In a situation where every company tries to emphasize the positive aspects of its products and hide the negative ones, customers appreciate transparency in advertising more. Honesty helps build trust, which turns into engagement and subsequently into loyalty. That is why today most market leaders try to avoid actions and messages that can mislead consumers in order to achieve positive results in terms of business.
Let’s see why transparency has become a new trend, what its benefits are, and how to make it a key element of your marketing strategy.
What is Transparency in Advertising
Transparency in advertising is an approach that involves sharing the most honest, detailed and complete information about a product or service.
To define transparency in advertising, it should also be mentioned that it should cover every event - positive and/or negative. Choosing an honest approach, a company should be ready to acknowledge its failures, product shortcomings and wrong strategic decisions. Of course, these can be mitigated by explaining the reasons and highlighting the actions taken by the company to improve the situation and eliminate the problems. But the main thing is honest recognition that something went wrong.
Transparency also means willingness to communicate. Companies norway whatsapp number data 5 million should monitor reactions to their marketing campaigns, engage in dialogues with consumers, and respond to their inquiries. This reduces the distance between customers and the company, allowing the business to build strong emotional connections and increase loyalty.
Importance of Transparency in Marketing
Nowadays, when consumers are becoming more informed and demanding, transparency in marketing is of particular importance. Communicating accurate and truthful information about their products, services and activities allows companies to avoid manipulation and deception.
Transparency demonstrates respect for the public, showing that the company values its customers and does not try to hide important facts from them. First of all, this means being honest about their actions, methods, and intentions in achieving their business goals. Brands should openly inform customers about the real features and invoices of their products, prices, terms of cooperation, etc.
For example, 56% of consumers today believe that many companies use environmental and social responsibility as a marketing ploy to generate profits. Therefore, 75% actively seek information about brands to understand if they are honest and if they actually contribute to solving social or environmental issues. What does this mean? If you try to deceive the public, they will likely accuse you of lying and spread negative information about you to their friends or followers on social media. This is why transparency is so important in viral marketing.
Non-transparent marketing tactics, such as hidden costs, unclear warranty terms, and exaggerated product features, ultimately damage a brand's reputation. Instead, openness with the public helps build strong and lasting relationships with consumers based on trust and mutual respect.
Therefore, transparency in marketing is not just a trend. It is a necessary condition for successful communication with consumers in the modern world. It allows you to convey truthful information, avoid manipulation, and demonstrate sincere respect for your audience.
Valeriia Kozarezova, Head of Content, commenting on transparency in advertising and communication strategy to Claspo:
“In our communications across platforms, we highlight the benefits of widgets. But! We are also open about the problems and challenges associated with widgets. Why? Recognizing these problems has allowed us to improve Claspo’s ability to solve them. And by telling you about them, we can help you get the most out of Claspo’s functionality. After all, our goal is not to get you to use widgets, but to help you get the results you want with them. So, transparent communication is key.”
Benefits of Transparency in Marketing
Statista reports show that 60% of consumers in 2023 consider transparency in digital advertising as the best feature of international companies. Transparency gives you trust, which translates into loyalty, repeat purchases and brand advocates. In the long run, this significantly improves the financial performance of a company by making it more efficient and resilient to market fluctuations.
Transparency also brings other benefits, which we will discuss in detail.
Greater trust and loyalty
According to Sprout Social research , 85% of consumers are willing to give companies a second chance after a bad experience if they maintain transparency in their communications. They even support these companies during crises. And 89% say a company can earn and regain their trust if it honestly communicates its mistake and steps to fix it.
By maintaining transparent communication, you show respect and care for consumers. And they, in turn, respond to you with trust and loyalty.
Reducing legal risks
Transparency in marketing and advertising helps companies avoid legal trouble. Consumer protection laws prohibit misrepresentation or concealment of important information about products and services.
Misleading advertising, exaggerated product features, and failure to comply with contractual terms can lead to legal claims and fines. Such situations not only cause financial losses but also seriously damage the brand's reputation.
Instead, adhering to the principles of transparency and honesty in marketing communications minimizes the risk of legal problems. When a company provides complete and truthful information about its products, prices, terms of service, etc., it operates within the bounds of the law and protects itself from potential complaints from customers or regulators.
Indicators of Lack of Transparency in Marketing Campaigns
Lack of transparency in digital advertising can have serious consequences. Companies that hide information will gradually lose their competitiveness. Their customers will move to other brands that quickly share everything with consumers. Surveys show that 35% of customers may refuse to buy again due to lack of access to important information.
Indicators_of_Lack_of_Transparency_in_Marketing_Campaigns
How do you know if your marketing policy lacks transparency? We’ll talk about the key indicators you should be monitoring.
Hidden costs and fees, unclear contract terms and conditions
If a company does not provide detailed information about the cost of its products or services, including additional fees or mandatory payments, it indicates a lack of transparency in marketing campaigns. Consumers have the right to know the real price before making a purchase decision.
The lack of clear terms of cooperation, guarantees and refund policies can also indicate an attempt to hide important information from consumers. Transparent companies make their terms and conditions as simple and understandable as possible.
False or exaggerated statements
False information about the features, benefits, or results of using products is a sign of non-transparent marketing. If a company's claims seem too good to be true or are not supported by real evidence, this is cause for concern.
In 2015, Volkswagen was at the center of a major scandal when it was revealed that the company had installed software in its cars to manipulate emissions test results. This case damaged the company's reputation and led to serious financial and legal consequences.
