The Future of Advertising: Trust and Technology

The Future of Advertising: Trust and Technology

In today's digital age, advertising has become an integral part of our lives. We are constantly bombarded with ads on various platforms, from social media to search engines. But amidst the sea of advertisements, which ones do we trust the most? According to a study conducted in 2015, recommendations from friends remain the most credible form of advertising among consumers. This comes as no surprise, as we tend to trust the opinions of our loved ones more than any other source. Branded websites are the second-highest-rated form of advertising, with consumers placing a significant level of trust in the information provided by the company itself.

Interestingly, the study also revealed that the percentage of global respondents who trust the opinions of friends and family is the same as those who take action based on these opinions. This indicates that trust translates into action, showing the influence that recommendations from friends and family have on consumer behavior. The same can be said for branded websites, where trust and action are at par. Consumers trust the information provided by the company and are willing to take action based on it.

However, when it comes to other forms of advertising, such as ads served in search engine results, ads on social media, and text ads on mobile phones, the percentage of trust is lower than the percentage of action taken. This suggests that while consumers may not fully trust these forms of advertising, they are still willing to take action on them. The common attribute shared by these formats is easy access to products and services. With just a click or a tap, consumers can instantly make a purchase or engage with the advertised content. Online and mobile formats make it exceptionally easy for consumers to live in the moment and take quick action on the advertisement.

But what does the future hold for advertising? The next Google search engine, according to some experts, will be powered by Generative AI. The current search engine design, both mobile and desktop, is based on the technology available in the late 1990s. It is a paradigm that has remained largely unchanged despite the evolution of content consumption. With the rise of social networks, data streams, video content platforms, ecommerce, and authoritative knowledge sources, the way we search for information needs to adapt.

Generative AI search engines would use a neural network to generate results instead of searching a database. The database would serve as training data for the model, which can then generate the answers users are looking for. This would revolutionize the user experience, bypassing the need to scan through multiple search results and deal with intrusive ads and scams. The user flow would be completely different, and it raises questions about the future of the advertising business in this new paradigm.

With generative AI search engines, the distribution monopoly and advertising business of incumbents could be disrupted. While training a model may be expensive, running it has negligible costs. This means that the cost of maintaining the infrastructure necessary for running the search engine would be significantly lower than the revenue generated from ads. It would also provide a more seamless and personalized user experience, making it easier for consumers to find and engage with the content they are looking for.

So, what can businesses and advertisers do to adapt to this changing landscape? Here are three actionable pieces of advice:

• 1. Foster genuine relationships with customers: As the study showed, recommendations from friends and family are the most trusted form of advertising. Businesses should focus on building strong relationships with their customers, encouraging them to share their positive experiences with others. This can be done through personalized marketing campaigns, loyalty programs, and exceptional customer service.

• 2. Invest in branded websites: Branded websites are the second-highest-rated form of advertising, indicating that consumers trust the information provided by the company itself. Businesses should invest in creating user-friendly and informative websites that provide value to their customers. Regularly updating the website with relevant content and engaging visuals can help build trust and encourage action.

• 3. Embrace emerging technologies: The future of advertising lies in technologies like Generative AI. Businesses should stay informed about the latest advancements and explore how they can leverage these technologies to enhance their advertising strategies. By being early adopters, businesses can gain a competitive edge and better connect with their target audience.

In conclusion, trust and technology are shaping the future of advertising. Recommendations from friends and family, as well as branded websites, remain the most credible forms of advertising. However, as technology continues to evolve, so too should our approach to advertising. Generative AI search engines have the potential to revolutionize the industry, providing a more seamless and personalized user experience. Businesses that adapt to these changes and embrace emerging technologies will be well-positioned to thrive in the evolving advertising landscape.