Four-out-of-Five New Media Users Interact with Companies and Brands Online, up 32% from 2008

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Tue Oct 20, 2009 8:00am EDT

Three-part study also confirms users want to influence responsible business
practices and support causes
BOSTON--(Business Wire)--
Almost 80 percent (78%) of new media users interact with companies or brands via
new media sites and tools, an increase of 32 percent from 2008 (59%). And, the
frequency of interaction is increasing, too, with more than a third (37%) of
users engaging companies or brands via new media at least once per week (up from
one-in-four last year). These are among the findings of the 2009 Cone Consumer
New Media Study, which explores consumers` interactions with brands, their
engagement with corporate responsibility practices and their support of social
and environmental issues. 

New media users overwhelmingly believe companies or brands should not only have
a presence in new media (95%) but also interact with their consumers (89%). The
majority of consumers are still seeking out companies and brands on traditional
Web sites (58%) and through email (45%), but anywhere from a third to a quarter
of consumers want to interact with companies and brands in social networks (30%)
and via online games (24%). 

Although consumers still feel companies` or brands` top priorities within new
media should be to problem solve and provide information (61%, up from 43% in
2008), traditional online advertising - banner ads, targeted advertising, etc. -
saw a 72 percent increase (jumping from 25% in 2008 to 43% today) demonstrating
consumers increasing realization that marketing messages may accompany the
relationship they`ve developed with brands online. Not surprisingly, people are
also more willing to engage if incentivized with free products, coupons or
discounts (58%), especially among the female demographic (63%). 

When asked about their impressions of companies or brands present in new media,
users said they:

* Feel a stronger connection (72%, up from 56% in 2008) 
* Feel better served (68%, up from 57% in 2008) 
* Have a more positive image (74%) 
* Are more willing to engage (70%) 
* Have an improved opinion when one of their friends interacts (64%) 
* Choose to "follow"/"friend"/"fan" because it helps showcase their personality
online (52%)

"Consumers haven`t yet been exhausted by brand oversaturation in the new media
space," says Mike Hollywood, Cone`s director of new media. "There is still an
opportunity for forward-thinking companies to establish a presence and earn a
competitive advantage. Based on the growth of user interactions with companies,
countless purchase decisions are being influenced by new media. It`s imperative
to get on board now that the train has left the station." 

Corporate Responsibility and New Media - Consumers Believe They Can Influence
Business Practices

Forty-four percent of American new media users are searching for, sharing or
discussing information about corporate responsibility (CR) efforts and programs
and are highly confident they can have an effect on business. 

Sixty-two percent of users polled believe they can influence business decisions
by voicing opinions via new media channels. About a quarter have contributed
their point-of-view on an issue (24%) or contacted a company directly (23%), and
most want the conversation to be two-way - 74 percent expect companies to join
conversations about their corporate responsibility practices happening on new
media. 

Yet, new media users are even more likely to bypass dialogue for action:

* 30 percent have made a purchase based on POSITIVE information learned about a
product, company or brand; and, 
* 23 percent have switched brands or boycotted a company based on NEGATIVE
information learned about a product, company or brand.

Consumers are most interested in information that will inform their purchasing
decisions. Respondents said they want companies to tell them what is in products
and how they are made (85%) and provide additional details about information,
labels and claims shared offline (e.g., in the store, on the package, in an
advertisement) (83%). 

"Consumers are using new media channels to inform purchase decisions, yet are
not always stopping to participate in dialogue," says Jonathan Yohannan, senior
vice president of corporate responsibility at Cone. "There is an opportunity to
engage them beyond information-seeking behavior to build a relationship that can
be mutually beneficial for both consumers and companies." 

Causes and New Media - Consumers Eager to Support Causes…Just Not With Their
Wallets

Nearly eight-in-10 (79%) Americans who are active on new media believe companies
and nonprofits should use these channels to raise money and awareness for
causes. And, a full sixty percent have used some form of online or new media to
support a cause. 

Eighty-five percent of respondents say new media provide them with an
opportunity to learn about new issues, and a similar number (80%) believe they
provide another way to support their favorite causes. They champion important
issues in a variety of ways, including advocacy (36%) (i.e., forwarding a
message to friends), personal behavior change (34%) and purchasing cause-related
products (23%). 

Despite new media users` high level of interest and awareness of causes, their
support is not yet being fully translated into bottom-line action. Fewer than
one-in-five users (18%) have made a donation through new media, and a majority
(72%) agree that such channels raise their awareness about causes, but do not
motivate them to do more to help. 

Why the disconnect? One of the primary reasons may be fear. Nearly four-in-10
respondents (39%) said they didn`t trust their effort would actually go to help
the cause. Other barriers include:

* I`d rather spend my time and/or money supporting causes offline (31%) 
* I didn`t see any existing results or impacts (27%) 
* I felt overwhelmed by the number of causes on new media (22%) 
* My favorite issue, cause or organization doesn`t use new media (19%) 
* I didn`t understand the tool/application (17%)

"Americans are actively engaged with causes on new media, but they`re lacking a
degree of trust that takes them to the next level of engagement," explains
Alison DaSilva, Cone`s executive vice president of Cause Branding.
"Organizations can overcome this barrier by showing tangible and compelling
results, offering multiple consumer touch points and making the bridge to
offline activities wherever possible." 

For additional findings from the three-part Consumer New Media Study, please
visit www.coneinc.com/research or contact Andrea List (alist@coneinc.com).

About the survey:

The 2009 Cone Consumer New Media Study presents the findings of an online survey
conducted September 11-13, 2009 by Opinion Research Corporation among a
representative U.S. sample of 1,048 adults, comprising 503 men and 545 women 18
years of age and older. Respondents who indicated they never use new media sites
or tools were filtered out of the survey, resulting in a sample size of 527 "new
media users." The margin of error associated with a sample of this size is ± 5%.

About Cone:

Cone (www.coneinc.com) is a strategy and communications agency engaged in
building brand trust. Cone creates stakeholder loyalty and long-term
relationships through the development and execution of Brand Marketing, Cause
Brandingsm, Corporate Responsibility and Crisis Prevention and Management
initiatives. Cone is a part of the Omnicom Group (NYSE: OMC)
(www.omnicomgroup.com).

Cone
Andrea List, 617-939-8418
alist@coneinc.com



Copyright Business Wire 2009

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