According to the report, online product reviews are the third most trusted source of information when making purchase decisions, behind family and friends.
This is particularly so for purchases of consumer electronics, cosmetics and cars - products where consumers are most likely to base their purchase decision on online product reviews.
The report also pointed out that three of the seven biggest global online brands are social media sites - Facebook, Wikipedia and YouTube. Close to three quarters of the world's internet population (74 per cent) have now visited a social networking/ blogging site, and internet users are spending an average of almost six hours per month on social media sites.
According to Charles Buchwalter, chairman and CEO of Nielsen Japan's online division, social media sites are becoming an extension of advertising for brands that businesses can not afford to ignore.
Regional highlights from the report include:
In China, virtual product placement within social networking site games is becoming one of the most profitable methods of revenue for social networking sites, generating between US$200,000 and US$500,000 per month.
62 per cent of Chinese internet users say they are more likely to share a negative review compared to 41 per cent globally.
Similarly in India, online product reviews are increasing their influence on purchases, particularly for consumer electronics. 55 per cent of Indians that read online product reviews have purchased products based on feedback.
Japan's adoption of Twitter continues to grow, with unique visitor numbers having increased from less than 200,000 to more than 10 million in the year ending April 2010. 16 per cent of Japanese internet users now use Twitter, which compares to 10 per cent in the US.
In India, although 70 per cent of social media users identify Orkut as their preferred social media site, Facebook is gaining market share with 50 percent of social media users claiming to use Facebook most often, compared to 38 percent for Orkut.
In Korea, leading social media site Naver attracts 95 per cent of the Korean Internet population every month. While penetration of social media amongst Korea's Internet population is already strong, it continues to grow.
