Consumers Trust Each Other More Than Advertising

Consumers Trust Each Other More Than Advertising

The "2005 Consumer-Generated Media (CGM) and Engagement Study" a new study of consumer behavior by Intelliseek Inc., reports that consumers are 50 percent more likely to be influenced by word-of-mouth recommendations from their peers than by radio/TV ads. Consumer trust toward traditional advertising is being challenged by growing confidence in consumer-generated-media (CGM), and the recommendations of other consumers.

The research also finds important correlations between consumers who regularly skip over or delete television or online ads and those who create, and absorb consumer-generated media (defined as experiences, opinions and advice posted on the Internet by consumers for others to read and share). "Active ad skippers " are 25 percent more likely to create and respond to Internet message boards, forums and blogs.

Intelliseek CEO Mike Nazzaro said "The advertising landscape is... forcing marketers to broaden and redefine the concepts of media, influence and audience reach. If consumer-generated media is the most effective and trusted form of advertising, it's critical that marketers begin to measure, manage and influence it..."

Key findings from the analysis:

  • Word-of-mouth behavior among "familiars" trumps all forms of advertising and is more trusted than news or "expert commentary."
  • Positive word-of-mouth from a personal acquaintance carries just as much impact as negative word-of-mouth.
  • Teens lead all segments in overall CGM creation. Nearly 30 percent of teens now actively create CGM by sending photos via their cell phones, 45 percent have experimented with or created a blog, and nearly 10 percent subscribe to RSS feeds.
  • Men are more likely to spend time on Internet message boards, forums, and discussions, while women have a higher tendency to "forward something (they) had found on the Internet to others."
  • Consumers are on track to post close to 2 billion comments on the Internet by the end of 2005.
  • Key industries susceptible to GCM influence are health/medical, auto, electronics, video games and music.

You can find more information here.

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