2. The Changing Media Landscape
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. 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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3. The Research Qualitative
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
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
NB: Blind study (participants not aware of Yahoo!’s involvement)
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4. 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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5. Consumers Do Their Homework
of consumers have looked for more
68% information about a brand or product
after seeing an ad
conduct research before
buying something 58%
say it’s stressful trying to
40% 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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6. They Seek Knowledge and Assurance
Manufacturer info
PRODUCT What does the item 42% about the product
INFORMATION 60% DO or comprise?
41%
What the product
looks like
Comparisons with
EXPERT How does it compare 50%
VIEWS 65% to the alternatives?
46%
alternatives
Expert reviews
Problems users
CONSUMER 61%
EXPERIENCES 79% Is it right for ME?
58%
have had
Reviews from users
BUYING Where can I buy it 72% Price comparisons
INFORMATION 80% most cheaply? 55% Where to buy
The information that consumers seek on the path to purchase breaks down into
four broad themes.
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7. Internet, Friends and Retail Stores Are
Key Information Sources
84%
Internet
54%
Talking to friends, family 73%
via any means 19%
67%
Going to a store
12%
Magazines, newspapers 44%
or books 4%
8%
Some other source
3% Use for information
Turn to first for information
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9. Paid, Owned and Earned Defined
PAID OWNED EARNED
Advertising Brand Website Talking to Friends
Broadcast Brand Social Outreach Consumer Reviews
Print
Online Display Formats Facebook Page Online Consumer
Search Marketing Twitter Feed Discussions & Forums
Official Blog
Promotions
Expert Views & Reviews
Editorial Coverage
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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10. Steps on the Path to Purchase
DISCOVERY
FIRST AWARENESS
CONFIDENCE
PRODUCT IS RIGHT FOR ME
Consumer Needs
RECOMMENDATIONS Product Information
Expert Views
MORE INFORMATION
ABOUT THE BRAND/ PRODUCT
Consumer Experiences
Buying Information
INFORMATION
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.
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11. Advertising Is the Primary Channel for
Product Discovery
FIRST AWARENESS
PAID DISCOVERY Advertising 43%
Store Promotion 36%
Mention on TV 38%
CONFIDENCE
Mention in Print 35%
PRODUCT IS RIGHT FOR ME
MORE INFORMATION
Consumer Needs ABOUT THE BRAND/ PRODUCT
Advertising 38%
RECOMMENDATIONS Product Information
Expert Views
Sales Assistant 41%
Consumer Experiences Brand Website 45%
Buying Information Subject-specific forums 37%
INFORMATION
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.
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12. A Brand’s Website Is the #1 Source for
More Information
FIRST AWARENESS
OWNED DISCOVERY Advertising 43%
Mention on TV 38%
Store Promotion 36%
CONFIDENCE
Mention in Print 35%
PRODUCT IS RIGHT FOR ME
MORE INFORMATION
Consumer Needs ABOUT THE BRAND/ PRODUCT
Brand Website 45%
RECOMMENDATIONS Product Information
Expert Views
Sales Assistant 41%
Consumer Experiences Advertising 38%
Buying Information Subject-specific forums 37%
INFORMATION
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.
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13. Expert Sources Provide Independent
Guidance at All Stages
FIRST AWARENESS
EARNED DISCOVERY Mention on TV 38%
Mention in Print 35%
CONFIDENCE Advertising 43%
PRODUCT IS RIGHT FOR ME Store Promotion 36%
Expert Reviews 24%
Sales Assistant 18%
MORE INFORMATION
Talking to friends 29%
Consumer Needs ABOUT THE BRAND/ PRODUCT
Consumer reviews 21%
Sales Assistant 41%
Product Information
RECOMMENDATIONS Expert Views
Brand Website 45%
Advertising 38%
Consumer Experiences
Buying Information Subject-specific forums 37%
TRUSTWORTHY
RECOMMENDATIONS INFORMATION
Expert Reviews 32%
Sales Assistant 21% COMPARE PRODUCTS
Talking to friends 42% Expert Reviews 39% Price comparison sites 45%
Consumer reviews 31% Sales Assistant 33% Consumer reviews 41%
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.
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14. Consumer Reviews and Talking to
Friends Instil Trust and Confidence
FIRST AWARENESS
EARNED DISCOVERY Advertising 43%
Mention on TV 38%
CONFIDENCE Store Promotion 36%
PRODUCT IS RIGHT FOR ME Mention in Print 35%
Talking to friends 29%
Consumer reviews 21%
Expert Reviews 24%
MORE INFORMATION
Sales Assistant 18%
Consumer Needs ABOUT THE BRAND/ PRODUCT
Sales Assistant 41%
Product Information
RECOMMENDATIONS Expert Views
Brand Website 45%
Advertising 38%
Consumer Experiences
Buying Information Subject-specific forums 37%
TRUSTWORTHY
RECOMMENDATIONS INFORMATION
Talking to friends 42%
Consumer reviews 31% COMPARE PRODUCTS
Expert Reviews 32% Consumer reviews 41% Expert Reviews 39%
Sales Assistant 21% Price comparison sites 45% Sales Assistant 33%
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’.
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15. Connecting the Journey: Paid, Owned
and Earned
FIRST AWARENESS
PAID OWNED EARNED DISCOVERY Advertising 43%
Mention on TV 38%
CONFIDENCE Store Promotion 36%
PRODUCT IS RIGHT FOR ME Mention in Print 35%
Talking to friends 29%
Expert Reviews 24%
MORE INFORMATION
Consumer reviews 21%
Consumer Needs ABOUT THE BRAND/ PRODUCT
Sales Assistant 18%
Brand Website 45%
Product Information
RECOMMENDATIONS Expert Views
Sales Assistant 41%
Advertising 38%
Consumer Experiences
Buying Information Subject-specific forums 37%
TRUSTWORTHY
RECOMMENDATIONS INFORMATION
Talking to friends 42%
Expert Reviews 32% COMPARE PRODUCTS
Consumer reviews 31% Price comparison sites 45% Expert Reviews 39%
Sales Assistant 21% Consumer reviews 41% Sales Assistant 33%
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.
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16. 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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17. A Brand’s Website Is More Informative
Than Its Social Media Profile OWNED
“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.”
40% 26%
Brand Website
INFORMATIVE Brand’s social
profile or Blog
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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18. Expert Sources Are Irreplaceable for
Credibility and Confidence
EARNED
“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 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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19. Not All Consumer Sources Are Created
Equal EARNED
PROVIDES TRUSTWORTHY RECOMMENDATIONS
42% Conversations with friends about a brand
31% Consumer reviews
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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20. Advertising Is Most Engaging in
Premium and Respected Environments
PAID
“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.”
Informative
Ads on Yahoo!, MSN Well-informed ...than ads on social
or Globeandmail.com
networking sites
are regarded as more Trustworthy
Helpful
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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21. The Implications for Brands: Integrated
Planning
PAID OWNED EARNED
• Engaging and • Feature an official brand • Proactively seek a
informative ad campaign site that delivers on presence in expert
consumers’ information reviews and articles
• Consistent messages needs
across respected online • Encourage loyal
and offline channels • Establish a brand customers to share their
presence on social experiences
• Directing consumers to platforms for customers
the brand Website who want to interact and • Be an active listener and
engage with the brand or respond if and when
each other appropriate
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.
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