Online advertising is becoming less influential with consumers by the year - with one exception: online customer reviews and recommendations. So says Deloitte's fourth edition State of the Media Democracy survey, which found that TV continues to reign as the most influential advertising medium, with 83% of consumers identifying it as one of the top three media with the most impact on their buying decisions. (via MediaBuyerPlanner).
By contrast, online advertising ranks much lower, with less than half identifying online advertising amongst the top three. Other disconcerting news for online advertisers: the ability of ads on websites to move traffic to other sites has dropped from 72% to 59% over the past three surveys.
Respondents also show a decreased inclination to click on more internet ads, even if the ads are targeted to their needs: those who say they would click on more internet ads if they were targeted to their needs fell from 66% in the 2007 survey to 50% in the current edition.
Online customer reviews and ratings, however, still hold significant sway over shoppers: over half of all U.S. consumers and 69% of Millennials say they influence their buying decisions more than any other type of online advertising; 51% have purchased products based on an online recommendation, and 24% would like to have an online service that recommends a product based on other consumers’ preferences.
Only 50% Take the Plunge
Still, though, only 50% of online retailers use customer reviews on their sites, according to Forrester Research. Those who don't likely fear what their customers might say. They shouldn't, according to Forrester, which also found that 25% of online shoppers report that they are unlikely to purchase a product after reading negative reviews, and most don't take those reviews seriously. (via Forbes).
There are other reasons why retailers and manufacturers should consider giving their customers a platform for their views: it boosts their creditability with their customer base overall, it can help catch mistakes and it can even lower returns.
Censorship Doesn't Work
Posting only positive reviews almost never works as customers can easily spot such cherry picking, according to Bryan Eisenberg, founder of Future Now, Inc., which helps businesses optimize their online marketing efforts. However by responding immediately to complaints, these dissatisfied customers can be won over.
Online reviews can also help spot errors, Nationwide Candy, an Albuquerque-based wholesale retailer of candy and snack products for both the vending and retail industries, reports. A customer review flagged an incorrect product picture for the company, helping it salvage potentially lost sales, it said.
Also, by openly exposing a product's weaknesses in a customer review site, a retailer can set realistic expectations and thus reduce the number of returns, according to Bazaarvoice, a customer review software company. (via Forbes).
