2. Plugging the advertising trust gap Jim Nail Principal Analyst Forrester Research

3. Theme Marketers need a new approach to stitch together shattered consumer trust.

4. Agenda Consumers are skeptical of advertising Even consumers with positive attitudes seek verification of ad claims Advertising doesn’t persuade; consumers persuade themselves

5. Background Partners: Forrester Research and Intelliseek’s PlanetFeedback unit Methodology: Email invitation to online survey, early December 2003 Respondents: 470 members of PlanetFeedback »Skew female, tech-savvy, “connectors” »Affluent: mean income $62,500

6. Consumers admit ads have some benefits… Base: 470 responses Source: Forrester Research, Inc and Intelliseek

7. …but ads and marketers are losing credibility Base: 470 responses Source: Forrester Research, Inc and Intelliseek

8. One-third admit ads influence their purchases “I buy products because of ads for them.” “Accepters” “Rejecters” Base: 470 responses Source: Forrester Research, Inc and Intelliseek

9. Consumers understand the ad model, but still want to block ads… “I’d be interested in a product, device, or service that would skip/block…” % Agree somewhat/completely “Without ads I’d have to pay more for TV programs and Internet content” Base: 470 responses Source: Forrester Research, Inc and Intelliseek

10. …and are blocking them where they can. “I’ve signed up for or use…” % Currently use/have signed up for Base: 470 responsesSource: Forrester Research, Inc and Intelliseek

11. All consumers feel ad overload “What has caused you/would cause you to sign up for services/products that block/skip ads?” % Agree somewhat/completely

12. Only one quarter believe companies are truthful “Companies generally tell the truth in ads.” “Believers” “Skeptics” Base: 470 responses Source: Forrester Research, Inc and Intelliseek

13. The trust gap in traditional advertising % Trust somewhat/completely “Indicate your level of trust in the following types of ads” Base: 470 responsesSource: Forrester Research, Inc and Intelliseek

14. The trust gap narrows for digital marketing % Trust somewhat/completely “Indicate your level of trust in the following types of ads” Base: 470 responsesSource: Forrester Research, Inc and Intelliseek

15. More trust = More data for targeting % Agree somewhat/completely Base: 470 responsesSource: Forrester Research, Inc and Intelliseek

16. The story so far…. Consumers are tired of the volume of interruptive, irrelevant, untrustworthy ads – and they are taking action to block them Sneaking around the blocks doesn’t earn trust Consumers want trusted sources – like their own eyes

17. Plugging the Gap #1 – Let go of the hard sell % Trust somewhat/completely “Indicate your level of trust in ads for the following types of products” Base: 470 responsesSource: Forrester Research, Inc and Intelliseek

18. Plugging the Gap #1 Let go of the hard sell % Trust somewhat/completely “Indicate your level of trust in ads for the following types of products” Base: 470 responsesSource: Forrester Research, Inc and Intelliseek

19. Plugging the Gap #2 Prepare to defend your claims with facts Base: online consumers Source: Forrester’s Consumer Technographics® 2003 North American Benchmark Study Percent of consumers who go online at least once per week to research a product or service purchase Percent of consumers who have increased online research activity vs last year

20. Plugging the Gap #3 Engage with consumers in a dialogue about your brand Weaving together digital and physical channels to engage consumers’ emotions, deliver brand experiences, and form ongoing relationships Integrated Marketing

21. Jim Nail +1 617/613-5796 jnail@forrester.com www.forrester.com Thank you Entire contents © 2004 Forrester Research, Inc. All rights reserved.