Addressing the Trust Deficit in Advertising

September 17, 2012

Consumers increasing lack of trust doesn’t begin and end with government and other large public and private institutions. It applies to advertising as well. This should hardly be a surprise to anyone. Who trusts ads anyway?

What’s surprising is that advertising continues to work as well as it does when the majority of consumers say they “don’t trust (advertising) much or at all.” This is, no doubt, due to the creative power of great advertising—its ability to entertain as well as sell. Advertising works despite itself.

Trust in Advertising – Paid, Owned and Earned

In a recent Nielsen global study (disclosure: I work at Nielsen), all forms of paid advertising—TV, Print, Digital, Radio, etc., fared poorly on the trust factor. Conversely, and not surprisingly, “recommendations from people I know” scored highest on trust, with 92% of consumers trusting this source completely or somewhat. Owned media, such as brand websites, scored higher than paid advertising, but lower than social recommendations.

Trust In Advertising

Now What ? The Convergence of Paid, Owned and Earned

Now that we’ve demonstrated what many of us already knew, what should we do about it? Does trust in advertising even matter? If so, can we even do anything about it?  After all, the only advertising that most CMO’s control is their own (and some Ad Agency people would even debate that).

Since trust is a continuum , moving from earned (highest) to owned and then paid (lowest), it stands to reason that brands should want more earned and owned media. But giving up paid media? For most brands, this isn’t really feasible given both the broad reach and historical success associated with paid media.

Instead, we need to start thinking of how Paid, Owned and Earned media can work together to improve trust and deliver better results. Marketers continue to discuss them as if they are separate and discreet media. They’re increasingly not.

Technology is blurring the lines of paid, owned and earned media.  Paid media can now also be social. Social is often about paid. Owned media can have paid embedded in it. And sometimes, all three can exist in one consumer touchpoint. What’s a CMO to make of this trend?

3 Examples of Paid, Owned, Earned Convergence

1.       Paid Ads Work Harder with Social

What actually happens when you combine social and paid advertising? Research on Facebook ads with and without a social layer (Jimmy, Billy and 8 other friends are fans of Brand X), shows that social ads generate much stronger breakthrough and purchase intent than ads without a social layer. Why? Knowing that the advertised brand is liked by our friends builds trust.

Paid Advertising Works Harder with a Social Layer

2.       Paid Digital Advertising Drives “Owned Media” Usage

Digital advertising can drive consumers to a Brand’s owned media. In the example below, we look at the effectiveness of four different brands digital advertising in driving consumers to their respective web sites. Brands A & B were far more successful in doing so than Brands C & D.

Brand A

   Brand B

   Brand C

Brand D

% of those exposedto the online display campaign that went on to visit a brand’s site post-exposure 

4.7

       5.2

      1.0

1.2

% of those not exposedto the online display advertising who visited a brand’s site 

    0.5

       0.4

0.2

0.3

3.       Owned Can Work Harder Than “Paid Media”

What about owned media? Does it work once consumers arrive? One way of understanding this is to measure the off-line sales impact of those consumers exposed versus not exposed to your brand’s website. In the example below, we can see that exposure to Brand X’s owned digital media drove almost 3x the sales lift of paid digital ads alone.

Owned Media Can Work Harder than Paid

The Opportunity – Putting it All Together

Addressing the truth deficit in advertising is more than just making ads that are, well, true. It’s also about how to use paid, owned and earned media to your brand’s advantage.

Using the example above, why not build social into your paid advertising (where possible), use your paid ads to drive consumers to your website, and optimize your site to drive maximum on or off-line purchase? Why not experiment with the myriad of ways to engage your consumers across the paid, owned and earned continuum?

Because I’m betting that overcoming the trust deficit in advertising isn’t about making ads that aren’t misleading or exaggerated. It’s about adding in social and owned media experiences in ways that gives paid media more legitimacy and enables it to work harder for your brand.

Get free updates of Randall Beard’s Blog by RSS reader

Get free updates of Randall Beard’s Blog by e-mail


Driving Desirable Digital Behaviors with TV Advertising

December 6, 2010

Things are not always what they seem. Two TV ads score the same—in copy testing or in market—so they’re equally effective, right? Not always.

TV: Driver of Consumer Digital Experiences

TV ads don’t just deliver awareness, message recall, etc. They drive behaviors—some of which are digital–and good for your brand.

Cross Platform Ad Effectiveness

Marketers increasingly want to understand how advertising works across mediums—particularly TV and Digital. Some of the more frequent questions I hear from CMO’s are the following:

  • What’s the value of a Facebook fan?
  • What’s the role of search in the customer journey?
  • How I use the web to drive greater engagement with consumers?
  • How can I drive more word of mouth and buzz for my brand?

These are all great digital questions. And lots of people have tried to answer them with digitally focused analysis—some effectively, some not.

Building Brands & Online Buzz

Another Way to Think About TV Ad Effectiveness

Here’s a different tack:  what if we analyzed these questions, not from a digital only perspective, but from a TV advertising perspective? Or, to say it differently, what if we were to ask the question as follows:

“What role does TV advertising play in driving desirable digital behaviors?”

TV & Digital Viewing Behavior

This has been a tough question to answer. Who’s going to keep a diary of what they watch on TV and then the myriad of things they do on-line? The fact is that our understanding of TV and Digital viewing behavior has been mostly limited to knowing how many people did what.

Just as important is understanding not only what people are doing, but in what sequence. And after viewing what ads? New single source viewing data opens up new possibilities for understanding media behavior:  it’s now possible to observe (with viewers permission) both what they watch on TV and what they then do on-line.

Next Generation TV Ad Effectiveness

So, back to the opening question. Two TV ads score the same—in copy testing or in market—so they’re equally effective, right? The answer: not always. Why?

Here are 4 new ways that TV advertising can drive positive digital behaviors.

1.  Drive Consumers to Your Facebook Fan Page – Many brands have embraced Facebook and are building Fan pages as opposed to their own branded websites. They see the advantage of “social” currency and a key objective is building the number of Facebook fans.

TV advertising has a role to play here:  more effective ads can drive more consumers to your brands fan page than less effective (or no) ads. Seen in this light, TV can play an essential role in your digital plans–even when the messaging doesn’t explicitly have a call to web action.

Facebook Fan Pages & Brands

2.  Drive Consumers to Search for Your Brand – Companies across all industries have embraced search, even in CPG, and for good reason. It works. Of course, paid search costs real money. So, how to drive more organic search for your brand? Well, one way is with your TV advertising. What portion of consumers seeing your TV ad go on-line and search for your brand?

3.  Drive Consumers to Your Brand Web Site – Like Facebook Fan Pages, many brands have their own website to engage and deepen the relationship with consumers. Question: is your TV advertising driving consumers to your website? Which ads are more versus less effective in doing so?

4.  Drive Consumers to Talk About Your Brand – Research from Keller-Fay has shown that approximately 1/3 of word of mouth is about TV advertising. How effective is your TV ad at driving word of mouth? Are two TV ads which score equally well on traditional ad effectiveness metrics driving different conversation levels about your brand? If so, one is clearly more valuable than the other (assuming the conversations are positive).

Capital One Mascot Challenge: Driving Consumers to Website

Driving Desirable Digital Behaviors

All of the above represent new ways of thinking about TV ad effectiveness. Traditional measures of TV advertising performance around breakthrough and branding will continue to be important.

But increasingly, Marketers need to think about how TV advertising drives other behaviors—particularly digital ones—that benefit their brands.

Follow Randall Beard on Twitter

Get free updates of Randall Beard’s Blog by RSS reader

Get free updates of Randall Beard’s Blog by e-mail