April 2009 Archives

Thursday, April 30, 2009

The majority of Millennials surveyed found it confusing as to why products that are better for the environment are more expensive. The study noted that the extra cost (without consistent explanation) discourages the majority of shoppers from embracing and contributing to the green movement.

The study also found several other deterrents to Millennials living greener lives:

• Products that require too much effort
• Products that are too time consuming
• Products that not convenient
• Products that are confusing and difficult to understand
• Families that are not involved in, supportive of, or knowledgeable about the green movement

Additional findings from the survey:

• 74% of Millennials believe they can make a difference in helping Earth, but only 48% of 13-17-year-olds feel they can make a difference because the problems are too huge for them to move the needle
• 87% of Millennials recycle; 84% turn off lights when not in use; 80% reduce water use; and 73% use energy-efficient light bulbs
• The top three biggest hurdles this generation faces when embracing the green movement are cost (41%), proof that they're making a difference (24%), and ease of use ( 12%).
• 76% of Millennials feel it's very important or important for brands to get involved in the green movement.
• 79% of Millennials say that the internet educates them on environmental issues, while 85% of Millennials ages 13-17 state that school is their main source for eco-education

The study also revealed the top words/feelings that Millennials associate with the "green movement":

Janis Gaudelli, SVP and head of Generate Insight suggests that brands that present easy, yet effective ways for Millennials to reduce, reuse and refresh will empower this generation

At almost the same time, Elin Raymond, President of The Sage Group, Inc., presented the results of a study on consumers' beliefs and behaviors surrounding sustainable green packaging. The study found that consumers consider the authenticity and integrity of green claims to be essential, and they recognize greenwashing.

"Green is an organizational cultural keystone, a key brand attribute," Raymond said, noting that in the shopper's "eco-perception," a consumer packaged goods company, its product, and its packaging are an integrated whole.

Grouping respondents into four generational categories: "Millennials" (17 to 25 years old), "Gen Xers" (26 to 40), "Boomers" (41 to 55), and "Matures" (56+), Matures were found to be the most eco-friendly group, while Millennials showed the least proclivity toward green behavior.

The study showed that 89.7% of Matures always recycle, followed by 69.6% of Gen Xers, 67.6% of Boomers, and 56.8% of Millennials. Matures were the most willing to pay more for eco-friendly packaged products (44.8%), and 75.9% of Matures said the eco-impact of packaging has a "big impact" on their buying decisions. The only group that said the eco-friendly nature of products has "somewhat of an impact" was Millennials, at 61.7%.

According to the study, consumers perceive the most eco-friendly packages and products to be:

• Glass containers
• Aluminum cans
• Products sold in bulk
• "Cardboard" packaging
• Paper grocery bags
• Concentrated liquids
• Packaging made from recycled materials

Respondents identified non eco-friendly packages as:

• "Single-serve anything"
• Electronics and toy packaging
• Heavy, hard plastic-packaged items or bottles
• Anything not made from recycled materials
• Anything that can't be recycled
• "Overkill" packaging
• Most plastic water bottles
• Plastic foam
• Takeout containers
• Plastic can rings
• Clamshell containers

To appeal to each generation with the appropriate green marketing approach, Raymond mentioned 12 strategies. For the two youngest groups, companies must create an online life/friends for their brand. "Millennials and Gen Xers are always linked online," she said.

Among Raymond's suggestions for marketing to the 17- to 40-year-olds:

• Keep engaged via two-way social media. This includes hosting online contests, creating a Facebook company profile, and using Twitter to announce events, brand extensions, etc.
• Help them try your brand by providing free/discount coupons on Facebook, MySpace, and other Web sites
•  Integrate online and traditional marketing
• Track what's said about your brand/product via YackTrack.com
• Sponsor environmental or cause-related events in target geographic markets

For Boomers and Matures, Raymond advised the following steps:

• Focus on brand/product environmental attributes and education
• Use green-event marketing in target geo-markets
• Ask for e-feedback on product/brand and reward input

To review the information in greater depth, please visit Marketing Charts here, and the Sage Group here.

For more information visit www.mediapost.com

Wednesday, April 29, 2009

According to The Harris Poll of 2,355 U.S. adults surveyed online in March, a majority of consumers believe advanced technology could be the answer to many of the challenges the U.S. faces today, whether it is a stalled automobile industry, an ailing education system or expensive medical costs.

Consumers are looking to technology to improve their lives and want very practical applications to solve their current problems. Some of the results with regard to advanced technology, include these findings:

• 73% of Americans believe that investing in innovation and advanced technology sciences in education is the key to the country's long term success
• 71%  of Americans said not only an investment but a leadership role in these technologies could mean survival for our auto industry, as they invest in hybrids and alternative fuels
• 71% of adults believe that travel costs for businesses could be cut if technology such as video conferencing were better utilized
• 67% support the use of technology to produce "green products and services"
• 67% want technology to manage medical records and patient care

Advanced technology is perceived as particularly valuable when it is practical. Looking at several advanced wireless, mobile device applications that are just entering the marketplace or will be introduced in the near future:

• 28% of consumers strongly or very strongly liked the idea of using GPS technology to balance and monitor traffic to determine the most effective routes in real time for an effective transportation system.
• 31% of consumers indicated they would be highly interested in purchasing mobile, wireless devices to monitor their car in real time, advising them of developing problems and even updating engine software to keep their car running at peak performance
• 27% of consumers very strongly or strongly like the idea of controlling home systems or appliances from a mobile device
• 26% of consumers very strongly or strongly like a 4G wireless network that could provide seamless voice, Internet, and entertainment to their homes and mobile devices

Many Americans, though,  have reservations about the impact of high technology on our lives:

• 40% of Americans say they would not like it at all if their doctor could monitor their vital signs in real time using a mobile device
• 61% do not believe technology enables people to be more mobile or makes people more productive
• 65% agree that society is too dependent on electronics and electronic gadgets
• 58% of Echo Boomers (those aged 18-32) say mobile technology does not make Americans more productive
• 72% of Echo Boomers believe that society is too dependent of electronics and electronic gadgets

While many Americans indicate they do not believe mobile technology enables people to be more productive, 46% of Americans say they only use about half of the features and functionality of their technology devices. It might be that the productivity gains people are seeking are offered by an application or function they have never used or considered.

Joe Porus, Vice president, Harris Interactive Technology group, notes that "...business decision makers (are) much more bullish on technology, especially wireless technology, than consumers... businesses... are increasing their investments in wireless applications and believe a 15% benefit is going right to their bottom line... "

For more information from HarrisInteractive and the PDF file with charts, please visit here.

For more information visit www.mediapost.com

Tuesday, April 28, 2009

According to findings from the Accenture second annual Global Broadcast Consumer Survey,  television viewership has grown since last year, with 40% of viewers watching six or more television channels vs. 35% in 2008, and 39% watching eight or more television programs per week vs. 33% last year. Respondents who said they would also enjoy viewing content on other devices increased over the last year, with 13-point increases in the number who would watch content on personal computers (74% in 2009 vs. 61% in 2008) and on mobile devices (45% in 2009 vs. 32% in 2008).

The survey of nearly 14,000 consumers across 13 countries found that:

• While fragmentation of the audience viewing traditional television formats is continuing, the consumption of broadcast content on all platforms, including traditional television, is growing
• Opportunities abound in new media in emerging markets
• Consumers indicate a willingness to pay, favoring subscription services

One of the survey's more striking discoveries, says the report, is the big difference in behaviors of consumers in less-developed markets versus those in more-developed markets. Respondents in Mexico, Brazil and Malaysia were nearly three times as likely as those in United States, Germany and the United Kingdom to express interest in watching television content on mobile phones, ranging from 65-71% of respondents in these three less-developed countries but only from 22-26% for those in the more-developed countries.

The survey also revealed that, in every age group, consumers are more decisive about their viewing preferences, particularly in mature content marketplaces like Japan, the United States and the United Kingdom. This change indicates that consumers are quickly forming opinions on how they feel about content and how and where it's viewed.

David Wolf, a senior executive with Accenture's Media & Entertainment practice, concludes that "Consumers are making choices based on what they've tried, liked and rejected and are now selecting content and its delivery platforms... the modes of consumption that provide an alternative to the traditional TV experience are becoming part of everyday life... "

Despite more alternatives like the Internet and on-screen program guides, 40% of consumers use commercials to find content they would like to watch, 33% channel surf, 30% look to recommendations from friends and family, and 28% to TV listings.

And, even with the downturn in the global economy, 49% of consumers are willing to pay for digital service programming, up from 37% in last year's survey, and 40% said they would prefer to watch ads in exchange for free content.

Among those willing to pay for content:

• Subscription models beat pay-to-play models in every age group, with paying a fee for unlimited programming (selected by 25% of respondents) proving much more popular than pay-per-episode or pay-per-season (12% and 9%, respectively) fee structures
• Younger consumers are more willing to pay for content than older consumers (60% for respondents younger than 25 versus 38% for those 55 and older)
• Youth are also more willing to watch ads and pay nothing than are those over 55 (45% versus 37%) 
• Subscription service content appears the most resilient to the economy, as its consumption shows no signs of being hit by a drop-off in consumer spending

According to the survey, the biggest net revenue loss (vs. last year) will be in DVD sales, down 6 percentage points, followed by on demand video, down 5 percentage points, and downloading content to a mobile phone or PC, 3 percentage points down. Subscription content showed no change, with the number of respondents saying they would spend less, equal to the number who would spend more.

More information on Accenture's Global Broadcast Consumer Survey can be found here.

For more information visit www.mediapost.com

Monday, April 27, 2009

According to new research from NetElixir Inc, , the average volume of paid search clicks, during the first quarter of 2009, was down 9% compared with Q1 2008. At the same time, the average cost per click was down 7% year over year.

The average click-through rate, though, was up 7.5% in the first quarter of 2009 versus Q1 2008, and the average search ad conversion rate was up 5%, says the report.

Udayan Bose, founder and CEO of NetElixir, says  "...  Q2 this year will be slower than Q1 for search advertising... (though) the continuing pessimism about the economy is the main culprit, historically, Q2 tends to be slower than Q1, ... 12% in 2008."

The study followed online retailer clients in pet supplies, consumer electronics, flowers and gifts, housewares, and food and drug, analyzing the performance of each category on a weekly basis in Q1 2009 and compared the data with that for the same period last year.

The summary concludes with three suggestions for search planning:

• First, anticipate: analyze keyword search data for the second quarters of 2008, 2007 and 2006, since Q1 2009 exhibited similar trends as in past years
• Second, test: Tactical sales promotions are playing an increasing role in today's economy
• Third, monitor competitors "These days... everyone who does search advertising needs to justify each dollar they spend," Bose says

Please visit NetElixr here for more information.

For more information visit www.mediapost.com

Friday, April 24, 2009

The latest study by Arbitron and Edison Research shows continued growth in usage and ownership of various forms of digital audio platforms, including online radio, iPod/MP3 players, and podcasting. The weekly online radio audience increased significantly in the past year to 17% of the U.S. population age 12 and older; up from 13% in 2008. On a weekly basis, online radio reaches 20% of 25-to-54 year-olds; up from 15% in 2008. 

Bill Rose, senior vice president of marketing, Arbitron Inc., says "The sharp growth in weekly usage of Online radio... provides compelling evidence that radio's digital platforms may be reaching critical mass. We are... seeing encoded streams of AM/FM broadcasts with significant audience in local markets."

Key findings from The Infinite Dial 2009: Radio's Digital Platforms, include:

More than one in five radio listeners (21%) say AM/FM radio has a big impact on their lives; ranking second only to owners of the Apple iPhone in particular (23%) and cell phone owners in general (47%) as the audio platform/device that has a big impact on people's lives. 

Online radio listeners are more likely to be upscale, well-educated and employed full time;

• 54% of weekly online radio listeners are employed full-time (compared to 43% among persons 12 and older);
• 16% of weekly online radio listeners live in homes with an annual income greater than $100,000 (vs. 10% among persons 12 and older);
• 37% of weekly online radio listeners have a college degree or higher education level (vs. 29% among persons 12 and older).

Weekly online video viewing among persons age 12 and older is up significantly in the past year, from 18% in 2008 to 27% (approximately 69 million) in 2009.

• 34% of persons age 12 and older report having a profile on Facebook, MySpace, LinkedIn, or any other social networking Web site, up from 24% in 2008
• 63%  of teens age 12-to-17 report having a profile on these social networking sites
• 64% 18-to-24 year-olds have a profile on these social networking sites.

iPod/portable MP3 player ownership and iPod use continues to grow dramatically.

• 42% of persons age 12 and older own an iPod or other brand of portable MP3 player
• 64% of 18-to-24 year-olds own a digital audio player
• 32% of teens age 12-to-17 and persons 18-to-24 are spending less time with over-the-air radio specifically due to time spent with iPod/other portable MP3 players
• 22% of Americans age 12 and older have ever listened to an audio podcast
• 11% (27 million) reported having listened to an audio podcast in the past month in 2009

Tom Webster, vice president of strategy and marketing, Edison Research, concludes that "... consumer use of new digital platforms... is becoming nearly ubiquitous... a window of opportunity for radio to... spread its content across the expanding choices consumers use to control their media experience."

The complete study, The Infinite Dial 2009: Radio's Digital Platforms,

may be downloaded free of charge via the Arbitron and Edison Research Web sites linked here.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Thursday, April 23, 2009

According to the e-tailing group's 8th Annual Merchant Survey in the first quarter of 2009, 34% of surveyed merchants anticipate that their Internet revenues will be down or flat in 2009 versus 2008. The balance of respondents continue to see growth but only 39% project revenues up in the 1%-15% range.

Lauren Freedman, President of the e-tailing group, notes that  "... 190 senior level merchants with e-commerce responsibility... recognize that the online channel is core to multi-channel success... (as) the pressure for performance is greater than it has ever been... (while) customers demand more... "

?With conversion numbers trending down, merchants are challenged to get customers to convert, but viewing other success metrics and benchmarks in the broader context of multi-channel shopping. In the 2009 model, researching, comparison shopping, and seeking store information may be as prevalent as purchasing online, though their impact is not factored into conversion numbers.

More so than in prior years, customer behavior may significantly impact performance as shoppers are slower to purchase, limit purchases, as well as research both product and price before making commitments. Testing is central to understanding what works in this climate where analytics and performance data substantiate decision-making. Sources of information to make merchandising decisions now rely on:

• Analytics (92%)
• Sales history (73%)
• Conversion data for (68%)
• Competitive benchmarking (50%)
• Customer ratings/reviews cited by (39%)

As merchants tweak their sites for optimal performance and ROI there is continued emphasis on targeted email, refining onsite search and upgrading site design including enhancing onsite merchandising.

These diverse initiatives, added to the survey this year, reflect the current merchants' mindset as they look in every direction for site improvement:?               

• 51%    A/B Testing?               
• 44%    Social Networking?               
• 39%    Content Management  ?               
• 39%    Alternative Payments 

Customer retention and top ranking customer service tactics include:

• 58% who say site redesign/enhancements
• 50% pricing/promotional strategies
• 47% exemplary customer service
• 41% targeted and/or segmented email campaigns
• 31% streamlined checkout

Versus 2008, little change was seen in the order of ranking, but the most relevant metrics did receive greater endorsement. The top five ranking features as "very to somewhat valuable in 2009" are:

• Keyword search... 94%
• Sales or specials... 93%
• Cross selling... 92%
• Email merchandising... 90%
• Seasonal promotions... 88%

Targeting and segmentation via email are important as merchants ratchet up efforts from personalized to triggered email including abandonment efforts. Additional key steps merchants are taking to improve email performance include:

• Better segmentation... 76%
• Compelling messaging... 80%
• Improved creative... 73%
• Increased focus on analytics with A/B testing... 64%. 

44% of these merchants anticipate changing e-commerce platforms within three years, but 42% report that they have no plans to make such a change. Given current resource constraints and economic instability, the report concludes that tweaking will be the order of the day.

Freedman summarizes by saying "Platform upgrades may be on many wish lists but 2009 will be remembered for refinement of navigation, onsite search and website tweaks...  "Merchants who truly optimize e-commerce and multi-channel potential... will... thrive as the dominant players in their categories."

Please visit etailing here for additional information about this and other studies.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Wednesday, April 22, 2009

Key survey findings about specific application show that:

• Small-business owners are more likely to use LinkedIn than employees working for a corporation
• Men are significantly more likely to use YouTube or other video marketing than women (52.4% of all men compared with 31.7% of women)
• For those just getting under way with social media marketing, LinkedIn is ranked as their number-two choice, pushing blogging down one notch
• Among those who have been using social media for a few months, Facebook is in second place. This group also has more Twitter use
• Twitter is used by 94% of marketers who have been using social media for years, followed closely by blogs. This group also endorses online video significantly more than the other groups

72% of marketers say they have either just started or have been using social media for only a few months.

The largest group just getting under way with social media marketing is sole proprietors, with 30.2% reporting just getting started, the survey found. Owners of businesses with 2-100 employees were the most experienced, with 29.3% reporting doing social media marketing for years.

64% of marketers are using social media for five hours or more each week, with 39% using it 10 or more hours weekly and 9.6% spending more than 20 hours each week with social media.

• Those working for a company are twice as likely as business owners to be committing 20+ hours a week to social media
• 44.8% of those ages 30-39 old spendi 10+ hours weekly using social media marketing
• 40.3% of 20-to-29 year-olds spend 10+ hours weekly
• 38.7%  of 50-to-59 year-olds spend 10+ hours weekly

According to the survey, 81% of all marketers indicate that their social media efforts have generated exposure for their businesses. At least two in three participants found that increased traffic occurred with as little as 6 hours a week invested in social media marketing. Owners of small businesses with 2 - 100 employees are more likely than others to report benefits.

Half of participants reported that a major benefit of social media marketing is the resultant rise in search engine rankings that often comes with increased efforts. Improved search engine rankings were most prevalent among those who've been using social media for years, with nearly 80% reporting a rise.

When marketers were asked which social media tools they most want to learn more about, social bookmarking sites slightly edged out Twitter as the number one response, with a four-way tie for third place between LinkedIn, StumbleUpon, Facebook and Digg/Reddit/Mixx.

Please visit this site for the complete Whitepaper of the study, "How Marketers are Using Social Media to Grow their Businesses,"

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Tuesday, April 21, 2009

According to a study by the Center for Crash Causation and Human Factors at Virginia Tech's Transportation Institute, a leading research institute on transportation and driving performance, a driver's performance, speed maintenance, and lane keeping were not measurably impaired in any way along highways and other roads with billboards.

In addition, eyeglance results showed that there were no differences in the overall glance patterns between digital billboards, conventional billboards, comparison events, and baseline events during the daytime. And the nighttime results indicate that digital billboards and comparison events may be associated with more active glance patterns, as well as with more frequent and longer glances towards the digital billboards and comparison events.

Some aspect of the digital billboards and comparison events, however, holds the driver's attention, once the driver has glanced that way. This is most likely, says the report, the result of the intrinsic lighting of these signs, which is noticeable even during the daytime. Drivers may also have maintained longer glances towards the digital billboards in the hopes of catching the next message (knowing that the message changes periodically).

The overall conclusion, supported by both the eyeglance results and subsequent questionnaire results, is that the digital billboards seem to attract more attention than the conventional billboards and baseline sites (as shown by a greater number of spontaneous comments regarding the digital billboards and by longer glances in the direction of the billboards).

Other notable findings from this study are as follows: 

• Drivers did not glance more frequently in the direction of digital billboards than in the direction of other event types during the daytime
• Drivers took longer glances in the direction of digital billboards and comparison sites than in the direction of conventional billboards and baseline sites during the daytime
• An analysis of glances lasting longer than 1.6 seconds indicated that these longer glances were distributed evenly across the digital billboards, conventional billboards, comparison events, and baseline events during the daytime
• The nighttime results indicate that digital billboards and comparison events may be associated with more active glance patterns, as well as with more frequent and longer glances towards the digital billboards and comparison events
• For the post-drive questionnaire, 42% of drivers mentioned billboards as one of the top five items that caught their attention (note that drivers did not know this was billboard study)
• In an open-ended question, 10% of the drivers mentioned billboards as the single most memorable item on the trip, and two referred specifically to the digital billboards as being memorable

The results of the drivers' visual performance indicate no measurable distinction between billboard sites and comparison sites such as logo boards, on-premise signs and other roadside objects. In addition, there was no difference in visual behavior in terms of the age of the driver, their familiarity with the road or what side of the road they were on.

Dr. Suzanne Lee of VTTI, the project's Principal Investigator, observed that "... a more rigorous examination of individual billboards that could be considered to be the most visually attention-getting showed no relationship between glance location and billboard location."

The study included thirty-six drivers with males and females equally represented, and equally divided by age (older: 50-75, younger: 18-35). Participants drove an instrumented vehicle on their own on a 50-mile loop along interstates and surface streets. Participants were told that the study was to help understand the way people drive in a natural environment. Along the route, participants encountered:

• 5 digital billboards that were the standard bulletin size (14 ft x 48 ft) and the copy changed instantaneously every eight seconds
• 15 conventional billboards
• 12 comparison sites, including on-premises signs (some with digital elements), logo placards, landmark buildings, and murals
• 12 baseline sites (with no signs)

Please visit here for the complete PDF report.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Monday, April 20, 2009

According to a new release and ad spending forecast by ZenithOptimedia, current ad expenditure forecasts predict a steeper decline in North America and Western Europe, with all regions joining in the general decline. The report forecasts global ad expenditure to shrink by 6.9% over the course of 2009.

Entering Q2, 2009 says the report, there is limited long-term visibility in the market as most advertisers wait until the last moment to confirm their spending commitments. Many are treating advertising as a discretionary expense, and one they find convenient to cut. Unprecedented economic problems and events affecting the predicted 6.9% decline in global ad expenditure in 2009 include:

• Lack of quadrennial events (Olympics, elections) creates tough year-on-year comparisons for markets like the US
• Poor corporate confidence means very limited visibility in the market
• Consumers are putting off big purchases and shifting consumption from premium to value products, opening opportunities for advertisers with value to offer
• Consumers are spending more time at home, consuming more media, particularly television and the internet
• Search is driving internet growth as consumers use it to find bargains

Ad expenditure correlates strongly with corporate profits, acknowledges the stuey, and the ad market is unlikely to start its recovery until profits start to pick up again. The current barriers to recovery include lack of trust in the credit markets, and low confidence in prospects for short-term growth. In addition:

• Consumers are spending less, saving more, and spending more time at home. Consumers are putting off the purchase of big ticket items and shifting their consumption habits from premium products to budget brands
• In the retail sector premium stores are bringing in value lines and advertising their presence
• In the finance category, corporate advertising has fallen off quite sharply, but consumers' increased appetite for saving and risk aversion means that savings accounts and certain types of insurance are still growing
• Spending by CPG advertisers has generally held up well; There has been a clear shift from premium to value products as companies respond to consumer demand
• The automotive industry is suffering from long-term problems that the downturn has exposed and exacerbated, but not caused. Regulations, high labor costs and other structural problems left auto manufacturers with very thin margins. In France and Germany, however, government incentives have led to increased sales in the short term, and increased automotive advertising. Smaller, generally foreign, brands have managed to gain market share by promoting their value proposition
• Businesses have cut back their travel expenses, causing a large drop in premium traffic for airlines. But leisure travel is still popular to countries where exchange rates now look very favorable to consumers spending in euros or US dollars. Airline advertising to consumers is still active in markets with strong exchange rates

Globally, some of the ZenithOptimedia ad expenditure projections include:

• Ad expenditure to shrink by 8.3% in North America in 2009
• All the major markets in Western Europe are expected to grow in 2010 with the exception of Italy, expected to shrink another 0.8%
• Asia Pacific is expected to drop by 3.4% in 2009, though expecting growth in ad expenditure in China, India, and Indonesia, counterbalanced by sharp falls in Taiwan, Singapore and South Korea and a 5.0% fall in Japan, which still contributes 38% of the region's ad expenditure
• Central and Eastern Europe is expected to suffer the sharpest drop-off in 2009, of 13.9%. Large drops seen in markets like Russia, Turkey and Ukraine are felt to be one time corrections by international advertisers as they reassess the long-term growth potential of these markets, and expect to see a return to growth in 2010.
• Most markets in Latin America are still growing, but the region is dragged down by Brazil and Colombia.

In considering global advertising expenditure by medium, the report concludes that, as consumers are saving money by spending more time at home, media consumption is increasing, particularly of television and the internet.

The internet is the only medium expected to actually attract higher ad expenditure in 2009, thanks to its accountability and innovation in ad formats, says the report.

Most of this growth will come from search advertising, concludes the study, as consumers considering a purchase are using search more as they seek out the very best deals. In the US, the report predicts search advertising to grow 9.0% in 2009, while classified grows just 1.8% and traditional display shrinks 1.8%. Internet video and rich media is forecast to grow 29.8%, internet radio 29.7% and podcasts11.9%, but these represent only 12% of US internet expenditure between them.

The study expects television ad expenditure to fall 5.5% in 2009, but this represents an increase in market share from 38.1% to 38.6%, followed by a record 39.3% share in 2010. Advertisers that cut budgets across the board will often cut television last, since they know it best and are convinced of its effectiveness, concludes the report.

Please visit ZenithOptimedia here for more details about the forecast.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Friday, April 17, 2009

The new Video Consumer Mapping (VCM) study for the Council for Research Excellence (CRE) by Ball State University's Center for Media Design (CMD) finds that younger baby boomers (age 45-54) consume the most video media, and confirms that traditional live television remains the "800-pound gorilla" in the video media arena. The VCM study generated data covering more than three-quarters of a million minutes and a total of 952 observed days. 

In addition to the revelation that consumers in the 45-54 age group average the most daily screen time (just over 9 1/2 hours), the VCM study found the average for all other age groups to be strikingly similar at roughly 8 1/2 hours, although the composition and duration of devices used by the respective groups throughout the day varied.

According to the report, the research found that:

• Contrary to some recent suggestions that more Americans are rediscovering "free TV" via the Internet, computer video tends to be quite small with an average time of just two minutes (a little more than 0.5 percent) a day
• Despite the proliferation of computers, video-capable mobile phones and similar devices, TV in the home still commands the greatest amount of viewing, even among those ages 18-24
• Even in major metropolitan areas where commute times can be long and drive-time radio remains popular, computer use has replaced radio as the No. 2 media activity. Radio is now No. 3 and print media fourth
• TV users were exposed to, on average, 72 minutes per day of TV ads and promos, dispelling a commonly held belief that modern consumers are channel-hopping or otherwise avoiding most of the advertising in the programming they view.
• Early DVR owners spent much more time with DVR playback than newer DVR owners. At the same time, DVR playback was even more likely than live TV to be the sole medium.
• "Environmental" exposure outside the home, while still relatively small at just 2.8 percent of total video consumption today, could nearly double during the next few years.

Additional key findings noted in the report:

• Although the composition of consumers' screen media time varied across age groups, their total screen time was strikingly similar
• The degree of concurrent screen media exposure (also referred to as media multitasking) was equivalent for all age groups under 55.
• The study confirmed that 99% of Nielsen's Three-Screen Time is TV. Even among Adults 18-24, TV was more than 98%
• Live TV led all video time by a large margin, followed by DVDs, with DVRs
• The study suggests that computing has displaced radio as the number two media activity. Radio is now number three and print is number four
• New HDTV ownership (first or second set) led to higher TV exposure, though some of this increase appeared to be temporary
• A higher percentage of TV time was spent as sole medium compared with computers, print or audio.
• TV users were exposed to on average roughly an hour a day of live TV ads and promos

Mike Bloxham, director of insight and research for Ball State's CMD, observes that "What differentiates this study... (is that) it's not a study about TV or the Web or any other medium... it's about how, where, how often and for how long consumers are exposed to all media... the observational method is the only real way to achieve accurate and reliable results."

Media, life activities, and locations examined in the study:

Life Activities

Media Only, Work, Meal preperation, Meal eating, Traveling or commuting, Personal needs, Household activity or chores, Personal/Household services, Shopping, Education, Religion, Organizations, Social activities, Exercise/sports/hobbies, Other

Locations

OwnHome (Living/Family/TV Room KitchenBedroom Other), Other's Home (Living/Family/TV Room Kitchen Bedroom Other, Car, Public Transportation (e.g., bus, train), Work, School, Other (Outdoors, retail)

Media

TV, VideoPlayback, Radio, Web, Email, InstantMessaging, Software, Computer, Landline Phone, Mobile Phone, Portable Video, Music, Prin,t Games, Digital Transfer, Cinema, Other

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MEDIAPOSTNEWS

MARKETING DAILY

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Wednesday, April 15, 2009

A recent BPA Worldwide research study indicates a disconnect between US-based event organizers and their exhibitors in terms of utilizing independent event audit data. Reported in a BPA Whitepaper on exhibitor ROI at tradeshow events, organizers are aware of event audits, but believed a show audit led to unnecessary costs and intrusive processes.

The BPA study set out to determine the key ROI drivers for event exhibitors, the extent to which verified attendance and demographic data would influence exhibitors to add an event to their plan, and the extent to which exhibitors hold show organizers accountable for delivering on promises of audience quantity and quality.

According to Forrester Consulting Services for American Business Media, of marketers' budgets in 2007 Only marketing communications (17%) and online advertising (16%) drew more ad dollars than trade shows and events. Face-to-face events made up 15%. While events trailed slightly in terms of ad dollars spent in the marketplace, Forrester reports:

• 60.9% of marketers considered face-to-face exhibiting as the best means to effectively build brand image
• 62.9% indicated in-person events are considered the best tactic to generate qualified leads

Data from Exhibit Surveys, says the report, shows "traffic density" has shown a consistent downward trend to approximately 2.3 attendees in 2007 from a high of over 3 a decade earlier, while 40% of the survey respondents indicate that traffic to exhibits has decreased in just 2008. However, ESI reports "audience interest factor" has increased significantly to near 80% in 2007 from an interest factor of around 50% during the same period.

Key study findings:

Attendee audience quality in terms of purchase influence/buying power, according to 46% of the respondents, is rated the number-one factor when deciding to exhibit at a given event, followed by:

• 44% saying a show's past success
• 41% saying topic/theme/content focus

Attendee audience quality in terms of purchase influence/buying power is more important to:

• 61% of CMOs
• 55% of VP/Director of advertising/marketing
• 34% of marketing managers
• 41% of exhibit/event managers

Among smaller companies, attendees' purchasing/buying power rated as the most important factor when deciding to exhibit, while companies with over $100 million in total revenues reported a show's past success as more important than attendees' buying power.

The highest ranked tools in the process of choosing to attend a given show involve:

• Historical performance/exit surveys (63%)
• Exhibitor-supplied promotional materials (59%)
• Input/references from other exhibitors (58%)
• Tradeshow/event audits (41%)

Broken out by title:

• 61% of exhibit/event managers use tradeshow/event audits more than other titles
• 68% of CMOs put the most trust in input/references from other exhibitors audits
• 50% of the responding CMOs use independent audits to investigate events and tradeshows

Survey respondents indicated that exhibitors derive a number of benefits from trade shows and events. For example:

• 65% of CMOs viewed higher-order benefits as the most important perceived result
• 41%  of CMOs say building/expanding relationships with existing customers as the top payoff at a tradeshow
• 42% of sales managers say lead generation
• 46% exhibit/event managers indicated lead generation as the top benefit

Company marketing budget size also plays some role in the perceived benefits of tradeshows. Smaller companies, revenues of less than $1 million annually, see tradeshows as a way to generate leads (56%), but larger companies view them as a means to leverage relationships they already have.

94% of the respondents rate exhibit positioning on the show floor as the top-tier factor to help assure exhibitors' ROI/ ROO at events.

• 85% say marketing promotions before/at the show
• 91% think tradeshow booth design

74% say staff training is significant among the second-tier factors to assure ROI/ROO:

• 79% say planning
• 60% say event audits

Tools most frequently utilized to measuring exhibitors' ROI/ROO:

• 82% say the number of qualified leads
• 74% booth traffic
• 59% costs vs. return analysis
• 9% ranked exit surveys at the bottom of the list

The report concludes that companies are planning to exhibit at fewer shows next year and will be more selective in which shows they do exhibit. Since face-to-face events are considered the most expensive among all media platforms, exhibitors will require trustworthy attendance data from their event organizers on which to base their decisions and formulate their ROI

For more information about the "BPA Worldwide Research Study: Determining Exhibitor ROI At B-to-B Tradeshow Events" please visit their website here.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Tuesday, April 14, 2009

Greg Anthony, SVP, Alloy Access "The Hispanic community... is proving their weight as a segment of influential consumers, with an estimated $951 billion in spending power... "

Of the 1,030 respondents in the top five states measured for Hispanic population, 82% read Hispanic publications and reported sharing their copy with at least one other person.  26% of readers share their paper with at least four others. In addition, 74% of Hispanic newspaper readers have read three or more of the last five issues, and 53% have been reading their favorite Hispanic newspaper for three or more years.

Though Facebook, Twitter, You Tube, Hulu and MySpace are all common hubs for today's mobile and digitally connected youth, young Hispanic consumers look to their Hispanic newspaper as an important source for news, entertainment and product information. The 18-24 year old segment favors the politics and entertainment sections higher than the other segments reporting. And overall, the business section appears to be the most favored.

 63% of Hispanic newspaper readers report looking at the advertisements at least frequently, with 24% stating they always pay attention to ads. Overall:

• 39% report sharing advertising information with a friend
• 34% have gone to an advertiser's website after reading an ad  
• 20% of respondents have attended an event, such as a festival or job fair in response to an advertisement
• 24% of 18-35 year olds report they are more likely to have inquired about a job or career or attended an event such as a festival or job fair
• 25% of the 25-34 year old segment state they are most likely to have called or visited a retail store in response to an ad
• 55% of all Hispanic newspaper readers state they use coupons from the newspaper at least occasionally, with almost one-third using coupons frequently.
• 36% show high redemption of coupons for food and groceries

 Clara Padilla Andrews, President of the National Association of Hispanic Publications, concludes that ".. Hispanic print is alive and stronger than ever... circulation continues to increase... (and) is the trusted source of news and information for the growing Hispanic population." 

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Thursday, April 9, 2009

According to the new BBMG Conscious Consumer Report: Redefining Value in a New Economy, 23% of U.S. consumers say they have "no way of knowing" if a product is green or actually does what it claims. But, 77% agree that they "can make a positive difference by purchasing products from socially or environmentally responsible companies," and they are actively seeking information to verify green claims.

To find the necessary information, consumers are:

• most likely to turn to consumer reports .....29%
• most likely to look at certification seals or labels on products .....28%
• most likely to consider the list of ingredients on products .....27%
• least likely to look to statements on product packaging .....11%
• least likely to believe company advertising .....5%

Raphael Bemporad, co-founder of BBMG, says "... consumers are redefining what truly matters and evaluating purchases based on both value and values...  by delivering... price, performance and purpose... brands will be able to close the green trust gap... "

Key findings from the Conscious Consumer Report (2009):

• 67% Americans agree that "even in tough economic times, it is important to purchase products with social and environmental benefits"
• 51% say they are "willing to pay more" for them
• 66% say price very important in purchase decision
• 64% look for quality  
• 55% want "good for your health"
• 49% look for "made in the USA"

Green benefits have increased in importance since last year, says the report:

• Energy efficiency (47% very important in 2008, 41% in 2007)
• Locally grown or made nearby (32% in 2008, 26% in 2007)
• All natural (31% in 2008, 24% in 2007)
• Made from recycled materials (29% in 2008, 22% in 2007)
• USDA organic (22% in 2008, 17% in 2007)

When asked unaided which companies come to mind as the most socially or environmentally responsible companies:

• 7% of Americans named Wal-Mart
• 6% said Johnson & Johnson
• 4% Procter & Gamble
• 4% GE
• 3% Whole Foods

Asked to name the least responsible companies:

• 9% named Wal-Mart
• 9% said Exxon Mobile
• 3% GM  
• 3% Ford
• 2% Shell
• 2% McDonald's

41% of Americans could not name a single company that they consider the most socially and environmentally responsible. And:

• 71% of consumers agree that they "avoid purchasing from companies whose practices they disagree with"
• 55% tell others to shop products based on a company's social and environmental practices
• 48% tell others to drop products based on a company's social and environmental practices

Mitch Baranowski, co-founder of BBMG, concludes that "At a time of... growing demand for accountability, ... consumers are rewarding brands that align with their values... punishing those that don't... and spreading the word with their family, friends and peers... "

For more information, and access to purchase report from BBMG, please visit here.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Wednesday, April 8, 2009

The Pew Internet and American Life Project, introducing it's new report on The Mobile Difference in today's society, notes that in the early 1980s, Americans started spending more time on the telephone. From 1980 to 1987, the number of minutes spent on the phone increased by 24%, three times the rate of population growth. Though fax machines and the personal computing revolution might have spurred growth voice traffic, not more than 10% of the growth.

The cause was determined to be the telephone answering machine, in just 28% of homes in 1987. However, these new devices meant once-missed calls were returned and completed calls encouraged more calling. The answering machine served as an accelerant into Americans' existing calling patterns.

In a similar way, says the author, mobile internet access is drawing people into more frequent online use.  This finding is the cornerstone the Project's study, finding that 39% of the adult population have seen the frequency of their online use grow as their reliance on mobile devices has increased.

Across those groups, there is a lot of variation on what these changes mean to users. Some find this extra connectivity a platform for self expression. Others are not entirely positive about ICTs' (Information and Communication Technology) impacts on their lives.

In addition, there is 61% of the adult population who do not feel the pull of mobility further into the digital world. Across the groups that make up this part of the population, several have a lot of technology at hand and have seen their tech assets grow in recent years. Yet ICTs remain on the periphery in their lives, suggesting that:

• Some adult Americans reach a plateau in their technology use
• Some groups are content with their distant relationship to technology
• Others feel even a little modern gadgetry is too much

The study places ICT users into 10 groups and, notwithstanding variation across the groups, the groups fit into two baskets, with the groups' collective judgments on mobility being the pivot point. Here's a look at how each of the groups uses ICTs and group members' attitudes about them, according to the report.

The first five groups include the 39% of American adults who make up the basket of groups "Motivated by Mobility." For these groups, growth in frequency of online use is linked to increasing broadband adoption, and to positive and improving attitudes about how mobile access makes them more available to others:

• Digital Collaborators: 8% of adults use information gadgets to collaborate with others and share their creativity with the world. The typical Digital Collaborator is in his late 30s and has had years of online experience, and can almost always get access to the internet with "always on" broadband connection or "always present" mobile device. With this connectivity, they collaborate with others online to express themselves creatively, and to develop something new.
• Ambivalent Networkers: 7% of adults heavily use mobile devices to connect with others and entertain themselves, are confident in their ability to manage gadgets, and would be hard pressed to do without mobile access. With a handheld device at the ready, they stay in touch with their family and friends and gather intelligence about what is going on in the world. They are the most frequent cell phone texters of any group. Some message content might be about current affairs, but a portion is about culture, as they will watch videos or listen to music using online access tools, mobile or otherwise.
• Media Movers: 7% of adults use online access to seek out information nuggets, and these nuggets make their way through these users' social networks via desktop and mobile access. Social uses for ICTs draw most of the attention of this group. Typically a mid-30s male, he may have a variety of devices ready at an instant to record something and send it along to a friend or post it online. They more likely than average to use their cell phone for functions such as texting, taking pictures, or playing games. Attachment to their cell phone has deepened over time,
• Roving Nodes: 9% of adults who use their mobile devices to connect with others and share information with them. A Roving Node is a woman in her late 30s who is rarely without her smart phone, using it to chat, checking email or fielding a text message. This group is highly dependent on ICTs as a result of using ICTs to manage busy lives and stay in touch with others. They are much less likely than preceding groups to blog or manage their own web pages.
• Mobile Newbies: 8% of adults who lack robust access to the internet, but they like their cell phones. A typical Mobile Newbie is about 50 years old, a novice with modern ICTs, but is wading into the waters thanks to a new cell phone, perhaps as a handy tool for staying in touch with others or for safety reasons. Just four in ten use the internet and only occasionally send a text message or snap a picture with their handheld device.

Brief profiles of the other 61%, the "Stationary Media Majority," are included here:

• Desktop Veterans: 13% of adults are dedicated to wireline access to digital information, and like how it opens up the pipeline to information for them. They have high rates of broadband adoption and participate online, but they treat the cell phone as if it were equipped only with voice capability. They use the cell to make phone calls, but even then the cell phone takes a backseat to their reliance on the landline. They are average in terms of cell phone adoption, but well below average in their use of non-voice data applications such as text messaging or wirelessly browsing the internet.
• Drifting Surfers: 14% of adults that are light users, despite having a lot of ICTs, and say they could do without modern gadgets and services. This group of adults has a 8 years of online experience but are infrequent users of the internet. Although they rely about equally on their landline and cell for phone calls, they don't find the extra availability afforded by cell phones very alluring, and would not find it hard to give up their cell phone.
• Information Encumbered: 10% of adults who feel overwhelmed by information and inadequate to troubleshoot modern ICTs. mainly men in their mid-50s, this has the means and experience to engage with the information superhighway, but the pipeline of digital information is increasingly a burden. Three-quarters have a cell phone and half have high-speed at home, Nearly two-thirds need help in getting their technology to work, and do not credit the internet or cell phone with any improvement in their personal productivity or how they do their jobs.
• The Tech Indifferent: 10% of adults who are unenthusiastic about the internet and cell phone. The Tech Indifferent are, as a group, older than the others and seem to have established patterns of getting information or staying in touch with family and friends that do not rely on modern tech. There is little reason to think that many in this group will ever embrace modern ICTs, concludes the report.
• Off the Network: 14% of adults are neither cell phone users nor internet users.They are the oldest and least affluent group.

The study concludes that most "motivated by mobility" groups have positive and improving attitudes about cell phones, while remaining groups have tepid and deteriorating attitudes about them.

• 66% of those in the "motivated by mobility" groups report that it would be very hard to do without their cell phones.
• Only 21% of the "stationary media majority" groups say that it would be very hard to do without their cell phones.
• "Motivated by mobility" groups collectively showed an improvement in cell phone attitudes by 20% from 2006 to 2007
• Again, in stark contrast, the "stationary media majority" groups collectively saw a 64% decrease in attitudes about cell phones from 2006 to 2007

For a more complete presentation, with charts, on The Mobile Difference from PEW, please visit here.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Monday, April 6, 2009

Search continues as the main driver of revenue growth, showing a 19.8% increase over 2007. Digital video more than doubled its revenue with an increase to $734 million from $324 million in 2007.

Retail, Financial Services, Computing, and Automotive remained the four largest verticals among Internet advertisers in 2008. Consumer packaged goods increased its share of total Internet ad revenues by 60% over 2007. The Internet is the third largest ad-supported medium.

Randall Rothenberg, president and CEO of the IAB, concludes that "... marketers know they need to do more with less... interactive advertising provides the tools for them to build deep, engaging relationships with consumers... "

The release is available here, and the full report here.

For more information visit www.mediapost.com

OJ Rivals Posted Double-Digit Increases as Pure Premium Plummeted

By Natalie Zmuda                                 Published: April 02, 2009

NEW YORK (AdAge.com) -- Tropicana's rebranding debacle did more than create a customer-relations fiasco. It hit the brand in the wallet.

The new Tropicana Pure Premium packaging (right) had been on the market less than two months before the company scrapped the redesign.

After its package redesign, sales of the Tropicana Pure Premium line plummeted 20% between Jan. 1 and Feb. 22, costing the brand tens of millions of dollars. On Feb. 23, the company announced it would bow to consumer demand and scrap the new packaging, designed by Peter Arnell. It had been on the market less than two months.

A swift reversal
Now that the numbers are out, it's clear why PepsiCo's Tropicana moved as fast as it did. According to Information Resources Inc., unit sales dropped 20%, while dollar sales decreased 19%, or roughly $33 million, to $137 million between Jan. 1 and Feb. 22. Moreover, several of Tropicana's competitors appear to have benefited from the misstep, notably Minute Maid, Florida's Natural and Tree Ripe. Varieties within each of those brands posted double-digit unit sales increases during the period. Private-label products also saw an increase during the period, in keeping with broader trends in the food and beverage space.

The entire refrigerated-orange-juice category posted flat unit sales and a 5% decline in dollar sales during the period. As the leader in the category, it makes little sense that Tropicana Pure Premium would see such a drastic sales decline while the category remained relatively flat, industry experts said. Through Feb. 22, Tropicana Pure Premium accounted for about a third of sales in the refrigerated-orange-juice category.

Tropicana: no connection
A spokeswoman for Tropicana in an e-mail said, "No dots to connect here." The company did not respond to further requests for comment.

"It surprises me that their performance is so different from the rest of the category," said Gary Hemphill, managing director-chief operating officer at Beverage Marketing Corp. "It's a little tough to draw conclusions over such a short period of time. But I would say that's unusual."

Mr. Hemphill said typically when a beverage brand undergoes a rebranding it signals increased marketing expenditures and leads to improved performance, at least in the short term. "It gets people to look at the brand again and brings some kind of news and excitement around the brand," he added.

Tropicana had certainly sought to create excitement around the Pure Premium rebrand, announcing Jan. 8 a "historic integrated-marketing and advertising campaign ... designed to reinforce the brand and product attributes, rejuvenate the category and help consumers rediscover the health benefits they get from drinking America's iconic orange-juice brand."

'Black eye'
Beverage experts were hard pressed to think of another major brand that had pulled the plug on such a sweeping redesign as swiftly as Tropicana. "It's a black eye when you have to backtrack that quickly," said Bob Goldin, exec VP at Technomic. "There must be [another example] but nothing comes to mind. [Tropicana] is a big brand, and it was a big restage. This is something that I'm sure they were not happy about."

While it's impossible to say whether Tropicana has permanently lost share, as a result of the blunder, competitors are likely taking note. "We think the Minute Maid brand has opportunity for growth, and we're working hard to make that happen," said Ray Crockett, a Coca-Cola spokesman.

For more information visit www.adage.com

RESEARCHBRIEF

FROM THE CENER FOR MEDIA RESEARCH

Thursday, April 2, 2009

The extensive report, available in PDF format for a thorough review, describes marketing and advertising conditions in today's marketplace, and suggests the need to respond to these questions...

• How can we break down silos across individual agencies to deliver a consumer-centric approach? 
• In what ways can we change our business models, back-office capabilities and fee structures to take on what previously were more manually intensive and potentially more risk-oriented deals? 
• How can we leverage data to play an "insights broker" role? 
• What will help us drive efficiencies in light of legacy, siloed campaign support tools and organizational structures? 

Introducing the study, the authors say that the distinctions between advertising and marketing have blurred, as new forms of communication combine the ROI-characteristics of direct marketing with the brand characteristics of traditional advertising. To adapt and succeed, says the report, companies must move beyond traditional advertising to combine granularity of targeting and measurement with cross-platform integration, greater insights, open collaboration and digital processes.

The study addresses in detail the four primary trends that are blurring the boundaries between traditional brand advertising and direct marketing:

• Consumer adoption of new distribution formats - Consumer behavior has changed forever: They are more digital-savvy, willing to provide personal information in return for perceived value, and increasingly ready for permission-based advertising.
• A shift in advertiser spending - Spending is moving from traditional advertising toward measurable, interactive marketing. Combined with spending contraction in the new economic environment, this requires smarter advertising, and doing more with less.
• Digital migration of platforms - Traditional boundaries are fading, creating opportunities for innovative business models for content platforms.
• Emergence of new capabilities - Moves, by both new entrants and existing players, are driving new types of industry innovation, challenging existing business models and accelerating the pace of change.

The report quotes a Lead M&E Analyst of a global research firm in summarizing the situation:

"Consumers can no longer be considered 'the audience' - they are simultaneously readers, editors and marketers, especially the younger demographics." 

Consumers are adopting digital content services faster than previously anticipated. The M&E industry serves two types of audiences: those who enjoy media in more traditional ways and those who are more media-involved. Their combined influence is contributing to the growth of consumer-centric marketing.

65% of the overall population, referred to as Massive Passives in the report, are most interested in maintaining their existing content experiences, skew older, and are least likely to participate in innovative types of media consumption. As the "cash cow," this segment expected to keep delivering a large portion of revenues.

35% represent a faster growing segment that is more tech savvy and younger. It consists of two types of users: 

• 15% dubbed Gadgetiers: early adopters of the latest multimedia devices
• 20% are Kool Kids: those under age 24

Both types want the latest gadgets, devices and content services, and are willing to pay for services they deem valuable. They are adopting and using new digital content services at a high pace, taking control of media formats.

• Kool Kids are "cash poor" and "time rich"  
• Gadgetiers are relatively "cash rich" and "time poor"
• Kool Kids are more likely to accept ad-funded models (free content in exchange for viewing advertising)

Advertisers are shifting investments into more interactive, measurable formats, such as the Internet and mobile, branded entertainment (product placement, event marketing, word of mouth) and custom publishing, says the report, which are expected to gain a 20 point share of overall spend. This shift will be at the expense of traditional marketing, such as direct marketing and promotions, and traditional advertising formats such as TV, print and radio.

The report offers these "implications," concluding that:

• Mass marketing alone is no longer feasible. Reaching these diverse segments requires niche offerings and context via approaches that are tailored for new platforms, new offerings and, new experiences
• A strategy of permission based marketing, tailored by geographic market and segment, can help avoid privacy concerns while providing valuable information about consumers.
• M&E companies can reach consumers through convergence across devices, but only by addressing barriers related to cross-platform audience tracking and comparability
• Not only do advertisers expect truly innovative, breakthrough campaign alternatives, they also require the ability to analyze campaign results to prove the value of spending
• Participants that previously focused on delivering either ROI-driven marketing or brand-oriented advertising to the market can now cater to both sets of objectives 

To learn more about this IBM Institute for Business Value study, view charts and graphs, and to study a model for improving granularity and cross-platform integration, please download the PDF formatted report from this link.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Wednesday, April 1, 2009

The February 2009 comScore Video Metrix data shows that U.S. Internet users viewed 13.1 billion online videos during the month of February, representing a decline of 12% versus January due mainly to three fewer days in the month. Google sites comprised the largest share, accounting for 41% of online videos viewed and just under 100 million unique viewers.   

Google Sites continue to rank as the top U.S. video property, with YouTube.com accounting for more than 99 percent of all videos viewed at the property. Fox Interactive Media ranked second, followed by Yahoo! Sites, Hulu and Microsoft Sites. Hulu climbed two positions in the ranking to #4, after experiencing a 33-percent jump in video views on the heels of its Super Bowl commercial at the outset of the month.

More than 145 million U.S. Internet users watched an average of 90 videos per viewer in February. Google Sites maintained its lead with nearly 100 million viewers during the month, representing 69 percent of those who watched video. Fox Interactive ranked second, followed by Yahoo! Sites and Hulu. Of the top ten video properties, Hulu experienced the largest increase in unique viewers compared to January.