Statistics On Advertising During a Recession
I think Seth Godin outlined marketing's Catch 22 best in his book The Purple Cow (and I am paraphrasing here): When times are tough the tendancy is to conserve capital vs. when times are good the tendancy is to not be aggressive.
As marketers we are so often faced with the dilemma of having to cut advertising in times of economic softness. But here is some real data that you can use to illustrate why that is a bad idea.
McGraw-Hill Research study of over 600 Businesses found that:
1981-1982 – business that maintained or increased their ad spend during this time
* Averaged higher sales growth during the recession and in the following 3 years!
By 1985 – sales of the businesses that maintained or increased their ad spend during that recession
* Sales had risen 256% over those that had cut back on advertising
Likewise in 2001 – another study found that aggressive recession advertisers
* Increased market share 2 ½ times the average for all businesses in the post-recession
In 2002 – the Strategic planning institute illustrated that during economic expansion
* Although 80% of businesses increased their advertising spend there was NO improvement in market share
* Why? - because everyone has increase ad spending!
Full Disclosure: I got these stats from a paper called Innovating through a Recession by Professor Andrew J. Razeghi at the Kellogg School of Management at Northwestern University. Not only did I thank him for writing this paper, blogged about it, tweeted it but I also invited him to do a podcast with me so stay tuned!
Wednesday, June 24, 2009
The Pasta Indicator: when is the market going to turn?
Hi There,
Just this week I've had some very positive feedback from clients in both the home and auto industries about their recent campaigns. While business is still not great by most accounts, there seems to be a growing number of positive stories this month over last.
If you're interested to chat about I can help your business grow, please don't hesitate to call me at 403-686-9715 or email marc.binkley@calgaryradio.rogers.com
http://treasure.1x1y.com.cn/useracticles/20090211/20090211083014615.html
recessions don't last forever, and we'll be coming out of this one long before official statistics say so. That's just the way it works. Most economic data — like the quarterly GDP reading — are lagging indicators. What you need are leading indicators that will signal when we've made a turn.
Here are 10 indicators to help you know when times are getting better
1. Home Sales
says Jeoffrey Hall, chief U.S. economist for Thomson Financial. He's watching the National Association of Home Builders House Market Index, which measures recent sales, expected sales, and prospective buyer traffic. "The faster it rises," says Hall, "the faster I'd say we're emerging from recession."
2. Jobs
companies typically cut hours before cutting heads the slide means more layoffs are coming. the key is to just change the direction. You can find private sector average weekly hours worked on the Bureau of Labor Statistics web site.
3. Jobs (again)
monthly temporary employment. In 2002, temporary hiring went from net job losses to net job gains almost to the month that the recession ended. At this moment, the monthly change in temporary employment has been negative for 25 months running. When it swings positive you can be sure that better times will follow. This can be tracked on the BLS web site as well.
4. Car Sales
Cars are one of the first big-ticket items that consumers buy when they start to feel good again. "It's only fear that's holding consumers back," says James Smith, chief economist at Parsec Financial Management. "They have money — $56.5 trillion of net worth — and the products available are attractive and well priced." They just need to start feeling a little better about the economy and their financial future.
5. Retail Sales
For the seventh consecutive month, retail sales fell in January. When that string reverses it will be a positive sign. But more important will be any shift away from discounters like Wal-Mart and Dollar General towards specialty or higher end stores like Nordstrom or Saks. You can track retail sales at http://www.census.gov/.
6. Interest Rate Spreads
Modest signs have begun to emerge suggesting that the credit freeze is thawing. When credit spreads across the spectrum narrow it will signal that money is flowing again, a critical development. Also, and perhaps easiest to follow, look for jumbo mortgages which are now about 1.5 percentage points above conforming mortgages to close to within half a point.
7. The Pasta Indicator
When pasta sales begin to slow you'll know times are getting better. One way to track the trend is by watching financial results at American Italian Pasta Co. (ticker: AIPC), which is North America's largest pasta producer. The stock has soared from $5 to $26 in the past 12 months while just about everything else got hammered.
8. The Cardboard Indicator
Alan Greenspan was fond of tracking liner board prices. The idea is simple: liner board is a main component of cardboard, which is used as packaging to ship just about everything. When liner board prices surge it means that packaging is in demand, which can only be the case if people are buying things, which in turn signals a healthy economy. Liner board isn't easy to track. As a proxy, keep your eye on the stock price of leading cardboard producers Smurfit-Stone Container Corp. (ticker: SSCC) and International Paper (IP). Their shares began falling before the recession started and could turn higher before the recovery begins.
9. Sweet-Talking Bill Collectors
The big card companies are waiving fees, restructuring debt and even accepting payoffs of as little as pennies on the dollar. They're not doing this to be good guys; they are bracing for a continued wave of defaults and want to collect as much as they can right now — before some other bill collector gets to you first and leaves you with empty pockets. You'll know the economy is righting itself when credit card companies stop negotiating with debtors. To monitor this industry, check out creditcard.com. 10. Movie Madness
But where Hollywood storylines tend to lag the economy, movie goers as a group tend to lead the economy. So it was that the number of tickets sold dropped 4% last year, when film buffs collectively concluded that with money so tight they might as well make better use of their high-def home theater system. Watch for that trend to reverse. You can check for year-to-date movie ticket sales comparisons at http://ercboxoffice.com/
Just this week I've had some very positive feedback from clients in both the home and auto industries about their recent campaigns. While business is still not great by most accounts, there seems to be a growing number of positive stories this month over last.
If you're interested to chat about I can help your business grow, please don't hesitate to call me at 403-686-9715 or email marc.binkley@calgaryradio.rogers.com
http://treasure.1x1y.com.cn/useracticles/20090211/20090211083014615.html
recessions don't last forever, and we'll be coming out of this one long before official statistics say so. That's just the way it works. Most economic data — like the quarterly GDP reading — are lagging indicators. What you need are leading indicators that will signal when we've made a turn.
Here are 10 indicators to help you know when times are getting better
1. Home Sales
says Jeoffrey Hall, chief U.S. economist for Thomson Financial. He's watching the National Association of Home Builders House Market Index, which measures recent sales, expected sales, and prospective buyer traffic. "The faster it rises," says Hall, "the faster I'd say we're emerging from recession."
2. Jobs
companies typically cut hours before cutting heads the slide means more layoffs are coming. the key is to just change the direction. You can find private sector average weekly hours worked on the Bureau of Labor Statistics web site.
3. Jobs (again)
monthly temporary employment. In 2002, temporary hiring went from net job losses to net job gains almost to the month that the recession ended. At this moment, the monthly change in temporary employment has been negative for 25 months running. When it swings positive you can be sure that better times will follow. This can be tracked on the BLS web site as well.
4. Car Sales
Cars are one of the first big-ticket items that consumers buy when they start to feel good again. "It's only fear that's holding consumers back," says James Smith, chief economist at Parsec Financial Management. "They have money — $56.5 trillion of net worth — and the products available are attractive and well priced." They just need to start feeling a little better about the economy and their financial future.
5. Retail Sales
For the seventh consecutive month, retail sales fell in January. When that string reverses it will be a positive sign. But more important will be any shift away from discounters like Wal-Mart and Dollar General towards specialty or higher end stores like Nordstrom or Saks. You can track retail sales at http://www.census.gov/.
6. Interest Rate Spreads
Modest signs have begun to emerge suggesting that the credit freeze is thawing. When credit spreads across the spectrum narrow it will signal that money is flowing again, a critical development. Also, and perhaps easiest to follow, look for jumbo mortgages which are now about 1.5 percentage points above conforming mortgages to close to within half a point.
7. The Pasta Indicator
When pasta sales begin to slow you'll know times are getting better. One way to track the trend is by watching financial results at American Italian Pasta Co. (ticker: AIPC), which is North America's largest pasta producer. The stock has soared from $5 to $26 in the past 12 months while just about everything else got hammered.
8. The Cardboard Indicator
Alan Greenspan was fond of tracking liner board prices. The idea is simple: liner board is a main component of cardboard, which is used as packaging to ship just about everything. When liner board prices surge it means that packaging is in demand, which can only be the case if people are buying things, which in turn signals a healthy economy. Liner board isn't easy to track. As a proxy, keep your eye on the stock price of leading cardboard producers Smurfit-Stone Container Corp. (ticker: SSCC) and International Paper (IP). Their shares began falling before the recession started and could turn higher before the recovery begins.
9. Sweet-Talking Bill Collectors
The big card companies are waiving fees, restructuring debt and even accepting payoffs of as little as pennies on the dollar. They're not doing this to be good guys; they are bracing for a continued wave of defaults and want to collect as much as they can right now — before some other bill collector gets to you first and leaves you with empty pockets. You'll know the economy is righting itself when credit card companies stop negotiating with debtors. To monitor this industry, check out creditcard.com. 10. Movie Madness
But where Hollywood storylines tend to lag the economy, movie goers as a group tend to lead the economy. So it was that the number of tickets sold dropped 4% last year, when film buffs collectively concluded that with money so tight they might as well make better use of their high-def home theater system. Watch for that trend to reverse. You can check for year-to-date movie ticket sales comparisons at http://ercboxoffice.com/
In Branding, Minority Rules
Although we'd like all the business out there, it's not possible. I think this article is a great example of how important it is to identify your core business and superserve them. Our stations are a great medium to reach 25-54 year olds in general, but each station has a specific niche within that general group.
Please fee free to contact me at 403-686-9715 or marc.binkley@calgaryradio.rogers.com to find out if LITE 96 or JACK FM is the right fit for your business.
http://www.brandingstrategyinsider.com/2009/03/in-branding-minority-rules.html
Matthew Norman, food critic of The Sunday Telegraph, nodded politely to the waiting staff as he entered Shepherd's Restaurant. Aside from being co-owned by Michael Caine, Shepherd's other claim to fame was its reputation as one of London's finest restaurants. Norman was looking forward to his meal. What followed next sent shockwaves through the culinary world. Norman hated everything he experienced at Shepherd's and made this clear in his subsequent review. When the review appeared two weeks later, Richard Shepherd, the other owner of the restaurant, was furious, and threatened legal action, complaining that this "vicious rant" would have a dramatic affect on business. In one sense, Shepherd was absolutely right. His restaurant was suddenly packed everyday for lunch and dinner. While one might have expected Norman's diabolical review to have sparked a mass exodus, it actually had the opposite effect. How is this possible?
The answer lies in the unique competitive forces that operate within marketing.
Norman's review created a negative general opinion about Shepherd's in the minds of millions of consumers.
So what? It also piqued the curiosity of a few hundred consumers to go and try the restaurant. The review also enraged a few hundred loyal Shepherd's customers, who immediately called to make a reservation to show their support
Marketers should not fall into the PR-induced trap of attempting to make all the people generally happy all the time. Define who your target market is and do all in your power to inspire their love, belief and allegiance.
Please fee free to contact me at 403-686-9715 or marc.binkley@calgaryradio.rogers.com to find out if LITE 96 or JACK FM is the right fit for your business.
http://www.brandingstrategyinsider.com/2009/03/in-branding-minority-rules.html
Matthew Norman, food critic of The Sunday Telegraph, nodded politely to the waiting staff as he entered Shepherd's Restaurant. Aside from being co-owned by Michael Caine, Shepherd's other claim to fame was its reputation as one of London's finest restaurants. Norman was looking forward to his meal. What followed next sent shockwaves through the culinary world. Norman hated everything he experienced at Shepherd's and made this clear in his subsequent review. When the review appeared two weeks later, Richard Shepherd, the other owner of the restaurant, was furious, and threatened legal action, complaining that this "vicious rant" would have a dramatic affect on business. In one sense, Shepherd was absolutely right. His restaurant was suddenly packed everyday for lunch and dinner. While one might have expected Norman's diabolical review to have sparked a mass exodus, it actually had the opposite effect. How is this possible?
The answer lies in the unique competitive forces that operate within marketing.
Norman's review created a negative general opinion about Shepherd's in the minds of millions of consumers.
So what? It also piqued the curiosity of a few hundred consumers to go and try the restaurant. The review also enraged a few hundred loyal Shepherd's customers, who immediately called to make a reservation to show their support
Marketers should not fall into the PR-induced trap of attempting to make all the people generally happy all the time. Define who your target market is and do all in your power to inspire their love, belief and allegiance.
Social Marketing in Plain English
I thought this was a neat video to help explain some of the social marketing concepts. http://www.youtube.com/watch?v=MpIOClX1jPE A few of our current clients have successfully used advertising to drive traffic to their blogs, videos, podcasts etc. with the use of commercials, bonus code events and email blasts to our loyalty database.
If you're interested in creating a buzz on your social marketing platforms, please feel free to contact me at marc.binkley@calgaryradio.rogers.com or 403-686-9715
If you're interested in creating a buzz on your social marketing platforms, please feel free to contact me at marc.binkley@calgaryradio.rogers.com or 403-686-9715
BRAND sense
By adding radio to your marketing mix, your brand can be more persuasive to consumers. Please feel free to call or email me if you'd like to discuss how I can help your business build a stronger brand. 403-686-9715 or marc.binkley@calgaryradio.rogers.com
For his work in applying neuroscience to marketing (neuromarketing), Martin Lindstrom was the only marketer on TIME magazine’s list of the World’s 100 Most Influential People of 2009. In 2004, Martin Lindstrom commissioned Millward Brown to conduct the biggest ever study into how we use our senses to form branded relationships. 2 years, 20 brands, 13 countries and 1000s of consumers later, Martin published the results of this survey in his BRAND sense book which has become a worldwide bestseller. I've included a small summary below of the attached article.
For more information check out this link http://www.brandsenseagency.com/index.php?the-brand-sense-story
83% of marketing budgets are focussed upon our eyes
Brand impact increases by 30% when more than one sense is engaged and by a whopping 70% when three senses are integrated into the brand message.
We are unconsciously controlled by the thousands of sensory inputs we receive every day as we see, hear, smell, touch and taste brands.
it started in supermarkets in Northern Europe. As part of their strategies to generate traffic to their stores, they situated their bakeries up the back of the shops and connected them to the street using olfactory appeal. Hundreds of meters of pipeline carried the irresistible aroma of fresh bread to potential customers as they passed by the stores’ entrances. Upon detection of the marvelous smell, passersby are instantly struck with hunger and drawn inside the shop, down the aisles filled with other goods they realize they need, towards the bakery for intended purchase. Even banks in United Kingdom introduced freshlybrewedcoffee to branches with the intention of making customers feel at home when visiting the bank. The fragrance of fresh coffee induces relaxation, not an emotion you could normally associate with a bank.
BRAND sense research revealed that Nokia's ringtone is recognized by an astounding 74% of Europeans and 46% of American consumers. And they associate the tone with the brand
Kellogg’s has invested in the power of auditory stimuli, apparently testing the crunching of cereals in a Danish sound laboratory in order to upgrade their product’s ‘sound quality’ and link it with the brand signature. The crunch has created a powerful point of difference, being recognized as the Kellog’s crunch in 45% of cases in which the box has not been present.
BRAND sense showed us that, just by adding one additional sense to your brand, you increase brand memorability and brand loyalty by one-third.
Sound, too, evokes memory and emotion. Familiar birdsong floods you with impressions of home; a hit song from the days of your youth recalls the anxieties and excitement of your teen years
And of touch? One of the major reasons online clothes shopping never took off was because … well, you guessed it: people couldn’t touch the products
the only example of integrated sensory marketing I know of comes from Singapore Airlines...By appealing to all the senses (using music, fragrance, manner, personality which all combine in the Singapore Airlines’ cabin to evoke the airline’s preferred image) the airline has managed to create a branded flying experience.
Monday, June 22, 2009
The Wizzard of Ads, Word of Mouth and The Missing Google Analytics Manual
Hi There,
I've got a few short articles that I wanted to send today. I hope you find them useful. Please feel free to call me if you have any questions about how I can help you grow your business. 403-686-9715
Relevance is what determines whether an ad works or not. Every medium fails when it delivers a message no one cares about. Have you ever run an ad that failed? Let's see what really happened:
- Ads that fail in one medium will usually fail in others.
The medium is not the message; the message is the message.
- And the message is what matters most.
- There are NO magic bullets. When things come fast and easy they leave even easier more quickly.
- Isn’t word of mouth (”WOM”) free? WOM isn’t exactly free, but it can be. If you want to generate WOM do something remarkable for your customers. After all, WOM is driven by things people can remark on, hence the term remarkable.
Missing Google Analytics Manual http://www.grokdotcom.com/2009/02/16/the-missing-google-analytics-manual/
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