Advertising trust drops 8% - indicates a disconnect with consumers

Source: © 123rf 123rf Trust in advertising has dropped by eight percent, despite the claim that 71% appreciate brands that engage in social issues, over half still feel underrepresented in advertising, highlighting a disconnect

“Consumers are longing for acknowledgement and empowerment, and brands need to bridge this gap by fostering genuine representation and engagement,” says Jenni Pennacchini, managing partner at KLA, a South African insight consultancy.

This is according to a white paper detailing exactly what has, and hasn’t, changed in the lives of consumers in South Africa in the [five years since the Covid lockdown.

The research from the Up&Up Group and KLA comes at a time when businesses are preparing to weather potential stormy economic conditions as a result of geopolitical and global economic trade uncertainty.

As such, they know they must be highly relevant and resonant to grab the attention of increasingly discerning consumers.

The paper analysed South Africans' perspectives across five key dimensions, leveraging YouGov Profiles data from over 4,000 respondents across three personal income groups: low (less than R8,000pm), mid (R8,000pm – R40,000pm) and affluent (R40,000pm or more).

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85% of digital spend is poured down the drain

Robert Grace, chief strategy officer for The Up&Up Group, which is a 100% locally owned group of creative companies, explains that the kind of detail they were able to unearth, and the insights The Up&Up Group and KLA’s analysts were able to extract, is particularly important in an era where most marketing budgets are wasted.

“We already know that Dr Karen Nelson-Field from Amplified Intelligence shared a research study in 2023 about digital advertisements that didn’t reach the attention threshold of 2.5 seconds.”

In essence, 85% of digital spend is poured down the drain.

“This, together with many other post-pandemic data points, is bringing about a new wave of questioning the status quo and what marketing effectiveness truly requires today”.

He adds, “For businesses to be able to be precise with their positioning and to resonate with audiences of today, they must know what, if anything, has changed since the lockdown so that they can build closer relationships with their customers to increase market share, brand loyalty and their bottom line.”

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Mental well-being not prioritised

Pennacchini says that while the research shows that the stigma around mental health conversations has decreased, with 54% of South Africans now feel comfortable discussing it (which is up 14% since lockdown), modern life feels increasingly alienating for more than half of South Africans, a significant 10% rise across all income levels.

“Despite recognising the importance of mental well-being, few prioritise it.

Increasingly busy lives, hybrid work pressures and financial struggles make self-care difficult.

“Businesses can make a meaningful difference here and build longer lasting equity by taking an active role in fostering holistic well-being, ensuring their employees, stakeholders and customers feel supported,” she says.

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South Africans’ appetite for premium products

Despite grappling with mental wellness, South Africans are more aspirant than ever.

“While it is evident that, across the board, mental illness has replaced the coronavirus as the country’s new pandemic, the sharpest shift in the data indicates that 66% of South Africans are willing to pay more for luxury brands, one of the largest increases across income groups,” says Grace.

South Africans’ appetite for premium products is more than double that of Americans.

“At the same time, value-for-money concerns are rising, with an 8% increase in people willing to pay more for quality,” expands Grace.

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Key findings

Some other key findings are that there are growing feelings of alienation, with 70% of South Africans worrying about excessive social media use.
Coupled with this, nearly half of the population say they are bored a lot of the time.

Social media and influencer culture are fueling a rise in lifestyle envy across all segments, possibly contributing to growing anxiety.

While online shopping has made life easier, the middle and affluent segments still value in-store experiences.

“Brands must understand that affordability isn’t the priority, delivering the best value is,” explains Pennacchini.

Interestingly, 68% of South Africans feel better off than a year ago, compared to only 47% of Americans.

However, this confidence is primarily among the affluent, while lower-income earners remain deeply uncertain about their future.

A complex picture

Grace says that political disillusionment is growing, with 60% agreeing that “this country is going to the dogs,” a 7% increase since the pandemic.

The affluent segment feels less impacted, likely due to greater financial security and access to alternative living options.

Fewer South Africans believe they have the power to effect change, with the biggest decline (8%) among lower-income earners.

Grace says that five years post-pandemic, a complex picture has emerged that businesses need help navigating.

Online shopping thrives, yet screen-time concerns grow, he says.

Aspirations soar, yet financial caution prevails. It is evident that consumers want value, he says, not just low prices.

Rising anxiety, apathy, and scepticism underscore a longing for confidence and empowerment.

“Businesses that navigate these contradictions effectively, meeting aspirations while easing concerns, will emerge as market leaders. The key question remains: How can brands alleviate pain points and elevate lives?” asks Grace.

For those interested to read the insights in more detail, the report has been made available to the public.