March 24, 2023

How To Build Brand Trust (As Inflation Erodes It)

Frankie Pike

More than two-thirds of Americans say they’re concerned about inflation, which they increasingly blame on corporate greed, according to Horizon Media’s Catalyst.

Though inflation is lower now (6.4 percent as of January) than it was 9 months ago (9.1 percent in June of 2022), according to the report, this is still the highest inflation rate since the early 1980s. Pre-Covid, inflation rates were at about 2.5 percent.

Last year, Americans’ leading beliefs of the cause for inflation were supply chain issues and Russia’s invasion of Ukraine. Now, corporate greed has switched spots with the war in Ukraine.

Chart from Catalyst’s 2023 inflation report, which the company released this week

Tone-deaf headlines haven’t done brands any favors in terms of customer perceptions, and deinfluencing has become a trend.

Image from Catalyst’s 2023 inflation report

So how do marketers regain trust for their brands? It’s going to take more than just marketing.

According to Edelman’s Trust Barometer, businesses need to take four main steps.

  1. Inform debate and deliver solutions for climate change, diversity, equity, and inclusion, and skill training.
Want More Societal Engagement from Business, Not Less: Percent Who Say
From 2023 Edelman Trust Barometer
  1. Collaborate with the government.
Best Societal Outcomes When Government and Business Work Together: Percent Who Say
From 2023 Edelman Trust Barometer
  1. Fairly pay workers, provide training, and invest in local communities to address the mass-class divide and polarization.
From 2023 Edelman Trust Barometer
  1. Be a source of reliable information, promote civil discourse, and hold false information sources accountable.
From 2023 Edelman Trust Barometer

Marketers Confident Despite Potential TikTok Ban

Yesterday, TikTok’s CEO Shou Zi Chew testified before the House Committee on Energy and Commerce to defend the app. Legislators questioned Chew about censorship, data privacy, youth safety, and the app’s powerful algorithm.

According to Social Media Today, this was Chew’s central defense: “The bottom line is this – American data is stored on American soil by an American company overseen by American personnel.”

TikTok also tweeted a public statement making a series of promises.

Regardless, “three in four marketers expect to increase spending on TikTok in the next 12 months,” according to Marketing Dive and a Capterra survey.

More than half of the respondents said they think it’s unlikely that the U.S. government will ban TikTok, and 87 percent believe TikTok is a “viable platform for long-term marketing strategies.”

View the full stats here, and check out a more in-depth look at Chew’s testimony and its implications for advertisers here.

Other news

  • Reddit users are 27 percent more likely to purchase Mother’s Day gifts than the average Internet user, according to Reddit’s new Mother’s Day marketing guide. The brand says that more Reddit users buy their moms’ gifts than Facebook, Instagram, TikTok, Snapchat, or YouTube users—who knew?
  • This is what marketers need to know about advertising on streaming services in 2023.

That’s all for this week’s Marketing Roundup. Check back in next Friday for more news. And subscribe to our newsletter below for additional updates.