Importance of Brand Safety and Trust – During Times of Market Turbulence

In an increasingly volatile market landscape where consumer trust and brand perception can make or break a business – maintaining brand safety and a positive public image is more critical than ever.

Whether it’s a digital platform navigating the complexities of content moderation or a luxury brand striving to reconnect with its core audience – the challenges are multifaceted and demand a strategic response.

In this article, we explore these pressing issues through the lens of two high-profile examples: X (formerly Twitter), which is grappling with a decline in trust among advertisers, and Burberry, an iconic luxury brand working to rejuvenate its image amid a sales slump.

By examining their respective approaches, we offer insights into how brands can navigate the delicate balance between trust, safety, and market perception in times of turbulence.

Brand Safety and Consumer Trust

In today’s digital advertising ecosystem, brand safety has become a paramount concern for marketers. As platforms like X (formerly Twitter) continue to face scrutiny over their ability to protect brands from harmful content and maintain user trust, the stakes have never been higher.

According to WARC’s ‘The Future of Programmatic 2024’ report, brand safety is a top concern for 60% of advertisers and agencies involved in programmatic advertising. This statistic underscores the critical nature of safeguarding brand integrity in an environment where content can quickly spiral out of control.

For X, the declining trust among marketers—evident in the mere 4% who currently believe the platform provides brand safety—signals a significant challenge. The platform’s rapid decline in trust, from 22% in 2022 to 12% in 2024, reflects broader concerns about the risks associated with digital advertising.

Marketers are increasingly wary of associating their brands with platforms that struggle to manage content moderation effectively, leading to a net 26% of marketers planning to cut ad spend on X in 2025.

This situation serves as a powerful reminder that brand safety is not just a box to check off; it’s a fundamental component of building and maintaining consumer trust. When a platform fails to ensure a secure and positive environment for advertising, it risks not only losing revenue but also damaging its reputation—sometimes irreparably.

In today’s digital landscape, where consumers are increasingly conscious of the platforms they engage with, brands must be vigilant in choosing where they advertise, prioritising platforms that can guarantee a safe, trustworthy environment aligned with their values.

The Impact of Market Perception on Advertising Strategies

In today’s fast-paced and highly competitive market, perception is everything.

How a brand is perceived by its audience can make or break its success – directly influencing consumer behaviour and, ultimately, the bottom line. Negative perceptions can be particularly damaging, not just in terms of consumer trust but also in how marketing strategies are formulated and executed.

When public opinion turns against a brand or platform, advertisers are quick to react, often by scaling back their spending to protect their own brand image. This reality is evident in the challenges faced by both X and Burberry, where market perception has significantly influenced their respective advertising strategies.

For X, the sharp decline in trust among marketers has led to a significant pullback in advertising spend. Kantar’s 2024 Media Reactions report revealed that only 4% of marketers believe the platform provides brand safety, a staggering drop from 22% just two years ago. This decline is directly tied to X’s ongoing struggles with content moderation and its increasingly controversial public image under Elon Musk’s leadership. As a result, a net 26% of marketers plan to cut their ad spend on X in 2025—the largest drop recorded on any major global ad platform.

This highlights a clear correlation between market perception and ad spending – where negative sentiment forces brands to reconsider their advertising strategies to avoid associating their own brand image with a platform in turmoil.

Burberry’s struggles present a different but equally telling narrative about the impact of market perception. Once a proud emblem of British heritage and craftsmanship, Burberry now finds itself among the worst performers in the FTSE 100 for 2024. Over the past year, the company’s shares have plummeted by 70%, reaching a 14-year low before experiencing a slight recovery.

The luxury sector has faced broad challenges, but Burberry’s downturn is particularly severe, driven by a combination of self-inflicted errors and external pressures.

The decline in Burberry’s market perception has had a profound impact on its advertising and marketing strategies. The company has struggled to navigate a complex identity crisis, attempting to balance its traditional British luxury heritage with the need to appeal to a younger, more global audience.

Leadership instability has further exacerbated the situation, with high turnover in key executive positions contributing to fluctuations in investor confidence. Most recently, Burberry announced the departure of its Chief Marketing Officer, Rod Manley, adding to the uncertainty surrounding the brand’s direction.

These challenges highlight how critical market perception is to a brand’s overall strategy. Negative sentiment not only affects consumer trust but also forces brands to reconsider their marketing approaches, often leading to significant shifts in strategy. For Burberry, the dramatic fall from being a British heritage icon to one of the FTSE 100’s worst performers serves as a cautionary tale of what can happen when market perception turns sour.

Moving forward, the brand will need to rebuild trust and realign its strategies to regain its footing in the competitive luxury market.

The experiences of X and Burberry serve as powerful examples of how crucial market perception is to advertising strategies. Whether in social media or luxury retail – the way a brand is perceived can have a profound impact on its ability to attract and retain both consumers and advertisers. It also underscores the importance of leadership in navigating these challenges and steering brands through turbulent times. Effective leaders must be able to read the market, understand the changing dynamics of consumer trust, and adapt their strategies accordingly to maintain brand integrity and ensure long-term success.

Digital Transformation and Brand Positioning: Navigating the Future

As Burberry works to strengthen its brand, digital transformation has become a key component of its strategy. The luxury market is increasingly moving online, and Burberry has recognised the need to build a digital-savvy marketing organisation. This focus on digital channels is not just about reaching new customers; it’s about positioning the brand for the future.

In contrast, X faces a different challenge in the digital realm. The platform’s ability to maintain a safe and trustworthy environment has been called into question, leading to a decline in user engagement and advertiser confidence. For X, the challenge is not just about digital transformation, but about rebuilding trust in the digital space it occupies.

The contrasting approaches of Burberry and X highlight the importance of digital strategy in brand positioning.

For luxury brands like Burberry, digital transformation offers an opportunity to enhance their brand image and connect with consumers in new ways. For platforms like X, maintaining brand safety and consumer trust is essential to preserving their place in the digital advertising ecosystem.

Crisis Management and Long-Term Brand Building: The Path Forward

Both X and Burberry are currently navigating crises that could have long-term implications for their brands. X is facing an existential threat in the form of declining trust and ad spending, while Burberry is working to turn around its fortunes in a challenging luxury market.

For Burberry, the focus has been on long-term brand building. The brand’s strategy includes a shift towards top-funnel marketing and a renewed emphasis on its core values. This approach reflects an understanding that long-term brand building is essential for sustaining growth, even in turbulent times.

On the other hand, X’s focus has been more reactive, addressing immediate concerns about content moderation and platform safety. While these are important issues, the lack of a clear long-term strategy has contributed to the platform’s declining trust and market perception.

The contrasting approaches of X and Burberry offer valuable insights for brands navigating their own challenges.

In times of market turbulence, crisis management is essential, but it must be balanced with long-term brand building. Brands that focus on maintaining consumer trust and staying true to their core values are more likely to emerge stronger in the face of adversity.

Building a Marketing Strategy for Turbulent Times

The challenges faced by X and Burberry serve as a reminder of the importance of brand safety, trust, and effective leadership in today’s market. As brands navigate an increasingly complex and competitive landscape, the need for a robust, long-term marketing strategy has never been greater.

If your brand is facing challenges or if you’re looking to build a marketing strategy that will stand the test of time, get in touch with us today. Our team of experts can help you navigate market turbulence and ensure your brand remains strong and trusted in any environment.