Nielsen recently did a survey of how much people trusted different forms of advertising (see illustration below). Only four entries scored 50% or above: branded websites, editorial content, consumer opinions (such as reviews and ratings), and recommendations from people they know.
92% of people trusted recommendations from people they know–also known as referrals.
Clearly, the number one way to market your business is to get recommendations (a.k.a. referrals) from people that your prospects know.
Brought to you by Networking Now.
Podcast intro recorded by Tony Wolfe.
Complete Transcript of BNI Podcast Episode 306 –
Hello everyone and welcome back to The Official BNI Podcast brought to you by NetworkingNow.com, which is the leading site on the net for networking downloadables. I am Priscilla Rice, and I am coming to you from Live Oak Recording Studio, which is in Berkeley, CA. I am joined on the phone today by the Founder and Chairman of BNI, Dr. Ivan Misner. Hello Ivan. How are you and where are you this week?
Hi Priscilla. This week, I am in Tampa, Florida for the US BNI conference. We have hundreds and hundreds of members coming to the conference this week and we have hundreds of BNI Directors as well. I really enjoy the Florida region. I love doing conferences with BNI Directors so it should be fun.
Yeah, you picked a great place. What are you going to share with us?
I want to talk about how much you trust advertising. It’s really from a recent survey that was done by the Neilsen people. When I read this, I thought it was really interesting. There are like 19 different types of advertising that they talk about. They asked people in their survey, “Do you trust this kind of advertising completely, somewhat, not much or not at all?” What they did was they rank ordered them.
I am going to go through sort of a top ten list here, except there are 19 items. I want to start with the ones that performed really poorly and work my way up to the number one item, if I can. The first five or six are all ad-related in some kind of mobile or online device. For example, in the worst, only 29% said text ads in mobile phones they trust. Very few. Then display ads on mobile devices, online banner ads, ads on social networks, online video ads. They all- the best was 36% with online video ads. Very little trust in those forms of advertising.
That doesn’t mean that I don’t think banner ads aren’t going to work. What works with it is if you send out hundreds of ads online, and you have hundreds of thousands of hits online in terms of exposure, it will certainly pay off. I am not saying it doesn’t pay off. But the numbers are what the numbers are, and according to Nielson, people don’t necessarily trust those kinds of advertising.
Search engine ads also were very low, at about 40%. TV ad product placement: again, 40%. Pretty low.
Ads before a movie were not much better at 41%. Ads on radio: only 42%. Now, ads in newspapers, magazines, television: they are all at about 47%. Less than half of the people who took this survey said they trust ads on TV, magazines, newspapers and radio. Very low.
Emails that people sign up for get 50%. So half the audience or half of the people who took the survey said they trust somewhat completely the emails that they sign up for.
So that only leaves four left. Four. These four have more than half. One is a branded website. Interestingly enough, people trust a company’s website more than an ad. I thought that was really curious. 58% of respondents said that they trust somewhat or completely a branded website.
Editorial content in newspaper articles was also pretty high 58%.
The two highest: consumer opinions posted online, like the Amazon reviews or, you know, various companies have reviews that are online. Consumer opinions posted online: 70%.
That is because they are not getting paid for their opinion.
That is right. And the number one form of advertising according to the Neilson report- I am all about networking. I am setting this up really easy for you, Priscilla. What would you guess is the number one?
An advertisement from somebody that you trust and know.
Not an advertisement, but a referral.
Oh, a referral. They consider that an advertisement.
They did, yeah. They consider recommendations from people they know as a form of advertising. The percentage: 92%.
That makes sense to me.
92%. I was surprised to see it. But when you look at it, really, consumer opinions are one person talking to the many. Referrals from people I know are one person getting a referral from one person. It’s actually somewhat similar but it’s one to one as opposed to one to many.
I think it’s interesting that basically that consumer opinion or that personal recommendation were both the highest- they were they number one and number two point in the survey, which is amazing to me. I will include this survey, the graph of the survey in this podcast as a jpeg so that people can see it as we are talking about it here on the podcast.
It’s amazing. It’s a great survey. It was done by Neilsen. It is an independent survey and it shows clearly that the number one way of marketing a business is recommendations from people I know. 92% of people trust it completely or somewhat.
That is great. That makes total sense.
That is all I have for today, Priscilla. Thank you.
Wonderful. Thank you so much, Dr. Misner. Well, I would just like to remind the listeners that this podcast has been brought to you by networkingnow.com, which is the leading site on the net for networking downloadables. Thank you so much for listening. This is Priscilla Rice, and we hope you will join us next week for another exciting episode of The Official BNI Podcast.