Advertising: What the UK really thinks March 2011

Anyone who works in advertising andmarketing would be right to beconcerned about perceptions of theirindustry, because the way it is viewedhas a significant impact on howcommercial messages are received,regarded and absorbed.

This makes reading of the AdvertisingAssociation’s (AA) long-term trackingdata all the more sobering. Since thelate 1990s, the AA’s data show thatpublic favourability towards advertisinghas been in steady decline. If this trendcontinues then, arguably, the efficacy ofcommercial communications will alsobe reduced.

As part of the industry’s approach toresponsible self-regulation, theresearch presented in this report seeksto uncover the reasons for this decline.1

Alongside consumer opinion, the views of certain influential groups are alsosignificant, as they can often shape thepublic’s attitude towards advertising.Perhaps the most significant are theopinions of politicians, academics,NGOs, journalists and leadingadvertising industry professionals.Throughout this report such groups willbe referred to as ‘opinion formers’.

This research was commissioned inNovember 2010 in order to develop abalanced report on views of theadvertising industry and is comprised oftwo parts. The first measures public(consumer) attitudes towardsadvertising,2 and the second aims tounderstand the views of those whohave most influence in shaping attitudestowards advertising: the opinionformers.3

The findings reveal that public opinion ismuted, although certain areas causesome concern. Opinion formers’ viewstend to be more informed, but to a largeextent mirror the views of the widerpopulation.

Taken together, the consumer andopinion former research reveal severalthemes that indicate future challengesfacing the UK advertising industry.

1 Attitudes to

Advertising,

1961-2010.

2 What do consumers

think of advertising?,

Brainjuicer 2010.

3 Opinion formers’

attitudes to

advertising, ComRes

2010.

1

Introduction

‘PublicFavourability of Advertising’. Source -AdvertisingAssociation:Attitudes to Advertising, 1992 – 2009

% Favourable

% Unfavourable

60%

50%

40%

30%

20%

10%

0%

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

200

8

2009

Credos is the advertising industry’s new think-tank, created by the AA inearly 2010. Its aim is to betterunderstand advertising in the UK: itsrole, how it works, how it is perceived,its value to UK society, culture and theBritish economy. Credos is funded bythe advertising industry and overseenby an independent advisory board thatassures the quality and objectivity of its work.

‘‘Credos was created in response to mountingevidence that trust and favourability towardsadvertising has beendeclining in the UK. That matters, because ifpeople do not trustadvertising, or fail to find it useful, then its valuediminishes.This report is a significant first step indeveloping ourunderstanding of what liesat the root of the issue, and indicates a number of areas where it is clearfurther research and industry action arerequired.’’

About Credos

James BestChairman, Credos

2

3

Executive Summary

GENERALLY, ADVERTISINGDOES NOT ELICIT STRONGOPINIONS

Although, as previously noted, trends inpublic opinion give cause for reflection,this study shows that most people donot hold trenchant views. When askedwhat they think of advertising ingeneral, the majority of consumers andopinion formers fail to express strongopinions. Indeed, over half of allconsumers polled (55%) say they feel‘neutral’ towards advertising.

However, despite this indifference, thereare pockets of more negative reaction,notably among older male consumers.Even then, it tends to be muted and onrelatively superficial grounds, such asmentioning particular advertisementsthey consider annoying or repetitive.

Among opinion formers, negativereactions are more often driven byspecific concerns, such as advertisingto groups who might bedisproportionately affected byadvertising, for example children.

55% of the publicfeel ‘neutral’towardsadvertisingSource:(Brainjuicer PublicAttitudes Survey,November 2010)

HOTSPOTS OF CONCERN

Overall, advertising is viewedpragmatically and causes few problemsfor the majority of people, who canobserve advertising with a sceptical andrational eye. There is a strong view,however, that some people need to beprotected.

Certain groups – the young, old, poorand disadvantaged – are ‘hotspots’ forpublic concern. However, it is verystriking to note that both consumersand opinion formers tend to worry onbehalf of others. This is an interestingview: although they are concernedabout the disproportionate effect ofadvertising on others, most peoplepolled believe that advertising has littleeffect on them personally.

This notion drives concern across arange of issues. For example, concernsover the advertising of beauty productsand financial services are very muchdriven by the impact on ‘insecure’ and‘economically vulnerable’ peoplerespectively.

For both consumers and opinionformers, children remain the singlegroup that generates the most concern.However, it is particularly noteworthythat this view is held more stronglyamong those without children. Perhapsparents are more aware of their ownchildren’s responses to advertising and,therefore, see fewer grounds forconcern?

THE ECONOMIC BENEFITS OF ADVERTISING ARE NOTWELL UNDERSTOOD

Turning our attention to the contributionthat advertising makes to the economy,we see that neither consumers nor opinion formers can articulate theeconomic benefits of advertisingparticularly well. While both groups canidentify what they believe to be theprincipal benefit to consumers andadvertisers in terms of increased sales,they struggle to make the conceptualleap to explain the broader contributionthat advertising makes to the economy.This is a critical point, because theconsumer research clearlydemonstrates that the economic benefit of advertising is a key persuasiveargument in changing people’s views.

4

Key Insights

The findings of the consumer andopinion former research reveal severalcommon themes that improve our understanding of perceptions ofadvertising in the UK today.

Firstly, public attitudes towards

advertising are not strongly held and, in

general, advertising does not appear to

be viewed as a significant cause for

concern, because the majority of people

do not consider themselves heavily

influenced by marketing.

However, advertising is perceived toinfluence disproportionally certainpeople in society, principally children. A concern for these groups drives anyanxiety around advertising.

Credos has embarked on a programmeof research to explore further the impactof advertising on these people, and tounderstand whether any disproportionaleffects exist. As indicated by the initialCredos research findings, oneparticularly important area of focus willbe the effects of advertising on children.This work will seek to establish whetherthe industry understands enough aboutchild development to self-regulateproperly.

5

Secondly, it is apparent that trust in

advertising is low. However, the nature of

this mistrust is not clear.

Credos is also conducting furtherinvestigation into the reported mistrustof advertising and the nature of that mistrust. The initial researchindicates that people feel annoyanceand irritation towards certainadvertisements. However, there is alsoevidence of a consistent – andpotentially more worrying – themearound being misled by advertising.Credos will aim to tease out thedifference between these twoobservations, all in the context ofconfidence in the present regulations.

Finally, the economic value of

advertising in the UK is not well

understood. Both consumer and opinion

formers, even those working within the

industry, cannot expand on the

economic benefits of advertising beyond

the most superficial level.

Credos has also reported a fundamentalgap in people’s understanding ofadvertising and its contribution to theUK economy. To remedy this knowledgegap, Credos has commissioned a reportto evaluate that contribution.

Negative

‘Driver of materialism’

‘Manipulative of vulnerable groups’

‘Overly profit-driven’

‘Slick’ ‘Greedy’

Consensus

‘A fact of modern life’

‘Fundamental to the

commercial world’

Positive

‘Essential tool’

‘Creative’ ‘Innovative’

Artistic’ ‘Talent’

‘Successful industry’

‘Source of revenue’

Spectrum of attitudes towards advertising

Key Findings

TRUST IN THE ADVERTISINGINDUSTRY IS LOW

Just one-fifth of consumers polled(20%) say they have trust in theadvertising industry. By comparison,29% state they have trust in the bankingindustry, 25% in Government and 17%in the alcohol industry. Otherorganisations fare somewhat better:71% of the public express trust in theNHS, 62% trust the police and 56% theBBC.

Such evidence suggests that, currently, the public are cynical of the advertisingindustry as a whole and it comparesunfavourably with other institutions andindustries.

6

Public attitudes to advertising

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

NH

S

Po

lice

BB

C

New

spap

ers

Ban

ks

Gov

ern

men

t

Adv

erti

sin

g

Alc

oh

ol I

nd

ust

ry

Level of Public Trust Source: (Brainjuicer Public AttitudesSurvey, November 2010)

IRRITATING, POORLYEXECUTED AND REPETITIVEADS SOUR PUBLIC VIEWSTOWARDS THE ADVERTISINGINDUSTRY

Consumers cite ‘irritating, poorlyexecuted adverts’ and ‘the repetition ofadverts’ as the primary cause of theirgrievance. However, their commentsalso reveal a widely-held perception of‘misleading’ messages and a lack oftrust in advertisers’ motives. The statedmistrust is a cause for greater concernthan the irritation, but a combination ofthese reasons colour the public’soverall view of the advertising industryand its practices.

Over half of UK consumers (55%) say they are ‘neutral’ towards advertising. It appears that they do not feel stronglyabout advertising as a practice or holdentrenched views.

When asked about the more positiveelements of advertising, manyconsumers report that adverts can behumorous (26%), attract their attention(21%) and alert them to new andworthwhile products (20%).

EXPERIENCES WITHSPECIFIC ADVERTS SHAPESOPINION

When asked for their opinions on theadvertising industry, consumers tend torefer to specific advertisements, ratherthan the advertising sector. Thissupports the view that people tend notto have set views on the advertisingindustry as a whole. As notedpreviously, they tend to focus onspecific examples of advertising thatthey do not enjoy, or find repetitive orannoying.

ADVERTISING TO CHILDRENELICITS STRONGESTREACTIONS

Advertising to children is seen to placesubstantial pressure on children andfamilies. Some 41% of respondentsstate that advertising ‘puts unnecessarypressure on children and families’, while35% believe advertising ‘puts pressure on parents to spend money’. This typeof advertising is seen as exploitative bycreating an unfair demand.

Other hotspots include idealisedimages in beauty advertising andalcohol advertising encouraging the‘wrong people to drink’, as well as thesmall print in financial advertising andmisrepresentative product photos infood advertising.

7

Key Findings

FAMILIARITY BREEDSFAVOURABILITY

The opinion formers interviewed can bebroadly divided into two groups –favourable and unfavourable towardsadvertising. It is interesting to note thatmost opinion formers have a viewpoint,whereas most consumers are indifferenttowards advertising.

The distinguishing factor among opinionformers is not the profession or politicalpersuasion of the respondent, but thelevel of personal interaction with theadvertising industry. People who hadworked in, or with, the industry are farmore likely to be favourable towardsadvertising.

OPINION FORMERS’ VIEWSARE NOT ENTRENCHED

Opinion formers, whether favourable orunfavourable, are able to appreciateboth the positives and negatives ofadvertising. The key to their overallperceptions is the channels throughwhich they receive their evidence andinformation.

Those with closer involvement with theindustry, and who consequently receivetheir information directly, have morepositive views. Conversely, those whoare less aware of the industry rely onsecondary sources of information (suchas the media, academics and Non-Governmental Organisations (NGOs))and frequently have significantly lessfavourable opinions of the industry.

PERSONAL EXPERIENCESSHAPE ATTITUDES TOWARDSADVERTISING

Respondents’ personal experiences, intheir roles as fathers, mothers,grandparents and consumers, arecrucial in forming their views onadvertising. These experiences are offar greater significance than theprofession, or political persuasion, ofopinion formers. Indeed, it isremarkable how closely their personaland professional views are intertwined.

ADVERTISING HAS LIMITEDINFLUENCE, EXCEPT ONCERTAIN GROUPS

Advertising is not seen as a dominantforce that shapes society or theindividuals within it. There is a widely-held belief that advertising merelymirrors existing social trends, ratherthan being a catalyst for change itself.Consequently, the influence thatadvertising has on individuals is seen aslimited.

STAKEHOLDERS HAVE MOREPRAGMATIC VIEWS THANCONSUMERS

Neither those favourable nor thoseunfavourable towards advertising areblind to the opposing argument – bothsides can identify and understand theother viewpoint. Interestingly, MPs tend

8

Opinion formers’attitudes to advertising

to have very pragmatic and nuancedviews of the industry. One politicianstated that to have a single opinion on an industry as broad as advertisingwould be ‘fatuous’. They preferred to pass judgment on a case-by-casebasis. In sum, the attitudes of MPstowards advertising are issue-led.

OPINION FORMERS’PRIMARY CONCERN IS WITHCHILDREN

Concerns were raised regardingmarketing to some groups in society,particularly children. Many opinionformers see children as beingdisproportionately influenced byadvertising, because they lack the skills to process this sort of information.As one academic said: ‘They absorbeverything, but understand little’.

Nearly all concerns expressed stemfrom this central theme of ‘vulnerability’.For instance, concerns over theadvertising of beauty products andfinancial services are very much drivenby the impact on ‘insecure’ and‘economically vulnerable’ peoplerespectively.

THE REGULATORY SYSTEMIMPROVES TRUST IN THEINDUSTRY

There appears to be an inextricable link between confidence in advertising(as an industry) and opinions on the regulation of that industry. Indeed,confidence in advertising largely stems from confidence in the regulatorysystem, rather than in advertisersthemselves.

The view that advertisers follow the letter rather than the spirit of regulationis worryingly prevalent among opinionformers.

THE ECONOMIC BENEFITS OFADVERTISING ARE NOTUNDERSTOOD

All opinion formers struggle to developa strong argument for the benefits ofadvertising. This was true for thosefavourable towards the industry andthose who work in the industry. Most can identify the principal benefitsto the consumer and client, such aslower prices and higher retail sales, butthey fail to make the conceptual leap to broader economic or social benefits.Indeed, many stakeholders said theywere ‘flummoxed’ when asked aboutthe wider benefits of advertising.

9

Benefit to clients

- Increased sales

- Increased revenue

Benefit to consumers

- Increased knowledgeregarding individualproducts

- Increased knowledgeof the product rangein the market

Benefit to theeconomy

- Increasedknowledge regardingindividualproducts

- An employer

Benefit to society

- Creativity

- Artistic

Scale of awareness of advertising benefits

10

CONSUMER RESEARCH

Brainjuicer4 surveyed a nationallyrepresentative sample of 1,000consumers throughout September2010.

OPINION FORMERRESEARCH

ComRes5 surveyed 28 opinion formersbetween 13th September and 1stOctober 2010. The sample divides into12 MPs (three Conservative, six Labourand three Liberal Democrat), four mediaprofessionals, four NGOrepresentatives, four academics andfour industry professionals.

Methodology

4 Brainjuicer is an insights

agency that specialises in

online consumer studies.

For more information on

Brainjuicer please see:

http://www.brainjuicer.com

5 ComRes is a market research

company that specialises in

polling politicians and opinion

formers. For more information

on ComRes please see:

www.comres.co.uk/default.aspx

KAREN FRASERDIRECTOR, CREDOSTel: 0207 340 1106Email:Karen.Fraser@adassoc.org.uk

JOSH MCBAINRESEARCH EXECUTIVE,CREDOS Tel: 0207 340 1100Email:Josh.McBain@adassoc.org.uk