According to a new study from inPowered and conducted by Nielsen, consumers rely on credible, third-party content more than branded content or user reviews when making decisions. (credible: third-party articles & reviews).
Several key findings from the research indicate that the credibility and unbiased nature of the content was critical for consumers:
The study, to determine which type of content was most impactful across the different stages of the consumer purchase process, and to help marketers identify the most effective blend of content types to effectively inform consumers, showed that expert content, articles from credible journalists, was the only content type to exhibit a strong lift in all 3 areas of the purchase cycle. It provided the most familiarity lift for 7 out of the 9 products, the most affinity lift for 5 of the 9 products, and the most purchase intent lift for 6 of the 9 products.
Brand Lift Based on Information Source | |||
| Average Brand Familiarity | ||
Content | Before Exposure | After exposure | Average Lift |
Trusted content | 61% | 76% | 15% |
User generated content | 60 | 70 | 10 |
Branded content | 66 | 74 | 8 |
(How familiar are you with the following brands of products?… top two boxes) | |||
Source: inPowered/Nielsen, March 2014 |
On average, expert content lifted brand familiarity 88% more than branded content and 50% more than user reviews; it lifted brand affinity 50% more than branded content and 20% more than user reviews; and it lifted purchase intent 38% more than branded content and 83% more than user reviews.
Purchase Likelihood Based on Information Source | |||
| Average Purchase Intent | ||
Content | Before Exposure | After exposure | Average Lift |
Trusted content | 40% | 51% | 11% |
User generated content | 36 | 42 | 6 |
Branded content | 46 | 54 | 8 |
(How likely are you to consider purchasing ‘product’?… top two boxes) | |||
Source: inPowered/Nielsen, March 2014 |
According to the report, here were certain categories where either branded or user-generated content had even greater lift than trusted content from journalists. For example, when it comes to home appliances, many consumers just want to see the spec of the appliance, and they trust the brand’s own content is the best source for accurate specs. And in gaming, most gamers value other gamers’ reviews because they view their fellow gamers as experts in that field.
Content With Greatest Lift Across Purchase Funnel | |||
| Purchase Funnel | ||
Category | Familiarity | Affinity | Purchase Intent |
Auto | Trusted | Trusted | Trusted |
Mobile | Trusted | Trusted | Trusted |
Consumer electronics | Trusted | User | Trusted |
Home appliances | User | Branded | Trusted |
Insurance | Trusted | Trusted | Trusted |
Parenting | Trusted | Trusted | User |
Gaming | Trusted | User | User |
KEY:Trusted content, User content, Branded content | |||
Source: inPowered/Nielsen, March 2014 |
Peyman Nilforoush, co-founder and CEO of inPowered, concludes by noting that “… this isn’t about disproving any particular type of content… (but) about identifying… effective blend of content types to help… educate and inform consumers.”
For more information about details of the study formulation and design parameters, as well as a free download of the complete study, please visit inPowered here.
It's comforting to see that our belief that native advertising (vanity content) is a double detriment for marketers, it squanders ad budgets, and maybe more importantly diverts the advertiser's energy from implementing realistic and effective digital marketing and advertising...although it has created jobs and revenue for the snake oil industry. The Auto Channel's 20 year old policy of not accepting vehicle reviews from owners has now been validated by this research study. Why are brands continuing to fall for the native bullshit?