The Hindu Business Line : Word-of-mouth most powerful ad tool: Nielsen

Recommendations work. Not just when it comes to getting a place in school or a job but when it comes to deciding on which brand/product to buy — that’s what a global Internet survey by Nielsen found.

In the case of India, 87 per cent of those who use the Internet trust others’ advice rather than any kind of advertising, proving that word-of-mouth is the most powerful advertising tool, a press release issued by the research agency found. Newspapers come second in the ‘most trusted list’, with 77 per cent saying so. Opinions expressed online and on brands’ Web sites were the third and fourth most trusted at 73 and 72 per cent, ahead of television, which came fifth as only 65 per cent said they were trustworthy.

India comes fourth among the top ten countries which trust in recommendations from consumers, with Hong Kong topping the list with 93 per cent. Most of the top ten markets that rely most on “recommendations from consumers” are in Asia. They include Taiwan, Indonesia, South Korea and the Philippines.

Search engine advertisements (41 per cent), ads that precede movie screening (41 per cent), online banner ads (38 per cent), and text ads on mobile phones (24 per cent) are the least trusted forms of advertising in India, the survey revealed.

“As a consumer one is exposed to advertising in various media but what touches a chord is either a very innovative message or a product, which is good value for money. Word of mouth brings with it a big “trust” factor, which is quite often missing in other forms of advertising. Indians by nature tend to believe a friend or an associate while evaluating a product,” the press release quoted Mr Sarang Panchal, Executive Director - Client Solutions, The Nielsen Company, as saying.

The survey revealed new platforms like the Internet are beginning to slowly catch up with conventional media in terms of advertising revenues. The trust in opinions posted online shows that Indians are not averse to new forms of advertising, says Mr Panchal. “Though in a nascent state and popular with only certain sections of the society, these have the potential to become an interesting advertising avenue for the marketers,” he added.

Conducted twice-a-year among 26,486 Internet users in 47 markets across Europe, Asia Pacific, the Americas and West Asia, Nielsen most recently surveyed consumers on their attitudes towards thirteen types of advertising, ranging from conventional newspapers and television ads to branded Web sites and consumer-generated content.

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