Brands Are Facing the 'Age of Cynicism,' From Skeptical Consumers

Consumers’ faith in brands is on increasingly shaky ground. Havas' global 2021 Meaningful Brands survey released today finds that 71% of consumers surveyed have little faith that brands will deliver on their promises. The global study, which has been running since 2009, finds consumer cynicism is at an all-time high, leading Havas to say that we’re entering the "Age of Cynicism." The numbers back that up, with only 47% of the 395,000 consumers from around the world surveyed saying that brands are seen as trustworthy, and with survey respondents saying that 75% of brands could disappear overnight and most people wouldn’t care or could easily find a replacement. In addition, only 34% of consumers surveyed globally think companies are transparent about their commitments and promises. “In this study, people haven’t held back from letting businesses know how they feel,” Mark Sinnock, creative global chief strategy officer at Havas, told Adweek. “The existential pressures brought on by Covid, economic insecurity, rising social inequalities and injustice, and the climate catastrophe have exposed a growing tension between businesses and their customers that brand owners and managers really need to digest and acknowledge.” The 'Covid effect' Was the pandemic to blame for this cynicism? It certainly didn’t help, but the numbers had been trending this way for some time. This year’s study, conducted during the pandemic in the third quarter of 2020, encompassed over 2,000 brands in 30 markets and 21 industries. “The data does show a 'Covid effect'—specifically, that people expect brands to focus more on delivering to their personal and collective needs. This is in large part due to the growing sense of uncertainty and insecurity as a consequence of the pandemic and its potential threat to people’s jobs and lifestyles,” Sinnock stated. This was the 12th straight year that the study found a decline in the value most consumers see with brands. And a year of nasty politics, disinformation and a global health crisis have only worsened people’s opinions of brands. Three quarters of global citizens feel we are living in a global crisis across four key areas: public health, economy, politics and environment. Brand trust is lowest in North America, at 39%, and East Asia, at just 24%. Brands can right the ship While brand trust is down, expectations for brands are high. Of those surveyed, 73% think brands must act now for the good of society and the planet. In addition, 64% of people are now taking action, preferring to buy from companies with a reputation for purpose as well as profit—an increase of 10 points since 2019. And 53% of people will go even further, saying they are willing to pay more for a brand that takes a stand. For the first time, Havas analyzed its study alongside the U.N.'s Sustainable Development Goals, to help brands deliver on purpose and sustainability. It found 16 combined goals for brands to focus on, including women’s rights, climate action, reducing inequalities, sustainable energy and ending poverty, though brands must focus on what is most authentic to them, or they may be accused of “CSR-washing,” using false claims about corporate social responsibility to get ahead. While brand trust is low, brands have opportunities to turn things around. The study shows that 66% of consumers want more meaningful experiences from brands. Retail, home entertainment and technology companies have improved their brand value in the eyes of consumers during the pandemic, likely because of people seeking fast, affordable deliveries of groceries and other essentials, and experiencing constant engagement with content via tech devices in the home. In addition, 77% of consumers expect brands to show support to people in times of crisis, and brands can forge meaningful connections in these times if they are authentic to their consumers and their communities. “Writing an ad campaign about your brand purpose and using advertising to tell the world about it can be a real differentiator—as long as your purpose drives decision-making across the organization, and the outcome of your purpose becomes something meaningful, tangible and really makes a difference in people’s lives,” said Sinnock. The study also found that Gen Z is particularly focused on reducing inequalities all around and has more love and trust for brands that lead with social issues and embrace diversity. The most meaningful brands in the 2020 survey included Cadbury, Google, Ikea, Microsoft, PayPal, Samsung, Visa, Walmart, WhatsApp and YouTube. Brand categories that saw growth, in part due to the pandemic and shifts in the cultural mindset, included accessible retail, home entertainment and tech solutions. View the site and request the full report here. Havas CX Releases X Index on Important Factors for Customer Experience Success