I attended an event organised by the MCCA this week entitled “Gain an unfair, competitive advantage for the year ahead from expert insights”.  It had some very interesting people on the panel and there were some great insights.

One thing I found surprising was a strong feeling by a few of the panelists that one of the biggest threats to the traditional advertising & marketing model was that of government / EEC regulation and legislation.   Now clearly this is true for the sectors involved with politically hot topics like alcohol and unhealthy foods aimed at children.   However, I am not the first to say this, but the biggest threat to traditional advertising surely is social media.   The level of trust in advertising as measured by the Advertising Association has recently fallen to 14%, whereas 78% of consumers say they trust the recommendations of other consumers (Nielson, Trust in Advertising report).

We have always read the books, seen the films, bought the brands, etc recommended by friends and family.    Through the growth of digital social networks we now have access to many more consumer opinions. The power of online recommendations has helped Amazon build its business, and this type of social commerce is becoming more and more popular among the e-tailers.

Yes undoubtedly the advertising and marketing industry should fight against draconian & unfair regulation and legislation, but social media is a big and real threat to those who choose to ignore its increasing significance in the lives of people – and therefore its relevance to brands.

Image courtesy of @Tambako the Jaguar http://www.flickr.com/photos/tambako/3852252970/sizes/m/