Download - Consumers Know Best Research Presentation
1Proprietary and Confidential. ©2011 All Rights Reserved.
What Consumers’ Information
Needs Mean for Brand
Engagement
CONSUMERS KNOW BEST
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The changing role of older media and the emergence of newer
ones extend the marketer’s role well beyond the allocation of
budgets and channels.
Marketers today require a deep understanding of how
consumers engage with different types of media at each stage
of the journey toward a purchase decision. What’s more, these
different kinds of media are related and interact with one
another, so marketing plans and capabilities must adapt and
evolve.
The Changing Media Landscape
David Edelman and Brian Salsberg,McKinsey Quarterly, 2010
As the media landscape has become more complex, so, in turn, has effective brand
strategy. And the cost of getting it wrong is higher too – consumer feedback now has
more reach and greater weight than ever. Yahoo! undertook this research to understand
what consumers do on the path to purchase, and what this means for brands.
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Quantitative
Quantitative survey of online Canadians to
delve into the key themes arising from the
qualitative sessions, and understand key
audience segments.
Demographically nationally representative
sample of 2000 respondents.
January-February 2011
The ResearchQualitative
Week-long qualitative online discussion
board about attitudes and behaviours
around brands, purchasing, and social tools.
In-depth ethnographic interviews with
select participants.
November 2010
NB: Blind study (participants not aware of Yahoo!’s involvement)
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Savvy Shoppers Are in the Know
Like never before, consumers connect with multiple
trusted sources in search of product and pricing
information, and guidance and reassurance from
friends and experts.
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Consumers Do Their Homework
68%of consumers have looked for more
information about a brand or product
after seeing an ad
58%conduct research before
buying something
40%say it’s stressful trying to
find the right product or
brand
These figures are for purchases across all categories: CPG to finance,
technology to travel, and autos to retail. In more involved purchases, we might
expect the proportion conducting research to be even higher.
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They Seek Knowledge and Assurance
60%What does the item
DO or comprise?
42%Manufacturer info
about the product
What the product
looks like41%
65% How does it compare
to the alternatives?
50%Comparisons with
alternatives
Expert reviews46%
79% Is it right for ME?61%
Problems users
have had
Reviews from users58%
80% Where can I buy it
most cheaply?
72% Price comparisons
Where to buy55%
PRODUCT
INFORMATION
EXPERT
VIEWS
CONSUMER
EXPERIENCES
BUYING
INFORMATION
The information that consumers seek on the path to purchase breaks down into
four broad themes.
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84%
73%
67%
44%
8%
54%
19%
12%
4%
3%
Internet
Talking to friends, family via any means
Going to a store
Magazines, newspapers or books
Some other sourceUse for information
Turn to first for information
Internet, Friends and Retail Stores Are
Key Information Sources
8Proprietary and Confidential. ©2011 All Rights Reserved.
Paid, owned and earned media are distinct and
complementary in consumers’ eyes. Each
channel fulfills different information needs, and all
are imperative along the consumer’s path to
purchase.
Paid, Owned and Earned Media
Are Distinct and Complementary
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Paid, Owned and Earned Defined
PAIDAdvertising
Broadcast
Online Display Formats
Search Marketing
Promotions
EARNEDTalking to Friends
Consumer Reviews
Online Consumer
Discussions & Forums
Expert Views & Reviews
Editorial Coverage
OWNEDBrand Website
Brand Social Outreach
Facebook Page
Twitter Feed
Official Blog
Paid media is straightforward, but it’s worth noting that consumers see brands’ social
outreach as owned, not earned, space. Earned media is also well-understood as being
‘everything else’, encompassing consumer and expert sources.
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FIRST AWARENESS
Steps on the Path to Purchase
DISCOVERY
INFORMATION
RECOMMENDATIONS MORE INFORMATIONABOUT THE BRAND/ PRODUCT
CONFIDENCEPRODUCT IS RIGHT FOR ME
TRUSTWORTHY
RECOMMENDATIONS COMPARE PRODUCTS
There are many different interpretations of the path to purchase, but respondents
identified five steps that they go through before making a purchase decision.
Consumer Needs
Product Information
Expert Views
Consumer Experiences
Buying Information
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DISCOVERY
INFORMATION
RECOMMENDATIONS
CONFIDENCEPRODUCT IS RIGHT FOR ME
TRUSTWORTHY
RECOMMENDATIONS COMPARE PRODUCTS
Early on, it’s about discovery, and the research shows that consumers still see advertising
as their main source for this. They expect it, they’re attuned to it, and they like being
shown the product in the best possible light – as only advertising can.
Advertising Is the Primary Channel for
Product DiscoveryPAID
MORE INFORMATIONABOUT THE BRAND/ PRODUCT
Advertising 38%
Sales Assistant 41%
Brand Website 45%
Subject-specific forums 37%
FIRST AWARENESSAdvertising 43%
Store Promotion 36%
Mention on TV 38%
Mention in Print 35%
Consumer Needs
Product Information
Expert Views
Consumer Experiences
Buying Information
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DISCOVERY
INFORMATION
RECOMMENDATIONS
CONFIDENCEPRODUCT IS RIGHT FOR ME
TRUSTWORTHY
RECOMMENDATIONS COMPARE PRODUCTS
Owned media are also key – the brand’s official website is the number one destination for
consumers seeking more information about a product or brand they’ve seen advertised.
While a brand’s social outreach is also owned media, consumers didn’t identify it as
important in the path to purchase.
FIRST AWARENESSAdvertising 43%
Mention on TV 38%
Store Promotion 36%
Mention in Print 35%
MORE INFORMATIONABOUT THE BRAND/ PRODUCT
Brand Website 45%
Sales Assistant 41%
Advertising 38%
Subject-specific forums 37%
A Brand’s Website Is the #1 Source for
More InformationOWNED
Consumer Needs
Product Information
Expert Views
Consumer Experiences
Buying Information
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DISCOVERY
INFORMATION
RECOMMENDATIONS
CONFIDENCEPRODUCT IS RIGHT FOR ME
TRUSTWORTHY
RECOMMENDATIONS
COMPARE PRODUCTS
Editorial sources are important in product discovery; for example, Oprah talking about a
new product, or a travel website recommending a particular resort. Later, experts provide
the impartial knowledge and guidance that’s crucial for comparing alternatives and
building confidence in a particular purchase choice.
FIRST AWARENESSMention on TV 38%
Mention in Print 35%
Advertising 43%
Store Promotion 36%
MORE INFORMATIONABOUT THE BRAND/ PRODUCT
Sales Assistant 41%
Brand Website 45%
Advertising 38%
Subject-specific forums 37%
Expert Sources Provide Independent
Guidance at All StagesEARNED
Price comparison sites 45%
Consumer reviews 41%
Expert Reviews 39%
Sales Assistant 33%
Expert Reviews 32%
Sales Assistant 21%
Talking to friends 42%
Consumer reviews 31%
Expert Reviews 24%
Sales Assistant 18%
Talking to friends 29%
Consumer reviews 21%Consumer Needs
Product Information
Expert Views
Consumer Experiences
Buying Information
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Consumer Needs
Product Information
Expert Views
Consumer Experiences
Buying Information
DISCOVERY
INFORMATION
RECOMMENDATIONS
CONFIDENCEPRODUCT IS RIGHT FOR ME
TRUSTWORTHY
RECOMMENDATIONS
COMPARE PRODUCTS
Consumer-to-consumer sources are also vital in building confidence. Consumers see
talking to friends and aggregated reviews online as complementary, providing personal
feedback and a breadth of experience from ‘people like me’.
FIRST AWARENESSAdvertising 43%
Mention on TV 38%
Store Promotion 36%
Mention in Print 35%
MORE INFORMATIONABOUT THE BRAND/ PRODUCT
Sales Assistant 41%
Brand Website 45%
Advertising 38%
Subject-specific forums 37%
Consumer Reviews and Talking to
Friends Instil Trust and ConfidenceEARNED
Consumer reviews 41%
Price comparison sites 45%
Expert Reviews 39%
Sales Assistant 33%
Talking to friends 42%
Consumer reviews 31%
Expert Reviews 32%
Sales Assistant 21%
Talking to friends 29%
Consumer reviews 21%
Expert Reviews 24%
Sales Assistant 18%
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Consumer Needs
Product Information
Expert Views
Consumer Experiences
Buying Information
DISCOVERY
INFORMATION
RECOMMENDATIONS
CONFIDENCEPRODUCT IS RIGHT FOR ME
TRUSTWORTHY
RECOMMENDATIONS
COMPARE PRODUCTS
Bringing the paid, owned and earned sources together, we can see why all are important
in a comprehensive brand strategy: consumers use them at different times and for
different reasons on the path to purchase.
FIRST AWARENESS
MORE INFORMATIONABOUT THE BRAND/ PRODUCT
Connecting the Journey: Paid, Owned
and Earned
Price comparison sites 45%
Consumer reviews 41%
EARNEDOWNEDPAID
Expert Reviews 39%
Sales Assistant 33%
Advertising 43%
Mention on TV 38%
Store Promotion 36%
Mention in Print 35%
Brand Website 45%
Sales Assistant 41%
Advertising 38%
Subject-specific forums 37%
Talking to friends 42%
Expert Reviews 32%
Consumer reviews 31%
Sales Assistant 21%
Talking to friends 29%
Expert Reviews 24%
Consumer reviews 21%
Sales Assistant 18%
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Understanding the Differences Within
Paid, Owned and Earned Media
There are important nuances within paid, owned
and earned media – and smart brands harness
these distinctions to know where, and where not,
to engage with consumers.
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INFORMATIVE40%
Brand Website
26%Brand’s social profile or Blog
OWNED
A Brand’s Website Is More Informative
Than Its Social Media Profile
“I went to the Facebook page of one of my favourite brands. While it may
have been interesting to see some vintage product photos or see ads about
upcoming products...it would definitely not be part of my purchase path. I
actually prefer their corporate website, which is nicely laid out, and easier to
access and navigate.”
A brand’s official website plays an important role for consumers that is not replicated by
its blog, Twitter feed or social networking profile. 42% trust a brand’s website more than
its Facebook page, and a brand’s website is regarded as the most informative media
channel.
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“I'm more inclined to see reviews completed by established publications
or specialists as being "reliable" than the opinion of someone who rates
a product online, simply because they [consumers] have the ability to
freely express their opinion without any real expertise or knowledge.”
Expert Sources Are Irreplaceable for
Credibility and ConfidenceEARNED
Expert reviews are the #1 source for being well-informed
…and the second most trustworthy source, after talking to friends
Expert sources are unlike any other for consumers, due to being independent but well-
informed. They include store assistants, expert reviews and articles and editorial
mentions on TV, in print or on respected websites.
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Not All Consumer Sources Are Created
Equal
PROVIDES TRUSTWORTHY RECOMMENDATIONS
42% Conversations with friends about a brand
31% Consumer reviews
EARNED
18% Subject-specific forums
15% Reading discussions on social networking sites
Friends’ opinions and consumer reviews are also used extensively on the path to
purchase, discussions on forums and social networks less so. To some extent this is due
to consumers’ perceptions of convenience and the relevance of the information available.
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PAID
Advertising Is Most Engaging in
Premium and Respected Environments
Informative
Well-informed
Trustworthy
Helpful
Ads on Yahoo!, MSN
or Globeandmail.com
are regarded as more
...than ads on social
networking sites
“If it's a trusted site, the advertising becomes more effective
because I will be more inclined to pay attention to the ad and to
invest the time into finding out more.”
As with expert reviews, advertising’s value stems in part from the authority and
appropriateness of the channel on which it appears. Respondents consistently stated that
they feel ads on premium content sites are more relevant than those on social sites.
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The Implications for Brands: Integrated
Planning
EARNED• Proactively seek a
presence in expert
reviews and articles
• Encourage loyal
customers to share their
experiences
• Be an active listener and
respond if and when
appropriate
OWNED• Feature an official brand
site that delivers on
consumers’ information
needs
• Establish a brand
presence on social
platforms for customers
who want to interact and
engage with the brand or
each other
PAID• Engaging and
informative ad campaign
• Consistent messages
across respected online
and offline channels
• Directing consumers to
the brand Website
To remain relevant all along the path to purchase, brands’ strategies must encompass
ALL of these channels. Particularly in earned media, where brand involvement is difficult,
understanding consumers’ behaviours and needs is key.
22Proprietary and Confidential. ©2011 All Rights Reserved.
For more information about the research and its implications
for brands, or to find out how Yahoo! can help, please contact
your Yahoo! rep or call 1-888-924-6620.
Consumers are more discerning than ever before in how
they use multiple sources of information on the path to
purchase, and brands must understand what they want, and
where they want it, in order to stay relevant and engaging
along this path.
Consumers Know Best