Women are biggest ringtone purchasers
San Francisco-based Telephia, a provider of performance measurement information to the mobile phone industry, reports that women outpaced men in purchasing ringtones by two to one during the third quarter of 2005. Sixty-nine percent of mobile ringtones were bought by women, while purchases by men comprised 31 percent of the total revenue share, according to a Telephia Mobile Audio report, which tracks purchase activity for mobile ringtones, including traditional ringtones, realtones, ringback tones and voicetones. Overall, more than 9 percent of the wireless population purchased a ringtone during the last quarter.
“Ringtones provide mobile users with personalization and individualization,” says Brian Monighetti, senior product manager, Telephia. “Cell phones have become everyday accessories and consumers are looking for creative ways to make a personal statement with their devices. The strong demand for ringtones shows the kind of distinctive individuality music generates.”
The majority of buyers for the most popular ringtones skewed a younger age demographic. Telephia data shows that 40 percent of those who purchased the “Hollaback Girl” ringtone by Gwen Stefani fell into the 18-24-year-old age group, while 51 percent were 25-34-year-olds. Twenty-nine percent of those who purchased the summer hit “Don’t Cha” by The Pussycat Dolls were 18-24 years old, with 59 percent falling into the 25-34 age group. Bow Wow & Omarion’s “Let Me Hold You” and “Just A Lil’ Bit” by 50 Cent skewed a younger demographic, with the majority of those who purchased the ringtones being 18-24. Rounding out the top five ringtones for the third quarter of 2005, buyers for Mariah Carey’s “We Belong Together” were evenly split among 18-24 and 25-34-year-olds, with revenue shares of 38 and 36 percent, respectively. For more information visit www.telephia.com.
Parents change food-buying habits
St. Petersburg, Fla.-based research firm HealthFocus International’s 2005 Trend Report shows that parents have increasing concern for the health of their children and have dramatically changed the way they make their purchase decisions over the last two years.
The study shows that sugar and high fructose corn syrup top the list of sweeteners parents are avoiding. They also are showing greater concern about buying highly processed foods and prefer natural products and products with better nutrition.
According to those surveyed, 37 percent of families have decreased their use of sugar and 29 percent have decreased their use of high fructose corn syrup over the last two years. In part, they have replaced these sweeteners with more natural ingredients such as honey, maple syrup or fruit juices/concentrates which have shown an increase in usage over the last two years.
“Our research shows that parents prefer to buy natural foods and are avoiding highly processed food,” says Linda Gilbert, president of HealthFocus International. “In fact, highly processed food ranks as the third highest concern for parents when purchasing food for their families.”
The data also show that when shoppers with children in the household are making buying decisions, they opt for better nutrition, better taste and convenience rather than lower calories. When asked about the importance of label statements affecting their buying decision, the survey found that the top five things these shoppers are looking for on food labels are: fresh; good source of calcium; grown without pesticides; whole grain; supports the immune system. “Low in calories,” “low carbohydrate” and “low fat” were all listed in the bottom 10 for importance of labeling statements. For more information visit www.healthfocus.com.
Many consumers trust peers more than ads
Consumer trust toward traditional advertising is being challenged by growing confidence in consumer-generated media (CGM) and the recommendations of other consumers, according to a study of consumer behavior by Cincinnati researcher Intelliseek Inc.
A follow-up to a 2004 study on trust in advertising, the 2005 Consumer-Generated Media (CGM) and Engagement Study finds that, compared to traditional advertising, word-of-mouth (WOM) behavior continues to grow in importance in consumer awareness, trial and purchase of new products.
Consumers are 50 percent more likely to be influenced by word-of-mouth recommendations from their peers than by radio/TV ads - a slightly higher level of influence/trust than was found in the 2004 study co-authored by Intelliseek and Forrester.
The research also found important correlations between consumers who regularly skip over or delete television or online ads and those who shape, create and absorb consumer-generated media (defined as experiences, opinions and advice posted on the Internet by consumers for others to read and share). Active ad-skippers, for example, are 25 percent more likely to create and respond to CGM on Internet message boards, forums and blogs. “The advertising landscape is changing, forcing marketers to broaden and redefine the concepts of media, influence and audience reach,” says Mike Nazzaro, Intelliseek CEO.
During August 2005, Intelliseek polled a representative online sample of 660 online consumers and explored attitudes and opinions across key CGM venues, including Internet message boards, forums, blogs, direct company feedback and offline conversation.
Word-of-mouth behavior among “familiars” trumps all forms of advertising and is more trusted than news or expert commentary, the study found. In addition, positive word-of-mouth from a personal acquaintance carries just as much impact as negative word-of-mouth. Bloggers create an enormous amount of CGM across numerous sources, elevating their overall influence. “This has critical implications for brands that nurture evangelism, brand loyalty and advocacy,” Nazzaro says.
Interestingly, WOM/CGM has more impact on consumer attitudes about products than positive or negative news coverage. Public comments by employees also carry important credibility compared to traditional ad vehicles, a point explored in a recently published white paper on employee blogging by Intelliseek and Edelman.
While fewer than 20 percent of respondents indicated they use or own digital video recorders or TiVo-like services that permit ad skipping, a majority indicated that they “deliberately skip over advertising on the television.” In addition, ad-skippers are more likely to learn about new product trends and brands than consumers who do not regularly skip ads. They are 25 percent more likely to want to “create a dialogue” with others on Internet message boards and forums, especially to learn new information and have questions answered.
Teens lead all segments in overall CGM creation but remain more trusting of advertisers. Nearly 30 percent of teens now actively create CGM by sending photos via their cell phones, 45 percent have experimented with or created a blog, and nearly 10 percent subscribe to RSS feeds.
Men are more likely to spend time on Internet message boards, forums, and discussions, while women expressed a higher tendency to “forward something (they) had found on the Internet to others,” especially information on “things like scams or computer viruses.” About equal numbers of men and women create blogs.
Consumers are on track to post close to two billion comments on the Internet by the end of 2005, a significant increase over the previous year, according to Intelliseek estimates.
Key industries that are susceptible to CGM impact: health/medical, auto, electronics, video games and music. Intelliseek’s research also looked closely at consumer attitudes toward artificial buzz or so-called shill marketing, in which consumers are paid or offered incentives to recommend products or brands. One-third would be disappointed if a trusted contact did not carefully disclose a paid or incentive-based relationship, 26 percent said they would never trust the opinion of that friend again, and 30 percent said they would be less likely to buy a product/service. For more information visit www.intelliseek.com.
Portrait of a news/talk radio listener
Radio news/talk programming attracts listeners with distinct lifestyle preferences and highly desirable socioeconomic characteristics, according to an analysis by Scarborough Research, New York . News/talk listeners, who account for one-fifth (20 percent) of all adults in the U.S., are affluent and educated consumers. Those who listen to radio news/talk programming are 41 percent more likely than the general population to have annual household incomes of $75,000 or more. Correspondingly, they are 67 percent more likely to have graduated from a four-year college and 95 percent more likely than the average American to hold a post-graduate degree. In general, news/talk programming appeals more to men (about 58 percent of the audience) than women (42 percent).
While news/talk listeners tend to be older (42 percent are 55+), they are also extremely active and enjoy a broad range of sporting and leisure activities. News/talk listeners enjoy snow skiing (they are 44 percent more likely than the typical consumer to have gone in the last 12 months), golfing (39 percent more likely to have gone), and volunteer work (19 percent more likely). This profile translates into formidable purchasing clout, with news/talk listeners outpacing the general U.S. population in many significant retail categories, such as automobiles, electronics and financial services.
When it comes to auto purchases, they are 15 percent more likely than the average consumer to live in a household that is planning to spend $30,000 or more for a new vehicle in the next 12 months. Those who listen to news/talk also like to stay current with the latest leisure and entertainment technology. They are 37 percent more likely than the general population to live in a household that has spent $500 or more on a camera or accessories in the past 12 months and 29 percent more likely to live in one that has spent $1,000 or more on stereo equipment or a home music system in the past year.
Additionally, financial services emerged as an area in which news/talk listeners are worth their weight in gold. They are 47 percent more likely than the norm to live in a household that owns a money-market account and 47 percent more likely to live in one that owns mutual funds. They are also willing to pay for financial advice, with 14 percent reporting that their households have used a full-service stockbroker in the past 12 months and 16 percent reporting that their households have used a financial planner in the past year. Source: Scarborough Research, Scarborough USA+ 2005 Release 1. The Scarborough USA+ database is a national study of consumer behaviors, including lifestyles, media patterns and retail preferences. For more information visit www.scarborough.com.
These days, convenience is not enough
With America ’s fast-paced culture, convenience has reigned supreme as a primary benefit guiding U.S. consumers’ purchasing decisions. However, a study from Information Resources, Inc. (IRI), Chicago, shows that while the market for convenience products remains strong, consumers are now demanding a more robust, convenience-based product.
The report, Times & Trends: Beyond Time Savings: The New Face of Convenience, examines an evolving landscape of convenience solutions that is responding to shifting demographics, growing consumer expectations and rising health concerns.
As more Americans are allotting less time for dinner preparation, the demand for convenient meal solutions remains great. The study reveals, though, that demand has evolved beyond simple time-savings alternatives, with consumers now requiring greater health and wellness benefits, taste and value.
In that quest for healthy offerings, consumers are increasingly reaching for refrigerated meals and meal components, reportedly perceiving these items to use fresher ingredients and contain fewer additives than their frozen and shelf-stable counterparts. According to the IRI study, this growth in the refrigerated sector bodes well for the supermarket channel, which holds an overwhelming share of this market while still battling Wal-Mart to maintain that share. The report encourages traditional grocers to protect and grow their footprint in the high-growth refrigerated meal solutions segment through targeted marketing and merchandising initiatives.
Additionally, frozen convenient meal solutions, namely multi-serve frozen meals, benefited from increased innovation, effective targeted marketing and greater appeal to value-conscious consumers to exhibit solid growth. The Baby Boomer segment is the primary target market for several successful new products within this category. As more consumers in this demographic become empty nesters, they become far less likely to purchase those convenient meal solutions specifically targeted toward hectic families. These multi-serve frozen meals apparently bridge the gap within this critical segment.
Portability and portion control appear to be the primary benefits driving strong growth in the convenient snack segment. With indulgent snacks, sales of single-serve and/or multi-packs of single-serve products, such as Nabisco’s 100-Calorie Packs, have risen steadily in the combined supermarket, drugstore and mass merchandiser retailer (excluding Wal-Mart) outlet.
Focusing on health-based snacks, several key categories continue to push strong growth in this sector with their ability to satisfy consumers’ snacking and meal-replacement needs in portable packaging. Because of its unique packaging and product innovation, sales of yogurt, in both single-serve cup and drink formats, continue to lead the way within the healthy snack and meal replacement sector. Additionally, granola bars and rice snack squares continue to post strong gains, while soups have more aggressively staked their claim with the onset of such portable products as Campbell ’s Soup-At-Hand.
The report also outlines potential growth opportunities for manufacturers and retailers with regard to on-the-go beverages, which have experienced strong sales growth across major categories within food, drug and mass merchandise channels (excluding Wal-Mart). Retailers should strive to ensure that consumers have easy access to such beverages at multiple locations throughout the store, while manufacturers should continue to increase points of access for single-serve beverages.
According to the report, personal care products appear to be the next big convenience growth area. While the number of personal care products delivering significant time savings or enabling portable personal care has been relatively low when compared to other product areas, an opportunity has recently arisen with more consumers engaging in on-the-go grooming and utilizing personal care products at the workplace. The report recommends that manufacturers take note of this heightened interest in convenient personal care solutions and explore both the prospects of new product offerings and new portable-focused positioning opportunities for existing products.
The study also notes that while a handful of blockbuster new home care products with convenience benefits have transformed consumers’ cleaning routines, this market remains primed for additional solutions. Consumers remain interested in products that not only offer time-saving capabilities, but also those streamlined “do-it-all” solutions that serve multiple needs in one package. The report can be found in the Thought Leadership section of the IRI Web site at www.infores.com.
Ranks of three consumer types swell since 9/11
Since the terrorist attacks on the country, Americans have changed their attitudes and purchasing trends. Baltimore-based Vertis’ annual RISC study has identified an increase of 13 percentage points in people who are categorized as Nostalgics, Wannabees and Party Animals since data gathered from the 2001 Customer Focus study, conducted just prior to the 9/11 attacks. “The category increases indicate consumers in these groups share feelings of disorientation, inability to cope with disorder, and impulsive instincts,” says Jim Litwin, vice president of market insight at Vertis. “We hypothesize the change has been partially a result of the attacks on 9/11 and the recent hurricanes will likely continue this trend.”
Vertis’ annual proprietary Customer Focus/RISC study analyzes the sociodynamic profiles of consumers and characterizes them based on their acceptance or resistance to change, as well as their inclination to be self-focused or community oriented. Based on these characteristics, consumers fall into one of 10 sociodynamic groups.
The following overview describes each of the growing sociodynamic consumer classifications and offers advice on how marketers can approach each audience with their marketing messages more effectively. “The percentage of the population that falls into one of these three socio-cultural groups has grown from 34 percent in the spring of 2002 to 47 percent in the most recent 2005 survey,” says Litwin. “Recognizing the opportunities that exist will help marketers in their understanding and acquisition of consumer mindshare.”
The Nostalgic is someone who seeks the basic necessities out of life. Driven by safety, security and dependence, this group is the least likely to try or respond to products and messages that are unfamiliar or out of the ordinary. As the name suggests, Nostalgics long for days gone by and distrust the “new” way life is lived. This group is the most frugal of the three and accounts for 20 percent of the U.S. adult population.
Marketing tips: One of the fastest-growing segments in the U.S., this group is also one of the fastest-growing readers of retail direct mail. Coupons can be an effective tool to reach them. Marketers looking to connect with the Nostalgics should emphasize product savings whenever possible.
The most aspiring of the groups, the Wannabee is driven by what others are doing, in particular the Party Animals. The Wannabee can be best described as someone who wants to be different. They have a desire to be and buy the best, but lack the risk-taking trait to achieve it. They tend to search for the best products for the least amount of money and need a large selection to choose from. This group is receptive to a great sense of humor, and can be reached with ads that mock traditional stereotypes and assumptions. Since 2001, this group has increased from 13 percent to 18 percent of the U.S. adult population.
Marketing tips: Marketers might consider discounts off single items to drive Wannabees to the store more effectively. This group has shown one of the most impressive increases in weekly online surfing, making the Internet an effective medium to reach them. Since this group wants to be seen as unique, marketers should talk to them on a one-on-one level, emphasizing that they are special.
As the name implies, the Party Animal is the most active of all the groups. They seek thrills and are willing to take risks for personal and professional development. They tend to be fashion leaders because of their willingness to take chances, and are driven by sexuality. In advertising, entertainment comes first and all else is secondary. They are energetic consumers with a short attention span who seek novelty as they tend to get bored easily. According to the study, 9 percent of the U.S. adult population belongs to this category.
Marketing tips: Direct mail readership trends indicate that this group will take the time to read offers from retail stores. With above average readership, marketers should consider a robust e-mail program with eye-catching creative for this audience. Marketers should use exciting colors and images, movement and curiosity-arousing copy or characters to effectively keep their attention. For more information visit www.vertisinc.com.