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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

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Monday, January 4, 2010

Companies that view themselves as the most green spend the most on green marketing, observes the report, while those that see themselves as least green spend just a fraction of their marketing budgets on such tactics. Marketers are backing up their beliefs of the compa ny's level of "greenness" with marketing campaigns, rather than creating green campaigns to be part of the trend. The research suggests that management first buys into "greenness" and, later, green marketing, rather than beginning green marketing efforts simply out of a desire to appear green.

71% of firms indicated that they were in the "somewhat green" to "very green" categories, but they tended to believe their customer base thinks them less green than they really arr. This belief is persistent among the respondents, and may indicate why green marketing is on the rise.

Here are some of the key findings explained in the study:

82% of respondents indicated they expect to spend more on green marketing in the future. Among manufacturers, that number is significantly higher. At least half, if not more, of respondents plan to engage in o nline marketing efforts in the future.

28% of marketers themselves think green marketing is more effective than other marketing messages, compared to 6% of marketers who think it is less effective. Management is even more optimistic, with 46% of them indicating a belief that green marketing is more efficacious. Just 23% of those in operations think green marketing is more effective.

Companies with smaller marketing budgets tend to spend more on green marketing. Firms with a marketing budget of under $250,000 spend just over 26% on green marketing, while those with budgets of more than $50 million spend 6% on green marketing.

The most popular medium for green marketing was the internet, with 

• 74.2% of respondents having spent money online, followed by
• Print (49.8% 
• Direct (40%)
• Outdoor (7%)
• Radio and TV (7%)
• Mobi le (6%)

29% of marketers with budgets between $10 million and $50 million, and 25% of those with budgets of more than $50 million, used outdoor, compared to 7.3% for all marketers. 

Mobile was also a popular medium for marketers with the highest budgets:

• 14% of those in the $10 million to $50 million budget category spent money on mobile
• 16% in the more than $50 million budget category spent money on mobile
• Compared to 6% for all marketers

Those firms that used the most trackable media are also those that said green marketing worked better than the average marketing message.

• 48% of respondents who employed direct marketing in their media mix said that it was more or much more effective, much like those who used internet (43%)
• That contrasts with those respondents who had employed TV, 25% of whom said it was more effective than average, indicating that green marketing works better than those who don't or can't measure results think it does.

Direct-oriented media showed the more positive results when asked if customers would pay more for green products or to a green company:

• Of the people who used the two least trackable media, TV and outdoor, only 29% and 25% respectively indicated that customers would pay more
• That compares to 44%, 42% and 46% for internet, print and direct respectively

Larger companies are more likely to target employees rather than customers:

• Companies with media budgets of more than $10 million annually showed a much higher proclivity to have their own employees as their target audience, with customers being targeted in only 70% of their efforts
• Firms with budgets less than $250,000 were about 80% more likely to target customers directly, and only about half targeted their own staff

50% of marketers themselves indicate they have complete or consultative control of green marketing, while 57% of PR folks say that have control of the sustainability program. Sales and operations, on the other hand, are skeptical that marketers have so much control of the sustainability programs, with just 41% and 21% respectively saying control lies in the hands of marketers. However, those in management tended to agree that control of the sustainability program is in the hands of marketers, at 50%.

About half of companies reported that they are consciously taking steps to become more green. The most popular actions are: 

• Conserving energy in operations, at 59%
• Changing products to reflect greener values (such as changing ingredients, packag ing or intended use), at 54%

And the Executive Summary observes that nearly half of respondents said the decision-makers at their companies hold green marketing in high regard, compared to just 15% who hold it in low regard. Companies with decision-makers who have a low regard for green marketing tend to be those with the larger marketing budgets between $10 million and $50 million per year, where more than a quarter indicated that their decision-makers held green marketing in low regard. Smaller companies, concludes the report, may believe green marketing to be more effective than larger companies do.

To read a brief summary, visit mediabuyerplanner here, or to purchase your copy of the report or acquire a data license, please visit here. 

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Wednesday, November 11, 2009

The study also found that 83% of people are willing to change consumption habits if it can help make the world a better place to live, indicating a startling consumer shift and trend away from traditional status markers like big houses and luxury cars and toward identification with social purpose brands. The findings overall show that

• More than twice as many people (67%) would rather drive a hybrid car than a luxury car (33%), with Japan (89%) and France (84%) preferring hybrid cars most.

Globally, the study found that

• 70% of people would prefer to live in an eco-friendly house than merely a big house (30%)
• 68% also now feel that it's becoming more unacceptable not to make noticeable efforts to show concern for the environment (rising to 82% in China) and live a healthy lifestyle (87% in China)
• 69% globally would rather have a brand that supports the livelihood of local producers than a designer brand (31%), North American and most European countries in the study, as well as Brazil, overwhelmingly prefer supporting the livelihood of local producers, with each indicating more than 80% preference

The study results suggest that in both harsh and rebounding economies, brands will continue to benefit from identifying and contributing to a positive social purpose that makes sense for their business, with 64% of people globally saying they would recommend a brand that supports a good cause (up from 52% in 2008, and in the U.S., up 16 points from 47% in 2008 to 63% this year). In addition, 63% of all respondents are looking to brands and companies to make it easier for them to make a difference, with Brazil having the highest expectations at 86%.

Mitch Markson, Edelman's chief creative officer, president of its brand consulting group, notes that "...People are demanding social purpose, and brands are recognizing it as an area where they can differentiate themselves ...not only to meet governmental compliance requirements, but also build brand equity... "

• Brazil proved to have the highest expectations on brands with 89% of Brazilians expecting brands today to do something to support a good cause, and 61% are most likely to say they are more involved in good causes this year
• More than seven in 10 Consumers in India and China say they would switch brands if a different brand of similar quality supported a good cause
• Japan fell short of many of the global results, with the exception of choosing social purpose over social status, overwhelmingly preferring hybrid cars (89%) and eco-friendly houses (87%)
• More than three out of four people in the UK, France, Germany and Italy were willing to change their own consumption habits if it can help make tomorrow's world a better place to live
• Americans, too, overwhelmingly indicate they are willing to change consumption habits to make the world a better place to live (85%) and are looking to companies and brands to make it easier for them to make a difference (65%)

While the global recession has created limitations, with 70% of consumers saying their ability to give money to community causes has been limited, people are still giving of their time:

• 33% have given less financial support due to the current economic downturn (rising to 51% among U.S. respondents)
• 31% are more involved in good causes than a year ago
• 53% have given more time in support of good causes this year because they have not been able to give as much money
• 56% have tried to do more to support good causes in the past year because charities and other nonprofit organizations have suffered in this economic environment

While the study reveals that social purpose is becoming increasingly crucial to a brand's success, 66% of people believe that it's no longer enough for corporations to merely give money away, but that they must integrate good causes into their day-to-day business.

The report says that the biggest global social changes include:

• 83% of respondents are willing to change consumption habits if it can help make the world a better place to live
• 71% of respondents think brands and companies spend too much on advertising and marketing and should put more into good causes - up almost 10%age points
• 64% would recommend a brand that supports a good cause - up from 52% last year globally
• 59% would help a brand promote its products if there was a good cause behind it - up from 53% last year
• 44% are aware of brands that actively support good causes through their products and services - up from 33%

Markson concludes that "Companies that become catalysts for social change and respond to rising consumer expectations... will not only survive, but also thrive in ways their competitors will not... "

Please visit Edelman here for more information.

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