June 2008 Archives
Freestyles on the fly: Hip-hop artist answers the call
What's Happening
How to make a mark in hip-hop? Prove freestyling skills by inviting fans to ring your cellphone to request a rap about any subject. That's how rapper Derek "Drizzy D.R.O" Davis is building a viral fan base.
- The hip-hop phenom started by texting his friends and asking them to call his cellphone for a freestyle rap on a topic of their choice (PRCanada.net 6.7.08). They did, told their friends, and suddenly Drizzy is busy 24/7.
- Here's how it works: If he answers the call, he'll freestyle on the spot. Leave a message, and he'll get back with a customized rap.
- His “Press/Play Hotline” is now known in 35 states and three countries.
WHAT THIS MEANS TO BUSINESS
- Viral marketing means giving a bit of yourself to the consumer. Taking advantage of cellphone technology means an unknown product or service can suddenly become known and national.
RESOURCES
Alien 8 Entertainment: Derek "Drizzy D.R.O" Davis' indie label/management firm
Opportunity: Ground e-products and services in meaningful, emotional experiences that offer a warm embrace in a topsy-turvy world.
for more information visit www.iconoculture.com
RESEARCH BRIEF
FROM THE CENTER FOR MEDIA RESEARCH
Friday, June 27, 2008
Half of Low Income Consumers Having Trouble Buying Groceries
According to a study from Information Resources, Inc., the lagging economy is driving a dramatic move back to basics and a reversal of decades-long trends for convenient and healthier foods. Roughly half of all consumers with incomes less than $55,000 per year say they have trouble affording the groceries they need, while nearly a quarter of those earning between $55,000 and $99,000 also say so. Among those with incomes over $100,000, 16% report having trouble. 42% of consumers say they have given up favorite food brands because of rising prices and economic concerns.
The "IRI Times & Trends Special Report: Competing in a Transforming Economy" report finds that escalating prices have bred high price sensitivity, driving declining demand across multiple categories, growth in private label, trial of lower-priced brands and accelerated channel migration.
Though changes in shopping and purchase behavior vary based on life stage and presence of children, those with lower-incomes report being the hardest hit.
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Consumers Having Difficulty Buying Needed Groceries | |
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Income Segment |
% Having Difficulty |
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< $35K |
56% |
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$35K-54.9K |
44 |
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$55K-99.9K |
24 |
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$100K + |
16% |
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Source: IRI Economic Trend Database/AttitudeLink, May 2008 | |
Consumers are increasing purchases of basic ingredients and meal components, reducing restaurant spending and decreasing purchases of "non-essentials":
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Consumers Making Food & Grocery Trade-Offs (Previous 6 Months) | |||||
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% By Annual Income Level ($x000) | ||||
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Change |
% of Total Consumers |
<$35 |
$35-54.9 |
55-99.9 |
100+ |
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Buy fewer individual serving pkgs. |
59% |
62% |
68% |
60% |
45% |
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Cut back non-essential groceries |
66 |
75 |
76 |
65 |
42 |
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Buy fewer prepared meals |
55 |
63 |
59 |
53 |
39 |
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Try lower priced brands |
50 |
62 |
55 |
46 |
35 |
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Buy smaller quantities of favorite treats |
55 |
69 |
58 |
54 |
34 |
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Buy fewer organic products |
52 |
59 |
56 |
53 |
34 |
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Buy more private label |
50 |
58 |
58 |
47 |
31 |
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Give up favorite brands |
42 |
58 |
52 |
38 |
19 |
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Buy fewer "healthy" products |
32 |
45 |
42 |
28 |
11 |
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Buy fresh produce |
30 |
46 |
33 |
27 |
10 |
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Source: IRI Economic Trend Database/AttitudeLink, May 2008 | |||||
Additionally:
- 53% of consumers report that they are cooking from scratch more now than they were six months ago
- Stores are seeing a resurgence in sales of frozen foods, perishables, and "center-store" items
Please access more information through IRI here, or Marketing Charts here.
For more information visit www.mediapost.com
RESEARCH BRIEF
FROM THE CENTER FOR MEDIA RESEARCH
Thursday, June 26, 2008
Air Travelers Avoided 41 Million Trips
According to the Travel Industry Association (TIA), deep frustration among air travelers caused them to avoid an estimated 41 million trips over the past 12 months at a cost of more than $26 billion to the
The study, conducted by the polling firms of Peter D. Hart Research Associates and The Winston Group, demonstrated that air travelers express little optimism for positive change, with nearly 50 percent saying that the air travel system is not likely to improve in the near future.
Roger Dow, President and CEO of TIA, said "... more than 100,000 travelers each day are voting with their wallets by choosing to avoid trips."
Dow noted that the 41 million avoided trips during the last 12 months rippled outward across the entire travel community:
- Costing airlines more than $9 billion in revenue
- Hotels nearly $6 billion
- Restaurants more than $3 billion
- Federal, state and local governments lost more than $4 billion in tax revenue
Additional findings of the study:
- 28% of air travelers avoided at least one trip over the past year (2.1 trips on average) due to the problems in the air travel process.
- Over the past 12 months, approximately 112,000 trips were avoided per day; a total of 12 million business trips and 29 million leisure trips.
- More than 60% believe the air travel system is deteriorating
- 33% of all air travelers are dissatisfied with the air travel system, and 48% of frequent air travelers (5+ trips per year) are dissatisfied
- 39% of all air travelers feel their time is not respected in the air travel process, and among frequent air travelers that number surges to 51%.
- Nearly 50% of all air travelers do not think it is likely that the air travel system will be improved in the near future.
Travelers tend to appreciate the convenience and safety of air travel, but at least as many passengers say air travel is frustrating
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Attitudes About Traveling By Air and Airport Experience | |||
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Attitude |
All Travelers |
3+ Trips/Year |
5+ Trips/Year |
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Frustrating |
40% |
48% |
52% |
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Convenient |
40 |
37 |
32 |
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Safe |
32 |
29 |
30 |
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Efficient |
18 |
15 |
15 |
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Unreliable |
16 |
21 |
26 |
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Relaxing |
15 |
13 |
14 |
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Infuriating |
10 |
11 |
11 |
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Broken |
5 |
6 |
10 |
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Source: Peter D. Hart Research & The Winston Group, May 2008 | |||
The statistical margin of sampling error is ± 3.2 percentage points
Allan Rivlin, a partner at Peter D. Hart Research Associates, said "...Inefficient security screening and flight cancellations and delays are air travelers' top frustrations."
For additional information about the study, please visit TIA here.
For more information visit www.mediapost.com
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What's Happening
WHAT THIS MEANS TO BUSINESS
RESOURCES Click here for more, Chubby: WeightNags
SEE ALSO Observations
For more information visit www.iconoculture.com
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What's Happening
WHAT THIS MEANS TO BUSINESS
RESOURCES AllegroMedical.com sells the Michael Graves Active Living collection. Products are also available at CVS and Walgreens.
For more information visit www.iconoculture.com
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What's Happening
WHAT THIS MEANS TO BUSINESS
RESOURCES
SEE ALSO Observations
For more information visit www.iconoculture.com
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What's Happening
WHAT THIS MEANS TO BUSINESS
RESOURCES
SEE ALSO Observations
For more information visit www.iconoculture.com
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What's Happening
WHAT THIS MEANS TO BUSINESS
RESOURCES Tesco's Fresh & Easy Neighborhood Market
SEE ALSO Observations
Trends
POVs
Consumer Outlooks
For more information visit www.iconoculture.com
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RESEARCH BRIEF
From the Center for Media Research
Wednesday, June 18, 2008
Thirty Countries Exceed 100% Per Capita Cell Phone Usage
According to a recent Experian study, analyzed and reported by Ellen A. Romer SVP, Strategic Planning, there are now 2.7 billion mobile phones in use. Between January 2001 and December 2010, our global society will have transformed from one where 13% carried a mobile phone, to one where 70% carry one. For comparison, she reports, there are 850 million personal computers, 1.3 billion fixed landline phones, and 1.5 billion TV sets.
By the first quarter of 2006, notes the report, thirty countries had already exceeded 100% per capita cell phone usage. In that same year, there were about 241 million mobile phone users in the
Included by the author is the Simmons New Media Study released in April 2008 comparing the usage of different mobile functions among consumers in the
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Mobile Phone Activity in the Last 30 Days | |
|
Phone Activity |
% Users Engaged |
|
Text messaging |
59% |
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Downloaded ring tones |
17 |
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Taken photos |
49 |
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Taken videos |
13 |
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Downloaded music |
7 |
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Played video games |
14 |
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Accessed Internet |
19 |
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Accessed GPS position |
5 |
|
Streamed video |
3 |
|
E-mailed |
20 |
|
Shopped |
2 |
|
Banked |
6 |
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Source: Simmons New Media Study, April 2008 | |
Globally, about two thirds of mobile phone users are active users of SMS text messaging, which means roughly 1.8 billion people are actively texting today, says the author
- Globally, there are twice as many active users of SMS as are active users of email.
- In the
- SMS is typically read within an average of 15 minutes after receipt and responded to within 60 minutes.
- While 65% of e-mail is spam, less than 10% of SMS is spam.
- 19% of text messagers say they use text messaging as a means of communication between themselves and colleagues
- 62% say they use text messaging to communicate with friends
- 55% say they use it to communicate with their significant others
On a 5-point scale, 28% of consumers who use text messaging view text messaging as a very important source of information (top box). Thirty-seven percent view it as a very important source of communication and 21% view it as an important source of entertainment, according to the report.
Continued technological innovation seems likely to continue to drive a host of services so that the mobile becomes as multi-functional as the PC, says the report. Larger screens and more storage seem likely to increase mobile usage for music and movies. Continued enhancements of mobile cameras for improved face detection/ image stabilization and low light will all contribute to mobile cameras fast becoming a basic mobile feature. Apple's disruptive innovation for touch-based user interfaces is also increasingly becoming the norm in mobile phones.
Romer concludes that the rapid rise of mobile usage and the concurrent expansion of mobile service usage creates a powerful new channel through which marketing, promotional and advertising messages can be effectively delivered to individual consumers. According to the Simmons New Media Study, over a third of consumers who are online for at least one hour a week rate themselves as being interested in receiving ads via their mobile provided there is a tangible incentive.
For more information, please visit Experian here, or to access download to a full white paper on the Study, please go here.
For more information visit www.mediapost.com
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What's Happening
WHAT THIS MEANS TO BUSINESS
RESOURCES National Association of Senior Move Managers
SEE ALSO Observations
For more information visit www.iconoculture.com
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What's Happening
WHAT THIS MEANS TO BUSINESS
RESOURCES
SEE ALSO Observations
Consumer Outlooks
For more information visit www.iconoculture.com |
RESEARCH BRIEF
FROM THE CENTER FOR MEDIA RESEARCH
Thursday, June 12, 2008
Cell Phones Still Hot; More
Although a new Harris Interactive study reveals that over one-third of consumers say the dire economy will not affect their spending habits, the 60 percent of consumers who will limit their discretionary spending will curtail going out to restaurants (74 percent) and limit their purchase of electronics (71 percent). 41 percent of consumers, however, have no plans to stop or cut-back on the purchase of cell phones, making it an increasingly viable advertising channel.
To many, it seems the use of mobile phones has become an indispensable part of their lives. People are actually severing ties to land lines with increasing frequency. According to a new study from the
These trends support the push by marketers to leverage mobile advertising as part of an integrated marketing program to promote their brands and sell products and services, Harris analysts conclude - especially during difficult economic times.
Milton Ellis, vice president and senior consultant, Harris Interactive technology group, says "... there are a lot of people who are still spending money... and even those cutting back still need to buy essentials... the key is to reach out to them through innovative marketing, including mobile advertising... "
Among teens surveyed, 56 percent said they would be interested in viewing mobile ads with incentives, while 37 percent of adults noted that they would be receptive to such advertising.
Ellis continues, "... our research indicates that teens will be strong early adapters to this advertising, with adults not far behind... no other advertising medium approaches the personal relationship consumers have with their mobile devices... "
80 percent of adults and 70 percent of teens identified "cash" as the top incentive for responding to mobile advertising. Additional popular incentives among teens are:
- Entertainment downloads (61 percent)
- Free music (57 percent)
- Complimentary minutes (53 percent)
Appealing incentives among adults are:
- Free minutes (49 percent)
- Discount coupons (37 percent)
- Free entertainment (31 percent)
- Music downIoads (24 percent)
Text messaging is the most preferred advertising approach among over two-thirds (69 percent of adults and 64 percent of teens) of consumers. Teens are more willing to accept advertising images on their mobile phones (47 percent), versus adults (35 percent).
54 percent) of adult respondents said they are comfortable providing personal information to mobile advertising marketers if offered for the right incentive, while teens are very guarded about their personal information. Only 35 percent would divulge it, even if an incentive is offered. 25 percent said they would never provide personal information.
Judith Ricker, division president, Harris Interactive marketing communications research group, concludes that "No matter how mobile advertising messages are delivered, our research shows that consumers demand that if a company is going to invade their personal space with advertising, it better be for something of interest to them. Personalization is hyper-critical."
For more about this study, please visit HarrisInteractive here. For expanded data and charts, visit Marketing Charts here.
For more information visit www.mediapost.com
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What's Happening
WHAT THIS MEANS TO BUSINESS
RESOURCES
SEE ALSO Observations
For more information visit www.iconoculture.com
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RESEARCH BRIEF
FROM THE CENTER FOR MEDIA RESEARCH
Tuesday, June 10, 2008
Web #2 Ad Medium in Five Years
According to a recently released study by IDC, the U.S. Internet Advertising 2008-2012 Forecast and Analysis, overall Internet advertising revenue will double from $25.5 billion in 2007 to $51.1 billion in 2012. During the forecast period, Internet advertising will grow about eight times as fast as advertising at large.
The Internet will go from the number 5 medium all the way to the number 2 medium in just 5 years, says the report, making it bigger than newspapers, bigger than cable TV, bigger even than broadcast TV, and second only to direct marketing.
Video advertising will be the principal disruptor of Internet advertising during this time, as its revenue grows sevenfold from $0.5 billion in 2007 to $3.8 billion in 2012 at a compound annual growth rate of 49.4%. Brand advertisers will shift significant amounts of money into video commercials, primarily from broadcast television and to a lesser extent from cable television.
Karsten Weide, program director, Digital Media and Entertainment, says "What will (help) drive this trend is that consumers are starting to realize that, as opposed to TV, Internet video lets them watch what they want, when they want, and increasingly, where they want."
IDC concludes that
- Search ads will remain at the top of the Internet ad hierarchy with revenue at $10.4 billion last year, reaching almost $18 billion in 2012. IDC believes search, now having almost 41 percent of the market share, will have just above 34 percent by 2012.
- Online video ad spending will grow from about $500 million in 2007 to $3.8 billion in 2012 and its Internet advertising share will expand from 2 percent to 7.4 percent.
- Referral and lead-generation services will see the second strongest market share gain, says IDC. Revenue from referral and lead generation services will grow from $2.3 billion in 2007 to $5.9 billion in 2012.
- Mobile advertising will also show robust growth but the segment will still have "just shy" of 1 percent of the overall online ad market by 2012.
For more about this study, please visit IDC here.
For more information visit www.mediapost.com
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What's Happening
WHAT THIS MEANS TO BUSINESS
RESOURCES YogaSlackers: YogaSlackers also practice Acroyoga, a new discipline incorporating Thai massage and acrobatics.
SEE ALSO Observations
For more information visit ww.iconoculture.com
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RESEARCH BRIEF
FROM THE CENTER FOR MEDIA RESEARCH
Wednesday, June 4, 2008
Direct Marketers Heed The Signs And Punch Up EMail
According to the Direct Magazine annual forecast survey, E-mail has become the top medium choice for direct marketers, supporting yesterday's Research Brief on consumer's attitudes about marketing communications modes.
Of the firms polled, 72% send e-mail to customers, a 10% increase over 2007, and 50% to prospects, a 9% hike. In addition, 55% of those who use the medium plan to increase their budgets for it next year.
Direct mail, while declining, remains a strong second, says the report. Of those polled, 66% are sending mail to customers this year, a 4% drop from 2007, and 59% are mailing to prospects. That number is 1% lower than last year. In addition, 37% of those companies plan to spend more on mail to customers in 2009, and 39% on mail to prospects.
Other online channels have also gained in usage. The survey shows that 39% of those polled conduct search engine marketing, a 10% increase over 2007 and 41% advertise on other Web sites. However, that number is flat from last year. In addition, 25% conduct affiliate marketing, a 4% increase over last year.
Traditional media appear to in decline. Only 7% advertise on radio (down from 10% last year). And 16% buy direct response space (down from 23%).
Inbound telemarketing is used by 17%, down from 21% in 2007. And 20% conduct outbound calling-the same as last year.
Card pack usage rose four percentage points to 10%. But statement stuffer use fell by half to 9%.
Read more about this report here, or, the full survey appears in a supplement with the June issue of Direct.
For more information visit www.mediapost.com
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What's Happening
WHAT THIS MEANS TO BUSINESS
RESOURCES Carrotmob For more information visit www.iconoculture.com
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RESEARCH BRIEF
FROM THE CENTER FOR MEDIA RESEARCH
Tuesday, June 3, 2008
Email Preferred Communicator by Consumers For Business Dealing
According to the 2008 study of consumer attitudes towards email and online interaction with businesses, completed in May 2008 by research firm Ipsos for Habeas, Inc., 67% of consumers prefer email as a primary method of communications in their personal and business capacities, and 65% will continue to prefer email in the future despite the rise of online threats and the emergence of other communication channels and Web 2.0 applications.
The report also revealed an interest from consumers in gaining more control over their online interactions with businesses and an increasing level of concern over spam and virus threats reaching consumers through their mobile devices.
Des Cahill, CEO, Habeas, said "... consumers are becoming even more dependent on email for their relationships with each other... this... study illustrates the relevance and longevity email has within the online ecosystem... "
Highlights from the study include:
- Consumer opinion of the future importance of email registered far above future expectations for video conferencing (19%), instant messaging (17%), SMS text messages (12%) and Web meetings (12%).
- 65% of the demographic between the ages of 18 to 34 (most comfortable with IM, SMS and emerging communications methods), expect to favor email to communicate with businesses in five years.
- 69% of those surveyed expressed concern about being victimized by email fraud scams, up from 62% in 2007
- As many as 35% of those surveyed do not know what to look for when trying to sift through emails that might potentially be dangerous.
- 43% of respondents voiced concern over the spam and virus threat to mobile devices, up from 36% in 2007, and a reflection of the increasing use of the "mobile inbox" through smartphone and internet-enabled phone devices.
- More than 88% of respondents said they would like organizations to give them more choices over the content and frequency of the emails they receive, including options on advertisements, special offers, articles, newsletters, white papers and other specific content options.
- More than 80% of participants favor doing business with organizations that use opt-in permission to send them email.
- Only 12 percent of respondents acknowledged making one or more purchases from businesses they did not know.
- Daily email messages ranked with pop-up advertisements as the most damaging online tactics to a company's online reputation.
- More than 80% feel that a business' reputation is negatively affected if it shares customer email addresses with third parties.
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Communication Preferred by Adult Internet Users When Dealing With Businesses April 2008 | |
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Type of Communication |
% of Respondents |
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Email |
67% |
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Web site |
34 |
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Postal mail |
35 |
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Fixed-line voice |
29 |
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Mobile voice |
12 |
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Fax |
13 |
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Text/SMS |
2 |
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IM |
5 |
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Web meetings |
2 |
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Video conferencing |
1.3 |
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Source: Ipsos/Habeas, May 2008 | |
This year's report found that nearly 60 percent of users employ two or more personal email addresses, giving a different address to entities they do not trust while maintaining separate accounts for trustworthy sources.
Cahill concluded that "Far from being eclipsed by Web 2.0 and other emerging communications methods, consumer expectations suggest that email will be the workhorse channel around which future online communications will revolve... "
Editor's Note: Supporting and expanding on the intense interest in B2C communications methods, Accenture's Global Content Study 2008, "The Challenge of Change: Perspectives on the Future for Content Providers" provides a thorough analysis Whitepaper in PDF format that addresses in detail the consumer shift in entertainment and media consumption habits.
The Global Content Study may be accessed here. For more about the Habeas study, please visit here.
For more information visit www.mediapost.com
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What's Happening
WHAT THIS MEANS TO BUSINESS
RESOURCES Amazon has a BPA-free section. For more information visit www.iconoculture.com
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RESEARCH BRIEF
FROM THE CENTER FOR MEDIA RESEARCH
Monday, June 2, 2008
Web Magazine Reach, Users and Minutes Up in 2008
According to Magazine Publishers of America, consumer magazine websites averaged 70.7 million unique monthly visitors during the first quarter of 2008, an 11.9% increase over the same period in 2007. This gain reflects more than three times the rate of growth for the overall U.S. Internet audience, which rose 3.7% in the first quarter.
The analysis also showed that:
- The average first quarter monthly reach for magazine websites grew to 43.4% of the total U.S. Internet population, up from 40.2% in 2007
- Magazine website users accounted for an average of more than 497.3 million total sessions per month during the first quarter, a 16.3% improvement over the same period last year
- Visitors to magazine websites spent an average of 2.3 billion minutes per month during the first quarter, resulting in a 16.7% increase versus the same period in 2007
Nina Link, President and Chief Executive Officer, Magazine Publishers of America, concludes "Magazine brands online are getting ‘stickier' with web audiences... Publishers are increasingly employing the latest digital innovations to broaden their reach and appeal... "
For more about the MPA, please visit the PressRoom here.
For more information visit www.mediapost.com
