Archive
Don’t Ignore Boomers – The Most Valuable Generation
Don’t Ignore Boomers – The Most Valuable Generation
Source: Nielsen
Born between 1946 and 1964, the Baby Boomers are 80 million strong. Yet despite their significant size and spending power, these high potential consumers have been largely unaddressed by marketers and advertisers since they started to age out of the popular 18-49 cohort. In five years, 50 percent of the U.S. population will be 50+. These consumers spend close to 50 percent of all CPG dollars yet less than 5 percent of advertising is geared towards them. A new report by Nielsen in collaboration with BoomAgers, examines this opportunity and guides the way forward with actionable insights into this valuable cohort, dubbed the “Most Valuable Generation.”
n the next five years, Boomers are set to control 70 percent of the disposable income in the U.S. What’s more, they stand to inherit $15 trillion in the next 20 years. As they age out of the work force, 67 percent of Boomers plan to spend more time on their hobbies and interests, moving from a life dedicated to making money to one that is directed to spending money. This lifestyle requires two simple ingredients: money to spend and the time to spend it. The Boomer is a dynamic consumer and a very valuable one. It’s clear that taking their loyalty for granted, or forsaking them for being too loyal or set in their ways, are both risky approaches for marketers.
Free registration required to download full report.
Successful Brands Care: The Case for Cause Marketing
Successful Brands Care: The Case for Cause Marketing
As the call to action for community service and helping others becomes more vocal, it is apparent that many non-profit organizations would not be successful without the support of businesses and their brands. But is the benefit reciprocal? Nielsen conducted a global study in March trying to determine that very question. Does cause marketing—the use of social and environmental efforts to build a brand and increase profits—work? There is, the study found, certainly a segment of consumers who are socially conscious and do care.Overall, 46 percent of global online consumers surveyed said they were willing to pay more for goods and services from companies that are giving back – though there’s a wide range of social consciousness across regions and demographics. Consumers in Asia Pacific are more likely to be “socially conscious consumers” for instance, and so are younger consumers (63 percent of the group is younger than 40).The study also examined the causes that are important to this segment. From a list of 18 possible causes, the top three causes that consumers are most willing to support are ensuring environmental sustainability, eradicating poverty and hunger and improving STEM (science, technology, engineering and math) training and education.
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In it for the Long Run: True Innovation is Sustainable
In it for the Long Run: True Innovation is Sustainable
As Nielsen reviewed the vast information about new product launches in the CPG space, we saw an opportunity to expand the view. We analyzed 11,000+ products launched between 2008 and 2010. We stood these launches up against our criteria for breakthrough innovations and came out with 34 clear winners. One key element in our model was examining endurance. We wanted to ensure that winning initiatives achieved at least 90% of year one sales in year two. I think we can all agree that when a product launches with high sales, but then fails to continue that pace, the success is short-lived, and probably not one you want to replicate.There are two activation models that we’ve identified when looking at how to sustain momentum in the marketplace for breakthrough performance: marathoner and sprinters. Marathoners launch at a slower pace and build off their momentum, picking up speed as time goes on. Sprinters launch with substantial support and come out fast, rarely slowing down. More often, larger companies use this model when they are launching line extensions or a product that is relatively lower risk. These products carry a meaningful price premium, on average 1.9x the category average. But the marathoner approach is certainly capturing its share of the consumer wallets as well. These products are priced at 35 percent premium on average versus competitors in their categories. Smaller companies or brands launching products in a new category were more likely to follow this model.
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Decoding Global Investment Attitudes
Decoding Global Investment Attitudes
Source: Nielsen
Nielsen today released the results of an online survey to better understand the consumer mindset on investment strategies. The study, Decoding Global Investment Attitudes, gathers information from online consumers in 56 countries around the world who have indicated they currently use investment products such as stocks, mutual funds, bonds, certificates of deposit, derivative tools and foreign currency for investment purposes. Key findings from the study include:
- Globally, men are 36% more active than women with investments
- Women are 25% more likely than men to rely on friends and family for advice on personal finance matters
- Investors rely more on themselves when making investment decisions than on any other information source
- Investors in Asia-Pacific and the Middle East are the youngest; North Americans are oldest
- Online banking rivals physical branch banking for investment services in most regions
- Cash remains king, but payments via plastics are catching on
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Media Leaders Discuss the Consumer Shift to Cross-Platform
Media Leaders Discuss the Consumer Shift to Cross-Platform
Source: Nielsen
At Nielsen’s Consumer 360 event, Nielsen’s president of global media products and advertiser solutions, Steve Hasker, kicked off a panel by sharing Nielsen’s latest insights on how audiences are using multiple screens and devices. Rapid consumer adoption is driving a shift to digital, mobile, and on-demand options. In just the last 12 months, smartphone penetration has gone up 34 percent, tablet adoption is up 400 percent, and Internet connected TV is up 25 percent.
These increases create both challenges and opportunities for the marketing and media community. Hasker talked about Nielsen’s Cross-Platform Ratings, which looks at audience across TV and online, with plans to extend deeper into tablet and mobile. “We are incorporating cross-platform viewing into tablets and mobile devices. Our next step is to double our panel size to 20,000,” he said.
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Infographics: Insights into the Digital Lives of America’s Black Consumers
Infographics: Insights into the Digital Lives of America’s Black Consumers
Source: Nielsen
n the U.S., black consumers may watch more traditional TV than any other race/ethnic group according to Nielsen’s latest Cross-Platform Report, but they’re also highly active online and on their mobile devices, watching video, networking with their social connections, and making purchases. Nielsen examined the media habits of the digital black consumer in the U.S., a segment with significant buying power which presents key opportunities for marketers—and illustrated their activities across online, mobile, social and TV.
Key findings on black consumers’ online activities include:
- During the fourth quarter of 2012, 63 percent of black adults made a purchase online.
- Black Internet users spent 22 percent of their time online visiting Social Networks/Blogs in December 2011.
- YouTube accounted for 48 percent of black viewers’ online video time during December 2011, and 31 percent
- of black adults online watched consumer-generated video across the Web.
Meet Today’s Ethiopian Consumer
Ethiopia follows Nigeria as the second most populous nation in Africa, with 83 million people and two major ethnic groups that account for close to 60 percent of the population. In recent years, Ethiopia has emerged as one of the fastest growing economies in Africa with 10 percent GDP growth in 2010. Although the majority of the population is rural (82%), the urban population is growing twice as fast as the rural and over half of Ethiopia’s population is under 20 years old.
Through analysis into the retail infrastructure and comprehensive, on-the-ground survey research across urban and peri-urban Sub-Saharan Africa, Nielsen is taking an in-depth look at the behaviors and attitudes of the African consumer.
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Report: TV Continues to Hold the Lion’s Share of Ad Dollars and Consumers’ Media Time
Report: TV Continues to Hold the Lion’s Share of Ad Dollars and Consumers’ Media Time
Source: Nielsen
U.S. television ad spend was up 4.5 percent in 2011, according to the third and final part of Nielsen’s Advertising & Audiences Report. The report took an in-depth look at media consumption by platform and found that American advertisers and consumers have a huge appetite for television, as TV holds the lion’s share of ad dollars and consumers’ media time. Ad spend for TV reach $72 billion, more than all other ad platforms combined.
Other findings include:
- Spending on cable TV has increased steadily over the last few years, up 42 percent from 2007.
- The average TV commercial in 2011 was 28.4 seconds.
- Spanish-language cable and network TV saw double digit growth in ad spend, up 24 percent and 16 percent, respectively, from 2010.
- Automotive was the largest category for advertising spend across all media, with $10.2 billion spent by automotive brands in 2011, more than twice as much as the second-largest category—quick-service restaurants.
- AT&T and Verizon were the top TV spenders during 2011 for brands AT&T Wireless Web Access ($1.1 billion) and Verizon Wireless Web Access ($702.2 million).
Free registration required to download 3-part report.
Report: U.S. Media Trends by Demographic
Report: U.S. Media Trends by Demographic
Source: Nielsen
From Millenials to Boomers, males to females, and a variety of racial/ethnic groups, part two of Nielsen’s State of the Media: Advertising & Audiences Report presents an in-depth look at usage by demographic. According to Nielsen, white TV viewers use their DVR twice as much as any other group on a daily basis, yet Asians watch the most timeshifted content as a share of overall TV time. Among popular online destinations for TV content – Hulu, Netflix and YouTube – Hispanics were most likely to watch video on Netflix, while Asians were most likely to watch on Hulu and black viewers on YouTube.
Other findings include:
- Teens used a game console for eight minutes a night, on average, during primetime – more than twice as much as the general TV population.
- When watching TV and using their tablet simultaneously, male tablet users were more likely to look up information related to a TV program while females were more likely to up look info related to a TV ad.
- Females spend 61.2 percent of their timeshifted viewing during primetime watching Dramas.
- Online adults aged 25-54 are 23 percent more likely than the average U.S. Internet user to follow a brand via social networking and 29 percent more likely to purchase a product online that was featured on TV.
Free registration require to download full reports — State of the Media: Advertising & Audiences Part 1: Primetime by Genre and ate of the Media: Advertising & Audiences Part 2: By Demographic.
It’s All In the Mix: Maximizing Return on Brand Investment
Marketers commonly assume that investment in branding and advertising will increase sales, profits and brand loyalty, but a recent Nielsen study suggests that marketing dollars spent do not necessarily mean revenue realized.The study, conducted in Asia Pacific, the Middle East and Africa, shows that products supported by above the line – that is, mass media – advertising cost an average of 16 percent more and command an average of 31 percent higher share of category spending. Still, some above-the-line investments can actually hurt profitability and brand value, and internet-based marketing and that which generates buzz among consumers can often be more valuable than traditional marketing models.In the quest for market share, companies often offer discounts as a short-term strategy. Price discounting is tempting as it typically yields a positive revenue return that is higher compared to other marketing activities. However, it is not a panacea. A study of 26 failing FMCG items revealed that 19 out of 20 items that used price discounting as a strategy to hold their market positions once their loyal buyer base had been eroded, exited the market within 16-20 weeks. Only 1 item managed to save its position with a relaunch. The remaining 6 items exited the market within 4 -8 weeks.Advertisers looking to spend on advertising and promotions should consider how they can consistently generate a positive, balanced return on investment (ROI). Using tangible metrics will help focus the investments and ensure maximum efficiency.
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Hispanics in U.S. Highly Active on Mobile and Social
Hispanics in U.S. Highly Active on Mobile and Social
Source: Nielsen
In the U.S., Hispanic consumers’ usage rates of smartphones, television, online video, social networking and other forms of entertainment make this group one of today’s most engaged and dynamic populations in the digital space, according to Nielsen’s recent State of the Hispanic Consumer: The Hispanic Market Imperative report. Mobile presents a significant avenue of opportunity for marketers looking to reach Hispanic consumers – Hispanic mobile users send or receive 941 SMS (text) messages a month, more than any other ethnic group. They also make 13 phone calls per day, 40 percent more than the average U.S. mobile user.
Social is another platform where Latinos are especially active and rising in numbers. During February 2012, Hispanics increased their visits to Social Networks/Blogs by 14 percent compared to February 2011. Not only are Latinos the fastest growing U.S. ethnic group on Facebook and WordPress.com from a year ago, but also Hispanic adults are 25 percent more likely to follow a brand and 18 percent more likely to follow a celebrity than the general online population.
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Young, Mobile and Growing: The State of U.S. Hispanic Consumers
More than 52 million strong and representing the majority of population growth over the next five years, Latinos have become prominent in all aspects of American life. A growing, evolving population, Latinos are a fundamental component to future business success, with a buying power of $1 trillion in 2010 that is projected to grow 50 percent to $1.5 trillion in 2015.In State of the Hispanic Consumer: The Hispanic Market Imperative report, Nielsen has identified several unique circumstances that combine to make Hispanics the largest population group to exhibit culture sustainability—ever. Borderless social networking, unprecedented exchange of goods, technology as a facilitator for cultural exchange, retro acculturation, and new culture generation combine to enable Hispanic culture in the U.S. to be sustainable. In other words, Hispanic culture may evolve but will not go away.
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The State of the African-American Consumer
As businesses look for opportunities to grow their companies and gain market share it is critical that they understand new and emerging demands from consumers, especially within growing segments, wherever they do business. As the population of the United States evolves to become more ethnically diverse, the complexity of such an effort has grown. To help close the gap and give insight as to how to address the needs of the growing diverse base, Nielsen—along with the National Newspaper Publishers Association (NNPA)— developed this report to better illustrate the qualities of the African-American community, the business opportunities that exist, and the best methods for a productive connection between businesses and this community.The African-American population is, today, the largest racial minority group in America, with a population of close to 43 million. This market segment’s growth rate continues to exceed the overall population’s growth and is making continued gains in the area of education and income. The collective buying power of the African-American population is projected to be at $1.1 trillion by 2015. Collectively the group over-indexes in several key categories (television viewing, mobile phone usage and trips to grocery channels) and exerts a large influence on popular culture and trends, indicative of the high growth industries of the future. The three areas of focus for this report include a review of demographic characteristics, a survey of the programs and mediums favored by the group, and a look at overall consumer packaged goods buying behavior.
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Report: The Diverse People of Africa
With over one billion consumers—a number growing faster than that of any other continent—Africa boasts a wealth of potential. With young and quickly growing populations paired with a rising gross domestic product (GDP) that has grown faster than that of the rest of the world every year since 20011, African markets brim with opportunity. Traditionally viewed as an impoverished continent where few people have discretionary income, Africa’s middle class is growing at an astounding rate and the GDP per capita (PPP) has grown 26 percent in the past 10 years2. With its steadily rising incomes, African economies offer vast potential and rewarding growth opportunities.Despite the exciting opportunities and considerable promise of the African continent, doing business here also comes with significant challenges. Aside from political turmoil, wide income disparities, and infrastructure shortfalls, one of the biggest issues facing marketers in Africa is its diversity.Rather than just a continent, Africa must be viewed as 54 separate and distinct countries with a wide array of political, economic, geographical, cultural and social features.
The Global, Socially Conscious Consumer
The Global, Socially Conscious Consumer
Source: Nielsen
Around the world, companies have invested time, talent and treasure in social and environmental efforts for a range of complementary reasons. For many companies, cause marketing—the use of social and environmental efforts to build a brand and increase profits—has been a secondary if not primary motivation.
Cause marketing won’t work with all customer segments—some simply don’t care—but research suggests that there is a segment of socially conscious consumers that cause marketers should pay attention to. But who are these socially conscious consumers? What causes are most important to them? What’s the best way to reach them?
New findings from a Nielsen survey of more than 28,000 online respondents from 56 countries around the world provide fresh insights to help businesses better understand the right audience for cause marketers, which programs resonate most strongly with this audience, and what marketing methods may be most effective in reaching these consumers.
In the study, respondents were asked if they prefer to buy products and services from companies that implement programs that give back to society. Anticipating a positive response bias, respondents were also asked whether they would be willing to pay extra for those services. For the purposes of this study, Nielsen defines the “socially conscious consumer” as those who say they would be willing to pay the extra.
Two thirds (66%) of consumers around the world say they prefer to buy products and services from companies that have implemented programs to give back to society. That preference extends to other matters, too: they prefer to work for these companies (62%), and invest in these companies (59%). A smaller share, but still nearly half (46%) say they are willing to pay extra for products and services from these companies. These are the “socially conscious consumers,” as defined by and focused upon in this report.
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The Race for Campaign Site Visitors
The Race for Campaign Site Visitors
Source: Nielsen
With the 2012 political season in full swing, Americans are flocking to the Internet for news surrounding the presidential candidates. So which candidate sites are drawing the most visitors? Nielsen profiled the voter-aged (18+) audience to the official campaign sites of the five presidential candidates to find out how their visitors lean.
China and US Improve, but Overall Consumer Confidence Fell in 60% of Global Markets
China and US Improve, but Overall Consumer Confidence Fell in 60% of Global Markets
Source: Nielsen
Consumer confidence declined in 35 out of 56 markets, according to fourth quarter 2011 global consumer confidence findings from Nielsen. Global consumer confidence increased one point last quarter to a score of 89, while Europe led confidence declines in 24 of the region’s 27 measured markets.
“While Europe’s challenging economic conditions in the second half of 2011 bought renewed vulnerability and fragility to consumers and financial markets globally, some of the most positive news last quarter came from the world’s two largest economies—the U.S. and China—where confidence rebounded to Q1 2011 levels,” said Dr. Venkatesh Bala, Chief Economist at The Cambridge Group, a part of Nielsen. “Buoyant domestic consumption also maintained confidence levels in the large emerging economies of India, Indonesia and Brazil. However, slowing GDP growth within emerging economies and inflationary pressures would suggest some degree of caution for the year ahead.”
The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, tracks consumer confidence, major concerns and spending intentions among more than 28,000 Internet consumers in 56 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism.
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The Changing Face of the Super Bowl Audience: Wealthier, More Diverse
The Changing Face of the Super Bowl Audience: Wealthier, More DiverseSource: Nielsen
One fact is clear: The Super Bowl audience is big — attracting a record-breaking 111.5 million viewers in 2011, up from 90.7 million five years ago and 87.0 million in 2002. But, according to Nielsen’s State of the Media: Year in Sports, the Super Bowl audience is changing in other ways as well: it’s wealthier, increasingly female and diverse.
- Higher Household Income: In 2011, 30 percent of the viewers had a household income of $100,000+, nearly double the number in 2002.
- Greater Audience Diversity: The Super Bowl is bringing new audiences into the fold. Hispanics and African-Americans are watching the game at higher levels than before—both increased their audience share by two percentage points since 2002. Women are also watching at higher levels, accounting for 46 percent of the Super Bowl audience, compared to 43 percent in 2002.
- Family Affair: One area where the Super Bowl audience has stayed relatively the same is age, meaning that the game continues to attract a wide audience of all ages.
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Super Bowl’s Greatest Hits: Top 10 Most Liked Ads of the Past Five Years
Super Bowl’s Greatest Hits: Top 10 Most Liked Ads of the Past Five YearsSource: Nielsen
Super Bowl ads are known for generating buzz—and viewers—but not all creatives are created equal. Nielsen reveals America’s most liked commercials over the past five years, and the NFL itself tops the list. Regardless of category, emotional appeals, humor, non-fatal violence, and animals bolster quality ads and strongly resonate with consumers when executed well.
Of the 144 brands that have advertised during the Super Bowl over the past five years, only a handful of companies have had a presence in every one. From 2007-2011, these seven have earn honorable mentions for being the most resilient Super Bowl advertisers—Budweiser, CareerBuilder, Coca-Cola, Doritos, E*Trade, GoDaddy.com, and the NFL—and five also hold the distinction of being among the ten best liked Super Bowl ads of the past five years.
The Super Bowl Investment: Ad Spend Trends Over the Past Five Super Bowls
The Super Bowl Investment: Ad Spend Trends Over the Past Five Super BowlsSource: Nielsen
While Super Bowl ads require a substantial investment, they tend to get a measurable marketing bump from their prominent placement. According to Nielsen, ads that aired during 2011’s Super Bowl XLV were, on average, 58 percent more memorable than commercials airing during regular programming in the first quarter of 2011. In addition, brand awareness for commercials airing during the Super Bowl was up to 275 percent higher than awareness for the same creative during regular programming.
