How many households do not have landlines?

New research reports that US households without landlines are growing steadily. The Center for Media Research recapped the findings from GfK Mediamark Research’s recent interviews with US adults.

Approximately 44% of adults in the United States do not have landline telephones in the household but do have cell phones. By comparison, there were only 26% of households in 2010 that only had cell phones. That is a growth of about 70% over the last few years.

The research further broke down the percentages of cell-phone-only households by age groups.

·        64% of Millennials

·        45% of Generation Xers

·        32% of Baby Boomers

·        13% of Pre-Boomers

Overall, about 93% of all adults in the US have cell phones according to recent accounts. Time will tell in how the cell-phone-only households’ growth will trend.

New report shows how college kids spend income

While most post-college grads have some woeful story about being a poor, broke college kid, it may not be the case today. In a recent poll conducted by Shweiki Media and Study Breaks, it showed that nearly all college students spend money at a restaurant at least once a month.

eMarketer reported on the study’s findings and released information on other products/services college students spend their money on:

·        99% of those surveyed spend money at restaurants

·        87% spend on travel

·        76% spend on beauty

·        70% spend on bars

·        70% spend on fashion

·        60% spend on electronics

·        59% spend on live music

·        57% spend on media

·        38% spend on fitness (This refers to off-campus gyms.)

Unsurprisingly, the students’ parents were reported as the main source of income. This was the largest group of responders at 45%. In contrast, about 40% list primary income as the product of working, and another 15% rely heavily on student loans to succeed financially. 

How coupons performed in 2013

Over the last six years or so, United States consumers have been more aggressively seeking a “good deal” when making a purchase. Coupons, in print and digital form, are one way to do that. Recent research has showed that coupon redemption is slowly decreasing from previous years.

According to MediaPost, various studies produced by NCH Marketing and Valassis have reported the following facts:

·        Coupons produced and distributed by marketers increased by about 3.3% last year. The total distribution is estimated at 315 billion coupons.

·        Total coupon redemption has decreased by about 3.4% to 2.8 billion.

·        The most common reason why consumers said he/she did not use coupons in 2013 was that coupons for products that he/she wanted to buy could not be found. That was the biggest response with 49%.

·        With 28.7% of respondents agreeing, the second most common was that the coupons expired before the consumer could use it.

·        In 2012, the time in which to redeem coupons was an estimated 9.3 weeks. In 2013, that dropped to 8.6 weeks.

·        Free standing inserts (FSI’s) typically account for 91.2% of coupons distributed and about 50.8% of all redeemed coupons. However, FSI’s in general still have low redemption rates.

·        While digital coupons did see growth in use in 2013, it still only accounts for less than 1% of all coupon distribution.

The takeaway for marketers is coupons are still valid for consumers. However, accessibility and time restraints do play a factor in use.

Teens pessimistic on future economic standing

The cable network MTV recently produced a study entitled “The New Millennials Will Keep Calm and Carry On,” which breaks down the millennial generation and the perceptions of the economy.

MediaPost reports that the study broke down the millennial generation in two parts, one being the younger skewing between the ages of 14-17, and the other being the older skewing twenty somethings. Interestingly enough, it is the younger millennials who have a more pessimistic view of the economy. About 60% of 14-17 year-old respondents think his/her generation will be worse off than his/her parents. The majority worry the current economy will negatively affect his/her potential futures.

Older millennials collectively responded in a more positive view of the economy. Reports show that this group believes that a successful future is possible and almost guaranteed with the help of college, working hard and playing by the rules.

While there was no distinguished reason why this group has split feelings of the economy, it may be due slightly to the fact that younger millennials may still be at home with the parents. Being at home and hearing the economic struggles from the parents’ perspective, may be a reason for the negative views of 14-17 year olds. 

What do you know about Generation X?

What do you know about the spending trends of the typical American Generation Xer? Since it is sometimes called the “ignored generation,” you may not know too much about it. The Center for Media Research recently summarized a new study by SymphonyIRI called Q3 2012 MarketPulse. In it, it highlights the buying characteristics of American’s between the ages of 35 and 44.

Unlike its predecessors Baby Boomers and seniors, Generation X tends be more price conscious.  This is more in line to the Millennials. The study proves this with the following results:

§       37% of GenX and 45% of Millennials are willing to buy brands that are on sale over the preferred brands. Boomers and seniors were less likely at 27% and 22% respectively.

§       32% of GenX and 39% of Millennials will select products that will create the most meals for the lowest cost. Boomers and seniors were charted at 27% and 19%.

§       33% of GenX and 35% of Millennials purchased products because of the discounts given from the loyalty card. The study showed only 25% of Boomers and 16% of seniors did the same.

How is this information helpful to an advertiser? If your target demographic happens to fall within the Generation X age group, it may be a good idea to highlight the price of your product or service. Also, coupons or discounts may be a way to get the frugal generation to sample what you are selling.

This advertiser wants to pay your mortgage.

There is a new twist to out-of-home advertising that is finding its niche in the troubled economy. Many people have felt the tragic effects of the housing bubble, but there may be an interesting option that hasn’t been considered. If you are willing to give up the exterior walls of your house, you may be able to keep it mortgage-free for up to a year, according to MediaPost.

A company called Brainiacs from Mars has promised to pay the monthly mortgage for a couple’s home. In return, the couple allows their house to be painted in bright, eye-catching colors and accented with large logos promoting the company’s name, social media, and digital pages.

Foreclosures have swallowed millions of homes since 2006. In 2010, foreclosure notices were sent to 2.9 million properties in the United States. Brainiacs is planning to find up to 1000 homes to use as commercial billboards all over the country. The company’s founder, Romeo Mendoza, not only wants to promote his company, but he wants to help reduce foreclosures.

When planning billboard projects, Mendoza assures that Brainiacs adheres to housing ordinances, neighborhood covenants and homeowners association rules.


Be sure to visit Ruth Burke & Associates’ blog to find the latest in media news and receive helpful tips to make your advertising campaign successful...

Economy and print magazines

The status of the economy will always be a forefront concern for advertisers. Keeping a pulse on it enables advertisers to navigate the media landscape. Affinity and Experian Simmons recently ran two studies to see how print and digital magazine readers view the current financial situation.

According to MediaPost, the studies showed that Americans are divided on predictions for the economy. About a third believes the economy will worsen within the next year, a third think it will stay the same, and a third think it will improve.

People who read print magazines over digital magazines had a higher proportion of optimists. In fact, readers of Essence, Ebony, Jet and Black Enterprise had the highest percentages of optimism with being close to 50%. Other titles that had positive readers were Elle Décor, New York Magazine, Men’s Journal, Life & Style Weekly, Tennis, and Veranda.

How can this study help advertisers? It can be inferred that if print magazine readers are optimistic of the economy, they will continue to purchase and read print materials. Therefore, presence in print publications is not a waste but a good foundation in a campaign.

Be sure to visit Ruth Burke & Associates’ blog to find the latest in media news and receive helpful tips to make your advertising campaign successful...

Consulting firm reports the economy affects digital advertising

Advertisers and researchers alike constantly watch the economic landscape for growths and declines. The consulting firm PwC reports that the sluggish economy has affected the traditional as well as the digital media.

According to MediaPost, PwC states that advertising on social networks showed a 20% increase during the first half of the year in the United States alone. This growth is thought to aid overall online advertising revenues increase in spite of the slow economy.

PwC notes that as tablets and smartphones become more accessible, search and mobile advertising has maintained strong revenue as well.

The consulting firm suggested that the state of the economy has helped speed up the shift from traditional media to digital. This reasoning could be based off the fact that digital creative does not usually have production costs while some traditional forms do.

Overall, digital media, especially social networking advertising has grown this year and is projected to continue to grow over the next few years.

Be sure to visit Ruth Burke & Associates’ blog to find the latest in media news and receive helpful tips to make your advertising campaign successful...

Global ad spending declines its growth

The global financial state does lend some insight in possible domestic economic trends; however, it is not the whole equation.

The recent headlines have once again put the global economy instability in the forefront. A “consensus” from Warc (World Advertising Research Center) explains what that means for advertising.

According to MediaPost, worldwide advertising spending has been increasing at a smaller rate than previously thought in April 2011. Instead of a growth rate of 5.1%, it is now estimated at 4.4%. Western Europe had the most notable decline; however, Russia, China, and Canada did see growth. Some reasoned the decline was a lack of confidence in these global economies.

While the report is based off of 13 major advertising markets, it is important to note that it did not include the United States, which is about half of all global ad spending.

Overall, Warc noticed that online is predicted to have the strongest growth with 14.6% in 2011 and 13.3% in 2012. Television also is predicted to show healthy growth.

The global financial state does lend some insight in possible domestic economic trends; however, it is not the whole equation. Even though the ad spending growth percentage is not high, it is still an increase, which is a sign of a healing economy, in comparison to a steady decline.

Be sure to visit Ruth Burke & Associates’ blog to find the latest in media news and receive helpful tips to make your advertising campaign successful...

A new study breaks out which media is consumed more right before consumers shop

If the intended result of your media message is a call to action or direct response, then it can be helpful to know what media shoppers are utilizing before such a trip.

The Nielsen Company recently funded studies regarding consumer activities and media consumption. The Council for Research Excellence released the findings at last month’s Nielsen’s Company Consumer 360 conference.

MediaPost reports that almost 62% of shoppers listened to radio an average of 14 minutes prior to shopping. In regards to television, 48% of responders watched it and 36% of that same group observed a TV commercial about 42 minutes before shopping.

The study also reviewed media consumption with mobile media preceding aforementioned excursions. Only 17% of consumers were utilizing their mobile phones during a trip. DVD viewing, mobile messaging, game playing, web usage, and the use of any other software are considered non-traditional phone activities. These only engaged 3% of a consumer’s time during a shopping experience.

If the intended result of your media message is a call to action or direct response, then it can be helpful to know what media shoppers are utilizing before such a trip.

Be sure to visit Ruth Burke & Associates’ blog to find the latest in media news and receive helpful tips to make your advertising campaign successful...

2009 means record ad revenue for LGBT publications

When reviewing the economic landscape, it is important to look at not only the general overview but the smaller niche media, too.

As a general statement, the media industry saw a steep decline of advertising revenue since the economy took a downturn in 2008. Some media platforms, on the other hand, have been able to recuperate at a quicker pace than others.

According to MediaPost, the 2009 Gay Press Report was just released by Rivendell Media, and it concludes that publications for lesbians, gays, bisexual and transgendered (LGBT) people had a relatively successful ad spending year. In fact, ad revenues for LGBT publications went from $308 million in 2008 to $350 million in 2009. That is a 13.6% increase. To compare, other consumer magazine ad spending decreased by 17.5% in 2009 from the previous year.

It is important to note that while the ad revenue increased for LGBT print, the actual number of ad pages sold decreased by 6.8% in a year. This can be explained that rates may have increased, or bigger and more expensive ads were purchased.

The report also mentions that while the number of gay publications increased from 130 in 2008 to 136 in 2009, there were some casualties to the recession. A few big titles closed like Genre, and a few consolidated like The Advocate and Out. These events resulted in a blanket drop in circulation for LGBT media of about 27.6% from 3.3 million in 2008 to about 2.4 million in 2009.

When reviewing the economic landscape, it is important to look at not only the general overview but the smaller niche media, too. Sometimes, those smaller groups like LGBT are on an upturn and can bring your message to an engaged target audience.

Be sure to visit Ruth Burke & Associates’ blog to find the latest in media news and receive helpful tips to make your advertising campaign successful...

Broadcast TV shows an uptick in first quarter revenues

As the economy gradually shows signs of an uptick, it can be helpful for an advertiser to place media sooner rather than later in order to lock in lower rates.

Since the economic recession hit advertising during the fourth quarter of 2008, total revenues have struggled to match the previous year if not decline further. Slowly, advertisers are investing more money into budgets which helps media vendors like local TV pull out of such declines.

According to MediaPost, television advertising had a healthy first quarter this year. The data that was collected by Kantar Media was first reported by the Television Bureau of Advertising.

While network revenues were up by 11%, local TV advertising scored the biggest gains with a 20% increase from first quarter 2009. This totals all broadcast TV revenues to about $18.9 billion. Syndicated television advertising marred the double digit gains of other broadcast TV media by declining 13% from 2009.

Important to note is that some of the big advertisers of first quarter 2010 include car dealer associations like Ford Motor and Toyota.

As the economy gradually shows signs of an uptick, it can be helpful for an advertiser to place media sooner rather than later in order to lock in lower rates.

Be sure to visit Ruth Burke & Associates’ blog to find the latest in media news and receive helpful tips to make your advertising campaign successful...

2009 marked double-digit decline in US ad spending

When an economy attempts to ascend from a recent and ongoing recession, ad spending can be one of the first budgets cut substantially.

MediaPost reported the Nielsen Co. study on the United States advertising spending for 2009 has been released. On average, 2009 ad spending was down 9% compared to 2008.

Research shows that only three of the 19 media platforms had any substantial gain from 2008. These categories are Cable TV with 14.8% growth, free-standing insert coupons with 11.5% growth, and the biggest growth came from Spanish-language Cable TV with 32.2%. Coming in fourth was internet advertising which stayed relatively the same with only a 0.1% gain.

The rest of the 19 categories declined in spending; in fact, some had double-digit percentage drops. Some of the biggest plummets included local magazines with 23.9%, Business to Business with 32.7%, and the largest drop came from local Sunday supplements with 44.9%. Even spot TV in the top 100 markets saw a 16.1% plunge in ad spending in 2009.

When an economy attempts to ascend from a recent and ongoing recession, ad spending can be one of the first budgets cut substantially. It is business savvy to keep updated with how the market is trending. If budgets are trending towards Cable TV, Spanish-language Cable TV, and free-standing insert coupons, it could be to the campaign’s benefit to see if the target audience is in front of any of this prospering media.

Be sure to visit Ruth Burke & Associates’ blog to find the latest in media news and receive helpful tips to make your advertising campaign successful...

Ad execs are optimistic about increasing future advertising spending

A positive perception can aid in bouncing back from tough economic times.

Regardless if the economy is coming back from the recession or not, major advertisers and media-buying executives are optimistic about advertising budgets for 2010.

The media industry research firm Advertiser Perceptions Inc. follows the perceptions that people in the business have about media. The study is based on an index of executives who plan to enhance ad spending over the next fiscal year vs. those who plan to reduce it.

The last survey was conducted in November 2009, and it found that ad executives’ optimism about increasing advertising budgets has risen to its highest point since 2007. In fact, the optimism levels are now at pre-recessionary levels.

According to MediaPost, the November survey “…shows that ad spending sentiment is now improving for every medium tracked, even for some traditional media such as newspapers, magazines and broadcast, which continue to have an overall negative index.” The top media performers on the survey were online, cable TV, and mobile advertising.

It can be very helpful to be aware of perception of the economy especially during a recession. Therefore, it is still very important to keep a branding message out and in front of the consumer. That constant messaging can reassure that a product or service is stable and will continue to be available regardless of what happens in the current economy.

Be sure to visit Ruth Burke & Associates’ blog to find the latest in media news and receive helpful tips to make your advertising campaign successful...

3-D Theatre Advertising meets with some hesitation in this down economy

Theatre advertising can be a great, creative way to reach massive audiences in specific target areas.

With the advancement of technology, 3-D film releases have re-emerged in the marketplace. This re-emergence has given advertisers a chance to duplicate the success with 3-D commercials leading up to the feature presentation. However, there seems to be a split opinion of the success of the new advertising platform.

The in-cinema sales group National CineMedia (NCM), which has yet to run any 3-D ads, has talked to marketers about the new concept. While the NCM believes in the product, it has stated that there is doubt on whether advertisers will pay more per spot and more for production costs. If advertisers will not pay more for the new technology, the in-sales groups will fail to make a profit.

One of the company’s competitors, ScreenVision began selling the 3-D advertising space in May.

As of August, there were 2,744 screens that could show 3-D movies, which breaks down to 7% of all US screens. Theatre owners are able to charge more per showing for a 3-D film, which can aid in driving business.

In-cinema executives believe that once the recession has reversed, there may be a market for advertisers paying higher prices for 3-D theatre commercials. Until then, it will remain a novelty and a well-watched advertising option for theatre advertisers.

Be sure to visit Ruth Burke & Associates’ blog to find the latest in media news and receive helpful tips to make your advertising campaign successful...

Online advertising isn’t immune to the economic climate

Despite being in the digital age, online advertising is not recession proof. The medium, which was once deemed to be the next big advertising venue, has felt the effects of the slowing economy.

New data released from the Interactive Advertising Bureau and PricewaterhouseCoopers show that online ad spending dropped 5.3% in the first half of 2009. This is the first time that online spending has declined since the economic recession of 2002.

One of the biggest hit areas in online advertising is online classified and directory advertising, dropping 32% in the first half of 2009. This directly reflects the current unemployment rate and housing market due to the fact that the majority of classified ads came from help-wanted ads and real estate listings. The drop in directory advertising may simply be due to a change in the way people search for their information. Instead of searching through a hard copy or online directory, users tend to turn to search engines for a faster way to receive information.

While classified and directory advertising has decreased, search-based advertising rose 1% from a year ago because marketers are shifting to a more performance-based advertising model. Search engine marketing represents 47% of all online ad dollars, up 3% from the following year. Another strong survivor in the online world is the banner ad. Banner ad spending stayed flat in the first half of 2009 which is very promising in a down market. David Hallerman, a senior analyst at eMarketer thinks this is a positive trend noting that the online banners show that marketers understand they need an online element to complete their campaign.

Although a 5% drop in online advertising worries some, most analysts feel that if the fourth quarter numbers improve with the typical holiday bump, there is a good chance that we will likely see growth in online spending next year.

Be sure to visit Ruth Burke & Associates’ blog to find the latest in media news and receive helpful tips to make your advertising campaign successful...

A new poll shows that personal spending is not yet back

Being aware of consumer perception of the economy can be an asset to your campaign.

The Center for Media Research released in August that personal spending is not back to what it was prior to the economic recession. In the article supplied by the research company, it discusses the findings of a recent poll conducted by AdweekMedia/ The Harris Poll.

Results show that 79% of American adults have made some level of cuts on personal spending this past year. These cuts have been a direct result of the economy. The largest age group to make self-described “a lot of cuts” was the 45-54 bracket. People in the age groups 18-34 and 55+ have the highest percentages, with 24%, of not making any cuts to personal spending.

As far as income goes, 89% of those making $35,000 - $49,900 have made some kind of cuts. In regards to incomes not making budget cuts, people who make between $50,000 and $74,900 had the largest response with 22%.

A positive aspect of the results is that 24% of those polled have started to increase spending to close if not exactly what was spent in years previous.

While economists have begun to state that the economy is re-emerging from the recession, consumers may not agree based on the research data presented. The report suggests watching when Americans start to spend money as the real sign for a recovering economy.

Cable shows growth despite overall ad spending during first half of 2009 is down

In an economic recession, it could be useful to know how ad spending currently compares to last year. That way, you can keep your budget and campaign on track.

According to MediaPost, the research company Nielsen Co. has been monitoring US media ad spending from 2008 to 2009. As a whole, ad spending has declined 15.4% during the first half of 2009 compared to the same time in 2008. This means that spending was approximately $56.9 billion which is down by $10.3 billion from the first half of 2008.

Results show that the only medium to show ad revenue growth during the first half of 2009 was cable TV. It rose 1.5% over ad spending in 2008 during the same time frame. This has been reported as impressive considering cable spending declined 2.7% during the first quarter of 2009, which means it had a strong second quarter in order to show gain.

All other media declined in ad spending with print media experiencing the largest drop. Local Sunday newspaper supplements had the biggest hit in declining revenue.

Annie Touliatos, vice president for Nielsen’s advertising information services, was quoted as saying, “What’s interesting is that we’re not just seeing a rise in spending for recession-friendly products like fast food restaurants. We’re seeing a lot more promotion of technological innovations like smartphones, computer software, and consumer-driven Web sites. These advertisers see potential for their products despite our stressed economy and are leveraging advertising to drive their success.”

While the economy is in a recession, it could be beneficial to regroup and rethink the marketing strategy for a campaign. Print could be a good media to utilize because the space may not be as congested with competition and rates may be more negotiable. Or cable might be the venue of choice because of a growing catalog of original programming and audience participation.

Spotlight: Ask Linda Norfleet

Question: Since the economy has been down the last nine months, my retail business has dropped off significantly. Should I pull all my advertising dollars and wait until consumers regain confidence and spending levels rise?

Answer: According to a new Ad-ology Research study, "Advertising's Impact in a Soft Economy," more than 48% of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling. Conversely, a vast majority perceives businesses that continue to advertise as being competitive or committed to doing business. Therefore, it is important to continue to advertise in a down environment to maintain brand awareness and reaffirm consumer’s perception of your business. Another key finding in the Ad-ology Study is that TV, newspaper, direct mail, and Internet top local media from which consumers saw/heard an ad within the last 30 days that led them to take action. Strategic placement of advertising dollars is more important than ever. Be sure and assess your target audience and place your ad dollars with media vehicles that have proven to be the most effective and efficient.