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Research Brief

FROM THE CENTER FOR MEDIA RESEARCH

Monday, May 31, 2010

According to a new Arbitron study, more than 70% of the U.S. population, or 181 million, have viewed a digital video display out of home in the past month, while 52% of the population, or 135 million, have viewed digital video display in the past week.

Digital video in public venues reaches more Americans each month (70%) than video over the Internet (43%) or Facebook (41%).

The report notes that DOOH video dwarfs many prominent new media and marketing platforms. More American teens and adults have seen a digital video screen at a public venue in the past month than have watched online video.

More people see digital video screens in public venues than have ever sent or received a text message, own a DVR, such as a TiVo or recorder provided through their cable or satellite TV provider, or have a Facebook profile.

Viewers are engaged with the content, says the report, with 47% of those who have seen a digital place?based video in the past month specifically recall seeing an ad. 19% of those who have seen a digital video ad say they have made an unplanned purchase after seeing an item featured on the screen.

Based on surveys of 1,700 people, the study is said to be the industry's first universe estimates for 19 different venue categories to compare the reach of individual networks to the potential reach of the venue. Diane Williams, senior media research analyst for Arbitron, says "It's a first step in setting the groundwork for determining just how big the audience is."

Video displays in grocery stores, visited by 97% of the population, get the most notice with 72 million viewing a display in the past month. Displays in shopping malls are viewed by 70 million, followed by large retail or department stores, medical or doctors' offices, and movie theaters.

Though the movie venue was No. 5 overall, it ranked number 2 among teens, after shopping malls. For reaching Adults, the top three venues were grocery stores, large retailers, and shopping malls. The least-viewed DOOH venues were elevators and buses, trains or taxis

Monthly Digital Video Viewer:  A person who noticed a digital video screen at one of the 18 public venues examined in this report in the past month. The survey question is:

"Many public places now have digital video displays. These video displays look like television screens, but rather than broadcasting regular television stations, they feature short programs and advertising relevant to products in the store. For example, a video display at a local grocery store might show food items for sale, while a video display in the lobby of a local movie theater might show the trailer for an upcoming movie... I'd like you to tell me whether or not you have seen a digital video display... recently...specifically digital video displays... NOT to include TV stations you might have seen on a regular television screen at one of these locations."

Please visit Arbitron here for additional information about the study including access to PDF charts and graphs.

For more information visit www.mediapost.com

RESEARCH BRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Thursday, April 29, 2010

According to the e-tailing group 9th Annual Merchant Survey, given the e-commerce  essential role for today's retailers, 59% are planning to invest somewhat more in e-commerce than the 36% who did so in 2009.

With a recovering economy and shifting channel priorities, 92% anticipate 2010 Internet revenues to increase over '09 with significant growth in the 6-15% range; just 8% report a flat or downward trend in their e-commerce business vs. 34% last year. 

In early 2010 e-commerce dynamics put forth a favorable climate for cross-channel optimization. Marketing plans are performing at or above plan for 47% of merchants up from 37% in the prior year while merchandising is moving beyond redesigns towards industry standards and category-centric differentiators.

Lauren Freedman, President of the e-tailing group, says "Seasoned sellers, emerging retailers and manufacturers are... positioning themselves for growth as the economy rebounds... taking a laser-like focus on performance... "

Conversion remains a proverbial challenge as 56% of respondents report that the conversion rate sweet spot is still 3% or lower, even more than the 48% in that range last year although increased online researching and value pricing may be contributing factors.

With an emphasis on margin and profitability, where both impact tactical feature selection, the top three impact points where analytics have successfully been leveraged are conversion (52%), search marketing (44%) and cart abandonment (38%) all providing ample opportunities for revenue generation.

To improve website performance 79% of the respondents report planning more targeted email, 72% will refine onsite search and 70% will be enhancing onsite merchandising. Beyond these top initiatives the following will also be contributing factors:

• Cross-sells/Up-sells rise 66% vs. 55% with AOV focus
• Merchants move beyond redesign/upgrades (60% vs. 67%) to embrace strategic merchandising  
• More than one-half are planning to invest in usability or A/B testing (58%) and/or web analytics (53%) to better guide decision-making
• Customer service (53%) remains an important initiative for over half of the merchants
• Personalization/Customization sees long-awaited attention for 52% vs. 41%
• Outreach efforts gain ground with social networking strategies being planned by 58% and blogs (32%)
• 39% vs. 19% last year are planning expenditures on mobile initiatives  
• Added to the list this year - videos (48%) see strong adoption

In conclusion, Freedman states, "Merchants must ensure that their e-commerce roadmap is clearly defined yet fluid enough to embrace new opportunities throughout the year... being proactive in securing the necessary funds... (for) future demands... keeps merchants on the fast track."
To read more of the topline data, please visit Exact Target here, or to acquire the complete, aggregated findings, contact e-tailing here.

For more information visit www.mediapost.com

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Media Daily News

Your New Spokesperson: The Tech-Savvy Fashionista

Retailers have always been drawn to celebrities as vehicles for luring in teens and fashion minded consumers through their doors. This week Kmart announced a new line with Selena Gomez and Macy's release plans for a fashion line with Madonna and her teen daughter Lourdes.

But most of the mass retailers have been slow to pick up and embrace the new breed of micro-celebrities and tech-savvy fashionistas. From teen fashion bloggers to YouTube "haul" stars to girls taking camera phone pics of outfits from the dressing rooms and sending to friends, technology is playing a huge role in fashion, and retailers need to start tuning in.

Retailers often fall victim to the "insert celebrity here"-type of mentality to spark up a conversation with teens during the back to school season. Buy a bunch of print and TV spots with the celebrity shilling their wares and hope teens take notice. But with teen magazines going out of business left and right, and TV ad consumption on the decline, retailers need to re-think their strategies to engage teens during key retailer seasons.

A tremendous amount of teen shopping consideration is happening across content and community sites. An excellent example of fashion blending with social content is a site called Polyvore, which allows people to create their own fashion "sets" and share them with others online.

The Gap and other brands have been early collaborators on the site, allowing consumers to assemble looks from the retailer and have other community members like and comment on the looks.

A few years back we came across a rising YouTube comedian named Liam Sullivan, whose Kelly character was widely popular amongst the teen crowd. You may have seen his widely popular music video, "Shoes," which to date has over 40 million views.

Our insight was to engage the star's online audience by producing a custom music video sponsored by a major retailer to promote its new store. A "prequel" video was produced and debuted on YouTube, featuring the Kelly character and shooting footage in-store to display the line in a fun, relatable way.

Fast-forward to 2010 and "haul videos" have allowed a new crop of young teen celebs to enter the YouTube-sphere. The videos highlight teen girls touting their latest purchases from the likes of Abercrombie, Hollister, Target and other teen retailers.

The video hosts show off their latest purchases and essentially become small promotional ads for the retailers, detailing the item, price and the retailer. Videos range in views from a few hundred up to more popular ones from bloggers such as the Fowler sisters, who can command up to a million views on a single video.

With virtually every cell phone having a camera, teens are taking tech to the dressing rooms, snapping pictures of their fashionable finds and texting to their friends for instant advice. For teens unsure of their next fashion purchase, it's easy to post a quick photo via Facebook mobile and upload it to your wall for your friends to comment on. Understanding these habits and the ways teens are sharing fashion through technology is key for retailers.

So what does this mean for retailers this upcoming back-to-school season? Celebrity collaborations will generate PR, but what's generating online chatter across the social channels amongst the teen crowds?

Forget about hitting teens with circulars and brochures, and start thinking about ways to engage teens through leveraging content channels and embracing technology to make your products stand out. Creating a dialogue with teens is essential, and the last time I checked, you still can't talk to a print ad and get a response back.

For more information visit www.mediapost.com