Innovation and the Earned Brand is a global survey of 10,000 consumers in 10 countries and 1,000 consumers in Japan participated in the research.

1. Innovation and the
Earned Brand

2. Consumers are embracing innovation
at a faster pace than ever before…
The Earned Brand | Edelman 2015 | pg 2
LINE MUSIC / Apple music / AWA
Innovation of
products and technology
Innovation of
communication
Innovation of
business model and
industry structure

3. Q349-351. Below are a number of statements. For each, please think about the pace of development and change in business and industry today and select the response that most
accurately represents your opinion. (Not Enough, Too Much) Informed Publics, 27-country global total. (2015 Edelman Trust Barometer)
The pace of development and
change in business and industry today is…
The Earned Brand | Edelman 2015 | pg 3
28%
TOO FASTJUST RIGHT
19% 51%
TOO SLOW
And yet many feel the pace of business
innovation is too fast
29%
TOO FASTJUST RIGHT
29% 36%
TOO SLOW

4. The Earned Brand | Edelman 2015 | pg 4
And what can the
rest of us learn
from this?
Why the contradiction?
How are today’s
fastest-growing
brands convincing
consumers to accept
the risks that come
with innovation?
What are
consumers’
real feelings
about innovation?

5. The Earned Brand | Edelman 2015 | pg 5
What is innovation?
A re-imagination of categories,
products, services, operations,
models, design, etc. that create
more value, for the brand and
for consumers

6. The Earned Brand Methodology
Timing
April – May 2015
Quantitative Online Survey
10 countries: U.S., Mexico,
Brazil, France, Germany, U.K.,
China, Japan, India, Australia
10,000 respondents, nationally
representative of age, gender,
and region based on most
recent country status data
Behavioral Focus Groups
16 millennials in New York and
London
Mobile Diaries
25 millennials, with them on their
mobiles, for 2 weeks, in Brazil,
U.K., India, China and the U.S.
The Earned Brand | Edelman 2015 | pg 6
A global survey of
consumer attitudes
toward brand innovation

7. The Earned Brand | Edelman 2015 | pg 7
People believe in the
promise of innovation.
Insight 1

8. Q5P1: Please select the statement from each group that best represents how you feel. (Innovation is just an overused
term, it’s not leading to anything) vs. (Innovation is essential for us today and it’s helping us to progress). Q5P4: Please
select the statement from each group that best represents how you feel. (Innovation is making us more and more like
robots) vs. (Innovation is opening the human spirit) 10-country global total and in Japan.
Percent who agreed with each statement:
Innovation inspires people
92%
innovation opens
the human spirit
innovation is essential
and it’s helping us
to progress
77%
92%
72%
The Earned Brand | Edelman 2015 | pg 8

9. And they believe that business has
the biggest role to find the next big thing
Q15. Where do you think the next big thing will come from?
The next big thing
will come from…
The Earned Brand | Edelman 2015 | pg 9
BUSINESS
30%
INDIVIDUALS/PEOPLE
LIKE ME
79%
36%
ACADEMICS/UNIVERSITIES
17%
85%
29%

10. They believe that brand
innovation should have big
goals with societal impact
Q14. What do you think the role of innovation is for brands today and in the future? (in the future) 10-country global total and in Japan.
to
improve
society
to push our
thinking as
a society
69% 66%63%
The Earned Brand | Edelman 2015 | pg 10
agree that brand innovation
needs to impact society
(one or more of the following)
in9 10
68% 58% 65%
to let us be one
step ahead of
other countries

11. 65%
51%
26% 25%
14% 12%
45%
28%
44%
50%
19%
37%
Technology Mobile Energy Health care Food and beverage Education
But they believe that innovation should come from
industry sectors beyond technology and mobile
Percent who say they see innovation coming from each industry sector today, and who want to see it from each sector tomorrow:
INNOVATION GAP
18 25
255
INNOVATION TODAY INNOVATION TOMORROW
WANT LESS TOMORROW WANT MORE TOMORROW
45%
34%
20%
30%
6% 3%
39%
18%
38%
45%
9% 8%
Technology Mobile Energy Healthcare Food and beverage Education
Q65: Thinking more specifically about the innovation in the products and services you use throughout your life, what industries do
you see the most innovation in TODAY? Q66: … what industries do you want to see innovation in TOMORROW? In Japan
18 15
53
Healthcare

12. And they question your motives
66%
70%
65%
69%
67%
61%
65% 65%
67%
62%
65%
Global Australia U.K. U.S. Japan France Germany Brazil China India Mexico
Q14. What do you think the role of innovation is for brands today and in the future? (today) 10-country global total and in Japan.
Percent who say the role of
innovation for brands today
is “to make more money for
the company”:
The Earned Brand | Edelman 2015 | pg 12
consumers believe brands
are innovating to make more
money for the company
in2 3

13. The Earned Brand | Edelman 2015 | pg 13
Insight 2
Consumer acceptance
of brand innovation
cannot be bought.
It must be earned.

14. The stakes:
Because of their concerns, they’re not buying
Q27. Thinking about the below, please indicate which of the following you feel is happening in the world today. … IMPACT ON PURCHASING
DECISION 1 = Has no impact on what I buy … 4 = Makes me not want to buy something.
say they will not buy
because of their concerns
Percent who feel that each is happening in the world today, and percent
who say their concerns makes them not want to buy something:
The Earned Brand | Edelman 2015 | pg 14
87%
Security
Concerns
Privacy
issues
Impact on
Environment
Being
always on
81%

15. 2 in 3 have privacy concerns
Privacy concerns are especially strong in
Germany, the U.K., the U.S. and Australia.
66%
74%
61%
58% 56%
76%
55%
66% 64%
71%
75%
Global Australia Brazil China France Germany India Japan Mexico U.K. U.S.
Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today.
Percent who feel that each is happening in the world today –
privacy issues:
66%
The Earned Brand | Edelman 2015 | pg 15
Privacy
issues
“I don’t care if they know I go to the
grocery store—but I don’t want them to
sell information to that grocery store.”
Source: Mobile Diaries

16. 1 in 2 have security concerns
Security concerns are highest in Japan and the
U.S., and less of an issue in China.
54%
69%
51%
33%
49%
44% 44%
75%
41%
64%
71%
Global Australia Brazil China France Germany India Japan Mexico U.K. U.S.
Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today.
Percent who feel that each is happening in the world today –
your security being compromised:
The Earned Brand | Edelman 2015 | pg 16
54%
Security
“Some back door issues may leak
personal information, including
personal banking details.”
Source: Mobile Diaries

17. And the majority have concerns
about the impact on the environment
Environmental concerns are global,
but strongest in Europe and Latin America.
58%
61% 62%
52%
62%
66%
54% 52%
62%
54%
51%
Global Australia Brazil China France Germany India Japan Mexico U.K. U.S.
Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today.
Percent who feel that each is happening in the world today –
impact on the environment:
The Earned Brand | Edelman 2015 | pg 17
58%
Impact on
environment
“Technology and innovation bring
convenience, but it brings problems,
too. Cars change my life, but too
many cars result in air pollution,
traffic jams and parking problems.”
Source: Mobile Diaries

18. 1 in 2 concerned about having to be always on
Germany and Brazil are most concerned; Japan and China are less so.
50%
54%
65%
36%
53%
63%
41%
29%
57%
46%
53%
Global Australia Brazil China France Germany India Japan Mexico U.K. U.S.
Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today.
Percent who feel that each is happening in the world today –
having to be always on:
The Earned Brand | Edelman 2015 | pg 18
50%
Being
always on

19. The Earned Brand | Edelman 2015 | pg 19
Insight 3
While the promise of
innovation inspires,
people first need
to be reassured.

20. Consumers are twice as likely to want to be
reassured than inspired by a brand
Q35: When a brand tells me about something, I
want it to… “Reassure me of quality,” “Inspire me”
The Earned Brand | Edelman 2015 | pg 20
people want to be
REASSURED
in2 3
people want to be
INSPIRED
in1 3
37% 38%64% 65%

21. We may be innovating,
but we are failing them as marketers
Q20: Thinking about change in the past 5 years, how do you feel the [ … ] industry has evolved in relation to the following
factors: How brands in this sector…(communicate with me) / (listen to me) // (moving in wrong direction)
Percent who feel that brands have changed a lot, and proportion who
feel that this is the right or the wrong direction:
The Earned Brand | Edelman 2015 | pg 21
say brands are not moving
in the right direction in how
they communicate
in2 3

22. They feel like brands are shouting at them
What brands say doesn’t feel real
Q21: Please indicate how much you agree or disagree with the following statements. (I’m getting bored/frustrated by constantly being told I
need to upgrade/update the products I already have.) (Top 2 box). 10-country global total and in Japan.Q8P1: The way magazines, the
internet, advertising, can all enhance photos… (Makes me more inspired than ever before by what I see) vs. (Makes me wonder what is real,
and what I should believe) 10-country global total and in Japan.
The Earned Brand | Edelman 2015 | pg 22
57%
because of photo manipulations
in advertisements and online
they don’t know what to believe
are bored/frustrated
by constantly being told
they need to upgrade/update
60%
55%
75%

23. The Earned Brand | Edelman 2015 | pg 23
Insight 4
“I rely on my peers to
reassure me. Because
their experience is
my evidence.”

24. We’ve always known that peers provide recommendations,
but today peers also help convert purchasers
Q41: Thinking about the conversations you have online and offline with friends and other people like you about brands, products and
services you purchase, what impact do they have on you?
The impact of online/offline conversations about
brands with friends and other people like me:
Build inspiration
Push consideration
Moment
of
Truth
16%
17%
25%
27%
29%
37%
44%
45%
They give me a sense of community
They get me
They push me to try new things
They suggest products/services
They make me trust the brand more
They help me overcome concerns
They help me make decisions
They warn me about the risks
The Earned Brand | Edelman 2015 | pg 24
8%
3%
16%
19%
18%
25%
45%
47%

25. Mobile Diaries
When millennials want to learn about brand
innovation, their go-to channels are peer-to-
peer: Skype, Whatsapp, Facebook and SMS.
Behavioral Focus Groups
Biometric testing showed that peer-to-peer channels
(Twitter, blog posts, word of mouth) had a greater
impact, by a 6 to 1 margin, on changing opinions about
the risks of new innovations than advertisements.
The Earned Brand | Edelman 2015 | pg 25
Mobile diaries with 25 millennials in 5 countries. Behavioral focus groups with 8 millennials in New York and 8 millennials in London.
The channels consumers rely on to be reassured are
peer-to-peer, rather than brand-to-consumer

26. Brands win if they power the peer conversation
Percent who agree with each statement:
“Co-create with customers the things that make
them happy” is the philosophy of the Nescafe
Ambassadors program. While we have built a basic
mechanism, we need to continuously evolve by
adding new components. Otherwise customers
will lose interest. We work with the Ambassadors to
evolve the program.”
Nestlé Japan Ltd.
Q36. How much do you agree or disagree with the following statements? 10-country global total
and in Japan.
The Earned Brand | Edelman 2015 | pg 26
60%
I trust a brand more if
it encourages me and
and other customers
to review its products
and services
For me to trust a
brand, I need to
know if other people
are happy with it
first.
64%
52%
42%
Reference about Nestle
http://www.asahi-kasei.co.jp/arc/habitus/pdf/habitus-eye_vol_40.pdf

27. The Earned Brand | Edelman 2015 | pg 27
Insight 5
Messaging alone
doesn’t work.
It’s about how your
brand behaves.

28. Two-thirds of consumers are undecided about
innovation. What do they need from brands?
Last mover First mover
8% 15%
Percent of respondents who fall into each
consumer innovation typology:
The Earned Brand | Edelman 2015 | pg 28
Methodology: Statistical analysis of consumer groupings based on their attitudes to brand innovation showed that 66% of
consumers are open to innovation—but have concerns that need to be addressed before they will buy. They also have specific
expectations for how brands must behave to address those concerns. Other consumers were either “first movers” (15%), “last
movers” (8%), or resistant to innovation (11%).
66%
Undecided Consumers

29. What undecided consumers need
from brands when it comes to innovation
Reassure me about
my personal concerns
Inspire me by doing
something new and different
Show me how I can
participate in
your brand
Reassure me about
my societal concerns
The Earned Brand | Edelman 2015 | pg 29
Statistical analysis of consumer groupings based on their
attitudes to brand innovation, and their risk concerns.
Source: mobile diaries, qualitative
groups and quantitative segmentation

30. The 4 brand behaviors
that address consumer needs around innovation:
Have a
Purpose
Inform
and Educate
Make
your Mark
Live your
Character
Reassure me about my
personal concerns
Inspire me by
doing something
new and different
Show me how I
can participate
in your brand
Reassure me about my
societal concerns
The Earned Brand | Edelman 2015 | pg 30
Brand
Behaviors
Source: mobile diaries, qualitative
groups and quantitative segmentation

31. The Earned Brand | Edelman 2015 | pg 31
The Earned Brand
The Earned Brand’s story is not simply told, it is demonstrated and
experienced, and to do that, brands can’t operate with a style guide
alone.
The Earned Brand has a world view and a belief system; a purpose
and reason for being – one that defines not just the communications,
but how the brands behave online, off, and in all contexts.
An expressed set of values informs what products are made, what
language is used, how customers are treated, and ultimately the
legacy the brand leaves in the communities it serves.
Earned Brands empower conversations among peers.

32. The Earned Brand | Edelman 2015 | pg 32
Innovation and the Earned Brand
People believe
in the promise
of innovation.
Consumer
acceptance of
brand innovation
cannot be bought.
It must be earned.
While the promise
of innovation
inspires, people
first need to
be reassured.
“I rely on my
peers to
reassure me.
Because their
experience is
my evidence.”
Messaging alone
doesn’t work.
It’s about how
your brand
behaves.
1 2 3 4 5

33. Innovation and the
Earned Brand
Thank you.