Advertising, Marketing & Media Issues

Business Environment

Demographics & Regions

Media Options & Channels

Sales, Operations & Tech

Verticals & Sectors

Subscribe to Media Buyer Daily

Join our LinkedIn group Follow us on Twitter Read our RSS newsfeed

Archives » Newspapers

BPA Updates Mean Easier Tagging And Renewals, Higher Digital Circs

Published 1 year, 10 months ago

Good news from BPA Worldwide, the print and digital circulation oversight group. The BPA board passed a number of rules changes at its May 2012 meeting, which it has just released. All rules are in effect immediately. The short story is that tagging website traffic will become easier, digital subscriptions will be easier to prove, and subscribers will not be tasked with having to fill in a new form to renew (which runs the risk that they do not bother).

Audited Web Traffic Using Tags: Due to advances in technology, the Board took strides toward a truly “tag neutral” approach with respect to reporting audited website traffic data. BPA is now making more options available to members to participate in BPA’s web traffic audit process.

“The change was prompted by the member feedback,” Glenn Hansen, president and CEO of BPA Worldwide told Folio. About 700 of 2,000 member companies used the Nielsen tags. "The question to the other 1,300 was what’s preventing you from doing this? Some had said they were using other analytics providers. The two that were named more often than not was Google Analytics and Omniture.”

Specifically, BPA no longer requires its members to use the BPA proprietary tag powered by Nielsen. It can now work with, for example, including Google Analytics and/or Omniture SiteCatalyst tags. Members may begin reporting Google Analytics data as of July 2012 after completing a simple set-up process.

Reporting Apps: As of December (BPA’s last board meeting), BPA determined that only App downloads could be reported on BPA Brand reports, as there was not enough recipient information to report qualified subscriptions/copies delivered through Apps on circulation statements. But, media owners have developed App registration (free) or payment (paid) gateways, which BPA believes is sufficient proof of qualified circulation.

Business and Consumer Magazines

Pre-Populated Electronic Qualification Forms: BPA will allow publishers to pre-populate electronic subscription forms (web, email, text) with a previous year’s data. The maximum age of the previous demographic data cannot exceed three years in age and the subscriber must be asked to review the data and press a single confirm button to agree the information is correct before completing the renewal.

Digital Request, Electronic: At the December 2011 meeting, the BPA Board ruled that subscriber access to digital copies (by downloading the issue or accessing it online) may be used to substantiate a renewal to continue receiving a digital subscription. The rule requires minimum access for a six-month reporting period: but because most members analyze either May or November issues, media owners found they were not getting the benefit of subscriber access in the months of June or December, effectively losing two months out of the year. The Board amended the rule to maintain the original access requirements, and the six-month period, but the six-month access period will now end with the analyzed issue, and, in so doing

NY Times Joins Video March To Hulu

Published 1 year, 10 months ago

With no fanfare at all, The New York Times has joined ABC News, NBC, Fox and The Wall Street Journal on Hulu. As the Niemen Journalism Lab describes, NYT has signed a content licensing agreement with the streaming video site.

Right now, there is just one Times offering: “Punched Out: The Life and Death of an N.H.L. Enforcer,” which NYT produced alongside a three-part series about hockey player Derek Boogaard. In-stream advertisers included State Farm and Verizon. But NYT generates plenty of video content to supplement each of its print categories (e.g., "The Future of Zoos" in its Environment category). The video.nytimes.com content sits behind the NYT paywall, but Hulu readers will be able to see the content for free on computers, with a Hulu Plus subscription on mobile devices.

By contrast, The Wall Street Journal has 57 titles on Hulu, many of them "Top 5 In Tech," but also content like its 31-minute special report, "Europe at the Brink" (with Citizens Bank advertised instream and in a display ad).

Newspaper video content is not “journalism lite”: A Boston.com (the Boston Globe website) video series on the late Senator Ted Kennedy was up for a national Emmy. (NYT has yet to be so nominated.)

Nor is Hulu “broadcasting lite.” ComScore in February revealed that Hulu is ninth among online video content properties, behind Google sites, VEVO and Viacom Digital among others; but first in video ad impressions. In April, Hulu delivered 1.6 of the 9.5 billion video ads, followed by Google Sites with 1.3 billion, BrightRoll Video Network with 943 million, Adap.tv with 881 million and TubeMogul Video Ad Platform with 831 million. And Hulu in April announced that it would guarantee 100% completion of its in-stream ad placements. (It already delivers 96%.)

NYT’s Ann Derry, who heads NYT’s video property, told Niemen that the Hulu channel will be for longer-form documentary treatments like “Punched Out.” It is a repackaging of a three-part series that ran on nytimes.com last December.

LA Times Kills Sunday Magazine, Will Launch Luxury Quarterly

Published 1 year, 11 months ago

“We are not immune to the challenges” that the magazine industry has faced, wrote Los Angeles Times President Kathy K. Thomson in yesterday’s paper. So the paper has “made the decision that LA, Los Angeles Times Magazine [LATM] will publish its final issue on June 3rd.

FishbowlLA spoke with the mag’s editor, Nancie Clare, who said “It’s fair to say there were revenue issues…I don’t think they got rid of us because they don’t like us.” The mangazine’s lean staff of seven will be let go, with little likelihood they will be absorbed by the newspaper proper. Clare observed “They’re contracting in the newsroom too. There’s nowhere to absorb us.”

The magazine has struggled for years, for both readership and identity. As Folio described its transition, LATM was once a weekly produced by and distributed with the paper, then transitioned to a monthly in June 2008, then switched shifted to an editorial model separate from the paper and with its own editorial staff. Thus far in 2012, LATM has suffered a 21.3% drop in ad pages compared to 2011, and 2011 saw a 6% decline from 2010.

Thomson called the LATM the “definitive handbook for life in Southern California,” sort of a “New Yorker” for SoCal. But in its place, the Times is developing a quarterly product focused on luxury, design, fashion and style. The Times promises “digital and mobile iterations intended to further enhance our feature coverage and deepen our connection with our members and advertising partners.”

It is an ironic move that a cash-strapped newspaper will launch a luxury title, but likely a wise one. Luxury titles like Boating and Architectural Digest are weathering the economic storm far better than their consumer counterparts, and Forbes and  Time Magazine have both launched luxury titles this year.

 

Newspaper Sites Competing With In-House and Reader Produced Video

Published 1 year, 11 months ago

Newspaper websites have been weak on the rich media content that attract visitors. But a select few are venturing into over-the-top broadcasting, producing video on par with their TV competitors, reports Diana Marszalek of TVNewsCheck. The websites for the Denver Post, Boston Globe, the Twin Cities’ StarTribune, SeattleTimes and Louisville’s Courier-Journal are all moving into in-house-produced video content. And they are attracting talented journalists, like DenverPost.com’s Anne Herbst, a national Edward R. Murrow award winner.

“The good news from my perspective is that content is king, not the medium any longer,” said Radio Television Digital News Association (RTDNA) Chairman Kevin Benz in an interview with TVNewsCheck. That enabled the StarTribune.com, a newspaper website, to win regional Emmy awards. A Boston.com (the Boston Globe website) video series on the late Senator Ted Kennedy was similarly up for a national Emmy.

And content drives traffic: StarTribune.com enjoyed a 297% increase in videos played from April 2011 to April 2012, though the paper did not detail how that translated into dollars. Presumably, it is a strong case-builder for display advertising.

Local papers will not have quite the budgets the manpower or budgets to become ersatz TV stations, but they can meet the trend halfway. Digital First Media last week announced that it would launch 12 new community newsroom projects, to build upon the success of the Newsroom Café launched by the Register Citizen in Torrington, Conn. The Café was an experiment that led to the Register Citizen being named the 2011 Innovator of the Year by the Associated Press Media Editors.

All of its Denver outlets, including The Daily Camera, dailycamera.com, BuffZone.com and BoCoPreps.com in Boulder, Colo., are planning a variety of community engagement approaches, including enabling local residents to upload video they shoot of sporting events, or of recording sessions for local bands in the “Camera Garage studio.”

That content will not have the quality of, for example, a story produced by Herbst for DenverPost.com; it will lean more toward the iReports on CNN.com. But in time, it should be a boon to newspapers that rely in display, search and targeted ads.

Digital-First Strategies Deliver for Publishers, Advertisers

Published 1 year, 11 months ago

Three years ago, the Christian Science Monitor “began a jump-in-the-deep-end version of digital transformation,” describes the Poynter Organization. The daily newspaper went to a weekly print edition, maintaining daily news online. If that sounds like a surrender, guess again: The Monitor garners about 42 million page views a month and 8 to 10 million unique visitors, which is five times what it was before the transformation. Plus, ad revenue and content sales have grown more than 50% for the fiscal year closing April 30, “The best we’ve done financially since 1963,” writes editor John Yemma.

What the Monitor did which, for example, the New York Times and Wall Street Journal have not, is to largely surrender its print edition—a gamble, but a strategy that has worked arguably as well as the NYT and WSJ strategies. And it placed more of an emphasis upon online advertising.

The challenge for the Monitor is somewhat like that of the Corporation for Public Broadcasting: It is funded largely by endowments (The First Church of Christ, Scientist for the Monitor, government and corporate endowments for CPB). But endowments expand and contract, and have not held the Monitor above water any more than they hold up public broadcasting, else there would be no semiannual “pledge drives” on public television. “You might see the systematic decrease of our longstanding subsidy as similar to the erosion of print ad revenue at a locally based newspaper,” wrote Yemma.

And like newspapers, the Monitor is going digital, treading water until the digital strategy pays off. The Monitor has an operating budget of $18.6 million, and is down $4.5 million for this fiscal year, and budgeted for $3.3 million next: but it counts on the digital transformation to turn it around by 2017. (“Trading print dollars for digital dimes,” as Digiday describes the dilemma.) And those dimes are coming from high-end brands like Infiniti and Nokia.

Quit Crying Over Print

Digiday summed up the challenge by digital to print media: “$40 billion evaporated with little likelihood of return [but] rather than waste more time pointing fingers, publishers need to get on with figuring out what’s next.” For years, the news industry depended upon classified ads which Google, Facebook and Craigslist now own. “This market dynamic continues to move so quickly that its last owner, Yahoo, has already faltered into a lesser tier.”

The solution for publishers is, simply, to carve a niche and own the distribution. “A marketplace where buyers have multiple channels to reach the same audience only leads to a race to the bottom.”

The Monitor is somewhat like the Huffington Post—it is the demographic that differs. Both have a distinct audience, Scientologists (among others) for the Monitor, a younger-and-progressive skewing demo for HuffPo. Both endeavor to provide high-end first-hand content: Both have global and U.S. correspondents monitoring world events, the campaign trail, the Supreme Court, tech, science, and the environment. And the Monitor wins the occasional scoop: CSM on April 9 covered the reversal of immigration from Mexico, hitting the presses a week before a Pew report confirmed the trend. But HuffPo was a digital-only product that never had to throw off the shackles of a print edition and make the transition to digital.

Both Monitor and HuffPo skew to an educated late 30s-early 40s wage-earning demographic—a sweet-spot for digital reading. That’s what works for them: They meet the readers.

Similarly, Penton Media’s Technology Media Group in February announced that, in response to audience and marketer demand, it would transform all of its brands to all-digital beginning this month. “We conducted research amongst our audience and advertisers and found that they were really looking for an enhanced digital experience and were becoming less reliant on print magazines,” said Peg Miller, Penton technology market leader. Miller noted that the Penton audience is largely one of IT professionals and developers working in a digital environment. Penton had double-digit gains in digital edition subscriptions FY 2011-2012, and “We’re finding that our audience prefers to learn about technology through multiple channels – whether it be printed words, videos, audio, screencasts and in-person events.” Penton Technology Media Group brands include Windows IT Pro, SQL Server Pro, DevPro, System iNetwork and The VAR Guy, among other titles.

Penton is hardly stepping raiding Monitor or HuffPo’s readerships: but the lesson is the same. Successful publishers meet the readers where they are and with a unique value proposition. And that in turn means value for advertisers.

Audit Bureau: Paid Digital Saves Newspaper Circulations

Published 1 year, 11 months ago

The news is good for newspapers. The Audit Bureau of Circulations (ABC) has released the semiannual newspaper FAS-FAX and Audience-FAX reports, which include top-line print online readership.

Circulation for the 618 newspapers reporting comparable multiday averages rose a modest .68%. Circulation for the 532 newspapers reporting comparable Sunday data increased 5 percent.

The biggest gainer was The New York Times, the daily circulation of which (digital included) jumped 73.05%, “largely because of the introduction of its paid digital subscription model last yearm” the paper described. The Times’s digital subscription packages, which launched in the U.S. on March 28, 2011.

Still, The Wall Street Journal remained king among daily papers, with a total circulation of 2,118,315. As the WSJ itself described, demand for digital content helped offset a decline in print circulation. Weekday digital circulation grew 61.6%, while print fell 6.7 percent.

Of the major dailies with national circulation, only The Washington Post suffered, with an almost 8% dip in total circulation. Interestingly, as the Poynter Organization describes, several big gainers charge for online access (with paywalls), while almost none of losers do—including The Washington Post. Three of the five papers that posted the largest percentage gains in Sunday circulation now charge for online access (including The Dallas Morning News, The New York Times and Newsday), while four of the five with the largest drops do not. One of them, the Los Angeles Times, put up its paywall in March.

Surprisingly, Gannett, which owns the Detroit Free-Press (down 6.7%) owns the only significant national paper (USA Today) without a paywall, and appears to have no plans for one. It will charge for online access to all of its local newspapers including Detroit Free Press, but not USA Today, which took a modest .64% dip by ABC data.

 

Economist Proves Its Point With ABC Report: Readers Pay for Quality Content

Published 1 year, 11 months ago

The Economist and the Audit Bureau of Circulations (ABC) have announced that “The Economist” is the first weekly magazine to release a Consolidated Media Report (CMR).

In January, The Economist slammed the brakes on the “everything is free” ethos, when the magazine’s Managing Director for the Americas Paul Rossi called the free or lower-cost digital model “suicide.” Rossi told the crowd at the Digiday Publishing Summit that “It makes no sense in my mind if you think a mag on a newsstand has a [value] to a reader of $4.99 that you sell that to a reader digitally for 99 cents or $1.99…I don’t understand the logic.” Rossi also addressed the problem of digital advertising not coming close to replacing print revenue—partly because he felt that lower- or no-cost content devalues digital ad placements.

The Economist’s CMR contains information on all of its branded assets, including its print journal, tablet app, website, e-newsletters and social media channels, and they are fairly impressive:

  • Print and digital circulation: 893,208
  • Economist app total unique devices: 255,425
  • Average digital subscription price: $105.11
  • Total page views for The Economist online: 14,914,663
  • Total monthly unique browsers: 3,592,114
  • E-newsletter net distributions: 16,407,019
  • Social media interactions for Facebook; 1,009,815, Twitter; 2,279,796, YouTube; 502,118, Tumblr; 43,007, LinkedIn; 23,003

“With the rise of digital reading, marketers want to understand how readers are interacting with magazines beyond the print form,” said Rossi. Referring to the CMR, he added that “While not perfect, we believe it’s a positive first step to show advertisers our brand footprint and to help them make comparisons across platforms and titles.”

ABC’s theory behind a CMR is to provide a single resource for advertisers and media buyers to understand a publication’s reach across both print and digital platforms, through a single, independently verified resource. Two monthlies, Popular Science and Fine Cooking, have also issued reports. The Economist is only the third magazine to publish a CMR.

The news may not be all rosy for Economist: Its own press release boilerplate claims "a growing global circulation (now 1.5 million including both print and digital)," per ABC figures for July through December 2011.  Somehow between then and now, and with the more stringent CMR analysis, that figure has dropped to 893,208. But the apps and emails (and an online price of $105.11) still qualify it as a success story, by any measure.

Boston Globe Drops Paywall to Attract Subscribers: Are Paywalls Just for National Papers?

Published 1 year, 11 months ago

The Boston Globe is offering free access to its online edition through May 9, reports paidContent. Reporter Jeff John Roberts dug into the story, to find that the Globe has attracted just 18.000 subscribers since erecting the paywall last October.

Roberts reported earlier in the week that The New York Times Co. announced that online revenue had slid 2% from a year ago—but in that year, and after erecting its paywall, the Times has attracted 454,000 paid digital subscribers. The Times is so bullish on its digital subscribership that in March it cut the number of free stories nonsubscribers are allowed to read by 50%, from 20 per month to 10. The changeover took effect on Monday, April 20th. The Times on its website explained that “The change provides us with an opportunity to convince another segment of our audience that what The Times has to offer is worth paying for.”

The Globe is gambling on the same, and its idea is “getting the word out on new features, including the Boston Globe e-paper,” said the Globe’s Executive Director of Sales and Marketing Peter Doucette—but the Globe has yet to articulate what those features are, other than automatically adapting to mobile devices. 

Likely, the Globe will find that a regional newspaper has less of a value proposition for subscribers (and advertisers) than does a more national property like The New York Times—for that matter, like the Los Angeles Times, which according to comScore data, was the third-most-viewed U.S. newspaper website in 2011 (17 million unique visitors a month); the New York Times and Washington Post ranked first and second.

Research: TV Was Champ in 2011 Ad Spend, Hispanic Media Skyrocketed, Online a Mixed Bag

Published 2 years ago

Kantar Media has released its final tallies for 2011 ad spending across media, and the results are a mixed bag. They suggest that advertisers value TV, are losing faith in consumer magazines and newspapers (no news there), and are on the fence about digital advertising.

Surprisingly hard hit were Sunday magazines (like Parade, The Boston Globe Magazine and the New York Times Magazine). Presumably this is because print newspaper subscriberships are down, and readers tend to cut out the expensive Sunday editions to save money, before they cancel daily subscriptions.

Big winners: Spanish-language media, and TV syndication.

Spanish-language TV was up 8.3% year-over-year, versus 2.4% for TV overall. Spanish-language magazines were up 24.9% YoY, defying a 0.4% decline for all magazines.Syndicated TV was up 15.4% over that 2.4% for TV overall (due in part to the astounding success of “The Big Bang Theory” which hit syndication in Q3).

The Year Overall

Total advertising expenditures increased an unimpressive 0.8% in 2011 and finished the year at $144.0 billion. Ad spending during the fourth quarter of 2011 dropped 1.0% versus the year ago period, the first quarterly decline since the end of 2009. Since reaching a post-recession peak in Q3 2010, advertising growth rates have slowed sequentially for five consecutive quarters.

“The contrast of resilient TV spending and waning budget allocations to other traditional media was plainly evident at the end of 2011,” said Jon Swallen, SVP Research at Kantar Media Intelligence North America. “Some mature digital media formats were also touched by the year-end tide of reduced spending. Whether this is an isolated occurrence or an early sign of digital dollars moving more quickly towards emerging and unmeasured digital platforms bears watching as 2012 unfolds.”

Measured Ad Spending By Media
Television continued to lead the ad market in the fourth quarter. Network TV expenditures jumped 7.7% year-over-year and were helped by strong pricing for football, a baseball World Series that went the maximum seven games and the launch of “The X Factor” singing competition program. The rate of Cable growth eased during Q4, finishing at +2.4% as higher demand from restaurants and retailers was offset by reductions from consumer packaged goods. For the full year, Network TV decreased by 2.0% while Cable rose 7.7%.

Spanish language TV ad spending surged 19.1% in fourth quarter, paced by higher sell-out levels at over-the-air networks. For all of 2011, the segment increased 8.3%.
Syndication TV benefitted from higher spending by department stores and health & beauty brands and saw expenditures soar 11.0% in Q4. Full year spending advanced by 15.4%.

Spot TV expenditures fell 8.7% in the fourth quarter but the more significant indicator was that November and December spending were each down, despite easy comparisons against diminished, post-election spending volume of a year ago. Full year Spot TV spending dropped 4.5%.

Free Standing Inserts achieved healthy gains in the fourth quarter with spend rising 3.0%. Although manufacturers have been distributing fewer FSI coupons, retailer promotion pages have increased significantly and this contributed to the improvement.

Ad expenditures for measured digital media declined in the fourth quarter. Paid Search budgets were 6.4% lower versus a year ago with continuing reductions from financial, insurance and local service advertisers. Display investments decreased 5.9% in Q4, dragged down by smaller budgets from auto manufacturers, telecom providers and travel companies. For the entire year, Paid Search declined 2.8% and Display increased 5.5%.

Magazine ad spending eroded at year end. Consumer Magazines declined 5.2% in the fourth quarter due to deep cutbacks in auto, food and pharmaceutical advertising. Total year expenditures were level compared to prior year. Outlays in Sunday Magazines fell 9.8% in Q4, the sixth consecutive quarter of year-over-year declines, and were down 7.2% for all of 2011.

Local Newspaper ad expenditures fell 3.9% during the fourth quarter, hurt by the reallocation of retailer advertising budgets to other media channels during the key holiday shopping season. Full year spending was 3.8% lower. The losses in Newspaper spending are consistent with reductions in the amount of space sold.

The pace of spending in Radio media also sagged. Local Radio expenditures were down 3.8% and National Spot Radio plummeted 13.9% in the fourth quarter. The telecom, financial service and automotive categories were prime contributors to these quarterly decreases.

Measured Ad Spending By Advertiser
Spending among the ten largest advertisers in 2011 reached $16,061.6 million, a 2.8% decline compared to a year ago. Among the Top 100 marketers, a diversified group that represents over two-fifths of all measured ad expenditures, full year budgets were down 0.2%.

For the ninth consecutive year, Procter & Gamble was the top advertiser with spending of $2,949.1 million down 5.4% compared to last year. While TV is still the foundation of its advertising media buys, P&G’s 2011 budget allocation saw share gains for magazines at the expense of TV.

AT&T was the second largest advertiser in 2011 with expenditures of $1,924.6 million, a decline of 11.7%. Media budgets were severely curtailed during the fourth quarter when the company abandoned its attempted acquisition of T-Mobile, triggering large breakup fees and a huge earnings loss. At Verizon Communications, full year ad spending was $1,636.9 million, a decrease of 11.8%. After a string of quarterly budget cuts dating to early 2010, Verizon sharply boosted its spending during the last quarter.

The largest growth rate among the Top Ten marketers was posted by Chrysler, up 36.2% to $1,193.0 for the full year. The increase was driven by marketing introductions for several new or redesigned models, coupled with the improved sales climate for new vehicles. In contrast, General Motors lowered its 2011 outlays by 16.1% to $1,784.1 million. Q4 media budgets dropped 24.7%. As factory support has been trimmed, GM dealers have been bearing a larger share of the overall marketing effort.

L’Oreal investments in 2011 rose 18.1% to $1,343.5 million as the company expanded marketing support for the L’Oreal Paris, Maybelline and Garnier brand lines. Comcast (+11.3%, to $1,577.2 million) and Time Warner (+5.8%, to $1,279.4 million) also posted full year spending gains.

Measured Ad Spending By Category
Expenditures for the ten largest categories grew 3.3% in 2011 and reached $81,629.2 million.

Automotive was the leading category in dollar volume and finished 2011 at $13,890.4 million, up 6.3%. Category spending growth became increasingly bifurcated during the year with Tier 2 and Tier 3 dealer budgets continuing to expand and Tier 1 manufacturer expenditures flattening.

Miscellaneous Retail, which is comprised of all retail segments except Department Stores and Home Improvement purveyors, was the second largest category with 2011 expenditures of $10,019.5 million, up 4.0%. Robust ad spending during the critical year-end holiday season bolstered results.

Insurance registered the largest growth rate among the Top Ten categories with a 13.5% gain to $5,519.0 million. Aggressive competition among auto insurers to gain market share continues to drive media budgets higher.

Financial Services totaled $9,059.9 million of spending, a 3.6% increase. Growth has been fueled by the credit card segment, offsetting continued weakness in ad budgets for investment products and retail banking.

The Telecom category lost ground as 2011 expenditures fell 5.8% to $8,649.0 million. Declines were most pronounced among the leading wireless service advertisers. Aggregates expenditures from TV service providers also slowed.

Top Spending Advertisers Within Select Media
The top ten TV advertisers spent $10,115.4 million in the medium during 2011, down 0.8% from a year ago. This group accounted for 14.9% of total TV expenditures by all advertisers.

The ten largest Internet advertisers invested a total of $2,360.6 million in paid search and display campaigns, up 10.0% versus a year ago. Despite fragmentation on the web, the group accounted for 10.9% share of all Internet ad dollars.

The top ten advertisers in Hispanic Media spent $1,403.6 million during 2011, an increase of 29.2%. This group accounted for 24.7% of all Hispanic Media expenditures, the largest Top Ten share concentration of any medium.

 

Nielsen: Consumers Trust Earned and Traditional Advertising Over Digital, Mobile

Published 2 years ago

Ninety-two percent  of consumers around the world say they trust earned media, such as word-of-mouth and recommendations from friends and family, above all other forms of advertising—an increase of 18% since 2007, according to a new study from Nielsen, a leading global provider of information and insights into what consumers watch and buy. Online consumer reviews are the second most trusted form of advertising with 70% of global consumers surveyed online indicating they trust this platform, an increase of 15% in four years.

Nielsen’s Global Trust in Advertising Survey of more than 28,000 Internet respondents in 56 countries shows that while nearly half (47%) of consumers around the world say they trust paid television, magazine and newspaper ads, confidence declined by 24%, 20% and 25% respectively since 2009. Still, the majority of advertising dollars are spent on traditional or paid media, such as television. In 2011, overall global ad spend saw a seven% increase over 2010, according to Nielsen’s most recent Global AdView Pulse. This growth in spend was driven by a nearly 10% increase in television advertising, with countries, including the U.S. and China, attracting more advertising dollars versus the year prior.

“While brand marketers increasingly seek to deploy more effective advertising strategies, Nielsen’s survey shows that the continued proliferation of media messages may be impacting how well they resonate with their intended audiences on various platforms,” said Randall Beard, global head, Advertiser Solutions at Nielsen. “Although television advertising will remain a primary way marketers connect with audiences due to its unmatched reach compared to other media, consumers around the world continue to see recommendations from friends and online consumer opinions as by far the most credible. As a result, successful brand advertisers will seek ways to better connect with consumers and leverage their goodwill in the form of consumer feedback and experiences.”

Nielsen’s survey shows that 58% of global online consumers trust “owned media,” such as messages on company websites, and 50% find content in emails they consented to receive to be credible.

Forty percent  of global respondents find product placements in TV programs to be credible, while 42% trust radio ads and 41% trust pre-movie cinema messages.

Trust in Online Ads

Thirty-six percent of global online consumers report trust in online video ads, and 33% believe messages in online banner ads, up from 26% in 2007. Ads viewed in search engine results are trusted by 40% of global respondents in Nielsen’s survey, up from 34% in 2007. Sponsored ads on social networking sites are deemed credible by 36% of global respondents.

“The growth in trust for online search and display ads over the past four years should give marketers increased confidence in putting more of their ad dollars into this medium,” said Beard. “Many companies are already increasing their paid advertising activity on social networking sites, in part due to the high level of trust consumers place in friends’ recommendations and online opinions. Brands should be watching this emerging ad channel closely as it continues to grow.”

Trust in Mobile Ads
According to Nielsen’s survey, one-third of global respondents trust video or banner display ads on mobile devices such as tablets or smartphones. Approximately one-third (29%) of global online consumers said they trust mobile phone text ads, an increase of 21% since 2009 and 61% since 2007.

Ad Relevance
When considering ad relevance, 50% of global online consumers find TV ads to be personally relevant when they are looking for information on products they want or need, particularly among consumers in the Middle East, Africa and Pakistan, where 65% find TV ads to be highly pertinent to their needs. By contrast, 30% of European respondents consider TV ads to be relevant.

One-third (33%) of global respondents find online banners ads to be relevant, compared to ads on social networks (36%) and online video ads (36%). Forty two% of global consumers find ads in search engine results relevant.

“The high cost of advertising in today’s fragmented media world forces marketers to strive for the most effective and efficient ads,” said Beard. “In order to boost advertising ROI, marketers need to make sure an ad’s content and message is relevant to the consumer who sees it. While we expect to see high relevance levels in ads where the consumer is actively seeking information, such as on a brand’s own website or solicited emails, Nielsen’s survey shows that there is still much potential for marketers looking to reach the right audience through advertiser-driven messages.”