Tag Archives: nielsen

News U Can Use – March

These news items are brought to you by Kuk & Baldwin:

ROI PLUS ROC.     You’re more than familiar with ROI, but what’s ROC?   ROC is Return of Customer, or repeat business.   Restaurants thrive on repeat business, as do garden shops, building stores, and office supply stores.   Some businesses need a relative balance of new and repeat – like handyman services, plumbing contractors, and major appliance stores.   For other businesses such as siding contractors, used car dealers, and boat dealers, success depends mainly on a steady flow of new customers.   Attracting new customers is what YP does best, but even for advertisers who rely mostly on ROC, you can stress annual churn factors like people moving, switching suppliers, etc. (Restaurant News, 2/11/13).

THE SWEET SPOT AND OTHER AUTO NEWS.    The “sweet spot” in aftermarket parlance is the coveted market segment defined as vehicles between 6 and 12 years old, the age range that consumes the most repairs, replacement parts, tires, etc.   But the number of vehicles in that sweet spot is declining as new car sales pick up (15.4 million forecast for 2013) – so aftermarket vendors may want to pursue a proactive preventive maintenance marketing theme (Wall St. Journal, 3/4/13)….Higher new car sales plus the surge of total loss vehicles (including from major storms) will result in a spike in value of salvage vehicles, thereby driving down the prices of recycled auto parts (SearchAutoParts.com, 3/4/13). 

LOCKSMITH PRICES.     A 2012 price survey of basic locksmith services came up with the following averages (mostly close to 2011):  service call, $68; hourly rate, $50; auto opening call, $60; fit standard auto ignition key in shop, $50; fit auto transponder key in shop, $93; fit auto sidewinder key in shop, $120; fit motorcycle key, $87; cylinder key-in-knob, $15; make US or foreign single/double cut keys by code, $15-$20; make foreign sidewinder key by code, $68; duplicate US or foreign single/double cut keys, $4-$6; duplicate hi-security key, $17; and first-key fitting, $34.  Such data can justify these services in a YP ad – even for specialists in hi-tech systems like electronic access and security (Locksmith Ledger, 2/13).

 Find out how to be at the top of your sales performance by clicking on www.kukbaldwin.com.

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Have you seen these recent media and advertising news stories:

Google Says Mobile advertising will soon be “mandatory”

Even if they don’t want it, make them buy — Google will soon begin requiring that all AdWords clients buy mobile advertising space, even if they only want to reach desktop-computer users (sounds fair).  Industry executives believe the “enhanced campaigns” will be rolled out to all AdWords users by mid-2013 and is expected to drive up the overall price for mobile ad units.  As the article noted, WordStream Inc., a firm that helps people advertise on search engines, estimated that less than 4% of small and medium-sized advertisers had set up mobile-ad campaigns “because it was such a hassle.” (Source)

 

Fox is already pitching the next Super Bowl to advertisers 

Let the haggling begin — no sooner has this year’s Super Bowl passed into memory than Fox, which has the broadcast rights for the next Super Bowl, has already begun approaching advertisers about next year’s event, noting in particular the media advantages of its first time New York location for the game. As part of the pitch, Fox is also touting its NASCAR broadcasts and planned national sports channel. (Source)

The Internet is wonderful thing, when you can get to it…

Research firm Parks Associates recently announced that 78% of U.S. broadband households had a home network router in 2012, up from 54% in 2009, with expected adoption to reach 95% by 2016. Consumer demand for connected and mobile devices is fueling adoption of home network devices, which creates new and complex support demands on the connected home.

“Tablets, game consoles and smartphones have been incredibly popular, but the influx of connected devices adds new layers of complexity to the connected home,” said Patrice Samuels, Research Analyst, Parks Associates. “Approximately 35% of broadband households experience home networking problems when trying to sync devices and enable functions.”

As a result Parks Associates research found that 68% of U.S. broadband households are interested in new technical support services. Over 70% of these consumers would expect this service to address all of their technical problems, highlighting the importance of a comprehensive support solution that covers all of the devices and services on the home network. (Source)

2012 Ad Spending:  Political & Olympic ads Boost Overall Ad Spending

Nielsen says that last year’s Olympic Games and a very active U.S. election season in the third quarter (where spending rose 7% from a year before) helped boost 2012’s overall ad spend 2%. In the fourth quarter, a strong 1% gain in auto advertising helped keep that sector as the top spender for the year.  Notable big spenders in other categories: Phone and wireless ad spending rose 28% in the final quarter.  (Source)

 

Mobile’s Share of Marketing Budgets Rising

Mobile advertising continues to be the hot topic among marketers as Gartner says companies are now spending an average of 25% of their marketing budgets on mobile platforms.  The study also notes that digital is increasingly being integrated with all other types of marketing. Meanwhile, the growth in mobile’s budget share is expected to continue “as second-screen TV, social TV and QR codes integrate with traditional channels,” the report says. (Source)

 

But….Only 29% Of Consumers Regularly Use Mobile Devices To Find Local Businesses  

Yes, mobile is growing fast.  But hold on a second Sparky – according to new study from BrightLocal, while mobile Internet usage is growing very fast, only 29% of consumers regularly use their phones/tablets to find local businesses.  This compares to just 15% of consumers who use desktop Internet to find a local business.  Heavier, repeat users represent about 19% of consumers and they do look for a local business at least once per week.  29% of them search local at least once per month.  (Source)

 

Agencies see digital overtaking print, broadcast spending 

A new Strata survey says that nearly a third of ad agencies expect to spend more on digital campaigns than on conventional media within the next three years. “New advertising mediums are evolving at an unprecedented pace, and agencies are constantly trying to figure out how to get the best return on investment for their campaigns,” said Strata President and CEO John Shelton. (Source)

Why Marketers Shouldn’t Ignore Baby Boomers

Finally, someone else is saying what the Yellow Page has known for years — baby boomers are where marketers should be focusing their advertising dollars, and that then means Yellow Pages are the medium marketers should be using if they want to capture those boomer buyers as they are making a buying decision.

At the recent Nielsen’s Consumer 360 Conference, the well-known media and consumer research company said three key consumer groups are rapidly changing for marketers:

  • baby boomers,
  • moms,
  • lower income consumers.

But it is the baby boomers that really have the biggest prize — disposable income (aka money to spend). Beth Brady, Nielsen’s leader for marketing effectiveness, warned that if advertising dollars are funneled elsewhere: “….It’s a missed opportunity.”

Here are some of the numbers behind these comments:  Nielsen indicated that there are 100 million baby boomers — a number which will climb by a third in 2030. Most are growing out of the key 18-49 demographic into the 50+ number.  More importantly, they control $230 billion in sales or about half of the total for the entire U.S.  And they are not done yet — in five years, they will control 70% of disposable income.  Yet by and large, this key core demographic is ignored by marketers who seemed smitten want to reach 18 – 25-year-olds with far less disposable income and needs (as in they don’t have much money to spend).

So why should marketers then consider Yellow Pages to reach this core demographic group?  How about this list of key characteristics of heavy Yellow Page users from Dr. Dennis Fromholtzer of CRM Associates:

  •  Informed & smart shoppers
  •  Information gatherers
  •  Adventurous / enjoy taking risks / pursuing challenge, change, novelty
  •  Culturally sophisticated
  •  Fashion/style conscious
  •  Keep up with changes
  •  Like to stand out in a crowd
  •  Change brands for variety & novelty
  •  Outspoken
  •  Leaders
  •  Influencers – others come to them for advice

Shouldn’t this be the part of the market that businesses are clamoring for?  Then Yellow Pages is the most efficient way to reach it 24 hours a day, 7 days a week, 365 days a year…

 

 

Is Advertising Missing It’s Best & Biggest Target??

We’ve all heard the same old message of doom and gloom about how people aged 18-34 never use print Yellow Pages, that the industry needs to come up with new ways to attract their interest and their spending, etc. etc. etc..  But it seems like that focus on the younger demographic may be misplaced.

A recent study by the Nielsen Company indicates that Baby Boomers (that age group that has an estimated  78 million strong in the U.S.) are spending 38% of CPG (consumer package goods) dollars, yet less than 5% of advertising dollars are targeted to adults 35-64 years, which include Boomers (born 1946-1964) and the latter half of generation X (born 1965-1976). Could marketers be missing the biggest piece of the market with their obsession towards the younger groups???

This from Pat McDonough, Senior Vice President, Insights, Analysis and Policy at the Nielsen Company:

“..Boomers should be as desirable for marketers as Millennials and Gen-Xers for years to come; they are the largest single group of consumers, and a valuable target audience. As the U.S. continues to age, reaching this group will continue to be critical for advertisers.”

Some additional findings from the Nielsen study about Boomers:

  • The group dominates 1,023 out of 1,083 consumer packaged goods categories (yes, they are buying lots of stuff)
  • Boomers are big online shoppers, comfortable using email and messaging to stay in touch.
  • Boomers comprise 1/3 of all TV viewers, online users, social media users and Twitter users (Was that an AGH!!! I just heard from all the Millennials..)
  • More likely to have broadband Internet access at home (who says Boomers aren’t wired??)

So why are most marketers ignoring more than half of the affluent Boomers, those with the money to spend, and only targeting only to 18-49 year olds??  I really can’t tell you.  Sounds like they are really missing an opportunity here.

Our take:

Every Yellow Pages advertiser needs to know that if you want to reach those Boomers who have money to spend, who are ready to buy locally NOW, our print directories are there for them 24 hours a day, 365 days a year, with no special connections or wireless communications required, they often come in larger print (so we can see things easier), and they are organized in a manner which is logical and easy to use so they can find your business quickly.

Did I also mention our IYP and mobile products are pretty good too???