Ads focused on brand trust have positive business impacts

UK – Advertising that boosts brand trust is highly effective at increasing business growth, according to analysis from the Institute of Practitioners in Advertising (IPA).

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The study of 812 advertising campaigns in the IPA Effectiveness Databank found that 93% of for-profit campaigns that reported large increases in brand trust had at least one very large business effect, such as sizeable growth in sales, market share or profit.

In comparison, the IPA said that for all for-profit advertising campaigns, 66% reported a very large business effect, making commercial trust building advertising 41% more effective than the average in business growth terms.

The most effective trust-building campaigns had an average total of 65% more business effects deemed ‘very large’ than the average across all campaigns. The research found 103 of the 812 campaigns in the study reported very large increases in brand trust.

In addition, the most effective trust-building campaigns specifically had above average rises in customer acquisition ( 39% vs 28%), sales volume gain ( 39% vs 25%), sales value ( 37% vs 26%), profit gain ( 35% vs 24%), market share gain ( 34% vs 26%), customer loyalty ( 22% vs 11%), and reduction in price sensitivity ( 11% vs 6%).

Improved press coverage ( 48% vs 37%), stronger supplier relationships ( 20% vs 16%) and halo effects across other brands or products within the same business ( 13% vs 7%) were also reported by highly trust-building campaigns, the research said.

The IPA Effectiveness Databank collates adverts submitted as part of entry to the biennial IPA Effectiveness Awards.

Laurence Green, director of effectiveness at the IPA, said: “While there are many ways to make your advertising effective, this new research provides a strong business case for the benefits of investing in trust-building campaigns. 

“As more advertisers set an objective of increasing trust, the long-term evidence from the IPA Effectiveness Databank makes it clear that investing in trust is not only the right thing to do for many brands, but a proven way to drive sustainable growth.” 

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