Consumers across Southeast Asia trust traditional media and value word-of-mouth recommendations from friends and relatives when it comes to making purchase decisions.

At the same time, owned online channels are increasingly finding their way into the consumer’s circle of trust, according to a new report released today by global performance measurement company, Nielsen.

Across Southeast Asia, 88 percent of consumers placed the highest level of trust in word-of-mouth recommendations from people they know, with Filipino consumers leading the way at 91 percent (+1 point from 2013).

Word-of-mouth endorsements also gathered an increase in approval from Vietnamese (89 percent, +8 points) and Indonesians (89 percent, +4 points). Similarly, over eight in 10 Malaysians (86 percent, +1 point), Singaporeans (83 percent, -2 points) and Thais (82 percent, -3 points) also gave the advertising source the nod.

“Undoubtedly, word-of-mouth recommendations enjoy the biggest trust from consumers and if combined with the power of digital formats, its potency can reach optimum levels,” said Craig Johnson, Nielsen’s Head of Reach Solutions for Southeast Asia, North Asia and Pacific. “Mastering online word-of-mouth marketing techniques can result to quicker and viral reach. Brand marketers can widen the circle of trust of consumers by engaging passionate brand advocates to amplify their message and giving them a compelling reason to talk. Trust is fragile because if trust is broken, your advocates also have the power to damage credibility and reputation.”

Nielsen’s Global Trust in Advertising Survey polled amongst more than 30,000 respondents with Internet access in 60 countries to gauge consumer sentiment in 19 forms of paid, earned and owned advertising mediums. The results identify the ad formants resonating most strongly with consumers and those that have room to grow.

TRUST IN TRADITIONAL ADVERTISING LIVES ON

Traditional ad format continue to be among the most trusted forms of paid advertising in Malaysia – all above or consistent with global average. More than six in 10 Malaysian consumers indicated their trust in ads published/broadcasted in newspaper (68 percent), magazines (64 percent), television (63 percent) and radio (62 percent). (See Chart 1).

“The proliferation of online formats has not eroded trust in traditional (offline) paid channels. TV still delivers the highest unduplicated reach of between 85% and 90%,” notes Johnson. “While digital ads can present considerable advantages such as precision-focused campaigns, in-flight adjustments and more creative options, moving from TV to an all-display digital plan is a bold move for any marketers. A concoction of both offline and online channels can yield the best ROI.”

CREDIBILITY OF MOST PAID ONLINE AND MOBILE ADS GETS STRONGER

Among online paid ads, Southeast Asian consumers (57 percent) put the most trust on served ads in search engine results. Thailand gives the highest trust score (63 percent, +7 points from 2013) followed by Indonesia (61 percent ,+4 points), Philippines (56 percent, unchanged), Vietnam (55 percent, +11 points), Malaysia (46 percent, -6 points) and Singapore (46 percent, -1 point). The global average of trust on served ads in search engine results is 47 percent.

The credibility of ads in social networks and online video closely follows. About six in 10 Thais (60 percent, +6 points from 2013) and Filipinos (59 percent, -2 points) say they trust ads delivered through social networks while about five in 10 consumers in Indonesia (54 percent, +2 points), Vietnam (48 percent, +10 points), Malaysia (47 percent, -6 points) and Singapore (44 percent, -2 points) feels the same.

Trust in online video ads recorded an increased in four out of six markets in Southeast Asia with the Philippines (56 percent, +5 points from 2013) and Thailand (56%, +5 points) leading the way followed by Vietnam (52 percent, +11 points) and Singapore (47 percent, +4 points). In contrast, Malaysians are the only consumers in Southeast Asia that recorded a decline in trusts on online video ads (41 percent, -9 points).

About two in five Malaysian consumers trust online banner ads (42 percent, -2 points from 2013) and mobile ads (39 percent, +8 points) while a third of Malaysians say they trust text ads on mobile phones (33 percent, -2 points) – all below the global average of 42 percent (online banner ads), 43 percent (mobiles ads) and 36 percent (text ads on mobile phones).(See Chart 2).

ONLINE FORMATS MAKE IT EASY TO TAKE ACTION

The report also revealed that although trust and action are clearly linked, credibility is not always a pre-requisite to purchase intent.

In Malaysia, action exceeds trust across the 19 advertising formats in the survey. Respondents that trust the recommendations of people they know claim they take action on these opinions majority of the time (90 percent vs. trust at 86 percent).

Formats which earned lower trust levels can be extremely effective in driving consumers to the point of purchase. This is particularly true for online and mobile formats. In Malaysia, all self-reported action exceeds trust by more than double digits for ads on e-mails that respondents signed up for (71 percent), social media (66 percent), ads in search engine results (63 percent), online video ads (56 percent), online banner ads (55 percent), ads on mobile devices (54 percent) and text ads on mobile phones (49 percent).(See Chart 3).

“Online and mobile formats make it easier for consumers to take quick action on the ads,” observed Johnson. “With a click, consumers are directed to a place where they can receive more information or purchase the item.”

ADS THAT MAKE THE GREATEST IMPACT

Advertising that used real-life situations (51 percent) was the most likely to resonate among Malaysian consumers while ads that are value (49 percent), family (47 percent) and health-oriented (43 percent) also fared well.(See Chart 4).

“To make a lasting and significant connection with consumers, advertisers need to understand the audience and their preference,” advised Johnson. “Advertisements that feature relatable situations and comedic relief, and those which focus on family, values and health greatly appeal to consumers in Southeast Asia and urge the most positive responses.”

Chart 1: Consumer trust in traditional advertisements – Malaysia vs. Global, 2015 (%)

Source: Nielsen Global Trust in Advertising, 2015

Chart 2: Consumer trust in online / mobile advertisements – Malaysia vs. Global, 2015 (%)

Source: Nielsen Global Trust in Advertising, 2015

Chart 3: Malaysian consumer’s trust in online / mobile advertisement vs. action (%)

Source: Nielsen Global Trust in Advertising, 2015

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