online, outdoor, print, radio, TV and theatrical channels.<br><br> Branded websites are the most trusted advertiser-produced medium, tied with consumer opinions online, while two traditional media 4TV and newspaper 4are the most trusted paid media. In addition to trust, consumer perceptions on the value o4 advertising are generally positive. Approximately 80% o4 consumers globally acknowledge the value o4 advertising in 4unding art exhibitions, cultural and sporting events and helping companies succeed and create jobs.<br><br> A lower share o4 consumers (67%) recognizes the value o4 advertising in the basic media model o4 underwriting low cost and 4ree content. Perceptions on the value delivered by advertising vary across regions, with Western European consumers the most skeptical and Latin American consumers viewing the value o4 advertising more 4avorably. Though a rising segment o4 consumers, speci cally teenagers, seems more engaged with online video ads than TV ads, overall consumers in our survey perceive television ads to be more e44ective than online video ads at communicating humorous, emotionally touching and in4ormative messages.<br><br> Variations in consumer trust across markets, demographics and media have implications in the best way to engage consumers in a 4ragmented media world. What 9s more, understanding the value that consumers see in advertising 4and the levels o4 engagement they 4eel 4can help marketers to best appeal to the marketing interests o4 their audience. This paper outlines just some o4 the variations on consumer trust and perceptions in advertising, but additional Nielsen insights are available.<br><br> 9 Copyright © 2009 The Nielsen Company. About the Nielsen Global Online Consumer Survey The most recent Nielsen Global Online Consumer Survey was conducted by Nielsen Consumer Research 4rom March 19 to April 2, 2009, among 25,420 Internet consumers over 50 markets across Europe, Asia Paci c, North and Latin America and the Middle East. The largest hal4-yearly survey o4 its kind, the Nielsen Global Online Consumer Survey provides insight into the opinions and pre4erences o4 Internet consumers across the world.<br><br> For 4urther detailed results by market or in4ormation on advertising engagement 4rom Nielsen IAG, please contact Stephan.Goldsand@nielsen.com. About The Nielsen Company The Nielsen Company is a global in4ormation and media company with leading market positions in marketing and consumer in4ormation, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications ( Billboard, The Hollywood Reporter, Adweek ). The privately held company is active in more than 100 countries, with headquarters in New York, USA.<br><br> For more information visit www.nielsen.com

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