Tag Archives: Nielsen Company

Can You Trust Your Customers?

It’s not news to any of you who are paying attention to media but we’re at a tipping point.

1898 advertising poster

(Photo credit: Wikipedia)

The cracks in the traditional patterns of media consumption have widened to a point where the foundations of those patterns are falling down. Need proof? How about this morning’s piece is the Wall Street Journal:

Hopes that TV advertising will rebound this fall are beginning to dim. TV networks have been banking on a surge in ad spending in coming weeks, ever since an anemic second quarter reported by media companies and a weaker-than-expected “upfront” advance ad-sales market for the new season. The new season doesn’t kick off until next week but already sentiment is starting to change. On Monday, Jeffries analyst John Janedis lowered his estimates for advertising revenue growth in the second half of the year for most of the biggest media companies

Or this from Kantar Media:

“Four of the nation’s five biggest advertisers,” including Procter & Gamble and AT&T, “cut ad spending on traditional media and online display in the first half of the year.”

So now what?

Millennials spend 30 percent of their time with content created by their peers. This means they’re spending more time with peer-created content than traditional media combined (print, TV, and radio).  Nielsen’s most recent study indicates that Americans aged 18-24 watched a weekly average of 19 hours of traditional TV during Q2 2014. That was a substantial 2-and-a-half-hour drop-off from Q2 2013, which in turn had been down by an hour from the year before.  Spending more heavily in those channels isn’t going to happen.  The impact of most digital display is negligible.  Where is the light at the end of the tunnel?

The answer might just be in the audience itself.  Putting consumers and their messages about the brand front and center – probably through social channels – might just be the way forward.  That’s where is the audience is spending time and the messages are from trusted sources.  As Nielsen found:

Word-of-mouth recommendations from friends and family, often referred to as earned advertising, are still the most influential, as 84 percent of global respondents across 58 countries to the Nielsen online survey said this source was the most trustworthy

The real question is do you trust your consumers enough to hand over your brand?  Can you get on board with them creating content that you’ll push for them?  Are you willing to provide tools – images, logos, whatever – or to promote the products that consumers choose, not those slated for promotion in the marketing plan?

Interesting times.  What’s your take?

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Filed under Consulting, digital media, Reality checks

I Need To Know

I was reading about a study done by the Nielsen folks which measured how people are influenced by different sources of information.

Tom Petty

Since it’s Tuesday and we usually turn it into TunesDay, the song that popped into my head is Tom Petty‘s “I Need To Know.” OK, maybe not my best musical connection to a business point ever, but I think you’ll see why I chose it.

The Nielsen/inPowered MediaLab study measured the impact of product reviews by users, experts and brands to understand if one form provided a higher impact with consumers than another.  You can read about the study here.  The results show that expert content— credible, third-party articles and reviews—is the most effective source of information in impacting consumers along all stages of the purchase process across product categories. Frankly, the results gave me hope.  After all, many of the marketing tactics I see suggested by some of my less scrupulous peers seem not to have the sort of impact their advocates would suggest.  Advertising disguised as content, fake reviews, or even “unbiased” product information on the company website seem to have been sussed out and dismissed by consumers if one believes the data.  I particularly liked this:

The perceived partiality of the source was especially critical in setting expert content and branded content apart. The third-party element was important to consumers: 50% indicated that they wouldn’t trust a product’s branded website for an unbiased assessment of a product, and 61% were less likely to trust product reviews paid for by the company selling the product. Expert content can provide an unbiased and honest assessment of a product, particularly important during the final stage of purchase consideration.

There are cases such as with video game reviews where user comments and reviews are perceived highly.  Obviously someone who has played the game has the low-level of expertise needed to be reliable and trustworthy.  As the report I read states:

The report concludes by noting that, overall, the research suggests that there is a higher degree of trust from consumers when they are reading content from credible, third-party experts. This trust is demonstrated by the higher lift scores with regard to product familiarity, affinity and purchase intent and its perception of being highly informative and unbiased.

So what the song says is appropriate because consumers do need to know and do a lot of research to find out:

I need to know, I need to know
Cause I don’t know how long I can hold on
If you’re making me wait, if you’re leadin’ me on
I need to know

Even if the above refers to a romantic relationship and not to a purchase.  Then again, isn’t that sort of what a product purchase is?

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Filed under Music, Reality checks

You Want to Win? Get Away From Me!

Image representing Nielsen as depicted in Crun...

Fascinating, scary article on a report from Nielsen about the relationship between innovation and the physical proximity of senior management. Anyone who has ever worked in a big company isn’t going to be shocked by the news, but it turns out that “companies that take a hands-off approach with product development incubation and also employ other innovation best practices, on average derive 650% more revenue from new products than companies that do not follow these practices ” as reported by Media Post. Continue reading

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Filed under Consulting, Reality checks