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Nielsen: Word-of-mouth is King in the Philippines

MANILA – Word-of-mouth continues to be the most trusted source of advertising by consumers in the Philippines, according to a new report from Nielsen.

Recommendations passed on by friends and loved ones are trusted by nine out of 10 Filipinos, the highest trust level for word-of-mouth among Southeast Asian consumers.

Even if it’s not personal or from people they know, Filipinos tend to value promotion with a human face behind it. Editorial content such as newspaper articles, for instance, is trusted by 80% of Filipinos consumers.

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Extending this conversation online can result to quicker and viral results, recommends Stuart Jamieson, Managing Director of Nielsen Philippines. In the report, 75% find consumer opinions online credible.

Digital, however, have yet to make a dent on Filipino’s trust towards traditional paid channels, led by TV where 75% of Filipino respondents trusting ads piped shown on this medium, topping the 60% global average.

This is closely followed by ads in newspapers at 74% (compared to 60% globally) and ads in magazines at 70% (versus 58% global average).

In comparison, close to six in 10 (59%) Filipino respondents say they completely or somewhat trust ads on social networks. Ads served in search engine results have stayed consistent since 2013 at 56%.

Online video ads show the most promise with trust levels up points to 56% from 2013. Trust for online banner ads also improved by three points to 49%.

“While digital ads offer considerable advantages —such as precision-focused campaigns, in-flight adjustments and more creative options—TV still delivers unequalled ability to reach the masses, said Jamieson.

What digital ads, specifically online and mobile formats, excel at is driving consumers to the point of purchase. Self-reported action exceeds trust by more than double digits for text ads on mobile phones (33% trust; 52% take action) and ads on mobile devices (47% trust; 58% take action).

Do they actually buy?

Although trust and action are linked, credibility alone does not necessarily mean that they actually but what is being advertised, explains Nielsen.

Respondents that trust the recommendations of people they know were seen to take action on these opinions majority of the time (91% trust; 93% take action). TV also received the highest self-reported action among traditional offline formats at 85%. Editorial content had the same outcome for action as with trust levels with 80%.

Interestingly, digital formats that earned lower trust levels can be extremely effective in driving consumers to the point of purchase.

Self-reported action exceeds trust by more than double digits for text ads on mobile phones (33% trust; 52% take action) and ads on mobile devices (47% trust; 58% take action).

The reason? Easy access to products or services, according to Jamieson.
“Online and mobile formats make it easier for consumers take quick action on the advertisement, With just a click, consumers are directed to a place where they can receive more information or purchase the item.”

Partner with adobo Magazine

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