Traditional Media Advertising Trust Declines, Search and Mobile Trust/Spend Increases

The world is constantly changing. As technology is evolving, more people are shifted towards tech industries such as the Internet and mobile and less towards traditional media industries such as newspapers and magazines. Naturally, it also affects the people’s confidence in those different industries.

Trust is a crucial ingredient in an industry ability to generate and to grow its revenue and when trust is declining, so as the revenue. This is essentially why technology is killing the traditional media. Why would marketers and advertisers spend their money on less effective industries?

But how it can be analyzed? Trust is a very difficult thing to measure and it also needs to be consistent across years for efficient comparison. This is where Nielsen’s Global Trust in Advertising and Brand Messages survey comes in. Since 2005, Nielsen has been measuring consumers confidence comprehensively and in the 2012 survey participated 28,000 people from 56 different countries across the globe.

Nielsen Trust In Advertising Formats Survey

Even though that the survey is showing that many of traditional media advertising formats are still being perceived as more trusted than some technological-developing industries, they are in constant decline in recent years while advertising on tech industries is gaining momentum at the same time period.

For example, since 2009 consumers’ trust in television advertising (47% this year) has dropped by 24%, trust in magazine advertising (47% this year) has dropped by 20% and trust in newspaper ads (46% this year) has dropped by 25%. In contrast, trust in search engine ads (40% this year), online video ads (36% this year) and online banner ads (33% this year) has grown by 27% since 2007.

Mobile advertising also demonstrated a significant rise in consumer confidence. Display ads (33%) and text ads (29%) on mobile devices have shown an impressive growth in consumers’ trust- 61% jump from 2007 and 21% increase since 2009. The new format that began being measured just this year, Social networks advertising, has scored 36%.

The results of this survey can complement another study’s findings from earlier this year by eMarketer which predicts that online ad spending will top print advertising spend for the first time this year. However, online ad spend isn’t forecasts to surpass T.V. ad spending in the next few years.

Adobe: Increase In Search and Mobile Ad Spend On Q1 2012

On another related study by Adobe, data are showing that overall search spend has increased on the first quarter of 2012 in the U.S. by 16% and in the U.K. by 3% compared to the first quarter of 2011. At the same periods of time, search ads ROI (return on investment) has grown by 11% in the U.S. and 5% in the U.K.

Adobe Q1 2012 Search Ad Spend and ROI

Adobe also saying that mobile traffic surged four times as much in a year and as a result mobile ad spend predicted to jump for 16%-20% out of the total search spend by the end of the year, compared to 7.7% today.

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