People trust real friends over advertising

Thanks to the web, markets have become better informed, smarter and more demanding of qualities missing from most brands. As conventional marketing approaches lose impact, the greatest challenge brands now face is how to create relevance, trust, authenticity and influence at the lowest cost.

There is a stack of research around to support this, but I've picked up on a recent study by Neilsen which underlines this trend. I've pulled out the key take-outs:

Recommendations from personal acquaintances or opinions posted by consumers online are the most trusted forms of advertising, according to the latest Nielsen Global Online Consumer Survey of over 25,000 Internet consumers from 50 countries.

Ninety percent or consumers surveyed noted that they trust recommendations from people they know, while 70 percent trusted consumer opinions posted online.

“The explosion in Consumer Generated Media over the last couple of years means consumers’ reliance on word of mouth in the decision-making process, either from people they know or online consumers they don’t, has increased significantly,” says Jonathan Carson, President of Online, International, for the Nielsen Company.”

However, in this new age of consumer control, advertisers will be encouraged by the fact that brand websites are trusted at that same 70 percent level as online consumer opinions.

Carson adds, “We see that all forms of advertiser-led advertising, except ads in newspapers, have also experienced increases in levels of trust and it’s possible that the CGM revolution has forced advertisers to use a more realistic form of messaging that is grounded in the experience of consumers rather than the lofty ideals of the advertisers.”