Word-of-Mouth the Most Powerful Selling Tool; Traditional Media Advertising Still More Credible than Online Ads
October 11, 2007
Nielsen just released the results of their Nielsen Online Global Consumer Study (found via Eric Baillargeon’s blog). In it, “Nielsen (…) surveyed consumers on their attitudes toward thirteen types of advertising – from conventional newspaper and television ads to branded web sites and consumer-generated content.” Excerpts:
The Nielsen survey (…) found that while new platforms like the Internet are beginning to catch up with older media in terms of ad revenues, traditional advertising channels continue to retain the public’s trust. Ads in newspapers rank second worldwide among all media categories, at 63 percent overall, while television, magazines and radio each ranked above 50 percent. (…)

Although consumer recommendations are the most credible form of advertising among 78 percent of the study’s respondents, Nielsen research found significant national and regional differences regarding this and other mediums. Word of mouth, for example, generates considerable levels of trust across much of Asia Pacific. Seven of the top ten markets that rely most on “recommendations from consumers” are in this region, including Hong Kong (93%), Taiwan (91%) and Indonesia (89%). At the other end of the global spectrum, Europeans, generally, are least likely to trust what they hear from other consumers, particularly in Denmark (62%) and Italy (64%).
The reliability of consumer opinions posted online – which rated third, at 61 percent overall – also varies throughout the world, scoring highest in North America and Asia, at 66 and 62 percent respectively. Among individual markets, web-based opinions such as Blogs are most trusted in South Korea (81%) and Taiwan (76%), while scoring lowest, at 35 percent, in Finland.
What it means: a few weeks ago, I blogged about the fact that word of mouth might actually be the biggest opportunity directory publishers have seen in the last few years given that the Web was becoming a big word of mouth machine. These numbers clearly show that i) traditional word of mouth is still the most trusted source of advertising and ii) online word of mouth is not far behind. It’s also interesting to note the differences in the various geographical areas.
When will Mobile Become the Next Big Thing?
September 27, 2007
Scott Karp from the Publishing 2.0 blog lists five arguments explaining why mobile is not yet very exciting:
1. Wireless carrier networks are SLOW
2. Public WiFi access is a SCAM
3. Sites aren’t formated for small screens
4. Mobile device screens are too small
5. Advertising gets in the way
What it means: I agree with his assessment, especially in North America. I’ve often been asked by traditional media publishers: “How do we leapfrog Google, Yahoo, MSN?”. I think one of the potential answers is Mobile. I’ve never been really excited by mobile’s potential until I attended the Web 2.0 Expo last April. I got the feeling when I was there that mobile is about to become real. Something in the zeitgeist, about the convergence of the various interests of hardware manufacturers, content publishers and the technological community. I think we’re still 24 months away from tangible results but, if you operate a local media business, you should be thinking hard about mobile today. You should have a couple of dedicated resources working on the mobile strategic plan, thinking about user experience specifically adapted for mobile browsing and the 3-inch screen, thinking about what kind of ads will be most efficient in that medium. Send that team to Japan or South Korea to see what people are doing with their mobile devices there. Invest some dollars now. Mobile is all about local and you can’t afford to miss that wave.
Update (& related topic): my friend Colin talks about overpriced mobile data plans in Canada