Attitudes toward Traditional Media Advertising and Promotional Marketing - US

Published by: Mintel International Group Ltd.

Published: Aug. 1, 2009 - 66 Pages

Table of Contents

Scope and Themes

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Ad spend sees substantial decline in 2008, to worsen in 2009

Print and radio bear brunt of spending cuts

Branded entertainment offers alternative to traditional TV spots

Television forced by disruptive technology to reinvent itself

New DVR features suggest a new way to advertise

Addressable advertising aims to improve targeting and relevance

Negative attitudes towards advertising unchanged

Traditional push advertising reminds but doesn’t convert

Time-shifted viewing and commercial skipping is a widespread reality

Quantity of ads is major barrier to more positive perception

Celebrity endorsements and charity sponsorships

Newspaper inserts most popular but internet coupons closing ground

Emerging delivery concepts would find significant consumer base

Market Size and Forecast

Aggregate ad spend plummets with little sign of recovery

Figure 1: U.S. advertising expenditures, at current prices, 2004-14

Figure 2: U.S. advertising expenditures, at inflation-adjusted prices, 2004-14

Competitive Context

Disruptive technologies favor pull over push

Figure 3: U.S. household penetration of digital video recorders and broadband modems, 2006-09

Internet not yet established as a tool for push advertising

DVRs are both friend and foe to marketers

Networks boost minutes of branded entertainment

Figure 4: Brand appearances in network TV programming, 2006-08

Segment Performance

TV and internet buys show relative strength

Television buyers wait and see

Internet valued for conversions not brand building

Radio and print media bear brunt of cutbacks

Newspaper struggles despite growth in online readership

Radio needs innovation to survive

Magazines prepare for more drastic move online

Figure 5: U.S. advertising expenditures, by media type, 2007-08

Market Drivers

Ad expenditures decline more dramatically than consumer spending

Figure 6: U.S. media expenditures and consumer spending, 2006-09

Troubled auto industry accounts for more than a third of decline

Figure 7: U.S. advertising expenditures, by business sector, 2007-08

Fewer consumers learning from advertising

Figure 8: Attitudes toward advertising, May 2004-05-December 2007-08

Reinvention and innovation needed to reach growth demographics

Figure 9: U.S. population, by age, 2004-14

Marketers get comfy with “below the line” campaigns

Innovation and Innovators

Network TV integrates marketing into programming

Addressable advertising makes push more relevant

Big screen reading devices may give periodicals a second life

Incentive-based ad model would attract significant base of respondents, particularly under-35s

Figure 10: Attitudes towards emerging concepts in media and ads: screens outside the home, compensation for viewing ads, and interest in television viewing on cell phones, June 2009

Figure 11: Attitudes toward emerging concepts in media and ads: screens outside the home, compensation for viewing ads, and interest in television viewing on cell phones, by age, June 2009

Impact of Advertising Media

Introduction

Reach and impact vs. cost: The television conundrum

Television remains the most powerful media, but costs may favor other formats

Figure 12: Reach and impact of ads, by media segment, June 2009

Newspaper and magazines more likely to reach higher earners

Figure 13: Reach of advertising media, by household income, June 2009

Ad impact declines significantly after age 35

Figure 14: Impact of advertising media, by age, June 2009

Ads educate and remind but less likely to persuade

Figure 15: Type of effect of each advertising media, June 2009

Sponsorships more effective with men

Figure 16: Preference for sponsoring brands, by gender and age, June 2009

TV Viewing Habits

Overview

DVR ownership determined mostly by household income

Figure 17: DVR ownership, by age and household income, October 2007-December 2008

Consumers skip commercials and surf internet while watching

One in five time-shifting all viewing

Figure 18: Television time-shifting habits, June 2009

Figure 19: Television multi-tasking and non-DVR based ad avoidance techniques, June 2009

Youngest respondents 18-24 most likely targets for online campaign tie-ins

Figure 20: Television time-shifting habits, by age, June 2009

Figure 21: Television multi-tasking and non-dvr based ad avoidance techniques, by age, June 2009

Higher earners more likely to record

Figure 22: Television time-shifting habits, by household income, June 2009

DVRs reduce the power of push but let consumers pull

Figure 23: Ad avoidance, ad selection, and voluntary ad viewing via DVRs, June 2009

Family-aged respondents harder to reach with traditional TV ads

Figure 24: Ad avoidance, ad selection, and voluntary ad viewing via DVRs, by age, June 2009

Large household respondents more open to on-demand ads

Figure 25: Ad avoidance, ad selection, and voluntary ad viewing via DVRs, by presence children in the household, June 2009

Receptivity to TV Advertising

Reducing quantity and block/filter can increase receptiveness

Figure 26: Enjoyment of TV ads and interest in new TV ad viewing models, June 2009

Active 25-34-year-olds most value ability to choose

Figure 27: Enjoyment of TV ads and interest in new TV ad viewing models, by age, June 2009

Celebrity Endorsements

Cost remains primary barrier to membership

Figure 28: Impact of celebrity endorsements, June 2009

Celebrity impact strongest among under-35s

Figure 29: Impact of celebrity endorsements, by age, June 2009

Charitable Causes

Charity sponsorship justifies premium pricing for a small minority

Figure 30: Impact of charity sponsorships, June 2009

Under-35s more likely to pay more for charity sponsors’ products

Figure 31: Impact of charity sponsorships, by age, June 2009

Higher earners more likely to pay premium for good causes

Figure 32: Impact of charity sponsorships, by household income, June 2009

Coupons

New media coupons still second to newspaper inserts

Figure 33: Coupon usage, by type of media, June 2009

Internet/e-mail promotions close the gap with newspaper among under-35s

Figure 34: Coupon usage, by type of media and age, June 2009

Higher earners find coupons in more places

Figure 35: Coupon usage, by type of media and household income, June 2009

Family demographic more likely to find coupons in new media

Figure 36: Coupon usage, by type of media and presence of children in the household, June 2009

The Impact of Race and Hispanic Origin

Blacks aged over 45 least likely to tune out

Figure 37: Television time-shifting habits, by race/Hispanic origin and age, June 2009

Black DVR owners least likely to skip commercials

Figure 38: Ad avoidance, selection, and voluntary viewership via DVR, by race/Hispanic origin and age, June 2009

Blacks most likely to enjoy television commercials

Figure 39: Enjoyment of TV ads and interest in new viewership models, by race/Hispanic origin and age, June 2009

Blacks most likely to view celebrity spokesmen favorably

Figure 40: Impact of celebrity endorsements, by race/Hispanic origin and age, June 2009

Asian demographic ideal for online video ads

Figure 41: Television time-shifting habits, by race/Hispanic origin, June 2009

APPENDIX: OTHER USEFUL CONSUMER TABLES

High-income households skipping away from ads

Figure 42: Ad avoidance, selection, and voluntary viewership via DVR, by household income, June 2009

Households with kids like ads more

Figure 43: Enjoyment of tv ads and interest in new viewership models, by presence of children in the household, June 2009

APPENDIX: TRADE ASSOCIATIONS

Abstract

The integration of brands into original programming (i.e. branded entertainment) is an effective way to circumvent negative consumer attitudes toward advertising. It may also be a sign of a general movement of push advertising moving from being information-based toward being entertainment-based. In the Fall 2008 Experian Simmons NCS, 46% of respondents say that ads help them learn about products, compared to 53% in Spring 2005.

As advertising formats continue to evolve, it is not difficult to imagine a paradigm in which the purpose of push ads (e.g. traditional media spots) is to entertain and imbue a brand with positive connotations, while the purpose of pull ads (e.g. search engine, product home pages) is to inform consumers and convert interest into purchase.

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 250,000 market research reports, company profiles and country profiles from over 650 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.