Edelman 2006 Trust Barometer Ranks Japan Number One in Trust of Business; Japanese Trust in Internet, US Companies on the Rise.

Tokyo, Japan, Feb 7, 2006 - (JCN Newswire) - Edelman (www.edelman.jp), the world's largest independent public relations firm, today announced the results of a new international study of opinion leaders that shows increased Japanese trust of business in general and for US companies in particular. The study also reveals the rise of the Internet as a source of trustworthy news, the emerging credibility of blogs for company information, as well as trust levels for Japanese companies among Chinese opinion leaders (and vice-versa).

Highlights of the 2005 Edelman Japan Stakeholder Study survey include:

-- Business is the most trusted institution (66%) among Japanese opinion leaders polled.

-- Percentage of Japanese opinion leaders turning to the Internet first for news doubles from last year's study; Internet's credibility as a source for company information nearly triples.

-- A world-leading 98% of Japanese respondents believe information they get from articles or news stories more than information they get from advertisements.

-- 80% trust US-based global companies; 16% trust China-based global companies.

The seventh annual survey -- the 2006 Edelman Trust Barometer Study conducted by StrategyOne -- polled a total of 150 Japanese opinion leaders (among a global study of 1,950 opinion leaders in the 11 markets surveyed, including: Brazil, Canada, China, France, Germany, Italy, Japan, South Korea, UK, US, and Spain).

Japanese Trust in Institutions (business, media, government, and NGOs)

Japanese opinion leaders' trust in institutions has generally increased since last year, with the most significant jump for the institution of business (where more Japanese opinion leaders trust business than those in any other country polled). Two-thirds (66%) of Japanese respondents trust business 'to do what is right,' a 23% increase from last year (this compares to 56% in China, 49% in the US, and 38% in Europe).

With Japan's economy firmly on track for a sustained recovery, "business -- the engine of economic growth -- is trusted to do what is right after years of media coverage about what was going wrong," says Robert Pickard, President of Edelman, North Asia.

In Japan, the institutions of media and the government saw increased trust as well, both moving up from 31% last year to 41% this year. NGOs now enjoy a similar level of trust (40%) in Japan, though in the rest of the world, the number is significantly higher (60% in China, 54% in the US, and 52% in Europe).

Trusted Media Sources: Rise of the Internet and Blogging

The Edelman study discovered a significant shift compared to last year's findings when it comes to which type of media Japanese opinion leaders turn to first for trustworthy information/news. This year, 39% of respondents said they turn to newspapers first, down from last year's 50%. The percentage that turn to television first dropped from 32% to 22%. Meanwhile, the percentage who turn to the Internet first increased from 7% last year to 15% this year), accompanied by a dramatic rise in the Internet's credibility as a source for information about a company (16% last year; 43% this year). The 2006 study also shows the rise of blogs, with 22% saying they are a credible source of information about a company.

"The fact that twice as many Japanese opinion leaders now turn to the Internet first for trusted news compared to last year -- with the Internet having gained almost three times more credibility during the same time -- raises some interesting questions," says Keizo Kumazawa, Deputy Managing Director of Edelman Japan. "Will Japanese newspapers and broadcasters be able to project the power of their brands onto the Web? Does the old 'top-down' model of advertising one-way messages through a finite number of media channels still make sense at a time when blogging makes possible an infinite extent of building relationships of trust through two-way conversations online?"

The Rise of 'a Person Like Yourself'

Striking in this year's study is the fact that 59% of Japanese opinion leaders say that 'a person like yourself or your peer' is a credible source of information when forming an opinion about a company. "This Japanese data is very consistent with what we're seeing around the world," says Pickard. "The Internet and blogging are the democratizing media forces that give a voice to the opinions of these personal contacts, so corporate communicators and marketers need to change their thinking about the effectiveness of traditional paid methods and explore novel ways of earning media coverage and building relationships online."

Earned Media Far More Credible Than Paid Media

Leading a global trend, 98% of Japanese respondents polled said they believe information they get from articles/news stories more than they believe information from advertisements.

Trust in Companies by National Origin

When asked about their trust in global companies headquartered in specific countries 'to do what is right,' 80% of Japanese opinion leaders said they trust US companies, up from 58% last year (this year 62% of American opinion leaders said they trust Japanese companies in response to the same question). Only 16% of Japanese opinion leaders surveyed said they trust global companies headquartered in China -'to do what is right' whereas 35% of Chinese opinion leaders surveyed said they trust global companies headquartered in Japan 'to do what is right'.

About the 2006 Edelman Trust Barometer

The Edelman Trust Barometer tracks the attitudes of opinion leaders around the world -- which institutions, companies, and sources of information they trust, what drives that trust, as well as the credibility of institutions. The seventh annual study (second annual in Japan) was conducted through 25-minute telephone interviews with 1,950 opinion leaders in 11 countries: Brazil, Canada, China, France, Germany, Italy, Japan, South Korea, UK, US, and Spain. One hundred and fifty (150) Japanese opinion leader interviews were conducted by StrategyOne in October 2005. For the purposes of the study, 'opinion leaders' are defined as being between 35-64 years in age, university graduates with annual household income of more than USD 75,000 (roughly JPY 9 million) or equivalent, and reporting a significant interest and engagement in the media, economic affairs, and policy issues.

About Edelman Japan

Founded in 1952, Edelman (www.edelman.jp) is the world's largest independent public relations agency with annual revenues of USD 253 million (JPY 30 billion). The firm's more than 2,000 professionals serve clients from 45 offices in 23 countries. This year Edelman was named "Best Agency" by Advertising Age and "International Agency of the Year" by The Holmes Report. Japan's fastest-growing international PR consultancy, Edelman offers a full spectrum of the most state-of-the-art public relations services available today. From CSR consulting to crisis communications to word-of-mouth campaigns, Edelman is working to set a new PR standard by helping world companies communicate in Japan, and helping Japanese companies communicate around the world.

Source: Edelman Japan

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