Trust is Core to the Future Success of Digital Marketing

LONDON -

- ad:tech London Research Reveals Real Consumer Perceptions Towards Digital Marketing Channels

The UK digital marketing industry was today warned that marketers need to be better invest in understanding consumer attitudes towards online advertising or face negativity and apathy that will lead to a drop in revenues, according to independent research* commissioned for the start of this year’s ad:tech London.

The research of over 1,200 respondents found that only 14 per cent found online advertising necessary, comparable to traditional advertising methods such as TV and radio, which 70 per cent of those asked said was necessary. In turn, over a third of those asked (38%) went as far as to say they found online advertising to be either intrusive or annoying, posing a significant question about how online content can be monetised.

The research demonstrates the need for self regulation across the industry to ensure a tide of negative perception can be turned, Christophe Asselin, group marketing and content director for ad:tech explains, “Trust is the biggest issue for marketers, and in the case of online that trust is at an all time low. We need to face the reality and find ways to build and harness trust amongst consumers, otherwise the industry will be in very real danger of finding itself against the wall. By listening to the consumer, making them the most important part of the cycle, we can learn how best to provide them with relevant marketing messages that find entertaining, informative and indeed necessary.”

When asked what forms of marketing techniques UK consumers respond to most positively, it was revealed that the most admired were (in order), TV, magazine/newspaper, direct mail (postal), radio and outdoor advertising. Respondents were asked to score their favourite and least favoured methods from a choice of 13 forms of marketing, such as sponsored links and online advertising. The least favourite form of marketing was shown to be telesales. More worryingly for the online industry, social media (including social networks like Facebook) was said to be the second least favoured marketing technique. This challenges existing industry perceptions about the benefits of personalised marketing.

Asselin continued, “Of the feedback we received from the research, there were some very insightful comments which showed us exactly what consumers thought about marketing as whole, but more importantly digital marketing methods now that they have become more commonplace. One of the standout comments said that ‘online is intrusive, but so much easier to ignore’. It’s a natural assumption for marketers to think that because of the popularity of social media channels, it’s a good channel for brands to target for marketing activity. This research suggests not so, and show’s why the industry has to invest more time in understanding exactly how consumer’s want to be engaged. “

The research also showed that the majority (56.3%) of respondents feel that advertising is still the best way to fund internet services, challenging marketers to come up with more effective, imaginative and relevant advertising campaigns. A third of respondents would gladly see a reduction in the amount of premium content (32.9%) in exchange for no advertising, whilst the two least popular sources of funding for the internet were a TV license type subsidy (9.2%) followed by subsidisation by the tax payer (1.7%).

Commencing today and running until Wednesday, 22nd-23rd September, at London Olympia, the conference and exhibition has become established as the largest gathering of the digital marketing industry in the UK ( www.ad-techlondon.co.uk). This year’s conference programme includes the following speakers and discussions;

- Rory Sutherland, Chairman, Ogilvy UK and President of the IPA - In his first address as new President of the IPA, Rory will address how the body intends to regulate online advertising - Alex Hunter, Head of Online Marketing, Virgin Group - Alex will be discussing why brands should actually give a damn about their customers - Richard Titus, CEO, Associated Northcliffe Digital - The former controller of BBC audio and music interactive and BBC mobile will discuss how Northcliffe Digital will be adapting to improve the digital experience across The Daily Mail Online - Thomas Gensemer, Managing Partner, Blue State Digital - A year on from the 2008 US election, one of its key architects will discuss what British parties and brands can learn from Barak Obama’s online success - Jacek Utko, Design Director, Bonnier Business Press CEE - Will be addressing the issue of the digital impact on media consumption and how design (not just the appearance) can save newspapers - Jane Nicholson, Regional Director, Tourism Queensland - will showcase the best PR campaign of the year leveraging social media: “Best job in the world” campaign to find a caretaker for an Australian paradise island

The full seminar and conference programme can be viewed at: www.ad-techlondon.co.uk

* Notes about the study: The findings are representative of the UK online population, with a total number of 1,248 respondents. The study was out in the field from 7th September 2009 to 14th September 2009, conducted by Zussi Research, the Consumer Research division of Associated Northcliffe Digital.

NOTES TO EDITORS:

About ad:tech London (www.ad-techlondon.co.uk)

Dedicated exclusively to Interactive Advertising and Marketing Technologies such as Search Engine Marketing, Email Marketing, Mobile Marketing and E-Commerce, ad:tech London is the only event in the UK that gives its visitors from blue-chip companies and SMEs the opportunity to investigate a complete range of end-to-end interactive advertising and marketing solutions. ad:tech London is a unique opportunity for CEO, brand/product managers, marketing directors, media planners/buyers, creative directors, PR manager, campaign managers, agency executives and marketing service providers to reveal latest trends and market figures, share best practices, address industry challenges and further understand how digital can generate results that translate directly into increased marketing performance and ROI.

About dmg world media:

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Source: DMG World Media (UK) Ltd

David Ross-Tomlin, +44(0)207-025-1505, david at diffusion-mobile.com