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February 2009 Archives

Lower Income CPG Shopper Growth Outpacing Others

By numantra on February 27, 2009 7:56 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDAI RESEARCH

 

Friday, February 27, 2009



According to a study from by Resources, Inc., lower-income households' Consumer Product Goods spending growth is outpacing higher income households' in the United States and will generate $84 billion in incremental CPG spending during the next decade. They shop more frequently than other income groups, but spend less per trip.

Lower-income shoppers are not a homogenous group, and the report focuses on the differences and recessionary spending patterns and behaviors of lower-income micro segments driving CPG growth. Five key lower-income micro segments will be responsible for many growth opportunities, says the report.

Lower Income Micro Segment Goals & Values

Micro Segment

Financial Concerns & Goals

Lifestyle Values

Age 25-34

Optimistic about getting ahead; worried about debt

Live on the fly, spontaneously; eat out regularly; friends key

Age 65+

Worried about healthcare & costs; controlling expenses key

Eat in; TV, family & friends key

HH with Kids

Worries about kids'welfare; paycheck to paycheck; can't save

Some carryout meals. Kids'school & sports key

Hispanics

Worries about job security; need multiple incomes to survive

Eat as a family; Family gatherings & sports key

African Americans

Worried about daily needs; shop only with paychecks

Prefer fast foods ; TV, family & sports key

Source: Information Resources, Inc, 2008

This report disposes many conventional views of lower income shoppers.

Much of what retailers and manufacturers believe about their lifestyles, their attitudes, and their spending is wrong, says the report

Lower Income Shopper Myths and Research Findings

Conventional View

What the Research Reveals

Lower income shoppers spend less than higher income households and as a result, represent a lower economic opportunity

Lower income households CPG spending growth is outpacing higher income households, and this group will generate over $84 billion dollars in spending growth over the next decade

In the current recessionary period, households with lower incomes generally share the same shopping tendencies

Micro-segmenting lower income shoppers uncovers huge variations in shopping frequency and spending levels as well as channel and category-level dynamics

Lower income shoppers are less profitable because they only buy value brands and other products when they're on sale

Lower income shoppers are more interested in good values than in sale items. Further, retailers have enormous untapped opportunities to target these shoppers with value-based private label products and messaging.

A low price reputation is the most important criteria that lower income shoppers use when selecting a store

Survey results tell us that lower income shoppers select stores on the basis of many key factors that are just as important as price.

Source: Information Resources, Inc., 2008

Lower income U.S. households are projected to increase based on a growing Hispanic population and growth in the number of retiring Baby Boomers in the coming decade. Also, many will shift into the middle-income group.

US Households by Income Group (% HH in Constant 2005 Dollars)

 

2000

2005

2010

2015

Under $35K

36.5%

38.4

'38.6

38.9

$35K - $55K

20.0

19.3

19.6

19.9

Over $55K

43.5

42.3

41.8

41.3

Source: Dept. of Commerce Census Bureau; 2006 Annual Social andEconomic Supplement (2005); IRI projection

Younger households and households with kids are driving growth across key food categories. African American and older household spending has increased notably in salty snacks and chocolate candy; Hispanics in frozen dinners & cereals.

Lower Income Micro-Segment Spending Growth In Ten Largest Food Categories

 

Lower Income Food Shopper Micro-Segments % Spending Change in Dollars/1000 HH, 2008 vs 2005

Food Category

Category Size ($Mil)

HH Age 25-34

HH Age 65+

Hispanic

African American

HH with Children

Frozen Dinners/Entrees

$8,244.5

21.9%

4.6%

10.8%

0.1%

18.3%

Salty Snacks

$7,658.7

15.4

15.9

3.1

9.4

8.7

Fresh Bread & Rolls

$7,440.2

30.7

6.8

-1.4

4.1

14.8

Cold Cereal

$7,289.4

23.3

3.7

9.9

-1.5

13.0

Natural Cheese

$6,913.1

33.1

6.5

8.2

-2.8

16.6

Chocolate Candy

$5,475.7

40.0

16.6

5.9

21.3

12.6

Soup

$4,318.9

24.6

3.6

3.5

0.0

17.9

Cookies

$3,985.6

4.1

-0.7

6.0

-7.8

-2.8

Crackers

$3,959.9

30.3

3.9

6.8

-3.5

13.6

Ice Cream/Sherbet

$3,833.8

9.8

1.5

-13.6

4.7

0.6

Total Food Categories

$175,9

71.916.6

5.6

-0.2

1.2

8.2

Source: Information Resources, Inc, 2008

Conservative growth estimates project U.S. lower income households to grow to over 50 million and for annual CPG spending to climb to over $100 billion.

This trend represents an incremental 10-year CPG opportunity of $84.2 billion.

U.S. Lower Income Projections (Census Bureau Survey & IRI Panel Data)

 

2008

2013

2018

Total U.S.  Households (millions)

45.6

48.7

52.0

CPG $ Spending (billions)

$87.6

$96.0

$105.2

Sources: Dept. of Commerce Census Bureau; 2006 Annual Social and Economic Supplement. 2005 Survey; IRI Consumer Network, 52 weeks ending 5/11/2008 -295 categories -all outlets.

IRI Consulting and Innovation President Thom Blischok, says "...at this point in history, the lower-income shopper is continuously challenged to stretch each and every one of their dollars, which will continue for at least the next four-to-eight years."

Sean Seitzinger, senior vice president, IRI Consulting and Innovation, explains ".,. once you understand the wants and needs of the different shopper segments, you can then put the right products with the right pricing on the right shelves with the right displays to meet all of their needs."

For more information on the report and IRI, please access the PDF file here, or read the complete release here.

For more information visit www.mediapost.com

Email Campaign Expert Shares Effective Marketing Strategies

By numantra on February 26, 2009 8:01 AM

MediaPostNews

ONLINEMediaDaily

Email Campaign Expert Shares Effective Marketing Strategies

by Laurie Sullivan, Monday, February 23, 2009, 7:00 AM

 

Google may target ads to Gmail users, but Yahoo and a handful of Internet service providers have begun screening words that pop up in email accounts to test the link between buzz words and promotional newsletter campaigns, email strategist Jeanne Jennings told Online Media Daily.

Tying buzzwords to newsletter content has proven to be a successful strategy to attract consumers' attention and get them to act on offers and promotions, Jennings said. "An effective email newsletter should contain 20% promotional copy that sells products or services, and 80% editorial copy and engagement content such as polls and quizzes that encourage two-way communication," she said.

In a Webinar last week hosted by Real Magnet, Bethesda, Md., Jennings laid out the "10 Steps to an Effective Email Strategy." Determining the target audience and the most optimal time to schedule the newsletter when readers are at their desk, ready and willing to open the email, are two top steps that can either make or break a campaign.

Jennings's research shows that the best time to blast email industry newsletters to subscribers is around lunch because many people eat at their desk but want something that can make them look busy. Ideally, she said, marketers should stagger the send schedule based on the ZIP code, so the email arrives in the inbox just before lunch in the receiver's time zone.

Aside from scheduling, knowing the value and average amount spent for each name on the email list becomes more critical as addresses are added. It helps when the time comes to tie the email project into organic search or pay-per-click (PPC) campaigns because it puts a value on the price of additional names.

Marketers also should compile budgets and return on investment (ROI) projections to keep projects in check. Citing Direct Marketing Association (DMA) estimates, Jennings said an aggregate ROI from email campaigns, on average, should come in at $43 in 2009. "By knowing your costs and projecting delivery rates, open rates, click-through rates, conversion rates and dollars per sale, you can project your revenue and determine a ROI goal," she said.

 

For more information visit www.mediapost.com

 

Easy Cell: Mobile Ad Revs To Hit $3.1 Bil. By 2013

By numantra on February 25, 2009 7:56 AM

MediaPostNews

MediaDailyNews

 

Easy Cell: Mobile Ad Revs To Hit $3.1 Bil. By 2013

by Wayne Friedman, Yesterday, 11:29 AM

·                                  

 

TV stations will be warmed by the fact that mobile advertising revenues are expected to skyrocket to $3.1 billion in five years--especially local mobile activity.

According to the Kelsey Group, mobile advertising will have an annual compounded growth rate of over 80%. Currently, mobile advertising sits at $160 million in 2008.

In looking at mobile local search alone, the group says its expected revenues will soar over 130% per year to $1.3 billion. Current local search totals sit at $20 million in revenue.

Currently, Kelsey says 54.5 million mobile Internet users in the U.S. represent 25% of online users.

The research group also notes that mobile searches with local intent will rise from 28% in 2008 to 35% in 2013, and that approximately 15% of iPhone applications are local.

Local TV stations have placed great emphasis on the growth of mobile. At the Open Mobile Video Coalition announcement in Las Vegas at the Consumer Electronics Show, major TV broadcast groups said they had devised plans that allowed their TV signal to be sent directly to mobile phone devices.

The Kelsey Group is a division of BIA Advisory Services, LLC.

For more information visit www.mediapost.com

Measurable Returns Becoming Ad Criteria for 2009

By numantra on February 24, 2009 8:06 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Tuesday, February 24, 2009



The Vertical Search (B2B) Report 2009, published by Econsultancy and sponsored by Convera, based on an online survey of more than 500 media and internet professionals, shows that the need to find information quickly is the main advantage of vertical search engines from the perspective of business users. 67% of the respondents say that quicker to find desired information is a major benefit of vertical search; 65% say more relevant information; 64% feel that focus on specific business interests and workflow is a significant benefit.

Additional highlights from the findings include:

  • 47% of respondents are more likely than last year to be using widgets (desktop or in-browser) that provide customized internet marketing and business information, compared to 35% of internet marketing professionals a year ago
  • More than half of survey respondents report that their businesses are using SaaS for email (77%), web hosting (74%), sales and marketing (62%), CMS (59%), file and assets storage (57%), search (57%) and ad serving (51%)

Business-to-business marketers say they plan to increase spending on online performance-based ads in 2009, at the expense of traditional display ads, as they seek clearer, more measurable returns during the economic downturn, according to the report.

  • 78% of advertisers are planning to raise their spending on CPA (cost-per-action/acquisition) formats this year
  • 67% plan to increase spending on cost-per-lead (CPL) ads
  • Just under half will increase spending on cost-per-click (CPC)
  • 29% say that their spending on CPM (cost-per-mille /online display advertising) will increase this year

The 2009 Vertical Search Report is a follow-up to research conducted a year ago among publishers and advertisers to determine how digital marketing professionals are finding work-related information online, and the challenges facing publishers and advertisers as they move online to monetize offerings. More research findings include:

  • 53% of publishers surveyed incorporate "basic" search site features on their site, compared with 41% who have integrated "more sophisticated" search tools
  • 6% have no site search features on their website at all
  • 37% of publishers use in-house technology for site search
  • 22% use search embedded within the content management system
  • 17% use licensed technology
  • 15% use freeware such as open source technology
  • 33% of publishers surveyed offer the ability to search third-party content from their website
  • 18% of publishers are planning to implement this in the future
  • 91% of publishers surveyed make use of search log analytics
  • 28% refer to search logs frequently
  • 36% say they derive strategic value from search log analytics
  • 26% of internet marketing professionals use their mobile/cell phone for searching at least once a day, and 18% use their mobile device for a work-related search at least daily
  • 75% of respondents say that the quality of the mobile search experience is average or poor, compared to only 25% who say that it is excellent or good

Linus Gregoriadis, Econsultancy's research director "Publishers... more than ever need to... adapt to trends such as... performance-based advertising and the increased use of widgets."

For more about the Econsultancy Report, please visit here.

For more information visit www.mediapost.com

Mobile Internet Predicted Up in '09, But Not Ads

By numantra on February 23, 2009 8:01 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Monday, February 23, 2009



MEF recently releasesd its Top Ten 2009 Mobile Entertainment trends including the 'iPhone effect' and greater pricing transparency for consumers, but predicts that mobile advertising will not "take off." The report notes that, though the $25 billion global mobile entertainment industry has weathered and prospered through hard times as well as good, 2009 will be a year in which almost a decade of investments begin to deliver returns.

MEF has identified what members see as the biggest trends facing the mobile entertainment industry in 2009:

  • The 'iPhone effect' -Mobile applications have emerged as a new content category and the mobile internet will finally come of age
  • Greater value and transparency for consumers will help sustain demand in 2009
  • Some delay in the proliferation of mobile advertising
  • Telcos begin to acts as enablers for the Entertainment industry with services such as billing, authentication and zero tariff data
  • The emerging dominance of services that operate at a multi-platform level
  • The rise of ring back tones
  • Social networking becomes an important driver of mobile entertainment consumption
  • 2009 will be the year that mobile video really takes off
  • Emerging economies will become an increasingly important driver for mobile entertainment worldwide
  • A proliferation of touch screen devices drives discoverability and content usage

More about mobile entertainment, from a Nielsen report summarized by Mediabuyerplanner,  shows that content from NBC and CBS is among the most popular with viewers of mobile video, with many tuning in to watch hour-long dramas, a format that was assumed unpopular with mobile viewers. NBC is drawing the largest audience to mobile, generating 1.8 million mobile video streams. Of those, 1.3 million were for full episodes of shows like Heroes and The Office.

Traditional shows are popular because they're familiar, says the report. Made-for-mobile shows, such as those CBS has had in development, are hard to find because mobile web users are less inclined to search aimlessly. Still, CBS is continuing to produce mobile series, and has scored with short Hollywood news segments.

Steve Andrade, general manager of NBC.com, says that "Long-form is doing better for us than short form and... we're surprised... "

Nielsen estimates that 10.3 million mobile phone subscribers, 5% of the cell phone population, access video via their phone each month. M:Metrics' most recent survey shows that just 7.5 million users watched video in a given month.

"As smartphones continue to drop in price, and new entrants impress consumers," says comScore, "mobile internet penetration and engagement will continue to soar..."

For more about mobile entertainment trends from MEF, please visit here, or from mediabuyerplanner, visit here.

For more information visit www.mediapost.com

Pizza Friday 02.20.09

By numantra on February 20, 2009 11:24 AM
This week's Pizza Friday follows Frito Lay's matchmaking website, Kraft Foods new smile, and the 64 calorie collection.
Pizza Friday 82
View more presentations from Mike Heronime. (tags: advertising marketing)

Job Search, Coupons, Politics and Classifieds Led Digital Site Growth in 2008

By numantra on February 20, 2009 8:11 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Friday, February 20, 2009

 

According to the comScore 2008 Digital Year in Review Report, the job search category ranked as the top-gaining site category for the year, up 51% to nearly 19 million visitors in December 2008, as the millions of Americans affected by the deteriorating job market sought online job resources for assistance. Other top-gaining categories in the report included coupons, up 46% to 31.6 million visitors, politics, up 43% to 12 million visitors, and classifieds, up 27% to nearly 53 million visitors.The study shows that U.S. Internet users viewed a total of 4.5 trillion display ads (not including video) during the past twelve months, with the average person viewing more than 2,000 ads per month. Despite the staggering total volume, the number has declined somewhat over the course of 2008. This, though, is believed to reflect a shift in strategy among some display ad publishers to reconfigure their advertising inventory to reduce ad clutter in order to drive up CPMs, while some advertisers are shifting from static and rich display ads to using video ads.

The list of top display advertisers continued to be dominated by phone service providers. In November 2008, AT&T was the top advertiser while Sprint Nextel, Vonage, and Verizon made the top ten list. On the publisher side, Yahoo! sites served the most display ads in November, followed by Fox Interactive Media, and AOL LLC with 18.2 billion. 

Top Ten U.S. Online Display Advertisers November 2008

 

Total Display Ad Views (MM)

AT&T, Inc.

6,593

Microsoft Sites

4,104

Apollo Group, Inc.

3,796

Sprint Nextel

3,298

United Online, Inc

3,036

Experian Interactive

2,605

Vonage Holdings Corp

2,598

Verizon Communications

2,572

Netflix.com

2,305

Bank of America

2,284

Source: comScore Ad Metrix (U.S.)

 

Top Ten U.S. Online Display Publishers November 2008

 

Total Display Ad Views (MM)

Yahoo! Sites

37,128

Fox Interactive Media

34,910

AOL LLC

18,199

Facebook.com

13,711

Microsoft Sites

13,433

Google Sites

4,095

eBay

2,737

Viacom Digital

2,208

Glam Media

2,104

United Online, Inc

1,779

Source: comScore Ad Metrix (U.S.)

Total U.S. e-commerce spending reached $214.4 billion in 2008, a 7%  increase versus the previous year. Travel e-commerce spending grew 9% to $84.3 billion, while retail (non-travel) e-commerce spending grew 6%  to $130.1 billion.  2008 ranked as the softest year for retail ecommerce spending growth since comScore began tracking it in 2001. January showed the first signs, as growth rates declined to 12 percent after growing at a 20-percent rate in 2007.   

Growth rates reached a peak in April at 15 percent, followed by eight successive month of declining growth rates in the remainder of the year. The holiday shopping months of November and December saw negative growth rates, representing the first months on record to have lower online sales than the same month the prior year. 

U.S. Retail E-Commerce Growth Trend

2008

Y/Y Growth Rate

January

+12%

February

+14

March

+9

April

+15

May

+12

June

+11

July

+8

August

+6

September

+5

October

+1

Novovember

-3

December

-3

Source: comScore inc, January 2009 (November and December growth rates based on corresponding shopping days relative to Thanksgiving, not calendar days)

The fastest-growing retail category in 2008 was Video Games, Consoles & Accessories which continued to benefit from online sales of popular game consoles. Other fast-growing categories included Home, Garden & Furniture and Sport & Fitness, both of which benefitted from an increasing consumer willingness to complete high-ticket purchases online. 

Fastest Growing U.S. Retail Categories in 2008

Retail Category

Year to Year % Change

Video Games, Consoles & Accessories

+29%

Home, Garden & Furniture

+25

Sport & Fitness

+25

Event Tickets

+13

Consumer Electronics

+9

Apparel & Accessories

+4

Computer Hardware

-5

Toys & Hobbies

-7

Books & Magazines

-8

Flowers, Greetings & Gifts

-10

Office Supplies

-10

Jewelry & Watches

-12

Computer Software (excl. PC Games)

 -18

Music, Movies & Video

-23

Source: comScore inc, January 2009

Online activity in 2008 largely reflected the biggest news events of the year, including the economic crisis and the U.S. presidential election. Job Search ranked as the top-gaining site category for 2008, growing 51% to nearly 19 million visitors in December, as Americans turned to the Internet to seek new career opportunities after significant job losses were incurred during the second half of the year. Category leader, CareerBuilder.com Job Search, jumped 78% to 9.1 million visitors.

As signs of an economic recession continued, consumers became increasingly cost-conscious and sought ways online to curb their spending.

  • Coupon sites witnessed a 46% increase during the year, reaching more than 31.5 million Americans in December
  • Classifieds also saw a sharp increase in traffic, growing 27% to 52.8 million visitors, as Americans attempted to benefit through the purchase and sale of used items
  • Craigslist grew 51% during the year

The Politics category was one of the fastest growing categories in 2008, up 43% to nearly 12 million visitors. Both candidate sites peaked in October, with BarackObama.com reaching 8.5 million visitors and JohnMcCain.com with 3.8 million visitors.

Top-Gaining U.S. Site Categories Dec-08 Total Unique Visitors

 

% Change in 2008

Classifieds

+27%

Online Gaming

+27

Family

+29

Radio

+30

Online Gambling

+36

Gay/Lesbian

+41

Politics

+43

Coupons

+46

Women

+46

Job Search

+51

Source: comScore Media Metrix (U.S.) January 2009

According to the study, the U.S. Internet population grew 4% in 2008 to 190.7 million visitors in December. Google Sites captured the top U.S. property ranking in April and reigned in that position for the balance of the year. For the year, Google Sites grew 12% to 149 million visitors.

The top growing properties in 2008 (based on the top 100 properties in December 2008) increased the size of their online audiences through acquisitions/partnerships, organic growth, or a combination of the two.

Other properties grew their audiences more organically. Facebook.com continued its strong momentum by growing its visitor base 57% to 54.6 million visitors, while Wordpress, the largest blog publishing platform, surged 64% to 24.2 million visitors. The Firefox Internet browser showed a 40%  increase for the Mozilla Organization.

Please visit here to download free PDF file of the complete comScore Digital Year In Review report.

For more information visit www.mediapost.com

Marketing Plans Take a Beating

By numantra on February 19, 2009 7:51 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Thursday, February 19, 2009



A new survey from the ANA (Association of National Advertisers) shows that the recession had a more profound effect on the marketing industry than predicted just six months ago,.  Following up on a survey conducted in August, the second survey conducted on this topic reveals that more companies are identifying cost savings and reductions (93% as opposed to 87% six months ago) and that 37% of respondents today plan to reduce budgets by more than 20%, up substantially from the 21 % of respondents in the first survey.

The top five areas where marketers plan to reduce costs or expenditures in marketing and advertising efforts are:

  • Departmental travel and expense restrictions (87% versus  63% in the previous survey)
  • Reducing advertising campaign media budgets (77% versus 69% in the previous survey)
  • Reducing advertising campaign production budgets (72% versus  63% in the previous survey)
  • Challenging agencies to reduce internal expenses and/or identify cost reductions (68% versus  63% in the previous survey)
  • Eliminating or delaying new projects (58% versus  61) in the previous survey)

Other tactics gaining greater consideration by marketers today, as compared to six months ago include:

  • Departmental salary or hiring freezes jumped to 57% from 45% six months ago
  • 48% of marketers are looking at reducing agency compensation today, versus 32% six months ago

In the first survey, the ANA asked if marketers thought their budgets would increase, decrease or remain the same in the next six months.  In the recent survey, the ANA asked what actually happened.

  • In July/August, 53% of marketers thought their advertising budgets would be reduced in the next six months, when in fact, 71% experienced a budget decrease
  • 38% thought their budgets would remain the same, but only 23% had their budgets untouched
  • 9% thought they would see a budget increase, when only six% did

When asked about their predictions for what will happen in six months from now:

  • 49% of respondents felt that their advertising budgets would be reduced
  • 43% think that they will stay the same
  • 8% have hope that their budgets will increase

Bob Liodice, ANA President and CEO, concludes that "... some marketers, (in the current economic environment)... will skew their media mix towards promotional spending and direct marketing... others will frame a new, relevant and timely brand message."

For more information, please visit the Association of National Advertisers here.

For more information visit www.mediapost.com

 

Women's Favorites On TV

By numantra on February 18, 2009 7:56 AM

RESEARCH BRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Wednesday, February 18, 2009



According to the E-Poll monthly study evaluating daytime programs, daytime drama viewers are most likely to say they watch the entire episode of their program compared to other daytime program, and are most apt to talk about their show and recommend it to others.  Court shows are next most likely to be watched in their entirety (47% "watch the whole show"), while talk shows generate more word of mouth (48% "talked about show"  and 26% "recommended show")

61% of morning shows, which air while viewers are getting ready for work are most likely to be watched in part, while 26% are kept on in the background. Good Morning America generates the highest ratings for "information provided" and "hosts," among the three morning shows evaluated. 54% of viewers say they watch part of Entertainment news magazines, and 20% just keep it on in the background.

Uniquely formatted TMZ, though, over-indexes relative to other programs in the news magazine genre on loyalty (25% "make a special effort to watch"), 41% view of the entire program, and 36% talked about the show). 

Female Daytime Television Viewing "Watched" (% of Respondents)

Show Type

Special Effort to Watch

Watch the Whole Show

Daytime drama

58%

59%

Court shows

27

47

Talk shows

26

41

Morning shows

26

13

Game/Quiz shows

18

41

Entertainment news magazines

14

26

Source: epollresearch, February 2009

In the latest results among court show viewers, Judge Judy attracts strong word-of-mouth ratings (48%) and ties Judge Mathis as most recommended (21%).  Judge Judy is the court show that program viewers most often say they would "miss a lot" if it no longer aired (36%). The appeal of Judy's show, according to the respondents, is in her no-nonsense style, "The way she cuts through the malarkey and gets down to what is legally right in her view... tells it like it is!  I want to be her... and tell...  people what I think of them!"

Female Daytime TV Genre Viewing "Talked About" (% of Respondents)

Show Type

Talked About Show

Recommend Show

Daytime drama

51%

25%

Talk shows

48

26

Morning shows

40

17

Game/Quiz shows

38

18

Court shows

33

17

Entertainment news magazines

23

8

Source: epollresearch, February 2009

In the midst of the ongoing economic recession, television networks have to watch their expenses, says the report. NBC's decision to move Jay Leno and the tentatively titled The Jay Leno Show to the 10 P.M. hour can be seen as a cost-cutting move. Although 2009-10 schedules have not been set, Leno will be competing against some top shows currently airing at 10 P.M.

Women Readers Rate Programs, Make Special Effort to Watch, and Consider Engaging (% of Respondents)

Program

Rated Excellent

Special Effort to Watch

Engaging

Numbers

52%

52%

64%

CSI: New York

42

36

60

Eleventh Hour

42

63

58

CSI: Miami

38

31

56

Without a Trace

38

36

50

Tonight Show Jay Leno 30

21

39

 

Source: epollresearch, February 2009

The report concludes that "...Jay Leno and NBC have their work cut out for them.  It is expected that when The Jay Leno Show debuts next television season, it will have increased viewership compared to The Tonight Show in its current time slot, but it is important that the show is engaging enough to make sure viewers tune in."

Source: FastTrack Television- Weekday is a monthly tracking study conducted by E-Poll to measure awareness, viewing and perceptions of weekday broadcast programs among a total of 1,000 daytime network viewers ages 13-54. This analysis was based on female viewers ages 13-54.

For more about the study, please visit here.

For more information visit www.mediapost.com

eMail Tops Online Ad Budget Change in '09

By numantra on February 17, 2009 8:03 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Tuesday, February 17, 2009



According to a survey of marketing executives by Datran Media, E-mail leads all other channels by a wide margin in terms of performance for their companies. 80.4% of more than 3,000 executives surveyed chose e-mail as a strong advertising performer, compared to 56.8% who chose search, the second leading performer.

In addition:

  • 42.1% chose online display advertising as a strong performer
  • 32.8% selected offline media, such as television and print
  • 32.1% chose direct mail
  • 22.9% selected social media
  • 9.2% chose mobile marketing

Anticipated Online Advertising Budget Allocation in 2009 (% of Respondents)

Media

Expected Change

 

Reduce

Stagnant

Increase

Unsure

 

 

 

 

 

Display

21.9%

33.8%

23.6%

21.1%

Email

5.7

23.0

58.5

13.2

Search

3.6

28.2

54.4

13.9

Social media

5.7

24.3

43.9

26.5

Direct mail

25.6

31.2

14.1

29.1

Offline media

34.9

24.6

13.8

27.2

Source: IPSOS Marketing & Media Survey, January 2009

 

Importance of Selected Advertising Goals in 2009 (% of Respondents for Each Goal)

Goal

Degree of Importance

Least Important

Less Important

Important

Most Important

New customer acquisition

2.6%

2.2%

32.7%

63.2%

Increased brand awareness

11.3

26.0

48.7

14.0

Increased brand favorability

11.4

26.6

48.7

14.1

Increased customer retention

5.6

7.8

43.7

42.7

Source: IPSOS Marketing & Media Survey, January 2009

 

2009 Marketing Tactics (% of Respondents, Multiple Response OK)

Tactic

% of Respondents

Monetizing online ad inventory

45.0%

Behavioral targeting

53.9

Customer win-back programs

28.4

Newsletters

62.0

List growth

54.2

Affiliate marketing

42.1

Direct mail

29.9

Unsure

5.2

Source: IPSOS Marketing & Media Survey, January 2009

Most Important Online Marketing Consideration in 2009 (Open End)

  • How to engage customers and be more relevant in their everyday lives
  • The proper way to speak to our customers
  • How to maximize behavioral targeting in email and display marketing efforts
  • How to better leverage email, search and social networking
  • Finding a way to monetize social media
  • Diversifying online advertising campaigns to include more emerging technologies
  • Going all digital with marketing efforts
  • Targeted direct marketing based on user online behavior
  • Increase on our email marketing spend for better segmentation and targeting
  • Make on-line marketing more measurable
  • Offline budget shift to online to supplement currently program

Please visit Direct here for access to the complete 3rd Annual Marketing & Media Survey Results report.

For more information visit www/mediapost.com

Bi-lingual Hispanics Live With Ease in Both Worlds

By numantra on February 16, 2009 7:59 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Monday, February 16, 2009



According to a recent Ipsos U.S. Hispanic Omnibus study, U.S. Hispanics, regardless of whether their language preference at home is English (43%), or Spanish (52%), are turning to either language to meet their needs. When Hispanics turn on their televisions over half of them are tuning into an English language program.

Younger viewers are not the dominating presence in front of the English language small screen. Hispanics, aged 18-34, are actually less likely (54%) than older Hispanics, aged 55+, to prefer English language television (61%). And:

  • 52% of Hispanics aged 35-54  prefer English language television.
  • 45% percent of Hispanics with children in the household say that they prefer Spanish language television.
  • 63% of Hispanic households without children are highly likely to prefer English television
  • 80% of College educated Hispanics prefer English language television

Mixing languages does not complicate the lives of United States Hispanics who are living with ease in both worlds - one that is in English and the other that is in Spanish, concludes the report.

The person playing that Spanish beats music on radio is most likely to be a Hispanic female (51%), as they are more likely than Hispanic males (38%) to tune into Spanish radio. Among radio preferences overall, Hispanics are practically split as 49% stated that they listen to English language radio while 45% percent listen to Spanish language radio.

  • Hispanics aged 55+ are more likely to prefer radio in English than in Spanish (56% vs. 38%)
  • Among those 35-54, half (50%) prefer radio in English.
  • Hispanics, aged 18-34, are practically split among preference as 46% prefer English and 47% prefer Spanish radio.
  • 55% of all Hispanics said that their language preference for the Internet is English.
  • 39% of Hispanics age 18-34 prefer Spanish language internet sites
  • 42% of Hispanic females prefer Spanish when surfing the web compared to just twenty nine percent (29%) of Hispanic men

53% of Hispanics read the news and they are looking for information in both languages:

  • 53% in English to find out the current affairs in their local U.S. city
  • 33% in Spanish to follow up with the news in their home country
  • 44% read Spanish newspapers that cover news in their community in the United States. 57%, with an annual household income under $50,000, do so

Cynthia Pelayo, Ipsos senior research manager, says "... many US Hispanics continue to speak primarily Spanish, among their peers, family and friends, to watch television in Spanish and to be involved in cultural community events that are mostly conducted in Spanish."

She goes on to note that their innate skill to utilize either language is an advantage in functioning in US institutions while preserving their Hispanic heritage.

With a sample of this size, notes the report, the results are considered accurate within ± 3.1 percentage points, 19 times out of 20, of what they would have been had the entire population adult homeowners in the U.S. been polled. These data were weighted to ensure the sample's regional and age/gender composition reflects that of the actual U.S. population according to data from the U.S. Census Bureau.

To read the complete Ipsos Whitepaper, please visit here.

For more information visit www.mediapost.com

Pizza Friday 02.13.09

By numantra on February 13, 2009 11:36 AM
This week's Pizza Friday visits some clever reminders for tooth brushing, SNL's Pepsuber, and HP gives us the finger.
Pizza Friday 81
View more presentations from Mike Heronime. (tags: advertising marketing)

Small Business Not Keeping Up With Online Presence

By numantra on February 13, 2009 8:05 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Friday, February 13, 2009



According to research from Webvisible and Nielsen, reported by Marketing Charts, though 63% of consumers and small business owners turn to the internet first for information about local companies and 82% use search engines to do so, only 44% of small businesses have a website and half spend less than 10% of their marketing budget online.

The research finds an accelerating trend toward online media for local search. However, the report says the study uncovers a significant disconnect between the way small business owners act as consumers vs. the way they market their businesses online.

The survey found that search engines are the most popular source for finding local information:

  • 82% use search engines
  • 57% use Yellow Pages directories.
  • 53% use local newspapers
  • 49% use Internet Yellow Pages
  • 49% use TV
  • 38% use direct mail
  • 32% White Pages directories

Of those surveyed, 50% said search engines were the first place they looked when seeking a local business, while 24% chose the Yellow Pages directories.

92% of searchers say they are happy with the results they get when using search engines, though 39% report frequently not being able to locate a particular known business. This means, says the report, searchers don't may choose to contact a similar business with a stronger online presence.

Webvisible found that online search and e-mail newsletters are the only forms of traditional media that are growing among consumers who wish to locate local products or services. Compared with two years ago, respondents report they use search engines and email newsletters more, while they use newspapers, magazines, direct mail and radio less:

Consumer Use Of Media Compared to Two Years Ago (% of Respondents)

Media

Use More

Use Less

Search engines

72%

1%

E-Mail newsletters

35

7

Yellow page directories

16

23

Local newspaper

10

25

Magazines

11

31

Direct mail

9

27

Radio

9

23

Source: WebVisible and NielsenOnline survey November 2008, February 2009

Despite the growing use of online media for local searches, only 41% of small businesses report turning to online search engines first, and 31% turn to Yellow pages directories first. In addition, only 44% of small businesses have a website.

When using a search engine to find a business they know exists, only 19% of survey respondents report never or rarely encountering trouble locating that business online and 39% say they routinely have difficulty.

Though less than half of small businesses do have a website, the ones that do are not happy overall with their online marketing. Among those small businesses that have a website:

  • 51% believe both the quality and ability of their site to acquire new customers is only "fair" or "poor"
  • 30% of business owners feel that they typically do a better job of marketing than a close competitor
  • 78% believe they advertise in the same places as their competitors
  • Only 7% of small business owners say their primary marketing goal is to get more visitors to their website
  • 61% spend less than three hours a week marketing their website
  • 99% of small business owners are directly involved in the marketing
  • 65% believe it is very important to know where their customers come from
  • Only 9% are satisfied with their online marketing efforts
  • 78% of small business owners dedicate 10% or less of their budget to marketing Of those, 30% do no Internet advertising

 Over the past two years, 43% of small businesses say they have increased use of search engines in their marketing efforts. In contrast, use of traditional small business advertising mediums is on the decline:

  • 23% say they use the Yellow pages less
  • 42% say they use the local newspaper less

    For the purpose of this survey, the term "local business" refers to any retail business in a respondent's local area, including restaurants, entertainment venues, places of recreation, etc. and services such as plumbers or accountants. The term "Internet Yellow Pages" refers to online Yellow Pages websites such as yellowpages.com, judysbook.com, superpages.com, etc.

For more information visit www.mediapost.com

Radical Shift: 4As Propose Single Spot-Buy Currency

By numantra on February 12, 2009 8:13 AM

MediaDailyNews

Radical Shift: 4As Propose Single Spot-Buy Currency

by David Goetzl, Yesterday, 5:09 PM

 

A group of top buyers and sellers plans to release recommendations next month that aim to bring radical change to the spot-buying market, including altering the decades-old negotiating currency.

The reinvention task force, under the aegis of the American Association of Advertising Agencies, is expected to propose a spot industry switch from using cost-per-point (CPP) as its currency to a cost-per-thousand (CPM) metric. The move will bring the industry in line with the bulk of other media--from network TV to the Internet--that all use CPMs.

A primary goal is to facilitate multi-platform buys. Stations are aggressively trying to cut package deals, which include on-air components along with a presence on their Web sites and mobile outlets. Deal-making is now complicated by the need for two currencies: CPP for on-air and CPM for new media. (Local broadcasters have used CPP as a currency from time immemorial. CPP is based on the cost to reach 1% of the audience in a particular market. CPMs are for a cost to reach 1,000 viewers.)

In addition to the would-be revolutionary switch in currency, the task force--which includes executives from leading buyer GroupM as well as NBC-owned stations--will recommend ways for agencies to receive makegoods faster than a 90-day wait period.

Also on deck is a proposal that would change the amount of time that agencies have to cancel buys. More controversial, but still possible, is a recommendation that stations abandon the practice of dropping a buyer's spot if a higher-paying customer emerges.

If buyers and sellers agree to the successful implementation of recommendations, the transformation would come at a critical time for the local TV business, as stations are in the midst of epic struggles.

Underlying all the task force proposals is the goal to reduce the data processing that has many agencies' back rooms overloaded. (The burdensome process of executing a buy from A to Z is known as stewardship.) There is also an understanding that as industry advances are agreed upon, the electronic systems that buyers and sellers use will need to be updated to enact changes.

The task force is part of the 4As "Project Reinvention" initiative that is so far focusing on spot TV and the Internet. The spot group has been meeting for about a year, and members say the proposals it will make in March are the result of a determined and collaborative process. "The broadcasters and buyers both agree that we really need to reform the way we do business together," said Abby Auerbach, a task force member and executive vice president at the Television Bureau of Advertising.

The recommendations will be unveiled during a panel discussion at the 4As annual media conference March 4 in New Orleans. On the panel will be GroupM CEO Irwin Gotlieb--who, in essence, sparked the task force's formation by calling on the spot business to modernize its business practices in late 2006. He went so far as to say the industry's "survival" was at stake.

Gotlieb praised the 4A's efforts to persuade buyers and sellers to adopt electronic transaction systems that rid them of faxes and phone calls as the primary way to conduct negotiations. But he said e-business will enjoy only a modest impact without changing how business is transacted. "If the buying and selling practices aren't up to 21st-century speed--and they're not by far," said Mike Donahue, 4As executive vice president, "then no matter how good all your transaction processing and stewardship is ... it's garbage in, garbage out."

Task force members on the buy-side include Kevin Gallagher, an executive vice president at Starcom, and Kathy Crawford, a longtime spot buyer who is acting as a consultant to GroupM.

Across the table are TVB's Auerbach, Kathleen Keefe, vice president of sales for the Hearst-Argyle station group; Mark Lund, a top executive at the NBC owned-and-operated stations; and Ken Little, executive vice president of technology for National Cable Communications, a cable rep firm.

While translating recommendations into action will be a challenge, the task force members hold enough influence to galvanize the process. GroupM and Starcom together represent a sizable portion of all spot buying, while Hearst-Argyle and NBC are both top-10 station groups. "When we get buy-in from leading agencies and broadcasters who demonstrate the benefit of adopting these new practices," Auerbach said, "then the next group of trading partners will be more eager to participate."

In a sign of how out of step the spot business may be, the task force had little trouble agreeing on the momentous CPP to CPM switch. For buyers, it would simplify the process of evaluating a spot buy versus newspapers and other media. For stations, using CPMs as a single currency could allow them to sell more Web and mobile inventory along with on-air (including digital sub-channels).

More thorny is the issue of how to shorten the time it takes agencies and stations to "settle up" on a buy. The task force wants a buyer to know within a week whether their spots garnered the rating points they purchased. That would be an improvement on the current practice, which is labyrinthine. A buy is placed, then an agency can wait weeks to find out via a post-buy analysis whether ratings guarantees were met. If there are discrepancies, makegoods may not be doled out until perhaps 90 days later.

That's a negative for both agencies and stations. By the time discrepancies are ironed out, a campaign with a time element--such as a retailer promoting a sale--may be over. At the same time, a station may suddenly discover that it owes a mound of bonus spots and must alter its schedule to fit them in.

The task force plans to recommend that buyers and sellers agree on a system where they work to monitor a buy's performance on a week-by-week basis, allowing for makegoods to be delivered "mid-flight." Specifics on how that would be done, however, may not be put forward. The holdup likely comes from agreeing on what kind of system would be used to stay on top of the buys in near real-time. (One possibility is Nielsen's Keeping Trac, a service that GroupM is now using for near-immediate ad tracking.)

Separately, the task force is expected to make a recommendation on how far in advance a buyer needs to notify a station in order to have a buy canceled. It's a tricky issue because it intersects with one of the long-held business practices that benefits both sides. Traditionally, buyers have had opportunities to cancel placements at the last minute--a benefit in flexibility. At the same time, stations have been able to "preempt" spots--to simply cancel them and perhaps without informing a buyer--if they can re-sell them at a higher price.

A certain chaos can ensue. A station can be left with blank space at the 11th hour, while buyers may find out later that a strategically placed spot--perhaps on a Thursday before a movie opens--did not run. "We've all woken up and agreed we have to change our buying and selling behaviors to clean up the process," Starcom's Gallagher said.

The task force proposal would prevent a buyer from canceling a purchase within a 30-day period before the spots are scheduled to air. Stations would presumably benefit from more effective inventory management. While not explicitly a quid pro quo, buyers would like stations to commit to a no-preemption policy. That is one matter that the task force is still debating, and it's unclear whether a recommendation will be made in New Orleans on March 4.

For the 4A's Donahue, a longtime advocate for upending many of the decades-old practices across the ad industry, change cannot come soon enough. Donahue is so eager to use the forum to produce a "reinvention" of spot TV that he changed the name of the session to the resolute: "Now is the Time for Action."

Recommendations, he said, "will be delivered ... as something we are going to act upon, not reflect upon."

 

For more information visit www.mediapost.com

Seismic Shift in Internet Age Mass

By numantra on February 11, 2009 7:50 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Wednesday, February 11, 2009



According to surveys through 2008 by the Pew Internet and American Life Project, larger percentages of older generations are online now than in the past, and they are doing more activities online. Generation X (not Y) is the most likely group to bank, shop, and look for health information online. Boomers are just as likely as Generation Y to make travel reservations online. And even Silent Generation internet users are competitive when it comes to email.

The biggest increase in internet use since 2005 is the 70-75 year-old age group. While just over one-fourth (26%) of 70-75 year olds were online in 2005, 45% of that age group is currently online, and doing more activities online.

Instant messaging, social networking, and blogging have gained ground as communications tools, but email remains the most popular online activity, particularly among older internet users, writes Sydney Jones and Susannah Fox in the report. 74% of internet users age 64 and older send and receive email, making email the most popular online activity for this age group. 89% of teens claimed to use email in 2004. Now, just 73% currently say they use email.

Teens and Generation Y (age 18-32) are more likely than their older counterparts to seek entertainment through online videos, online games, and virtual worlds, and they are also more likely to download music to listen to later.

  • 78% of 12-17 year-old internet users play games online
  • 73% of online teens email, the second most popular activity for this age group
  • only 50% of Generation Y play online games

The report says that health questions drive internet users age 73 and older to the internet just as frequently as they drive Generation Y.  Researching health information is the third most popular online activity with the most senior age group, after email and online search.

Generation X (ages 33-44) continues to lead in online shopping:

  • 80% of Generation X internet users buy products online
  • 71% of internet users ages 18- 32 buy products online
  • 38% of online teens buy products online
  • 56% of internet users ages 64-72 do  
  • 47% of internet users age 73 and older buy online

67% Generation X internet users lead in online banking, while  57% of Generation Y to do their banking online, up from 38% in 2005. There has been no significant growth among older generations when it comes to banking online

Downloading videos is now being done more equally across all generations under 73 years old.

  • 31% of Generation X claim to download videos as of 2007
  • 38% of Generation Y downloaded videos 
  • 13% of G.I. Generation internet users (age 73+) reported downloading videos, up from 1% in 2005
  • 13% of the online Silent Generation (ages 64-72) say they download videos, up from 8% in 2005

Who are these people...

Generations Explained 

Generation

Birth Years

Ages in 2009

% Of Total Adult Population 

% Of Internet-Using Population

Gen Y (Millennials)

1977-1990

18-32

26%

30%

Gen X

1965-1976

 33-44

20%

23%

Younger Boomers

1955-1964

 45-54

20%

22%

Older Boomers

1946-1954

 55-63

13%

13%

Silent Generation

1937-1945

 64-72

9%

7%

G.I. Generation

<1936

73+

9%

4%

Source: Pew Internet & American Life Project December 2008 survey, February 2009

The writers note, in summary, that "...contrary to the image of Generation Y as the 'Net Generation,' internet users in their 20s do not dominate every aspect of online life."

For additional information about the report, and access to the PDF file, please visit pewinternet.org here.

For more information visit www.mediapost.com

Not All Football Ads Good For Kids

By numantra on February 10, 2009 7:57 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Tuesday, February 10, 2009



Common Sense Media recently released a study on the content of ads shown during NFL broadcasts. The report, Broadcast Dysfunction: Sex, Violence, Alcohol and the NFL, reviewed nearly 60 games, more than 180 hours of coverage, watched nearly 6,000 commercials and concluded that "it was impossible to watch a single game without coming up against sex, violence, or Viagra."

Founder and CEO of Common Sense Media, James Steyer, saie "Nearly 5.3 million kids watch football each week, yet one in six of the ads shown during the broadcasts features content that's wildly inappropriate for kids -- that's every other commercial break..."

Common Sense Media's report found that:

  • 300 of the ads were for alcohol
  • 40% of the games included advertisements for erectile-dysfunction drugs
  • 500 of the advertisements involved significant levels of violence, including gun fights, explosions, and murders
  • 80 of the advertisements involved significant levels of sexuality, including scenes about prostitution and strippers
  • 44.7% of the violent or sexual advertisements were promotions by the networks for their own programs

One big reason for pro football's popularity, says the report, is the game's appeal for the whole family. On any given Sunday afternoon, millions of families gather in front of the television to root for their favorite teams.

  • According to Nielsen reports, more than 5.3 million kids ages 2-17 (and nearly 2.8 million kids ages 2-11) watch the average pro football game on broadcast television or ESPN each week
  • Pro football is by far the most popular sport among kids. 65.7% of kids ages 7-11 say they watch pro football on television

Ronnie Lott, former San Francisco 49er and a member of the Pro Football Hall of Fame, says "Football teaches kids a lot of great lessons... but families... should be able to watch these games without worrying that their kids will be bombarded with adult ads... "

Most pro football games are broadcast between 1:00 pm and 7:00 pm EST, hours that have traditionally been considered time for family programming. Yet the promotional spots for TV shows, ads for movies, DVDs, and video games shown during these time periods were clearly intended for adult audiences only, says the report.

While the report says that though approximately 16% of the ads and promos during pro football broadcasts are about sex, violence, and alcohol, more than 360 ads and promos (an additional 6% of the total reviewed) were for junk food and soda... juxtaposed with the NFL's new Play 60 public service campaign, which encourages kids to be more physically active.

In summary, the study:

  • Reviewed 57 pro football games
  • Evaluated 5778 ads and promos
  • Found 519 ads and promos with violence
  • Saw 242 violent promos for network programs
  • Found 80 ads and promos with sexuality
  • Discovered 26 which were sexual promos for network programs 
  • Viewed 300 ads and promos with alcohol

Parents want to watch pro football with their kids without getting sucker punched by ads aimed at grown-ups. They want America's game to be fun for every American family, including our kids. So, who's responsible for responsible broadcasts?

The report quotes N.F.L. Commissioner Roger Goodell, in a statement in The New York Times, June 2, 2007, who said "If you're involved with the N.F.L... (or) represent the N.F.L... you are held to a higher standard, and you need to be accountable... (with) a certain standard of behavior... to live up to, from the commissioner on down."

Please refer to the complete release here to find access to the PDF report and samples of ads reviewed by this study.

For more information visit www.mediapost.com

 

Note The 'R' In Customer Relationship Management

By numantra on February 9, 2009 8:17 AM

MEDIAPOST BLOGS

by Scott Couvillon, 2/9/2009

 

2009 will see a seismic shift from long-term (branding) to near-term (sales) activity. The recent glut in retail spending has marketers trading share of mind for share of wallet. But the investment in marketing near-term, using offers, deals or closeouts, doesn't necessarily have to come at the expense of the brand and the value that it creates in the lives of individuals.

 

A relationship should be the goal of our collective marketing activities in economic peacetime. At the risk of sounding melodramatic, leveraging a purchase into loyalty, especially in a recession, is like asking someone you just met in a bar to marry you. And you have a cheese fry stuck to your shirt. Truth is, they may want to like you. They might even know you really well. But a purchase is a means to an end, while a relationship requires far more effort.

My point? The critical importance of Customer Relationship Management (CRM) to the mix will be far more pronounced this year as there will be a far greater organizational focus on ROI. So assuming you are ready to commit, spend some time thinking about the 'Relationship' part of CRM and the applications to everything else that we do in the bar ... er ... marketplace.

To lessen the chance that your investment gets lost in the clutter to come, let's look at the first three steps of creating a relationship to see what we can learn from real life. Every relationship starts with some initial point of contact. The nature of this contact dictates the likelihood of a relationship. For example, rarely do we befriend someone we cut off in traffic. Interruption was, is and will always be a bad model.

A better way to start a relationship is through someone that you trust. Enable people to speak on your behalf. Jokes are always funnier from someone you heard was funny. When initiating contact ask yourself, do your efforts enable advocacy? ("Tell a Friend" links don't count.) Is what you are saying creating value? And, is the environment or vehicle appropriate for it?

Assuming that initial contact goes well, it may be time for a casual and simultaneous experience. Recommendations include a public place and preferably with a group. Now ask, how inviting is your brand when the first real consumer step is taken? And the most important question in any relationship: Do you remember who they are? Not simply their name. Do you really recognize who this person is and what they want from the relationship? Are you allowing some experience with your brand that doesn't require a purchase or offering something that is useful and free?

Ensure that you are having a conversation. We may not all have algorithm-based software that cobbles customer actions together to learn what you will be interested in (à la Amazon.com), but enabling feedback isn't all that complicated. Be prepared to listen, and this may be a relationship after all.

Now, it is time for the first real one-on-one. Which brings up perhaps the most important issue, that individuality is paramount in any meaningful relationship. What details have the conversations up to now offered? Create custom offerings based on this recognition. And, then, follow up on a purchase with information on how to get the most out of your product.

These first steps can mean the difference between a one-off purchase using a coupon and "Lifetime Consumer Value" that is actually valuable. You will not be the only one utilizing CRM in 2009. The victors will be those who can empower individuals to offer their feedback, good and bad, and be rewarded for the effort.

Whether offering a deep discount, a test drive, free insurance quote or an upgrade, make the goal a relationship and your marketing decisions become easier with greater return.

 

For more information visit www.mediapost.com

 

Top Newspapers Saw More Readers in December

By numantra on February 6, 2009 8:12 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Friday, February 6, 2009



Nielsen Online reports a 16 percent year-over-year increase in unique visitors to the top 10 newspaper Web sites, growing from 34.6 million unique visitors in December 2007 to 40.1 million in December 2008.

The number one online newspaper destination in December 2008, with 18.2 million unique visitors, was the NYTimes.com.. USATODAY.com and washingtonpost.com took the No. 2 and No. 3 spots. 

Top 10 Newspaper Web Sites (Dec 2008 vs Dec 2007 U.S., Home and Work)

Rank

Site

Unique Audience (000) Dec-07 UA

Unique Audience (000) Dec-07 UA

Percent Change

 

Top 10 Online Newspapers

34,602

40,093

16%

1.

NYTimes.com

17,177

18,187

6

2.

USATODAY.com

9,939

11,420

15

3.

washingtonpost.com

8,478

9,470

12

4. 

LA Times

4,607

7,963

73

5.

 Wall Street Journal Online

5,409

7,235

34

6.

Daily News Online Edition

2,956

5,883

99

7.

Chicago Tribune

3,891

5,235

35

8.

New York Post

2,851

4,557

60

9.

Boston.com

4,364

4,086

-6

10.

SFGate.com/San Francisco Chronicle

2,785

3,503

26

Source: Nielsen Online, January 2009

 Chuck Schilling, Research Director, agency & media, Nielsen Online, said "Nine of the top 10 newspaper Web sites experienced positive year-over-year growth," driven, in part, by the holiday season, the weakened economic news, and political reporting.

Not only are more people visiting newspaper Web sites, but they are also visiting these sites more often than they were a year ago, says the study. The number of total visits to the top 10 newspaper sites increased 27% year-over-year, growing from 199.6 million in December 2007 to 252.7 million in December 2008.

 "Despite the current troubles for the traditional newspaper industry, people are visiting newspaper sites more and more often to stay on top of current events," said Schilling.

 Nielsen Online also reported December 2008 data for the Top Parent Companies/Divisions and Top Web Brands. The parent level is defined as a consolidation of multiple domains and URLs owned by a single company or division. 

Top 10 Parent Companies/Divisions for December 2008 (U.S., Home and Work)

Rank

 Parent

Unique Audience (000

Time Per Person (hh:mm:ss)

1

Google

133,854

2:00:12

2.

Microsoft

125,826

2:24:00

3.

Yahoo!

117,821

3:11:49

4.

AOL LLC

86,080

3:41:02

5.

News Corp. Online

78,081

1:29:19

6.

 eBay

68,272

1:38:32

7.

Amazon

67,362

0:36:39

8.

InterActiveCorp

63,493

0:19:08

9.

Apple Computer

56,881

1:25:49

10.

Facebook

55,217

2:07:58

Source: Nielsen Online, January 2009

 Example: The data indicates that 55.2 million home and work Internet users visited at least one of the Facebook-owned sites or launched a Facebook-owned application during the month, and each person spent, on average, a total of 2 hours, 7 minutes and 58 seconds at one or more of their sites or applications.

The brand level is defined as a consolidation of multiple domains and URLs that has a consistent collection of branded content.

Top 10 Web Brands for December 2008 (U.S., Home and Work)

Rank

Brand

Unique Audience (000)

Time Per Person (hh:mm:ss)

1.

Google

126,199

1:25:10

2.

Yahoo!

116,906

3:12:05

3.

MSN/Windows Live

103,229

2:07:49

4.

Microsoft

96,711

0:50:37

5.

AOL Media Network

86,080

3:41:02

6.

YouTube

80,704

0:54:37

7.

Fox Interactive Media

67,959

1:30:56

8.

Amazon

61,084

0:34:31

9.

eBay

57,434

1:39:39

10.

Apple

56,881

1:25:49

Source: Nielsen Online, January 2009

 

Average U.S. Internet Usage, Combined Home & Work, (Month of December 2008)

Sessions/Visits per Person

59

Domains Visited per Person

108

Web Pages per Person

2,353

Duration of a Web Page Viewed

0:00:55

PC Time per Person

68:23:22

Active Digital Media Universe

166,120,474

Current Digital Media Universe Estimate

225,748,755

Source: Nielsen Online, January 2009

For more information, please visit Nielsen-Online here.

For more information visit www.mediapost.com

Personalize Ads For Frequent Online Shoppers and Bigger Spenders

By numantra on February 5, 2009 8:14 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Thursday, February 5, 2009

 

According to the 2008 Personalization Survey from ChoiceStream, 39% of consumers overall are more likely to click on an ad if it is personalized, while that number rises to 58% among those who shop online at least several times a month. The survey finds that the bigger the spender, the greater the interest in personalized ads. Half of those spending more than $250 online over the past six months indicate that they are more willing to click on ads that are personalized. This compares with only 32% of the smallest spenders.

Consumers More Willing to Click on Personalized Ad (% of spenders Online in previous 6 months)

Online Spending ($ in 6 mos.)

% More Willing to Click

$1-100

32%

101-250

39

Over 250

50

Total

39

Source: ChoiceStream Personalization Survey, 2008

The survey finds that consumers are surprisingly savvy about online advertising in terms of its effect on their behavior. 70% of consumers admit that their purchase decisions are at least sometimes influenced by having seen an ad for an item.

Purchasing Decisions Influenced By Advertising

Frequency

% Influenced

At least sometimes

70%

Rarely

25

Never

5

Source: ChoiceStream Personalization Survey, 2008

A smaller percent of consumers admit that they are influenced by brand advertising as well, with 39% admitting that they are more likely to buy from vendors or retailers that they have seen advertised than from unrecognized sources. In both cases, the bigger the spender, the more likely he or she is to admit to being influenced by advertising.

A full 60% of shoppers are aware that retailers use information about their online shopping behavior to target advertising to them, the study found. Additional survey findings include:

Overall, 78% of consumers are interested in receiving personalized content

The types of content consumers want personalized are consistent with the previous findings, with music, books and DVDs being the most popular categories.

Advertising Preferred Personalized (% of Online spenders)

Content

% Preferring Personalization

Music

40%

Books

32

DVDs

26

Apparel

20

TV/Movies

18

Electronics

18

Games

14

News

14

Travel

13

Source: ChoiceStream Personalization Survey, 2008

Cheryl Kellond, SVP at ChoiceStream, says "Advertisers that are spending premiums to target the biggest spenders and the most frequent shoppers should... note that those shoppers want intelligent ads that speak to their specific needs and shopping intent... "

Other personalization suggestions from the respondents include:

  • 71% of the consumers believe that personalization would improve their experience in social networking by introducing them to other members with similar interests and preferences.
  • Interest in personalized ads is strongest online and on television. A large majority 72% of consumers are interested in personalized advertising distributed through their television
  • 73% interested in Online distribution of personalized advertising
  • 35% are interested in personalization on their mobile device
  • 45% of consumers reported receiving personalized recommendations that were a poor match based on their tastes and interests in 2008

Respondents were US adult internet users, 95% of whom have made at least one online purchase within the past year, who were distributed across 4 age categories (18-24, 25-34, 35-49, 50+). They were 54% female and 46% male.

To access the PDF report on the Study, please visit ChoiceStream here.

For more information visit www.mediapost.com

Are You Trustworthy?

By numantra on February 4, 2009 8:02 AM

MediaPost Blogs

MarketingDaily commentary

 

by Glenn Geisendorfer and Gabe Goldman and, Feb 4, 2009

 

Do you act authentically for your brand? Honestly ... sincerely? And importantly, does what you do instill consumer confidence?

In light of hard economic times, consumers need to trust brands now more than ever. They need to be confident, assured in their purchases -- particularly if they had to sacrifice to get them. Trustworthy brands will aim to instill consumer confidence through embodying three simple traits: honesty, familiarity, loyalty.

Smile Without Veneers

The attire a brand wears shouts the honesty, and the authenticity, of the decisions behind it. One very simple measure of authenticity could be the honest (or not) choices a brand makes with material: What's metal is metal. Plastic is plastic. Wood is wood. They are all wonderful materials in their own way ... why on earth would you want one to look like another?

And whatever approach you decide on, try to create the material "throughline" to your work, the material theme that carries through ... from the fixture that holds the bag that carries the billfold that carries the dollars that paid your way -- each leaves a tactile (and real) impression.

Understand, too, that pushing a product too far, or overcomplicating a message, line, or promotion is tacitly understood as a diversion from the truth -- that honest devotion, thoughtfulness and planning may simply not be there. Rather than extend a product line to, say, exploit a green trend in a market segment, build on that which may already be green.

And when devoting the time and thought to core messaging, don't let consumers stray from it. Take Patagonia for instance: its core traits of quality, thoughtfulness and honesty touch everything from the rigor they use in sourcing sustainable materials to the thoroughness and transparency of its business practices. They'd never have to add a "green" extension to a product line, as the qualities that prove them a sustainable company are already built in.

Old And Improved

Familiar brands stay on message, yes, but they primarily repeat an experience. They are always evolutionary and build on what they do best. No generation is too far removed from the family tree, and that is precisely why vintage brands will always resonate, by staying current because they secure their heritage: Stable. Dependable. Easy.

Familiarity is simply the logical evolution of the brand experience -- meant for a lifetime. Brands built for the long-term need to design with the end in mind. That is, visualize your future and make logical, incremental steps to get there. This helps create a cadence to product introductions, and will encourage additional looks by the consumer when budgets loosen up again.

And accordingly, innovation will need to move from the "new and different" to "new and better," wherein building on former successes -- and preparing for the future ones -- accomplishes what we all want from ourselves and the brands we endorse: legacy.

We're Engaged

Loyalty, really, is a love relationship between brand and consumer. Brand loyalty = brand love. If you love another person, you'll give them doses of encouragement to do what? To increase the potential for more relationship. A smile, a simple thank you, or a thoughtful innovation can go a long, long way. And should you offend, the humble and direct approach is always the surest choice, no matter the size of the offense.

But most importantly, the love relationship is a commitment. Committed to a joint future, where perhaps the destination is not quite as important as the journey.

Loyal, trustworthy brands will invite their consumers along, perhaps taking a couple of hits, but will mutually grow through the experience. Tonal implications at retail, interactive or media are huge when placing the relationship first. That latest technology isn't the differentiator it once was, as much as it should be the empathic solution to a real human need.

The point is that the primary, the most important motivator for any brand is its relationship with its consumer. Value this first, and all other business realities -- margins, forecasts, sell-through, etc. -- will naturally reflect the health of this relationship.

For more information visit www.mediapost.com

 

Voice Of The Consumer Not Leveraged

By numantra on February 3, 2009 7:52 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Tuesday, February 3, 2009



According to a new study by the Chief Marketing Officer (CMO) Council, with Satmetrix, 58% of the 480 executives surveyed said their companies do not compensate any employees or executives based on customer loyalty, satisfaction improvements or analytics. 38% said their companies have no programs in place to track or propagate positive word of mouth among customers, and only 29% said their companies rate highly in their ability to handle and resolve customer problems or complaints.

Senior marketers admit their companies are failing to take decisive, company-wide action to integrate customer voice and experience into key business and marketing processes, says the report. The study underscores critical deficiencies in the way companies measure, optimize and leverage customer experience to drive loyalty, improve brand value and increase business performance and growth, including:

  • Insufficient availability and aggregation of real-time customer experience data across touch points that should be shared across the organization
  • Poor use of customer interactions to collect insights and intelligence or maximize up-sell and advocacy opportunities
  • Lack of Internet processes and systems to track online word of mouth and drive customer advocacy
  • Intermittent or deficient monitoring of customer experience that fails to provide true and timely insights into problems and opportunities
  • Too few compensation programs tied to customer experience, loyalty and satisfaction gains

CMO Council executive director, Donovan Neale-May, says "Customer experience is one of the most critical determinants of brand strength and business growth... we are missing a major opportunity to turn customer pain into competitive gain... through better use of web and contact center technologies and processes."

Survey data shows that most companies are not taking advantage of opportunities to drive company-wide performance improvement and business growth:

  • Only 38% of companies gather customer insight from customer engagement situations
  • Just 32% look for ways to turn problems into new sales opportunities
  • Only 15% introduce new products or services to further monetize the relationship
  • Merely 17% use the opportunity to identify and cultivate potential customer champions and advocates

Although 34% of respondents said their companies have made no changes to the way they track and analyze customer experience in recent years:

  • 45%  of respondents say their companies have taken steps to better integrate and analyze customer data
  • 39% said they have increased personalization and intimacy in their customer communications
  • 20% say they have embraced intelligent Internet analytics

18% are capturing real-time information at the "point of pain."

Nearly two-thirds of companies do not have a formal Voice of Customer program in place, and other key findings of the study include:

  • 13% of companies have deployed real-time systems to collect, analyze and distribute customer feedback
  • 74% say they receive customer feedback via e-mail, only 23 percent say they track and measure the volume and nature of these messages.
  • 14.5% track word of mouth on the Internet
  • 12% are using a word-of-mouth marketing platform to drive online customer advocacy

Laura Brooks, Ph.D. and vice president of research for Satmetrix, concludes that "Companies must become more... committed to leveraging... customer experience as a key business metric... but measurement is not an end in itself... companies need to commit... to understanding the key determinants of their score... to improve their customer experience competitiveness."

For more information about the Giving Customer Voice More Volume study, please visit the CMO Council here.

 

For more information visit www.mediapost.com

 

African-Americans in the Advertising Industry

By numantra on February 2, 2009 8:09 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Monday, February 2, 2009

 

A new study by Bendick and Egan Economic Consultants, released in January, 2009 by the NAACP and Mehri & Skalet, reports data on African-American professionals in the advertising industry in pay, hiring, promotions, assignments, and other areas of employment. The study says that Black college graduates working in advertising earn $.80 for every dollar earned by their White counterparts, and Black managers and professionals are only one-tenth as likely as their White counterparts to earn $100,000 a year.

 The Executive Summary reports that as employment discrimination has sharply diminished across the American labor market over recent decades, barriers to equal opportunity in this $31 billion a year industry have remained largely intact.

Across multiple measures, says the summary, the Black-White gap averages 38% larger in advertising than in the overall U.S. labor market. The divergence between racial equality in this industry and the rest of the labor market is more than twice as large today as 30 years ago.

  • Earnings provide one important measure of the industry's unequal treatment of African Americans. The racial pay gap is more than twice as large in advertising as in the overall labor market.
  • Data from the U.S. Census Bureau and U.S. Equal Employment Opportunity Commission estimate the expected representation of African Americans at 9.6% of advertising managers and professionals. The current 5.3% representation reaches only 55% of that benchmark
  • About 16% of large establishments in the industry employ no Black managers or professionals, a rate 60% higher than in the overall labor market.
  • Blacks are only 62% as likely as their White counterparts to work in advertising agencies' "creative" and "client contact" functions, says the report
  • Based on national demographic data, African-Americans should be 9.6% of the managers and professionals, but in 2008 only 5.3% of managers and professionals were African-American, a difference of 7,200 African-Americans

Please visit here for the summary release, and link to the PDF final report from Bendick and Egan.

 

And, a quick extra from Scarborough Sports Marketing at the last minute. A look at the people who attend Cardinals and Steelers games...  

  • Cardinals attendees in Phoenix have more disposable income than Pittsburgh's Steelers attendees. 23% of adults in Phoenix who went to a Cardinals game during the past year have an annual household income of $100k+, versus 13% of Pittsburgh's Steelers game attendees who are in that income bracket.
  • Cardinals attendees are more likely to have children at home - 56% have at least one kid age 17 or younger in the household, versus 39% of Pittsburgh's Steelers game attendees.
  • Both Cardinals and Steelers game attendees are more likely than others in their respective cities to be young. Steelers Attendees are 31% more likely than other Pittsburgh adults to be ages 18-34, and Cardinals attendees are 23% more likely than other Phoenix adults to be in this age range.
  • Cardinals and Steelers game attendees are equally likely to be single. One-third of game attendees in each of their home city markets are single, and these attendees are more likely than others in their home cities to be single.
  • Pittsburgh is known as a blue collar town, and Steelers game attendees are 12% more likely than the city as a whole to be blue collar. By contrast, Phoenix's Cardinals attendees are 18% less likely than all Phoenix adults to be blue collar.
  • Phoenix's Cardinals game attendees have almost an even gender split. 52% of those who attended a game during the past year are male, and 48% are female. In Pittsburgh, 58% of Steelers game attendees are male, vs. 42% who are female.

For more information visit www.mediapost.com

 

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