Will Occupy Wall Street Drive Down Trust in Advertising?

A neighbor of mine drive off to NYC yesterday to visit the Occupy Wall Street encampment there. Many people are surprised that this particular movement has gained as much attention as it has. As the HBR Blog points out:

"Occupy Wall Street remains essentially leaderless — a point of pride for many demonstrators — and it's open to everyone, from students to unions to politicians. Perhaps as a consequence, the movement's message has remained diffuse. ...So if Occupy Wall Street is leaderless and unfocused, why isn't it going away? The persistence of the "occupations" is a signal that there is authentic, deep-seated unhappiness with the failings of the U.S. economic system. It's an indicator that economic inequality is perceived as an important issue — one requiring business's immediate attention" 

Whether you are saying to yourself, "those crazy kids..." or "it's about time...," we shouldn't dismiss the frustration people feel at the disparities in our society. 

Vikram Pandit, CEO of Citigroup, showed some empathy to their POV:

"Their sentiments are completely understandable...I would also corroborate that trust has been broken between financial institutions and the citizens of the U.S. and that it's Wall Street's job to reach out to Main Street and rebuild that trust..." 

Will this movement and the sympathy felt for it in neighborhoods across America cause more people to become skeptical of advertising messages published by big brands? Because the complaint or platform of Occupy Wall Street is purposely diffuse, it may be hard to predict. Clearly two fundamental message points come through - that extraordinary executive pay at all types of corporations is beyond the pale unfair and that the chasm between super rich and everyone else is just too great. 

More Anti-Consumerism? 

The frustration could blossom into a broader anti-consumerism. At the very least, it seems reasonable that more people will question the claims and the bald self-interest of some advertising and the advertisers behind it. I am not suggesting some dramatic anti-advertising reaction. If anything brands that make claims about their community responsibility or health benefits or even corporate brands that are trying to build a greater affinity with consumers may come under greater public scrutiny from those same consumers who want to know if the company lives up to its promises. The oil company trying to tell us that all they care about is the little guy or sugary cereal manufacturers claiming the health benefit of their product.  I don't think this movement is all about financial institutions. 

Brands that have well-managed two-way channels with consumers like Facebook pages and Twitter handles may fare better against consumer interogation.  A company's willingness to have a direct relationship and respond to people goes a long way. It builds a more personal relationship (the guy or gal behind the wall posts) and so long as the channel is managed well, shows empathy for the customer who is a person just like the person working in the corporation. 

Does Trust in Advertising Matter? 

I have no evidence that the Occupy Wall Street movement and whatever more broadly felt distrust there is for corporate America is affecting consumers reaction to advertising. I merely suspect it will. And even if distrust in advertising is not as important to the business health of many brands, it may be a big and missed opportunity. 

A recent Nielsen study put it well: "On average, 50% of people neither trust nor distrust advertising regardless of the media/vehicle — search ads, banner ads, TV ads, radio ads, magazine ads, ads on social networks, online video ads, etc. These neutral responses all hover between 45% and 53%. On the Nielsen visualization above, the green circles dominate.

One has to be careful not to confound "trust" and "interest" in these results, but I interpret this as a motivating opportunity. Advertising is not how we win customers. But it is a way to introduce ourselves to them, from a largely neutral starting point — and it's the experiences we deliver after the ad that build trust."

Advertising Reflects Our Character

I would go further and say that our marketing including our advertising is how we start to build trust. It's where we demonstrate empathy and understanding for our customers, it's where we make our promises. Some might say that trust is established when the products or services perform as advertised. I would argue that now, more than ever, brands must actively define their character and demonstrate that character in all things - especially the way they market and advertise.

Thoughtful use of social media can truly animate the character of an organization. It can be a window where two people can meet and live up to their values and character in personal and meaningful way.  


Image of flag from: Julia La Roche for Business Insider

Comments

[Tyler]

"I have no evidence that the Occupy Wall Street movement and whatever more broadly felt distrust there is for corporate America is affecting consumers reaction to advertising. I merely suspect it will."

Bias aside, I disagree. The majority of people I've spoken to (young professionals) tend to be turned off by the majority of marketing - or expensive campaigns tend to elicit responses to the effect of "what a waste of money". Despite these negative sentiments, purchasing habits aren't any different.

A great article on a topic not discussed though. We'll see!