Don’t Fear Labelling #Ad in Influencer Marketing Campaigns
It has long been speculated that consumers value transparency from brands. But a recent study has shown exactly how important trust can be in consumer-brand relationships – and the results are pretty startling! Read on to check out the stats, and find out how brands can improve relations with consumers – all by becoming more transparent and boosting trust levels in the long-run. In turn, we’ll be linking this to the dynamic influencer marketing industry, showing you how influencer marketing can help your brand to generate positive and transparent relationships with consumers. This can improve your brand’s reputation, attract new customers, and improve your ROI – and it can all be achieved by simply using #Ad in your next influencer marketing campaign, amongst some other simple steps…
Keep reading for a look at these unexpected statistics. Plus, get our insider tips on generating trust in influencer marketing and beyond!
The Importance of Trust in Consumer Relationships
Label Insight, conducted research into the importance of trust in consumer relationships. Their team aimed to improve trust and encourage long-term loyalty with consumers, all by focusing on brand transparency. The study concluded that consumers already have strong views on all of these! And perhaps most importantly, the vast majority of consumers already know exactly what they want from brands.
In short, consumers want brands to be completely transparent in their branding and marketing – by making comprehensive and accurate information available to all.
But that’s not all. Perhaps even more significantly, the study learnt that consumers do not currently trust brands to provide this information. Clearly, this indicates massive discrepancies between brand procedures and consumer expectations, which could represent a huge problem for brands across various industries.
Ultimately, this means that brands need to address these issues in order to keep consumers onside and meet expectations effectively. But in order to do this, marketers need to dig a little deeper into the study and ask themselves some important questions. Crucially, what information do consumers want from brands? And how exactly should brands deliver this?
Learning what Consumers want
It’s fair to say that consumers aren’t asking too much of the brands they invest in.
According to the study, all consumers are really asking for is a little bit of extra information on the products they buy. Of course, many brands are required to disclose certain things by law. But this research tells us that consumers truly appreciate when brands go and above and beyond that legal expectation, and demonstrate real transparency. In fact, according to the study, this has the potential to generate over 56% more trust among consumers.
That’s a pretty incredible statistic. It tells us that brands can completely transform the way consumers view them… All by stepping up the game ever so slightly.
How to give Consumers what they want
In terms of achieving this, the path to success is pretty simple. Consumers are looking for transparent and comprehensive information on the products they invest in. This could be as simple as offering consumers a thorough ingredient breakdown or circulating detailed information as to how products are sourced, produced and handled.
Now, clearly, how you choose to circulate this information will vary hugely, depending on your brand, your industry, and your market.
The Impact on Buying Behaviour
So far, the study has taught us that consumers truly value transparency from brands and that this can massively shape consumers’ opinions of different brands and products. We’ve also learnt that it only takes a few simple changes to begin establishing more positive and trustworthy relationships.
But the real questions for brands is this: how do these tips relate to buying behaviour among consumers?
The answer is simple – there’s a clear correlation between trust and buying behaviour. In fact, the majority of consumers claim they will buy more from brands that have a transparent company ethos and provide clear information concerning their company or products. What’s more, 73% of consumers will pay more for products from transparent brands. This proves just how much consumers value transparency, and reveals a great opportunity for brands to boost their ROI.
And that’s not all – the news just gets better. 56% of those interviewed in the study claim they would stay loyal to brands that continue to offer fully transparent information. This means that brands can establish loyal, long-term customers – directly through their company ethos.
The Potential Drawbacks
However, on the flip side, it’s not all good news. Whilst consumers are willing to invest in brands they know to be transparent, they are equally not happy to support brands they don’t trust. In fact, 39% of those interviewed said they would turn to another brand if they didn’t feel assured they were being offered full transparency.
This is the crux of the issue. Now that we know how seriously consumers value transparency, we can see just how vulnerable brands are. The relationship brands and consumers share is a delicate one – and it must be considered carefully.
And that’s not the only issue brands need to reflect on, because brands aren’t the only ones in charge of shaping consumers’ opinions. Third party sites also play a role in this – and this role is continuing to grow. In fact, the study revealed that 42% of all consumers interviewed admitted to checking brand information on third-party sites. This should set alarm bells ringing, as third party sites might not present your brand in the most positive light – or indeed, a truthful light at all!
Your Brand’s Opportunities
But thankfully, the study isn’t all about doom and gloom.
Of course, it’s important to be aware of the issues that third party sides might create. But there are still ways to get around these issues, as the situation also creates opportunities for your brand…
The key way to address the situation is to keep consumers on your side from day one. This prevents third-party websites from interfering and harming your hard-worked-for reputation.
And that’s not all. Once you’ve got consumers on your side, things can only go up from there.
This is because 55% of the study’s respondents say they actively look into a brand if they have already bought a certain product from them. So, if you can earn a consumer’s trust, and get them investing in a particular product, the opportunities are truly endless. In fact, the results are right there in the study – 81% of consumers interviewed said they would look at a brand’s entire portfolio of products if that brand offered full transparency to customers.
This marks a huge opportunity for brands. It shows that increased transparency can help brands to retain customers – but also win over new customers, by introducing consumers to a new range of products.
One Key Demographic you NEED to be Transparent with
The survey tells us that this information is relevant across all industries, meaning that all brands can apply this thinking to their company ethos.
However, this information is particularly relevant for consumers who are considered millennial mothers – so, mums aged being 18-34. This is because whilst 73% of all respondents said they pay more for transparent food products, a whopping 86% of the millennial mothers demographic agreed to this. In fact, 30% of millennial mums said transparency is their top priority when it comes to purchasing products. A significant amount, as just 25% of the other respondents admitted this!
In line with this, millennials mothers are willing to pay more for the virtue of transparency. Compared to 73% of the general respondents, 86% of millennials mums are willing to invest in transparent brands.
Millennial mothers are also more likely to seek out additional product information in general. 42% of respondents admit to visiting third-party internet sites if an effort to learn more about brands. But an incredible 49% of millennial mums admit to doing this!
And that’s not all – 53% of these millennial mothers prefer to access brand information online. For us at PMYB, this is a statistic that we’re particularly interested in – because this reflects the fact that influencer marketing is a key channel to market to millennial mothers.
So now, let’s turn to influencer marketing specifically, to apply this latest research to the field – and to learn how brands can continue to create trustworthy relationships with consumers…
Transparency in Influencer Marketing
Unfortunately, some influencers are not so transparent about their ad disclosure. But influencer marketing agencies, brands and influencers alike all have the opportunity to keep the trust element in influencer marketing – which, as we know, has the potential to keep consumers onside and bring commercial success to brands.
In future influencer marketing campaigns, brands should aim to be completely transparent with consumers. To do so, ensure your campaigns disclose key information about your products or services that they can fully trust. After all, according to the research, 91% of consumers will verify any information they doubt! And influencers should never be circulating inaccurate information about your brand. They should be doing the opposite, in order to put your brand in a positive light.
But there’s another side to this debate. It’s not just within campaigns that brands need to be sharing truthful information. Brands should also be transparent about the campaigns themselves…
Ad Disclosure Improves Consumer Trust
Our Managing Director and co-founder, Rohan Midha, recently appeared on Sky News to discuss ad disclosure. You can read the full story here.
Use #Ad in Influencer Marketing Campaigns
To do this, your company should ensure that every influencer marketing campaign you conduct can be identified by consumers, by using #Ad or the appropriate labelling feature on social media platforms.
Whilst some people have questioned the effectiveness of using it in the past, experts now agree that this ultimately has a positive impact on consumer behaviour, and improves ROI in the long-run. This is in-line with the latest guidelines – and the study outlined in this article certainly supports that information! After all, using #Ad in campaigns helps to build a trusting and open relationship between brands and consumers. And this, as the research shows, can help to build long-term customer loyalty.
On top of this, using #Ad in campaigns acknowledges the fact that consumers are savvy about influencer marketing. It shows that brands respect their customers and their intelligence. And we already know that this will become increasingly important when it comes to targeting the likes of Generation Z in 2018 and beyond…
The good news is, many influencers already use #Ad in campaigns on a regular basis. This includes top British social influencers like FleurDeForce. But brands definitely hold some responsibility in this, too. In order to maintain positive relationships, brands need to ensure that influencer marketing campaigns remain 100% transparent. And that crucially they continue to use #Ad in every single campaign…
Find out more
The latest research is constantly revealing more about consumer relationships, and how brands can respond to shifts in behaviour. Continue to check out our blog to keep up to date on the latest research. Plus, learn how we can adapt this knowledge to influencer marketing specifically!
You can also get in touch with us today for more specific tips on improving your influencer marketing strategy, and optimising your influencer marketing spend.