Word-of-mouth is most effective advertising – Nielsen

Filipino consumers continue to trust word-of-mouth recommendations from people they know more than other forms of advertising.

 

This was the result of the Global Trust in Advertising Survey conducted by performance measurement company Nielsen N.V. to gauge consumer sentiment in 19 forms of paid, earned and owned advertising mediums. 

 

More than nine in every 10 Filipino consumers (91 percent) trust endorsements by people they know, the highest trust level indicated among Southeast Asian consumers for the advertising format.

 

But most Filipino consumers also consider editorial content such as newspaper articles (80 percent)and consumer opinions posted online (75 percent) credible, based on the survey results released on Monday.

 

"While word-of-mouth endorsements continue to earn the biggest trust of consumers, extending the conversation in the digital format can result in quicker and viral results," Nielsen Philippines Managing Director Stuart Jamieson said.

 

Platforms

 

About six in every 10 Filipino respondents "completely or somewhat trust" advertisements on social networks while promotions appearing in search engine results have maintained credibility among 56 percent since 2013.

 

The trust level for online video endorsements accelerated by 5 percentage points to 56 percent in two years. Trust for online banner advertisements also improved by 3 points to 49 percent from 2013.

 

"While digital ads offer considerable advantages such as precision-focused campaigns, in-flight adjustments and more creative options, TV still delivers unequalled ability to reach the masses," Jamieson said.

 

The credibility of traditional paid advertisement channels remains intact in the Philippines amid the proliferation of online formats, according to the Nielsen report. 

 

Trust levels for advertisements on television (75 percent), newspapers (74 percent) and magazines (70 percent) surpassed global averages of 63 percent, 60 percent and 70 percent, respectively. 

 

"Cross-platform ad exposure drives greater memorability and brand lift than single platform exposure, even when adjusted for frequency," Jamieson said.

 

Factors

 

Results of the survey show that factors other than credibility come into play in driving consumers to purchase.

 

About 93 percent of respondents reported to have taken action on word-of-mouth recommendations. Television advertisements also received the highest self-reported action (85 percent). 

 

Even the less trusted formats are effective in driving consumers to purchase. Self-reported action exceeds trust levels for text advertisements on mobile phones and promotions on mobile devices.

 

"The formats where action exceeds trust by the greatest margin share a common attribute: easy access to products or services. With just a click, consumers are directed to a place where they can receive more information or purchase the item," Jamieson said. 

 

Theme

 

The message or theme of advertisements also forms part of the formula for reaching consumers.

 

"Advertisements that feature relatable situations and comedic relief, and which focus on family, values and health greatly appeal to consumers and elicit the most positive response," Jamieson noted.

 

Advertisements illustrating real-life situations (65 percent) are most effective in capturing Filipino consumers. This is followed by family-oriented (62 percent), health-themed (57 percent), value-oriented (50 percent) and humorous (42 percent) promotions. 

 

"Marketers can widen the circle of trust of consumers by engaging passionate brand advocates to amplify their message and giving them a compelling reason to talk," Jamieson said. – Keith Richard Mariano/VS, GMA News