Trusting Advertising 2007

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Trust inAdvertising

a global Nielsenconsumer report

October2007

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‘Word-of-mouth’the most powerful selling tool:Nielsen Global Survey

Traditional Media Advertising Still More Credible Worldwide Than Ads onSearch Engines, Web Site Banners and Mobile Phones

Despite an ever-expanding array o advertising platorms andsources, consumers around the world still place their highestlevels o trust in other consumers, according to a recentglobal Nielsen Internet survey.Conducted twice-a-year among 26,486 internet users in47 markets rom Europe, Asia Pacic, the Americas and theMiddle East, Nielsen most recently surveyed consumers ontheir attitudes toward thirteen types o advertising – romconventional newspaper and television ads to branded web sites and consumer-generated content. Te Nielsen survey ound that overall, consumers trust otherconsumers above all else! 78% o respondents said they trusted- either completely or somewhat – the recommendation o other consumers.“Advertisers around the world are able to reach consumersacross an increasingly diverse range o media platorms,” saidDavid McCallum, the global managing director orNielsen’s Customized Research Services.“Even so, the recommendation o someone else remains themost trusted sources o inormation when consumers decide which products and services to buy. And even though new media technologies are playing a role in ‘globalizing’ society,many purchasing decisions are still based on rmly heldnational and cultural attitudes. Furthermore, given thatnothing travels aster than bad news - with estimates thatreports o bad experiences outnumber good service reportsby as many as 5:1 - the importance o responsive, highquality customer service is yet again highlighted.”

Base: All respondents

In general, consumers trust other consumers!

Traditional Media fare reasonably well, but online and mobilephone Ads aren’t to be trusted

78636160565654494938342618

Recommendations from consumersNewspapersConsumer options posted onlineBrand websitesMagazinesRadioEmail I signed up forBrand sponsorshipsAds before moviesSearch engine adsTVOnline banner adsText ads on mobile phones

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Te Nielsen survey ound Filipinos and Brazilians (67%) tobe the most trusting overall o all orms o advertising, whiletrust among Danes (28%), Italians (32%), Lithuanians (34%)and Germans (35%) were the lowest in the world. Te Nielsen survey also ound that while new platorms likethe Internet are beginning to catch up with older media interms o ad revenues, traditional advertising channels continueto retain the public’s trust. Ads in newspapers rank second worldwide among all media categories, at 63 percent overall, while television, magazines and radio each ranked above 50percent. Such advertising scored best in Latin America andmost poorly in Eastern Europe, the Middle East and Arica(EEMEA) regions.

Average levels of consumers’ trust in advertising:

a 47 country comparison

Filipinos are the world’ most trusting, Danes the most sceptical, Latin Americans and Asians more likely to believeadvertising than Europeans

6767666463626160595958565656555555535351515151514949494847474343434242414040393838383835343228

0%10%20%30%40%50%60%70%

P HB Z M XS A T W U A E I N D O V N C H I H KI NS G M Y N L U S A R GE GC AP G I R E T K N Z T HJ P K O RS P U K P O G R E O Z F I N H U N S WB E C Z E S W Z R U E S TF R A U T N W C H N L A T G E R L I T HI T D K

Base: All respondentsBase: All respondents

North AmericaEuropeEEMEALatamGlobalAverageAsia Pacific

Ads – possibly advertorials - in Newspapers were consideredtrustworthy, particularly for Latin Americans. People inEEMEA were less convinced.

8173635350630%10%20%30%40%50%60%70%80%90%100%

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