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Report: Most Consumers Steadfastly Green

By numantra on March 29, 2010 9:41 AM

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Report: Most Consumers Steadfastly Green

by Sarah Mahoney, Friday, March 26, 2010, 5:17 PM

While the recession has certainly nibbled away at the total amount people are willing to spend on products they believe to be green, the environment continues to be a concern for the majority of consumers.

New data from market researcher Mintel shows that 35% say they will still pay more for "environmentally friendly" products, despite changes in the economy. And about half of the most committed shoppers say they are buying "as much or more" organic food than before the crash.

Still, in 2009, growth in green space all but stalled. "We've been tracking this for six years, and we are now seeing that this number has reached a plateau," senior market analyst Chris Haack tells Marketing Daily, "and that seems to have been happening regardless of the recession. It seems to have reached its saturation point."

In its analysis of the food and beverage and personal care categories, which he says are among the most mature in their green offerings and account for most of the purchases, people say they are spending less but remain committed. In food and beverages, Mintel reports that sales growth of natural and organic food, which grew 24% from 2006 to 2008, rose just 1.8%.

"People are trading down -- buying cheaper foods," he says, "but they don't want to make a trade all the way down to processed foods." Some 21% of organic food buyers say they have cut down or eliminated organic purchasing, and another 20% have switched to less inexpensive organic options. Based on their commitment and the economy picking up steam, Mintel forecast a 20% growth rate in green food and beverage purchases from 2010 to 2012.

And while sales of green personal care products climbed 18% in the 2006-08 period and just 1.2% in 2009, Mintel predicts rapid growth once consumer spending begins to recover. "One-third of all consumers have never tried organic or natural personal care products, suggesting that there is plenty of room for growth," it reports.

Haack says that consumers in the 25 to 44 age group seem to be the most committed to green products, but that as offerings proliferate, do does confusion about product claims, as well as concerns about greenwashing.

He also anticipates a major uptick in green claims and products in the tech sector, as consumer spending recovers. "The replacement cycle on tech products is so short, it will give marketers more opportunities to differentiate themselves with green benefits."

For more information visit www.mediapost.com

Movie Billboards Morph Into Reusable Bags

By numantra on March 18, 2010 9:16 AM

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Media Daily News

OOH Super-Graphics Go Green: Movie Billboards Morph Into Reusable Bags

by Erik Sass, Yesterday, 9:49 AM

Los Angeles is a giant laboratory and proving ground for new out-of-home advertising strategies -- which also makes it a hotbed of opposition to the burgeoning, diversifying medium. Witness the seemingly endless battle over digital billboards, which now involves the LA City Council, the Planning Commission, and the state and Federal courts. But at least one of the more contentious issues -- the environmental cost associated with vinyl "super-graphics" applied to the sides of buildings -- appears to have been solved.

The environment-friendly fix comes courtesy of Midnight Oil and LA Graphico, sibling marketing companies based in Pasadena, which specialize in online advertising and super graphics (focused on the movie industry) in partnership with another local company, Billboard2Swag, which takes LA Graphico's discarded vinyl building wraps and turns them into sturdy, stylish reusable shopping bags.

Unlike the reusable shopping bags sold by green-thinking supermarket chains, each of the Billboard2Swag bags is unique.

Given the size of the super-graphics, which measure thousands of square feet in area, there's no guarantee a particular bag will have anything recognizable on it, but it does offer some eye-catching abstractions.

Plus, there is a certain cachet (at least in L.A.) to owning a bag made from, say, a giant super-graphic for "Avatar." The green selling point helps: Billboards2Swag is able to reuse over 95% of each LA Graphico super-graphic, leaving virtually no waste for the landfill.

Although it forged the partnership with Billboard2Swag on its own initiative, LA Graphico hopes the green solution will help attract more environmentally conscious advertisers that may have shied away from the giant out-of-home ads.

According to Brandon Gabriel, a principal at Midnight Oil and LA Graphico, the two companies' growth strategy includes cross-selling more of their online ad clients to outdoor and vice versa. The bags can only help persuade digital adherents to venture out-of-home, while allowing existing super-graphic advertisers to polish their green credentials.

One interesting PR advantage: as conversation pieces, the bags continue generating buzz and publicity for a movie long after the super-graphic comes down.

For more information visit www.mediapost.com

People Pay More For Green

By numantra on January 21, 2010 9:05 AM

MEDIAPOST NEWS

MARKETING NEWS DAILY

Study: People Willingly Spend More For Green

by Tanya Irwin, Yesterday, 3:57 PM

Consumers are willing to pay more for a variety of products that are environmentally friendly and sustainable -- better known as "green," according to a Burst Media study.

The survey revealed that 90% of respondents have incorporated some level of greenness into their daily lives -- 8.8% are completely green, while most are aspirationally green. To help lead green lives, respondents cite the Internet as the best source of information on green products and practices.

The trend of green consumers turning to the Internet poses an "incredible" opportunity for marketers, says Chuck Moran, chief marketing officer for Burlington, Mass.-based Burst Media.

"Green consumers -- in varying shades -- abound on the Internet," Moran tells Marketing Daily. "Advertisers who are marketing 'green' products online should recognize that the concept of 'green' cannot be communicated to consumers with a single concept, as it means very different things for different people.

"As marketers approach the Web with their green messaging, it is important to recognize that consumers have varying messaging cues that need to be addressed. Avoid confusion and be sure your messaging is clear and direct. Lastly, make use of the interactive nature of the Web with creative executions and rich media that users can interact with to gather more information about green products."

Administered in late December to more than 1,500 adults, the survey revealed that people are willing to pay a premium for products they know are made out of green or environmentally friendly, organic materials. Not surprisingly, aspirationally green and 100% green consumers are the most willing to pay a premium.

The aspirationally green consumers are most willing to pay a premium for food and household products they know to be earth-friendly, including produce (66.6%), juices and other bottled drinks (61.1%), household cleaners (59.2%), laundry detergents (58.7%), and packaged food (58.2%). Meanwhile, among the 100% green respondents, over 80% are willing to pay a premium for all product categories, including food, garden/landscaping supplies (84.4%), home improvement supplies (84.0%), bedding (83.3%), and health and beauty products (82.0%).

More than one-third (39.4%) of respondents turn to the Web for information on green products and practices, followed by TV (18.4%), friends and family (9.2%), newspapers (7.1%), magazines (6.5%) and books (4.6%). While men search for information on alternative energy and green technologies, women look for healthy recipes, recycling, simple living, and natural remedies.

More than half (56.6%) of all respondents believe that to some extent, advertising claims that promote a product as environmentally friendly. However, 25% do not believe the claims -- or find them confusing or misleading -- and only 10% say they never believe green claims made in an advertisement. Two-thirds (67.5%) of aspirationally green respondents believe green claims in advertising, compared to 58.2% of "completely green" respondents, and 32.3% of respondents who are not green at all.

Women in all key age segments are more likely than men to purchase a product that is advertised as environmentally friendly. However, men still lead women in being completely green -- 12.1% versus 5.3%, respectively.

The study reveals a distinct difference in the motivation to go green between those who are aspirational and those self-identified as 100% green. While aspirational greens clearly point to working for a better environment (61.3%) as the reason for incorporating green behaviors into their daily lives, only 38.1% of 100% greens point to this cause. Among respondents who are completely green, reasons include "to live a better quality of life" (36.6%), good for the community (35.4%), desire to make a difference (32.9%), and to set an example for others to follow (31.5%). Among this segment, being green identifies a lifestyle rather than personal activity.

For more information visit www.mediapost.com

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