Do TV ads make kids want to buy?

Preliminary findings from a study of kids’ reactions to commercials provide insight into the continuing debate over whether television commercials stimulate America’s children to desire the products they see. The Kid Ad-Traction study, a national study of more than 800 children age 6-17, was completed by CME KidCom, the kid marketing unit of the Campbell Mithun Esty (CME) ad agency.

The findings show that television commercials earning high rankings among kids for their entertainment value, while impacting recall, do not necessarily translate into product desirability. "The perception that the commercials kids favor automatically induce them to desire what’s being featured doesn’t necessarily hold up," says Christine Fruechte, CME KidCom general manager. "We’ ve discovered a gray zone that puts conditions on how kids decide what they want to buy. An additional, essential component is needed to result in a motivating formula.

"Generally, the commercials kids identified as most motivating are for toys, fast food and clothing," Fruechte says. "These are products that are appropriate for them, and they’re also products which they can enjoy and purchase themselves." The top 10 motivating commercials cited (in rank order) were Sony PlayStation; Nintendo 64; Barbie; Taco Bell/McDonald’s; Burger King; Laser Tag; Tyco Remote Control Car; Giga Pet/Nike/Volkswagen; Legos, and Levi’s.

Most of the kids surveyed (69 percent) said a commercial motivated them to want the brand featured because it included actual demonstration of the product, its features and benefits. Conversely, that same reason drew a mere 15 percent response for making a commercial their "favorite." Humor or "being funny," which garnered more than half the responses for their favorite commercials, hit the cellar at 2 percent for being motivational. "Kids seek immediate gratification, and they want information like adults do," Fruechte says. "They want to see how a game works, what the food looks like, see what the product does - what’s in it for me." Fully 90 percent of the children surveyed ageed that "it’s important a commercial tell me something about the product."

Of 303 commercial mentions, ads for the following brands landed in the kids top 10 "favorites": Budweiser, Pepsi, Taco Bell, Nike, Dairy Management (milk), Salon Selectives, Denny’s, Miller Lite, Sprite and Snickers. Five of the brands (Budweiser, Pepsi, Nike, Dairy Management and Snickers) were also identified as favorites in the initial CME Kid Ad-Traction Study released in March 1998. However, when respondents were asked how much - a little, a lot, or not at all - they wanted the products featured in their favorite commercials, disparities emerged. The highest rating for "want it a lot" was only one in four children (25 percent) for Denny’s, despite the restaurant’s top 10 commercial appeal. For the two beer brands (Budweiser and Miller Lite), kids overwhelmingly (82 percent) did not want the product at all. "From these results, it’s obvious likability does not, by itself, automatically equal desire," Fruechte says.

Humor, music and story line remain the most essential elements to likability as identified in last year’s study. Salon Selectives, an adult hair care product line, had few wanting the product, yet was cited as popular mainly because of the memorability of its musical theme, "Who’s That Lady?" "The purpose of advertising is to develop brand preference among consumers," says Fruechte. "Entertainment is essential for effective marketing to kids, but used alone it can overshadow meaningful product messages. Combining entertainment with a demonstration of product benefit is the ideal, especially for kids."

An example is the Taco Bell campaign, featuring the talking Chihuahua. In addition to being a Top 10 commercial favorite, 83 percent of the children surveyed said the commercials motivated them to want the Taco Bell products advertised. Many respondents cited the food particularly and could recall if the product featured was a taco pizza or nachos - reflecting a successful application of relevancy. Yet Taco Bell’s seeming success is not universal - the study underscores the nuances within a kids audience. Among boys, ages 15-17, Taco Bell ranked in their top 10 most disliked commercials, with nearly half saying "they see the commercial too often," indicating the vulnerability of messages to wear-out due to overexposure.

"More than adults, the marketing landscape for kids is incredibly cornplex," says Fmechte. "Gender and peer pressure are factors, as is the media spending a campaign receives. Focusing on a clearly defined target is as critical to success as is the need for an entertaining and relevant product message.

Vision care consumers blind to branding

A study by CDB Research & Consulting, Inc., New York, reveals that 94 percent of prescription lens wearers cannot name the brand of lenses they own, despite efforts by vision care product manufacturers to market products directly to the consumer.

More than three out of four people (77 percent) have difficulty seeing without corrective lenses – a problem that increases dramatically with age. People who are 55 and older are twice as likely require corrective lenses than adults under 35. As Baby Boomers in America continue to mature, they are demanding more vision care goods and services than ever before. Industry manufacturers have capitalized on the expanding vision care market by developing products that cater to the taste and sensitivities of America’s Baby Boom generation. “One area that shows real growth potential is prescription sunglasses,” says Dr. Larry Chiagouris, managing director, CDB Research & Consulting Inc. “Only 2 percent of people who wear glasses purchase prescription sunglasses.”

Of the400 people surveyed, 87 percent feel they have access to the best vision treatment possible, an opinion that has not changed over the past year. Eyeglass wearers, however, have some complaints: 38 percent say that the worst part about wearing glasses is that they are hard to keep clean. The second most common complaint (19 percent) is that glasses are uncomfortable to wear. “We found it quite interesting that young people are the most sensitive to their appearance in glasses,” says Chiagouris. “People under 35 were four or five times more likely than others to complain that the ‘worst part of wearing glass is that it makes you look unattractive,’” he says. Not surprisingly, 21 percent of people under 35 years of age wear contact lenses exclusively – the highest percentage of any age group.

Make your Web site a site to see

To find out how consumers discover Web sites and what drives them to return after their initial visit, Cambridge, Mass.-based Forrester Research surveyed 8,600 households and compiled the responses in its 1998 Consumers & Technographics Media Field Study. Forrester asked on-line consumers to select the sources they use most frequently to acquire Web addresses. Results were not surprising: Internet resources win. Fifty-seven percent of those on-line use search engines to find Web sites. Across all Technogaphics segments, this is the most popular way to receive Web addresses. E-mail messages and links from other Web sites are also frequently used as sources for URLs.

Twenty-eight percent of consumers said that they find out about Web sites by word-of-mouth. Career-motivated consumers put more weight on suggestions from acquaintances than those who are entertainment-or family-motivated.

Magazines are the best traditional media. Magazine ads are used just slightly less than word-of-mouth and far more than other traditional media ads. TV commercials, though used infrequently, are more effective than newspaper ads or radio commercials.

Banner ads are a dead end. Only 7 percent of consumers said they used banner ads to find URLs. More than half of on-line consumers have never clicked on a banner advertisement. Of those that have, 69 percent do not remember the last banner ad they clicked on.

Forrester explored the reasons why consumers return to Web sites, and found that experiences rather than trusted brand names drive consumers back to sites. Content is No. 1: it drives 75 percent of consumers to return to their favorite Web sites. Content quality is especially valued among career-motivated consumers.

Site design is No. 2. Consumers gravitate back to sites that have an intuitive interface and download quickly. Speed and cutting-edge technology are particularly valued among entertainment-motivated consumers.

Consumers want current content. All on-line users, particularly careerand entertainment-motivated consumers, return to Web sites that are updated frequently.

Promotions, chat, and games fail to drive repeat traffic. Few consumers go back to Web sites for promotions like coupons and incentives. Furthermore, chat and on-line games are not compelling enough content to cause the majority of users to repeatedly visit a site.

Brand is a losing battle. Few consumers revisit Web sites due to brand. This holds true across all Technographics segments - with the
exception of Media Junkies, who are slightly more brand-conscious than the other segments.

Web site designers and marketers should adopt these tactics:

  • Web sites need to be sticky. Sites must build content that provides utility to the user. Providers must ask themselves questions such as these: What problem can I help users solve? What task can I make easier? What new product will improve a user’s on-line experience? In addition, a site must update content frequently and focus design efforts on ease of use and speed. Search engines are critical. Take the time to ensure that your site comes up as a choice when potential visitors use a search engine.
  • Drive customers to invest time in your site. Users prefer to customize sites for themselves rather than have custom content pushed to them. Sites that can draw customers to set up content that they value, such as custom portals like My Yahoo!, will create loyalty with their customers. Many types of information are suitable for self-directed customization, such as stock quotes and analysis, e-mail news services, detailed regional weather information, and television and movie schedules.
  • Be prepared for multiple access points. Consumers are beginning to use a variety of wired devices, from PCs and PDAs to digital cell phones, to access information. For the sake of simplicity, users will look to use the same providers across devices. Sites must be prepared to connect with their users, regardless of how many ways they choose to contact them.

Sales of school uniforms are soaring

A survey by The NPD Group, Inc., Port Washington, N.Y., shows school uniform sales reaching $900 million at retail during 1998. According to NPD’s School Uniform Report, about 7 percent of all dollars spent on children’s apparel last year went toward school uniforms. During the month of August, 11 percent of all childrenswear dollars were spent on school uniforms. "School uniforms are a significant trend impacting the childrenswear industry," says NPD director Lucy Effron. "The trend is expected to continue, with more major metropolitan school districts, such as New York, instituting policies this year."

According to NPD, just over a third of school uniform dollars are spent in discount stores. Chain stores have the second largest market share at 25 percent. Specialty stores have 20 percent of total sales, and department stores have 7 percent. Cost is the key driver in determining where school uniforms are purchased, cited by more than half of survey respondents as their most important deciding factor. Convenience is the second most important purchase driver, followed by school requirements and store reputation.

School uniform items are less likely to be purchased on sale than other childrenswear items, NPD reports. However, households where children wear uniforms generally spend less on children’s school clothes. Those who purchased school uniforms spent an average of $104 on school clothing during the first three quarters of last year, while those who did not purchase school uniforms spent an average of $185. New York and Los Angeles are the top two markets for both school uniforms and total childrenswear. However, many other top childrenswear markets are not yet top markets for school uniforms. As more and more cities jump on the uniform bandwagon, major markets may shift, creating new challenges for those now in or looking to enter the business.

Top 10 Markets for School Uniforms

New York
Los Angeles
Sacramento, CA
Chicago
Seattle/Tacoma
Houston
Washington, DC
Pittsburgh
Wichita, KS
Baltimore

Top 10 Markets for All Childrenswear

New York
Los Angeles
Chicago
Philadelphia
Boston
Washington, DC
Detroit
Atlanta
San Francisco
Cleveland

"For retailers and manufacturers who don’t want to lose out on this growing portion of the childrenswear business, it will be necessary to emphasize how they’ve made their offerings and stores more convenient," says Effron. "Local or regional managers will need to develop, connections with school districts and be completely familiar with where their schools stand on dress codes. The school uniform business is different from the rest of the childrenswear business, and only those who take the right approach will make the gade."

NPD’s School Uniform Report is based on purchase data from NPD’s nationally representative American Shoppers Panel of 16,000 households and information collected from a special analysis of over 350 households who purchase school uniforms. In addition to profiling the typical school uniform wardrobe, the report addresses pricing, distribution channels and how uniforms affect other childrenswear purchasing in these households. The study focuses on apparel for ages 4 to 13.

Increased age, increased spending

American men between the ages of 50 and 54 have the greatest spending power and the highest average annual salary, according to a MetLife Mature Market Institute analysis and the MetLife Statistical Bulletin. MetLife is a New York financial services firm.

These older Boomers and pre-Boomers, born between 1944 and1948, choose to spend a smaller percentage of their incomes, and save more than younger Boomers. A greater part of their spending is discretionary in nature. They spend less on necessities such as food, shelter, apparel and other household related outlays for operations, supplies and furnishings. In addition to saving a higher percentage of their incomes, they have more discretionary income available for such items as education, food consumed away from home, travel, cash contributions and in all likelihood, place a greater emphasis on the quality of the goods and services they purchase.

Men in the 50-54 age group currently earn an average of $52,738 per year, a full 25 percent more than all men working full-time. Women currently reach their earning peak at age 45-49. But, as Boomer women with longer work histories move into the 50s age group, the pattern for peak earnings may change and more closely resemble that for men.

"These figures should be especially significant to businesses and marketers as they look to the future, since the 50-54 age group not only has the highest discretionary income but also is one of the nation’s fastest growing demographics," says Sandra Timmermann, director of the MetLife Mature Market Institute.

"Over the next 15 years, businesses that have the foresight will redesign products and services and adapt their marketing strategies to Americans in their early 50s. Those who do not will miss a window of opportunity," Timmermann says. "As the Statistical Bulletin states, by the year 2010, those aged 50 to 54 will increase by eight million people, with individuals in their 50s totaling 30.5 million in the year 2000 and 42.8 mrlion by 2015, amounting to 13.8 percent of the population. That is an extraordinary amount of collective buying power."

Businesses should also take note of the increasing ethnic diversity of the 50+ population. The percentage of white non-Hispanics in their 50s will drop to 72.5 percent of the population in 2015, from 79.7 percent in 1995. This compares with an increase of 1.8 percent for Blacks to 12 percent of the population, a 4.2 percent increase for Hispanics to 11.2 percent of the population and a 1.5 percent increase for Asians to 4.6 percent of the population, also between 1995 and 2015.

While those in their early 50s have and will have relatively high incomes, most wil! not retire until they are forced to do so. According to the MetLife Statistical Bulletin, early retirement will result in a reduction in pension benefits, which will be too great for the average individual to absorb. The Bureau of Labor Statistics indicates that, on average, an individual retiring at age 55 in 1993 with 30 years of service under a defined benefit plan and with final annual earnings of $45,000 wouldonly be able to replace 21.5 percent of his or her pre-retirement income. By contrast, the same person retiring at age 65 with 40 years of service would be able to replace 35.6 percent. In addition, the sooner one retires, the more chance that inflation wil! erode purchasing power.

"With an uncertain future for Social Security, escalating health care costs and inflation, along with the desire for people in their 50s to remain productive, it comes as no surprise that the majority of Baby Boomers will not retire before age 65 and some will retire even later," says Timmermann. "This will also mean that people in their early 50s will understand the importance of saving more, which will have an impact on the financial services community."

The analysis found:

  • Between 1995 and 2010, the number of individuals aged 50 to 54 will increase by more than eight million.
  • In 1996 about four-fifths of the civilian non-institutional population 50-54 was active in the workforce.
  • The average earnings for men aged 50-54 in 1996 was $52,738, some 25 percent above the average level of earnings for all full-time working men.
  • The mean earnings for women aged 50-54 is $29,407, 3.7 percent above the average for all working women, but by ages 55-59 they fall to $27,937, 1.5 percent below the average for all women workers.
  •  On average, men reach their earnings peak in the first half of their 50s, whereas women reach their earnings peak between ages 45 and 49.