While advertisers and big businesses slap down millions and billions to pay for glitzy ads in traditional media such as television and print, “earned media” such as word-of-mouth and recommendations from peers, are more believable and appear to be more important factors in buying decisions, “…above all other forms of advertising,” according to a recent report from Nielsen surveying over 28,000 Internet respondents in 56 countries.

The Nielsen study found that trust associated with “word of mouth” and “peer recommendations” have increased 18 percent since 2007, and online consumer reviews are the second most trusted form of advertising.  This is an interesting state to contrast with results from a recent Gartner study noting a proliferation of fake or paid reviews.

Sites such as Yelp or Angie’s List where customers consistently rate and review their favorite beauty salons, automobile repair shops, plumbers, and more will be essential for small businesses who have not been early adopters of such mediums. [Read more…]