Traditional advertising loses grip on Singapore's consumers

Nearly half of Singaporeans rely on word of mouth when it comes to shopping.

Eight in 10 Singaporeans rely more on word of mouth when it comes to purchasing decisions, with almost half (49%) of young adults (ages 18 to 35) finding it most influential.

Further, over half (54%) of shoppers in Singapore are willing to forgo a purchase even if someone close has expressed a negative experience with the brand, findings by impact.com showed.

“Today’s modern buyer no longer trusts conventional advertising techniques; they’re seeking out reviews and recommendations from people they can trust and searching social media where they can see the product being used,” said Antoine Gross, the general manager for Southeast Asia and India at impact.com.

This sentiment is in line with the fall of traditional advertising effectiveness, with a mere 2% perceiving advertisements as impactful in buying decisions.

Relatively, the study also revealed that one in five shoppers in the country (18%) don’t feel motivated when it comes to recommending in return of a reward. “Nearly half (47%) of shoppers who don’t participate in referral programmes are concerned they’ll annoy family and friends by sharing referral links, especially if they believe they’re the only ones benefiting from a referral,” the report revealed.

Thus, 68% would rather have a reward system for both themselves and the recipients.

Whilst any brand can implement a referral programme, its effectiveness varies by industry. For example, over 40% of consumers rely on referrals and recommendations when purchasing health and beauty products, travel services, electronics, or professional services. 

However, only 28% of consumers have used an official referral programme for in-person professional services. 

“This may be because these professionals don’t frequently offer reward programmes or customers may not use them for frequent repeat purchases. In contrast, many people may extend offers for financial services to their friends because those referral programmes offer appealing rewards,” the report added.

The survey was conducted across Singapore, gathering insights from 505 online shoppers over the age of 18 years old in Singapore.