Global Trust in Advertising and Brand Messages: Insights from Earned Advertising and Entrepreneurial Learnings

Kazuki

Hatched by Kazuki

Jul 04, 2023

5 min read

0

Global Trust in Advertising and Brand Messages: Insights from Earned Advertising and Entrepreneurial Learnings

In a world saturated with advertising and brand messages, trust is a precious commodity. Consumers are bombarded with countless advertisements, making it difficult for brands to earn their trust. However, there are still channels that have managed to maintain a high level of trust among consumers. One such channel is word-of-mouth recommendations from friends and family, also known as earned advertising.

According to a Nielsen online survey conducted in 2013 across 58 countries, 84 percent of global respondents considered word-of-mouth recommendations as the most trustworthy source of information. This finding highlights the enduring power of personal recommendations and the impact they have on consumer decisions.

The trust placed in earned advertising can be attributed to the human element involved. When a friend or family member recommends a product or service, it carries more weight than a traditional advertisement. There is a sense of authenticity and reliability that comes with a personal recommendation, as it is based on genuine experiences and opinions.

This notion of trust in advertising aligns with some key insights from the entrepreneurial world. Entrepreneurs understand the importance of crafting a strong and simple statement about their product. They recognize that clarity is crucial in communicating the value of their offering and addressing any uncertainties or doubts that consumers may have.

Additionally, entrepreneurs have learned the significance of analyzing data to understand user behavior and preferences. By clustering users and examining changes in their daily habits, entrepreneurs can uncover valuable insights. For example, they may discover that individuals undergo significant environmental changes, such as transitioning from high school to college. This understanding allows them to tailor their marketing strategies and retain users effectively.

Interestingly, the entrepreneurial experience also sheds light on the importance of social networks in user retention. Business professionals, who typically experience fewer significant changes in their social circles compared to high school or college students, may be more resistant to altering their social graphs. This suggests that their needs and challenges remain consistent, making them more likely to retain their engagement with a particular product or service.

The entrepreneurial landscape, particularly in Silicon Valley, offers a wealth of knowledge and expertise in consumer app development. Entrepreneurs who have navigated the highs and lows of creating consumer apps possess invaluable collective wisdom. Their experiences contribute to the overall value of the region and showcase the power of collaboration and shared insights.

Taking a step back, it becomes apparent that the success of social media platforms like Instagram, WhatsApp, and Facebook lies in their ability to foster daily engagement. These platforms have created a habit-forming environment where users check in multiple times a day and take some form of action. This evolution towards asynchronous communication has its merits, but it has also resulted in a loss of synchronous, human-to-human interaction.

However, entrepreneurs have recognized the desire for more personal and synchronous forms of communication. They understand that there is something inherently human about real-time interactions, voice-based communication, and shared experiences. This realization has driven entrepreneurs and their teams to experiment with various approaches to create platforms that facilitate more authentic and meaningful connections.

One notable example is the rise of Clubhouse, a platform that aims to enable people to connect through shared interests and have conversations in real-time. It is not just about file sharing or asynchronous communication; it is about building a community where individuals can share personal information, meet like-minded people, and engage in conversations. This focus on synchronous, human interactions sets Clubhouse apart from traditional social media platforms.

The entrepreneurial journey is shaped by failures and learnings. For instance, the lessons from the failure of Meerkat and the insights gained from developing Houseparty's synchronous features have undoubtedly influenced Clubhouse's founding team. These experiences have contributed to the evolution of the product and its focus on creating an inclusive and enjoyable experience for users.

In the realm of business professionals, the adoption of business-focused social networking platforms has partially addressed the challenges faced by Houseparty. Business professionals, who experience fewer significant changes in their social circles, find it easier to retain their social graphs. By leveraging these networks, they can maintain their connections and engage with relevant content.

Silicon Valley's collective wisdom extends beyond engineering prowess. It lies in the ability to create products that address specific consumer needs by tapping into the knowledge gained from previous ventures. The region's unique value lies in the intersection of consumer app development, the expertise of individuals who have experienced the ups and downs of the industry, and the shared insights that emerge from their interactions.

As we examine the landscape of consumer apps and advertising, it becomes evident that there is much more to explore and discover. Traditional forms of advertising are far from obsolete; they have merely evolved. The trust placed in earned advertising and the insights gained from entrepreneurial experiences demonstrate the ongoing relevance of personal recommendations and the need for authentic, human connections.

In conclusion, for brands and entrepreneurs looking to build trust and engage with consumers, the following actionable advice can be applied:

  • 1. Craft a strong and simple statement: Clearly communicate the value of your product or service, addressing any uncertainties or doubts that consumers may have. Make your statement so clear that users can easily articulate it.
  • 2. Analyze user data and behaviors: Cluster users and examine changes in their habits to uncover valuable insights. Understanding user cases and situations is essential in tailoring marketing strategies and enhancing user retention.
  • 3. Foster authentic and meaningful connections: Consider the desire for synchronous and human-to-human interaction. Experiment with approaches that facilitate real-time conversations and shared experiences to create a sense of community and trust among users.

By incorporating these strategies into advertising and product development, brands and entrepreneurs can build trust, engage with their target audience, and create lasting connections. Trust is the foundation upon which successful advertising campaigns and entrepreneurial ventures are built, and it remains a vital aspect of the modern consumer landscape.

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