Category Advertising
Weekly Sweeps… Snippets For Your VFOGI (Vast fund of general information)
1. Cash-Strapped Consumers Shift Brands
According to a blog from Gian Fulgoni in Ad Age Digital, about 54% of consumers said they bought the brand they wanted most in 2008. By 2010, this had dropped to 45%, and 43% this year. Declines were observed in every category, with the most severe drop (17 points) in over-the-counter medicines and the lowest in the household category (6 points).
If consumers aren’t buying the brand they want most, they are switching brands, says Fulgoni. When a “peer” brand is on sale, 38% in 2011 say they bought it compared to 33% in 2008. But they also turn to a cheaper product. About 19% of consumers switched to private-label products in 2011, up from 14% in 2008.
When downsizing caused consumers to switch to another brand, 14% said it usually did and 54% said it occasionally did. But when asked which cost-controlling action they would prefer, 62% more consumers chose a smaller size over a price increase. Brand marketers appear to be backed into a “damned if you do, damned if you don’t” corner.
For more from Ad Age, please visit here. Read the rest of this entry »
Posted by eBrand Media Research Department in Advertising, Marketing on November 14th, 2011
Free necklaces and shipping for holiday shoppers?
Retailers are so desperate this holiday season that they’re willing to lose money to get you to spend yours.Take online jeweler Stauer. It’s offering a $249 amethyst necklace for free — provided customers pay the $24.95 it costs to ship it. Stauer will lose money on the deal, but it hopes to reel in new customers who will buy other jewelry.
“In this economy, you have to be outrageous in your offers,” said Michael Bisceglia, the president of Stauer who found that more than a third of customers who took advantage of a similar deal on a $179 pearl necklace in 2009 bought additional items. “You have to shake up the world a bit.”
Not every retailer will go as far as giving away merchandise during the holidays, but many will offer profit-busting incentives. It’s a critical time of year for merchants, which can make up to 40 percent of their annual revenue in November and December. And they’re so worried that Americans are spooked by the weak economy that they’re willing to sacrifice profit for sales.
Nordstrom, for instance, is one of the first retailers to offer free shipping on most orders, no matter how small, even though it could wind up paying $3 to ship a $7 pair of socks. Furniture chain Raymour & Flanigan is allowing customers to go four years without paying interest on their purchases — the longest period it has ever offered — even though it will have to help cover a chunk of those charges itself. And Sears is not only offering to match the cheapest prices customers find online, but the department store chain is giving them an additional 10 percent off the difference.
“You may be making a $1 profit instead of a $3 profit,” Fiona Dias, chief strategy officer of members-only shopping service ShopRunner.com, said about retailers. “But you’re not losing a sale.”
Retailers are nervous about holiday sales because many Americans are cutting back on spending as they grow increasingly concerned about the stubbornly high unemployment rate, stock market turmoil and an overall fragile U.S. economy. In fact, a recent Gallup poll found that eight of 10 Americans think the country is in a second recession.
“Retailers are now scared because some believe they’re in a second recession,” said C. Britt Beemer, chairman of America’s Research Group. “And the second recession is hitting them in the biggest shopping season of the year.” Read the rest of this entry »
Posted by eBrand Media Research Department in Advertising, Marketing, Trend Tracker on October 19th, 2011
Is Facebook killing your privacy? Some say it already has
Facebook has murdered privacy.
That’s not just the contention of privacy watchdogs. That’s Mashable’s Ben Parr wringing his hands.
“Facebook has finally done it,” Parr wrote. “It’s just a few updates away now from euthanizing the concept of privacy.”
Last week Facebook unveiled its dramatic redesign of profiles, a time line that charts in chronological order all the information users have shared on the service. Facebook also showed off new third-party applications that — when enabled — automatically share every action users take: every song they listen to, article they read and video they watch (not to mention every meal they cook and every jogging route they follow).
Facebook Chief Executive Mark Zuckerberg calls it “frictionless sharing.” That kind of sharing is designed to get users to stick around even longer (something that Facebook already does so well that it’s got Google and other Internet players plenty worried).
“We’re at the point of no return,” Parr wrote. “Facebook’s passive sharing will change how we live our lives. More and more, the things we do in real life will end up as Facebook posts. And while we may be consoled by the fact that most of this stuff is being posted just to our friends, it only takes one friend to share that information with his or her friends to start a viral chain. Sharing with just your friends doesn’t protect your privacy. I know the people at Facebook will disagree and argue that users can control what is shared with whom. But this is simply an illusion that makes us feel better about all the sharing we have done and are about to do. We may not notice the impact on our lives immediately. But it won’t be long until your life is on display for all of your friends to see, and then we’ll all know what Facebook has wrought.”
Posted by eBrand Media Research Department in Advertising on September 26th, 2011
Small Business Owners Liking Facebook
According to the MerchantCircle Merchant Confidence Index (MCI) survey, the total Q1 2011 MCI score is 5.1% higher than a year earlier. The largest contributor to its growth is respondents’ expectations for sales revenue growth during the next three months.
| Merchant Confidence Index | ||
| Expectation | Average Response on 1-5 Scale | % Change vs. Feb 2010 |
| Rate today’s economy compared to past 12 months | 3.00 | +11.5% |
| Change in sales revenue over next three months | 3.52 | + 4.8 |
| Change in marketing/advertising expenditures over next three months | 3.07 | +2.3 |
| Change in headcount over next three months | 3.13 | +2.6 |
| Source: MerchantCircle, (Merchant Confidence Index Survey), March 2011 | ||
More than four in 10 small and local business owners expect sales revenues to improve somewhat in the next three months. 13% expect significant improvement, a combined 57% of respondents anticipating some sort of rise in short-term sales revenues.
| Expectations for the future (How do you expect your sales revenues to change over the next three months?) | |
| Expectation | % of Respondents |
| Improve significantly | 12.9% |
| Improve somewhat | 44.0 |
| Remain relatively the same | 28.9 |
| Decline somewhat | 10.3 |
| Decline significantly | 3.9 |
| Source: MerchantCircle, (Merchant Confidence Index Survey), March 2011 | |
Posted by eBrand Media Research Department in Advertising, Facebook on April 5th, 2011
Tax returns to buy TV’s, furniture, and vacations
According to the National Retail Federation’s 2011 Tax Returns Consumer Intentions and Actions Survey, many Americans are now keen to use their tax refunds to treat themselves or their families to a major purchase. 13.2% of Americans will spend their refund on a big ticket item, such as a new television or furniture up from 12.5% last year.
But with the economy also serving as a reminder that it’s best to be financially prepared for the worst, 42.1% of people will put their refunds away for a rainy day vs. 40.3% in 2010. 66.2% of tax payers are expecting a refund this year, up from 65.5% last year.
Matthew Shay, NRF President and CEO, says “Despite the difficult unemployment situation… Americans receiving a tax refund this year seem eager to plough this money back into the economy… NRF is becoming more bullish about the economic recovery.”
Posted by eBrand Media Research Department in Advertising, Trend Tracker on March 8th, 2011