June 2009 Archives

McDonald's Did It, and You Can Too

by Larry Light
Published: June 29, 2009

Brands do not die natural deaths. However, brands can be murdered through mismanagement. Some brands are beyond hope -- but others can be revitalized.

Of course, it's not easy. But it is well worth the effort. We at Arcature developed the following principles and practices over the years while working with a variety of clients in a variety of businesses. They're also practices we applied during my tenure as global CMO of McDonald's from 2002 to 2005.

For a brand to be successfully revitalized, everyone needs to be on the same page. Then they must follow the six rules of brand revitalization listed here. This "Plan to Win," as we call it, is built around the eight P's: purpose, promise, people, product, place, price, promotion and performance.

Rule 1: Refocus the organization
Refocusing the organization begins with redefining the brand and business purpose and goals. The brand purpose should be aspirational. At McDonald's, where I held the post of global CMO, we defined the long-term ambition "to be our customer's favorite place and way to eat and drink." For the first three years, the primary focus was on becoming the "favorite place and way to eat." As Jim Cantalupo, McDonald's CEO, liked to say, we would "be bigger by being better." How would we accomplish that?

Rule 2: Restore brand relevance
The brand promise is an articulation of the relevant and differentiating experience that the brand will deliver to every customer, every time. Brand revitalization means defining where you want the brand to be and then deciding how to get there.

Over the years, the essence of the McDonald's brand was the perception that it was an affordable, convenient brand for families with kids. There were those who said that equity could not and should not be changed. But McDonald's set out to change people's perceptions and go from appealing to the child in your heart to appealing to those with a young-adult spirit at heart.

Rule 3: Reinvent the brand experience
To revitalize a brand, we need to bring the redefined brand promise to life. This is what the five action P's are all about. The five action P's are people, product, place, price and promotion.

People come first. Building employee commitment to the new direction, employee confidence, and organizational and employee capabilities are critical factors that influence future success.

And it's imperative to inspire those in the organization to believe that the new brand future will happen and that they can help. At McDonald's a new on-boarding communication was created called "Learnin' it. Livin' it. Lovin' it."

Product is the next P. Products and services are the tangible evidence of the truth of the promise. When we redefine the promise, product and service renovation and innovation are imperative.

A disciplined approach to brand extension can revitalize and strengthen a brand. McDonald's extended its product range to include products such as salads, yogurt parfaits and coffee. The Crest revitalizations included extensions beyond cavity prevention to include tartar control, whitening, breath freshening, dental floss, mouthwash, tooth whiteners and toothbrushes.

The place is the face of the brand. Whether a store, a website, a retail display, a kiosk or wherever the "place" may be, the experience must be consistent with the intended brand direction. For example, McDonald's embarked on a very ambitious retail reimaging program. It also updated the brand website.

Price comes next. The launch of the McDonald's Dollar Menu created an everyday-low-price list of items and enabled the brand to significantly reduce marketing emphasis on on-and-off discounting. Overemphasis on deals and discounts builds deal loyalty rather real loyalty.

Promotion comes next. In September 2003, a new global campaign was launched in 119 countries. The common signature theme was "I'm lovin' it," supported by a distinctive set of five musical notes. The character of the communications was designed to reflect the new young-adult spirit of the brand. The following year, McDonald's adopted its first global packaging approach. It's the longest-running theme in the history of the brand.

Whether advertising, special events, public relations, online, cause marketing, sponsorships, Olympics, World Cup or other forms of communication, the goal was to be consistent with the new McDonald's brand promise. Disconnected, monthly promotional messages and tactics destroy brands.

Rule 4: Reinforce a results culture
Measuring and managing performance is the eighth P. The McDonald's Plan to Win included three-year, measurable milestones.

Creating a results culture means it is important to produce the right results the right way. A balanced brand-business scorecard should include measurable elements such as brand familiarity, brand reputation, employee pride, customer-perceived value, brand loyalty, sales, share and profit.

Rule 5: Rebuild brand trust
In this skeptical, demanding, uncertain world, trust is a must. As part of revitalizing a brand, rebuilding trust is critical. Investment in rebuilding trust is an important, challenging marketing imperative. There is demand for more openness, more social responsibility and more integrity. Over the years McDonald's invested in building trust -- Ronald McDonald House, environmental responsibility, commitment to employee diversity, local community activities. As the concern with healthful living has grown, so has McDonald's commitment to providing appropriate choices -- for example, salads, apple slices, yogurt parfait, water, juices and milk.

Rule 6: Realize global alignment
The power of alignment is awesome. During brand revitalization, we often talk about the need to get everyone on the same page. But we rarely, if ever, define the page we want everyone to be on. That's the purpose of the one-page Plan to Win, the one-page document that summarizes the eight P's and the desired outcomes.

Brand revitalization needs the courage and perspective of strong leaders. Jim Cantalupo was a decisive, committed leader providing clear direction and priorities. Charlie Bell, chief operating officer, was not only a great communicator, his positive attitude was infectious. They were the leaders who led the creation and launch of the far-reaching McDonald's Plan to Win. The vision and positive momentum initiated by Cantalupo and Bell continues to produce results even in a difficult economic environment.

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Thursday, June 25, 2009

According to a recent report by The Media Audit, in the past three years, the average U.S. adult has nearly doubled their daily use of the Internet as the average U.S. adult spent 2.1 hours per day online in 2006, compared to 3.8 hours in 2008, an 81% increase over three years.  As a result, the Internet now represents 32.5% of the typical "media day" for all U.S. adults when compared to daily exposure to newspaper, radio, TV and outdoor advertising.  

Even those who are considered heavy newspaper readers spend about as much time online today as the typical U.S. adult. According to the report, heavy newspaper readers, those who spend more than an hour per day reading, currently spend 3.7 hours per day online.  In 2006 the Internet represented only 18.4% of a heavy newspaper reader's "media day," but today it represents 28.4%.

 The report further reveals that seven daily newspapers have achieved a net unduplicated reach of 80% or more when the past 30-day website visitor figure is combined with the past month print readership figure. Among these newspapers are the:

• New Orleans Times Picayune with a total unduplicated reach of 85.8%
• San Antonio Express-News (80.6%)
• Post-Standard in Syracuse (84%)
• Buffalo News (83.3%)
• Democrat & Chronicle in Rochester (80.9%)
• Peoria Journal Star (80.4%)
• Omaha World Herald (82.2%)

In addition, a new ranking by The Media Audit reveals that among the more than 100 daily newspapers measured in the U.S. across 88 markets, New Orleans' nola.com is the top daily newspaper website based on the percent of adults within a metro area who have visited a daily newspaper website in the past 30 days.

According to the data, the website reaches 50.4% of the more than 800,000 adults who live in the New Orleans metro area. The figure represents 422,354 unique monthly visitors. The website audience, when combined with the Times Picayune's monthly print readership figures, represents 85.8% total unduplicated reach among adults 18+ in New Orleans for the Advance Publications, Inc. owned newspaper.   

 San Antonio Express News' mysa.com tied nola.com with a 50.4% rating, however, the unduplicated reach for the website audience and print readership was 80.6% compared to the Picayune's 85.8%. Washingtonpost.com ranked third.

 Rounding out the top ten daily newspaper websites is Ann Arbor News' mlive.com, followed by the Atlanta Journal Constitution's ajc.com, The Post-Standard's syracuse.com,  Indianapolis Star's indystar.com, Birmingham News' al.com, Virginian-Pilot's hamptonroads.com/pilotonline.com, and Reno Gazette-Journal's rgj.com.

 Bob Jordan, President of The Media Audit concludes that, "Daily newspapers were the first to embrace a multi-platform distribution strategy amidst a period when consumers were spending more and more time with the Internet. And as a result, newspapers followed the way of the consumer. By doing so, they have broadened their reach to include younger consumers. And these consumers are buying new cars and driving sales for retailers who represent a significant portion of the newspaper industry's revenue... " 

For more information about this report, or to obtain a copy of the Daily Newspaper Reach Analysis, please visit the Media Audit here.

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Wednesday, June 24, 2009

StrongMail Systems, Inc., released new survey data that points to the emergence of social media as a direct marketing channel and a significant planned investment in email marketing and social media programs in the second half of 2009.

500 marketers, responding to an online survey from May 21 to June 1, 2009, report a wide-spread reach for ownership of social media within the various facets of marketing:

• 29% of respondents state that social media responsibility is owned by multiple departments
• 36% of survey respondents state that the direct marketing department owns social media
• 9% of the respondents report that social media is owned by public relations departments
• 5% have a dedicated social media department

The survey revealed that social media is a hot initiative with email marketers, with 66% planning to integrate the two channels in 2009, and 48% who have already formulated a strategy for achieving this initiative. Of marketers planning to increase budgets in 2009, 83% will increase spend in email marketing, followed by social media at 62%.

There is still widespread confusion regarding how a social media strategy for email marketing should be implemented, notes the report:

• 55% of respondents report that one of their biggest challenges with integrating social media and email marketing is determining metrics by which to measure success
• 48% say establishing business goals for the program is the biggest challenge

Social media has grown to the stage where it needs an owner and a purpose within marketing, concludes the report. StrongMail believes that the intrinsic interconnection between social media and email make it an ideal direct channel, as Email continues to drive engagement in social networks by alerting members of new content and updates. And, says the report, the ability to communicate relevant messages within social networks is critical to a business' success in the medium.

Ryan Deutsch, vice president of strategic services and market development, concludes that "Leveraging social media is a valuable tool for meeting direct marketing objectives... but needs to be tied to metrics such as purchases, new customer acquisition or customer retention... in line with the business's overall direct marketing objectives."

For additional information about the study, please visit here.

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RESEARCHBRIEF

FROM THE CENTR FOR MEDIA RESEARCH

Tuesday, June 23, 2009

The latest findings of the Pew Research Center's Internet & American Life Project show home broadband adoption at 63% of adult Americans as of April 2009, a significant departure from the stagnation in adoption rates from December 2007 through December 2008, when home broadband penetration remained in a narrow range between 54% and 57%.

The study shows that the greatest growth in broadband adoption in the past year has taken place among population subgroups which have below average usage rates. Among them:

• Broadband usage among adults ages 65 or older grew from 19% in May 2008 to 30% in April 2009
• Respondents living in households whose annual household income is $20,000 or less saw broadband adoption grow from 25% in 2008 to 35% in 2009
• Respondents living in households whose annual incomes are between $20,000 and $30,000 annually experienced a growth in broadband penetration from 42% to 53%
• Respondents reporting that they live in homes with annual household incomes below $30,000 experienced a 34% growth in home broadband adoption from 2008 to 2009
• Among adults whose highest level of educational attainment is a high school degree, broadband adoption grew from 40% in 2008 to 52% in 2009
• Among adults ages 50-64, broadband usage increased from 50% in 2008 to 61% in 2009
• Adults living in rural America had home high-speed usage grow from 38% in 2008 to 46% in 2009

Population subgroups that have above-average usage rates saw more modest increases during this time period:

• Adults who reported annual household incomes over $75,000 had broadband adoption rate change from 84% in 2008 to 85% in 2009.
• Adults with a college degree (or more) saw their home high-speed usage grow from 79% in 2008 to 83% in 200
• African Americans experienced their second consecutive year of broadband adoption growth that was below average.

In the current survey, more than twice as many respondents said they had cut back or cancelled a cell phone plan or cable TV service than said the same about their internet service. In the past 12 months:

• 7% of all adults have cancelled or cut back online service
• 22% of adults have cancelled or cut back cable TV service
• 19% of all adults have cancelled or cut back cell phone service

However, notes the report, given that the survey shows that 85% of adults have cell phone service, it seems likely that cell phone users were economizing on service plans rather than foregoing service altogether.

Prices for home broadband service increased from 2008 to 2009. Home high-speed users who reported more choices of providers paid less than others.

Competition impacts broadband cost:

• Broadband users with one provider where they live (21% of home high-speed users) report an average monthly bill of $44.70.
• Among broadband users with more than one provider in their area (69% of home high-speed users), the average monthly broadband bill is $38.30.
• A subset of home broadband users who say four or more broadband service providers serve their neighborhood (17% of all home high-speed users) reported an average monthly bill of $32.10.

Overall, 55% of broadband users view a high-speed link at home as "very important" to at least one dimension of their lives and community, such as communicating with health care providers and government officials, or gathering and sharing information about the community. Some 84% of home broadband users see their fast connection as "somewhat important" or "very important" in at least one of these five realms listed.

When asked why they do not have the internet or broadband at home, non-users (either dialup subscribers or non-internet users) cite factors related to the internet's relevance, availability, usability and price. A third of dial-up users cite price as a barrier, with the remaining two-thirds citing other factors.

Consolidating the reasons mentioned across the two classes of non-broadband users shows that half of non-internet or dial-up users cite a reason that suggests they question the relevance of connecting to the internet - either at all or with high-speed at home.

For additional detail about the report, and access to the PDF file, please visit here.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Monday, June 22, 2009

A 3.9% drop is expected in 2009 and a 0.4% advance in 2010, with a period of much faster growth during the remaining period to 7.1% in 2013. The forecast anticipates that the impact of the recession on consumer spending will last longer and be steeper than previous ones due to a steeper downturn. Consumer spending in E&M will fall by a projected 1.2% in 2009, remaining weak in 2010 and seeing only relatively low growth at 3.2% in 2011.

Responses to the recession will vary dramatically from country to country and region to region:

• Latin America and Asia Pacific remain the fastest growing regions increasing at an annual compound rate of 5.1% and 4.5% through to 2013 reaching $73 billion and $413 billion respectively
• Excluding Japan, the dominant country in the Asia Pacific region which accounted for 45% of total spending in 2008, E&M spending in Asia Pacific will increase at a projected 7.1% compound annual rate over the period of the forecast

Though the current economic downturn has impacted virtually every sector of the E&M marketplace, says the report, it has also accelerated and intensified the digital migration among both providers and consumers of content. The switch to digital will drive divergences in revenue performance between different segments and geographies, however.

Marcel Fenez, Global Leader Entertainment & Media practice, PricewaterhouseCoopers, says: "... companies who grasp the opportunities... in this fast changing marketplace... will be able to take full advantage of the potential and new revenue models as they emerge."

Fenez added: "... the Net Generation and... their demands are driving the industry towards new business models... (they are) exerting influence over older generations who are... taking a growing interest in new and emerging platforms. End-user spending through digital/ mobile platforms accounted for 23.4% of the overall consumer/end-user/access market in 2008, and the study expects this to account for 78% of total growth during the next five years."

Consumers are adopting "time-shifting" and broadband penetration to get what they want from wherever they want. In addition, growth in mobile access is allowing consumers to access the Internet from any location, giving rise to the popularity of smartphones, iPods, and the Kindle that combine mobility and access.

The advances in digital music are also allowing consumers to purchase songs individually through digital channels (unavailable in physical format) and generating growth in sideloading, which allows consumers to buy music less expensively online and transferring it to mobile devices.

Over the next five years, predicts the study, advertisers will shift their resources to reflect the increasingly fragmented ad market. In the mobile arena, advertising continuum opportunities will enable the growth between brands and consumers, ranging from click-through banner ads and pre-roll ads on video clips through coupons and online subscriptions.

Video game ads are expected to outpace the rest of the advertising industry at 13.8% CAGR compared to an overall industry decline at a compound rate of 0.6% during the forecast period. The growing proportion of Internet and mobile advertising in the overall global advertising mix will rise from around 12% in 2008 to 19% in 2013.

Fenez concludes "... accelerating digitization... (provides) no place to hide from new models and dynamics across the industry... for each of the industry's diverse segments to participate fully in this growth, they will first need to embrace the digital future."

For more about the PricewaterhouseCoopers Global Entertainment & Media Outlook 2009-2013, please visit here. Or, to order copies to the 10th annual edition in-depth analyses and forecast of 12 major industry segments across four regions of the globe: North America (USA, Canada), EMEA (Europe, Middle East, Africa), Asia Pacific and Latin America, please go here.

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Tuesday, June 16, 2009

According to Epsilon's Global Consumer Email Study, conducted by ROI Research, the survey of over 4000 consumers in 13 countries finds that Email remains a mainstay communication, showing that 87% of North American(and 74% of European respondents are more likely than their peers in APAC to use email as their primary online communications tool.

Instant messaging as the main channel for communication, is notably high in APAC with 28% of respondents, while text/SMS and social networking remain consistently low across all regions. While most consumers manage one primary inbox for the programs they subscribe to, mobile phones and PDAs are gaining popularity for time-sensitive alerts such as news, weather and finance/stock information.

Email is also replacing other channels of communication. Over one-third of respondents have replaced traditional (communication) channels in favor of email for communications from:

• Banks (40%)
• Promotional postal mail (38%)
• Telemarketing (34%)
• Offline coupons (14%)
• Telemarketing (28%)

PBEs (permission-based email) are more likely to elicit actions from APAC respondents including clicking on a website, signing up for more information, watching a video clip, clicking on an advertised link or purchasing on or off-line. APAC also leads in reported usage of a PDA or Smartphone for email with 32%, significantly more than North America (9%) and Europe (7%).

59% of APAC consumers report making an offline purchase as a result of email communications, followed by North America (53%) and EMEA (37%). Half of APAC respondents feel that "subject" lines are the most compelling feature to open a permission-based email; over two-thirds of North American and European respondents select the "from" line. Discount offers, free product offers, familiar brand names and personalization of subject lines increase the likelihood of opening among all respondents.

Other key findings from the study include:

• Respondents cite security and lack of attractive offers/promotions as the primary reasons why they do not interact with the emails they receive
• North American respondents are the most likely to unsubscribe
• Irrelevant content and frequency are cited as the two most likely reasons for un-subscription
• Eight in ten North American respondents have added PBE addresses to safe sender lists; overall, more than half of respondents have added PBE addresses to safe sender lists
• Respondents are most concerned about viruses, identity theft, phishing, and scams. Concerns about phishing and pharming have increased significantly from 2005 to 2009 for US respondents

Kevin Mabley, SVP of Strategic Services at Epsilon,  "... these findings reinforce the need for marketers to speak to consumers in a two-way dialogue... respecting... (consumer) preferences and past interactions... knowledge of local marketplace trends is crucial and testing each strategy and program will provide confirmation of what's working."

For additional information from Epsilon, please visit here.

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Monday, June 15, 2009

Ceril Shagrin, executive vice president, Corporate Research, Univision Communications, observes that "The volatility of the current recessionary economy has created a need for more current week-by-week data... (to) capture changes in consumer behavior and purchasing patterns... "  allowing marketers to take an in-depth look at real-time information... for a better understanding of the impact on consumers.

The results from the past 65 weeks, says the report, indicate that while the overall consumer mindset is increasingly negative, Hispanics are more optimistic in the period following the "meltdown," versus prior to September 29th, 2008:

• 29% of Hispanics are more positive about the U.S. economy in the coming 12 months vs. 21% of non-Hispanics
• Hispanics average consumer confidence rating is 11% higher than non-Hispanics, and has remained constant since 2005, while non-Hispanics confidence rating has declined

 Study results show contributing factors to why Hispanics are less affected by today's economic climate:

• Only 45% of Hispanics have/use credit cards vs. 71% of non-Hispanics
• Hispanics are 44% more likely to use cash to pay bills than non-Hispanics (Index 156 to 91)
• Hispanics are almost 2x as likely to rent their home as non-Hispanics (44% vs 23%), and are less likely to be impacted by the high percent of mortgage foreclosures

 The findings highlight Hispanics as a key target consumer for advertisers, says the report:

• Hispanics are consistently more frequent shoppers than non-Hispanics (34% vs 29%)
• Twice as many Hispanics are willing to pay for branded prescriptions as non-Hispanics (31% vs 15%)
• Hispanics are 38% more likely to buy from an advertiser than non-Hispanics (Index 131 to 95)

And Mediaweek writes that not only do Hispanics have a more positive attitude (about the economy) than non-Hispanics, but they go shopping more frequently compared to non-Hispanics and Hispanics are more willing to pay for branded prescriptions than non-Hispanics.

Continuing, Mediaweek says that advertising carries a lot of weight with Hispanics, who enjoy TV spots and remember touted products when shopping. Hispanics are 38 percent more likely to buy from an advertiser than non-

Hispanics, seeing it as a source of information, not a nuisance. Univision notes that one casual dining space advertiser saw a sales lift of 23% by targeting Hispanics.

For more information about this study, please review the complete Univision release here.

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Thursday, June 11, 2009

A new study by the Association of National Advertisers reports that 47% of marketers studied are planning "pricing deals" as the initiative most likely to be increased in the current economic environment. 26% say social networking and word of mouth activities are currently most important, while 23% say public relations efforts.

Though this emphasis on more short-term strategies is a clear response to current economic conditions, marketers also report plans for renewed activities when the recession ends and the recovery begins. 

• 68% say media budgets will be increased
• 41% will increase social networking/word-of-mouth
• 40% will increase budgets for innovation and testing/learning
• Seventy-three percent of respondents said they would ideally implement these increased marketing activities three to six months before the recession ends, and an additional 16% as soon as it ends.

Bob Liodice, President and CEO of the ANA, says "...  building brands was jolted by the severity of the economic downturn... (but) marketers are preparing for the rebound with plans for increased media spending... strategically sound brand building... expansive use of social media."

Few marketing initiatives have been shelved or delayed, but many are being reduced, including:

• Media budgets (56%)
• Production budgets (50%)
• Sponsorship/events activities (41%)

The activities reported as most likely to be maintained throughout the recession period include:

• Research and development (47%)
• Public relations (42%)
• Innovation/test/learn budgets (33%)
• Promotion activities (33%)

Marketers response to long-term branding decisions and measurements frequently trended against identical questions asked during previous surveys. The most effective measure of brand health (the measure to which brand equity is increasing or declining) is customer experience/satisfaction, according to the respondents, which increased to 48% in April 2009 from 37% in February 2007.  There is less focus on traditional metrics such as brand image and awareness, which tend to be lagging indicators of brand health.

Signs of brand deterioration have also shifted, with increased importance being placed on customer-related metrics.  According to the survey, marketers are more focused on brand health metrics with increased attention on:

• Customer conversion/repeat rates (78%, as compared to 70% in February 2007)
• The percentage of customers who rate a brand as "excellent" (77%, as compared to 68% in February 2007)
• Net promoter scores (73% as compared to 67% in February 2007)

Brand equity is of key importance, say marketers, with metrics focused on the consumer.  Products are the most important item to building brand equity (89%) with customer service ranked second (86%).   Employees as advocates for a brand are also of critical importance (81%).

Roger Adams, Chair of the ANA Brand Management Committee, notes that "Marketers have increased their emphasis on gauging consumer sentiment and brand health trends... with the proliferation of instant feedback... marketers can... quickly gauge brand equity, health and signs of deterioration."

Media channel effectiveness for building brand equity has also shifted materially, says the report, with some growing to be almost on par with television:

• Television ranks highest in importance (64%)
• Online (61%)
• Guerilla / word of mouth / buzz marketing (57%)
• Social media being ranked as the next highest effective media channel at 40%

Social media, however, ranks highest as the media channel that marketers would like to use but have not yet been able to implement.

Finally, in the report summation, it is noted that traditional media channels have declined in importance since the first survey was conducted in February 2007:

• Television (down to 64% from 80%)
• Magazines (down to 51% from 67%)
• Radio (down to 30% from 36%)
• Outdoor  (down to 26% from 35%)
• Newspapers (down to 19% from 36%)

For more information about the study from the ANA, please visit here.

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Monday, June 8, 2009

At the same time, the report says, local ad revenue may hit a low of $135.8 billion in 2010, before climbing a bit in 2011. And, local advertising across newspapers, direct mail, TV, radio, yellow pages, outdoor, magazines and online is expected to slip to $144.4 billion by 2013, down from $155 billion last year, says BIA.

Radio and TV internet revenue will climb to $1.9 billion in 2013, from $805 million last year, according to some estimates, but other media, including outdoor and direct mail, may be in for a tougher challenge.

Local mobile advertising will be the next hot trend, particularly in terms of local mobile search, according to The Kelsey Group study. Local mobile ad revenue will hit $3.1 billion in 2013, mobile search will reach $2.3 billion, and local searches, which were 27.8% of all searches in 2008, is projected to hit 35.1% in 2013.

Currently, says the report, 54 million people use the mobile web, and should reach 95 million by 2013. Local search will make up more than half of mobile advertising at 56%, though local search will only be just over 35% of all searches.

Michael Boland, a senior analyst at The Kelsey Group, says "Mobile gets you closer to the point of purchase because it goes with you to the store... (especially) good for ... retail, restaurants, and arts and entertainment."

Please find more about this study at MediaPlannerBuyer here, or through the Conference Agenda here.

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Tuesday, June 2, 2009

The Harris Poll of 2,401 U.S. adults surveyed online between April 13 and 21, shows that 35% of Americans are not planning on taking any leisure trips this summer. 77% are anticipating that they will not travel on business in the next four months. But not everyone is planning to stay home...  65% of adults are planning a vacation this summer, including 17% who are anticipating making three or more trips this summer.

Many travelers say the shaky economy means their 2009 summer vacation will look different than their 2008 summer getaway:

• Nearly three in ten adults plan on decreasing the number of leisure trips they make by car
• One-third say they will take fewer plane trips for leisure
• Another third will cut the number of weekend trips they take
• Slightly more than one-third will reduce the duration of their vacations
• Nearly half plan to reduce the amount of money they spend on vacation

 Those who are planning a trip this summer will spend an average of $1,629 on their travel. Among those who are planning on reducing the amount of money they spend:

• 60% are hoping to economize their leisure travel this summer by finding less expensive activities or meal options
• 52% will seek out less expensive accommodations or
• 50% will vacation closer to home
• 39% are hoping to reduce travel costs by staying with family and friends instead of at a hotel, by cooking their own meals instead of dining out or by driving instead of flying
• 31% say they will share costs with other family members or friends

Companies are also altering their summer travel plans due to economic conditions. 22% of  adults say their employer has reduced or eliminated all non-essential travel and 15% work for companies which are encouraging the use of technology (e.g. teleconferencing, video conferencing) to reduce or eliminate travel.

And, from the Creative Group...

Americans are not willing to postpone their summer vacation plans altogether. Because many people intend to stay closer to home for their summer vacations, the report suggests that the travel industry might consider promotions and advertising that reaches out to people in their own cities, states, and regions. Retailers, says the report, may also look to market to larger group activities as people look to reduce vacation costs by sharing costs with family and friends.

For more information, please visit Harris Interactive here.  

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Monday, June 1, 2009

According to Coupons.com, entertainment advanced to the No. 3 spot on the list of most popular online coupon categories printed in April. Advancing from No. 6 in March, the Entertainment category includes products like magazines, games and DVDs.

Steven Boal, CEO of Coupons, Inc., says "Consumers are spending less on non-essentials during these tough economic times... many are cocooning... to save money on in-home meals and entertainment... "

Cereal continued to top the list at the No. 1 position, and Baking Ingredients advanced to No. 2 from No. 3 in March. Nutritional/Diet retained the No. 4 position. The ranking is based on the number of coupon prints by category on Coupons.com and sites across the Coupons.com publisher network.

Driven largely by the economic slowdown, the use of digital coupons continued growing nationwide. Shoppers printed $50 million in savings from the Coupons.com publisher network in April, an increase of 160%, from the same month last year.

More than 40 million people currently print online coupons, up 20% from last year according to Simmons Market Research Bureau. In the same time period, the number of people that only print coupons from the Internet and never use newspaper coupons has risen a dramatic 46% to six million.

According to Nielsen NetRatings, Coupons.com is the No. 1 site on the Internet for Coupons/Rewards, reaching more than 75 million consumers through thousands of Web sites, including name brand sites and grocery and drug store sites.

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