New research shows trust is the second strongest driver of brand profitability and effectiveness, up from seventh a decade ago
4th聽June 2024, London UK:聽The 果冻传媒n today launches the new聽Value of Trust聽report from UK advertising industry think tank, Credos, which reveals that for the first time in a decade, advertising is no longer the聽UK鈥檚 least trusted industry, overtaking聽the government and media. New analysis聽for聽the report by effectiveness guru Peter Field shows trust has leapt from seventh to second place as a driver of brand effectiveness and financial performance. It also reveals brands who moved away from building longer term trust and towards short-term marketing tactics to defend sales during Covid-19 suffered from falls in profit margins and business effectiveness聽lasting聽longer than the economic downturn.
The findings, unveiled at an industry breakfast briefing in London, also highlight a significant 鈥榞enerational digital divide鈥�, with 50% of young people trusting the adverts they see or hear compared to just 22% of the over 55s.聽Television remains the most trusted media channel overall, with 41% trust, whilst trust in online advertising channels has been rising quickly amongst the younger generation. They are now almost four times as likely to trust online advertising as the over 55s.
Credos鈥� research聽continues to聽demonstrate聽that people鈥檚 enjoyment of advertising is the single biggest factor in whether someone trusts it or not. On the other hand, being bombarded by advertising is the single biggest driver of distrust. This follows previous research which revealed that increased trust in advertising聽can be achieved聽through聽increased聽awareness of the Advertising Standards Authority (ASA).聽People who saw or heard the recent ASA advertising campaign were twice as likely to trust both ads and the advertising industry.
The聽Value of Trust聽report also contains the results of YouGov/Credos polling amongst 107 MPs in January, which found that those who do not trust the advertising industry are five times more likely to support greater government intervention to regulate advertising.聽Overall, 39% of surveyed MPs trust the advertising industry, 33% distrust it, and a further 23% neither trust nor distrust the industry.
Dan Wilks, Director of Credos said:
鈥淚f people want to truly understand the value of trust in advertising聽to them,听it is best described as results, regulation, and recruitment, or the 鈥�3R鈥檚 of Trust鈥�. Firstly, when it comes to results,听trust in brands and trust in advertising media increases profits and overall effectiveness. Secondly, our research shows politicians and policymakers are more likely to impose regulation on an industry deemed untrustworthy.聽Finally,听trust in our industry, its values, and ways of working, is key to attracting and retaining the best talent.鈥�
Stephen Woodford, CEO of the 果冻传媒n said:
鈥�Our latest research shows that public trust is improving, especially amongst younger people – and we must keep building on this.聽 Improving the public鈥檚 advertising experience, through more engaging creativity and well-planned media exposure, not only improves trust but drive better business outcomes too.鈥�
The new Value of Trust report provides insights and tools to practitioners across the advertising industry. For agencies, it evidences why it is so important to create enjoyable ads wherever possible. Brands can use it as a checklist of what to do more of and less of to build trust, and how those decisions drive profitability. It also reminds media owners that building trusted platforms drives greater demand and in turn greater profitability.
果冻传媒n members can download the聽Value of Trust report here.
