In-store audio ads make an impression
Consumers are receptive to in-store audio advertising, with more than half (55 percent) of shoppers recalling commercials heard while shopping, according to a study by Arbitron Inc., New York.
The Arbitron Retail Media Study: The Impact of Retail Audio Broadcasting found that nearly half (46 percent) of U.S. primary household shoppers, age 18 and older, recalled hearing retail audio or in-store audio broadcasting during their most recent grocery store visit and more than half (57 percent) think ad-supported retail audio is an acceptable form of advertising. Among these shoppers who recalled hearing a retail audio ad, more than 40 percent made a purchase they were not planning to make. More than one-third (36 percent) purchased a different brand from they one they originally intended after hearing a retail audio commercial or promotional announcement.
“It is clear that retail audio broadcasting as a national broadcast advertising vehicle is effective, with a high recall rate and the power to influence consumer purchasing decisions as they shop,” says Diane Williams, analyst, custom research, Arbitron. “With the consolidation of supermarket chains and advances in technology, retail audio broadcasts in stores can function like a broadcast network.”
The majority (94 percent) of primary household shoppers - who recalled hearing audio retail commercials - heard spots for sales items available in the grocery or drugstore. Nearly three-fourths (72 percent) of these shoppers recalled hearing promotions for items that were not necessarily on sale. Seven in 10 of these shoppers have a positive attitude toward retail audio advertising.
The majority (93 percent) of primary household shoppers, 18 or over, visit a grocery store each week and more than two-thirds (69 percent) spent 30 minutes or more in the store during their most recent shopping trip. Women compose the majority of shoppers who recall hearing audio during their most recent trip to the grocery or drugstore. Women, age 35 and older, make up nearly 60 percent of the retail audio broadcast audience.
A total of 1,002 people were interviewed for the Arbitron Retail Media Study: The Impact of Retail Audio Broadcasting in September 2004. Telephone interviews were conducted with primary household shoppers, age 18 and over, chosen at random from a national sample of Arbitron’s Spring 2004 survey diary keepers. The Arbitron Retail Media Study: The Impact of Retail Audio Broadcasting and previous studies are available at www.arbitron.com.
Some newspaper readers now rely on Web editions
Findings from the Nielsen// NetRatings @Plan Summer 2005 release on online versus offline newspaper consumption show that 21 percent of Web users who read newspapers have transferred their readership primarily to the online version, while a majority, or 72 percent, of online users who consume newspapers primarily still access print editions. Seven percent of online users who consume newspapers split their time evenly between the online and offline editions.
The research focused exclusively on Internet users who consume newspapers and excluded online users who obtain their news from other online news and information sources. “A significant percentage of newspaper readers have transferred their preference from print to online editions,” says Gerry Davidson, senior media analyst, Nielsen//NetRatings. “Accordingly, many online editions now feature original content and have developed an online strategy that includes online message boards and editorial blogs, which leverage the medium’s strengths of interactivity and immediacy.”
A greater proportion of male readers than female readers access their newspapers primarily online. Men who primarily read online newspapers make up 53 percent of online readers while women comprise 47 percent. In comparison, women make up 57 percent of those who read newspapers primarily in print.
Nytimes.com led the top five online newspapers with an audience of 11.3 million unique visitors during May 2005, followed by usatoday.com with 9.2 million readers and washingtonpost.com with 7.4 million viewers. Rounding out the top five were latimes.com with 3.8 million and San Francisco Chronicle (sfgate.com) with 3.4 million unique visitors.
“Not surprisingly, the top online newspapers tend to be located in metropolitan cities where both population and broadband access rates are higher, which correlates with greater Web page consumption,” says Davidson. For more information visit http://nielsennetratings.com.
Offers of money back, points snare credit card seekers
According to the Customer Focus 2005: Credit Card study, by Baltimore marketing firm Vertis, which identifies the most appealing incentives for adults to sign up for a credit card, 29 percent of men 18-24 years old are interested in receiving points for merchandise/airline tickets, while 14 percent of women in the same age category prefer an initial sign-up bonus such as a rebate or coupon. For 27 percent of men 25-34 the most alluring offer was money back on purchases. Meanwhile, 34 percent of women 25-34 expressed most interest in receiving points for merchandise/airline tickets.
Additional findings from the study identify direct mail as an effective method to provide information on credit cards, with 53 percent of credit card holders claiming they became aware of their last credit card through this medium. The study also identified an increase in awareness among 18-24-year-old males, with 62 percent stating they received information on their last credit card in a direct mail offer, compared to 39 percent in 2002.
Getting an extended or higher limit on a credit card was only appealing to 8 percent of the credit card holders surveyed. Similarly, the membership status of the card (gold/platinum) appealed to 7 percent of those credit card holders surveyed.
As for the types of financial direct mail read by adults, 76 percent of 18-34-year-olds read direct mail on new credit card offers, compared to 66 percent of total adults surveyed. Fifty-eight percent of 45-54-year-olds read information on balance transfers, compared to 47 percent of total adults surveyed. On the other hand, 66 percent of 55-64-year-olds read financial direct mail on new credit card options for their current card, compared to 61 percent of total adults.
Forty-four percent of total adults pay off their credit card balance each month, compared to 51 percent in 2002. Sixty-one percent of adults 65+ stated they pay off their credit card balance each month, compared to 75 percent in 2002. Thirty percent of 18-34-year-olds are making a partial payment to their credit card and their balance is shrinking, compared to 46 percent in 2002. Four percent of 35-44-year-olds are making a partial payment to their credit card and their balance is growing, compared to 11 percent in 2002. For more information visit www.vertisinc.com.
What drives the one-bag shopper?
One-bag shopping trips (12 items or less) are one of the most frequent and most focused types of shopping trip according to findings of the BIGresearch and MARS Advertising semi-annual Shopper Mindset survey. The survey of over 5,500 customers was conducted in June 2005.
“One-bag shoppers are like smart bombs when it comes to shopping,” says Anne Howe, senior vice president, market intelligence, at MARS. “Convenient location drives store selection, which is usually a grocery store that is easy to get in and out of. Their mission is to replenish household needs or to buy specific products, their purchases are almost always planned; their moods range from ‘tired’ to ‘hurried’ or ‘hungry,’ and they are usually shopping because someone else asked them. They also limit their movement within the store to just a few departments.
“Understanding the needs of the one-bag shopper and providing an environment to assist them in finding what they need quickly offers incremental sales opportunities for manufacturers and retailers,” says Howe. “A notable opportunity exists in the health and beauty care area, which is under-represented on this trip, and in the grocery channel overall.” To get a free report of the findings visit www.bigresearch.com/mars.htm.
Upscale men dominate adult iPod ownership
As reported by the Center For Media Research, a national phone survey of adults over the age of 18 by the Pew Internet & American Life Project found that more than 22 million American adults own iPods or MP3 players. Twenty-nine percent of them have downloaded podcasts from the Web so that they could listen to audio files at a time of their choosing.
Of the 22 million adults who own iPods: 13 percent of men have the players, compared to 9 percent of women; 16 percent of African-Americans and English-speaking Latinos own iPods/MP3 players, compared to 9 percent of non-Latino whites; 19 percent of those ages 18-28 have iPods/MP3 players; 14 percent of those ages 29-40 have them; 11 percent of younger Baby Boomers (ages 41-50) have them; 6 percent of older Baby Boomers (ages 51-59) have them; 6 percent of those 60-69 have them; 1 percent of those 70 and older have them.
IPods/MP3 players are for the upscale: 18 percent live in households earning more than $75,000; 13 percent live in households earning $50,000 to $75,000; 9 percent live in households earning $30,000-$50,000; 7 percent live in households earning less than $30,000.
Consumers ready to place trust in food firms
According to a national study by New York researchers FIND/SVP, food retailers and manufacturers are increasingly becoming trusted advisors on nutrition, health and cooking information to today’s consumers. Conducted in June 2005 among 1,000 consumers, the FIND/SVP study found 78 percent of those surveyed would trust nutritional advice from a food retailer.
When asked which educational tools are useful sources of information in-store, consumers said the package’s label (64 percent) and in-store signs (51 percent) such as point-of-purchase displays or other signage were their top sources. Consumers were also asked to name their preferred retailer communications channels for receiving general information. Interestingly, they preferred old reliable channels, with 35 percent using coupons/FSIs and 22 percent using the Sunday newspaper over e-mails (11 percent) and Web sites (4 percent).
“Today’s savvy consumer is looking for quick, in-store nutritional information on the foods they buy,” says Jessica Hogue, co-author and business analyst, FIND/SVP, Inc. “This presents a unique opportunity for food retailers and manufacturers to deliver on this need, change consumer purchasing habits and foster greater customer loyalty, while also building brand awareness.”
Despite the rise in popularity of health food stores and mass merchandisers, 72 percent of the consumers surveyed ranked traditional supermarkets as the primary source of food and beverages for consumers at home. Following supermarkets were mass merchandisers (20 percent), club stores (4 percent) and health food stores (3 percent).
When visiting the above stores, consumers were asked what were the deciding factors in making a purchase (consumers were able to select more than one answer). Not surprisingly, 93 percent said price was a determining factor. Sixty-nine percent ranked the expiration date next. More than half of respondents said nutritional content (59 percent) and calories/fat content (53 percent) were also extremely important.
“Consumers are overloaded with information and conflicting reports on what is healthy. One day fat is bad, the next it’s carbs and now it’s trans fat. Instead of empowering consumers, this abundant amount of information is confusing them,” says Julie Chmielewski, co-author of the study and business analyst, FIND/SVP, Inc. “Those few companies that have jumped on this opportunity have seen success in building a trusted bond with the consumer. More can be done to leverage this consumer need.” For more information visit www.findsvp.com.
Whither the poor beer-swilling slob?
An analysis of beer consumers (ages 21+) by Scarborough Research, New York, indicates that today’s beer drinkers are more likely to be between the ages of 21-34 and affluent. According to the Scarborough analysis, 44 percent of U.S. adults ages 21 and older drank beer during the past month. These beer consumers include more than half (51 percent) of all 21-34-year-olds. Beer drinkers are 17 percent more likely than all consumers to be in this age group. They also tend to have higher incomes. Today’s beer drinkers are 23 percent more likely than all consumers to have an annual household income of $100k+.
With affluence comes other high-end spending habits. Today’s beer drinkers are 17 percent more likely than all consumers to plan to buy new/lease a luxury vehicle in the next 12 months. They are 12 percent more likely to have a home with a market value of more than $500k.
Scarborough’s analysis reveals that Milwaukee is the top local market for beer drinkers, as more than half (54 percent) of consumers 21+ there drank any beer during the past month. The Twin Cities (Minneapolis/St. Paul) and Denver follow with 53 percent and 51 percent, respectively. At the bottom of the list are Salt Lake City (23 percent of consumers 21+ drank any beer during the past 30 days), Charleston, W.Va. (27 percent), Knoxville, Tenn. (28 percent), and Roanoke, Va. (29 percent). For more information visit www.scarborough.com.