January 30, 2012 Off

Who Do You Trust? 18 – 34 Year Olds Say People, Not Brands

By in Industry Headlines, Marketing Insights

Marketers that are trying to connect with millennials ages 18 to 34 to promote products and services related to love and Valentine’s Day might want to consider tapping social influencers who produce user-generated content (UGC). This generation trusts people rather than brands, and values the opinions of like-minded strangers as much as people they know, according to a new study scheduled for release Monday titled “Talking to Strangers.”

Strangers appear to have the most influence when it comes to making a purchase. About 51% of millennials are more likely influenced by UGC produced and posted by strangers, compared with recommendations from friends, family and colleagues, but only 34% of boomers agree.

In fact, 84% of millennials report that UGC from strangers has some influence on what they buy. That’s because 65% of millennials believe UGC offers a more honest and genuine view online, and 86% believe the content represents a good indicator of the quality of a brand, service or products.

Millennials question the motives of companies that collect customer opinions. The study finds 71% of millennials say companies care about customer opinions simply because they impact how other consumers will view the brand, rather than truly caring what their customers think.

Seventy-three percent of millennials believe other consumers care more about their opinions than companies do; that’s why they continue to share their opinions online. They view companies that include customer feedback on their Web sites as honest, at 66%, and credible, at 53%.

Millennials won’t complete top purchases without UGC — big-ticket items like major electronics, 44%, and cars, 40%, as well as hotel stays, 39%, insurance policies, 30%, and travel to specific destinations, 32%.

The millennial generation relies heavily on input from social media. About 80% use Facebook; 49%, YouTube; 18%, Twitter; and 25%, Google+. This suggests they are more likely to share both positive and negative experiences with brands via social channels — 42% and 32%, respectively — than by emailing their friends or calling the company.

The “Talking to Strangers” Survey, released by Bazaarvoice in partnership with The Center for Generational Kinetics and Kelton Research, aggregated findings from 1,013 participants ages 18 and over by Kelton Research between Aug. 25 and Sept. 5, 2011.

Original Article found on Media Post

January 20, 2012 Off

Online Ad Spend in US to Reach $40 Billion?

By in Industry Headlines, Marketing Insights

In an industry that seems to only grow we are nearing another major milestone – ad spend in the US will soon reach $40 billion. What exactly does that mean to you as a business owner? It means that you cannot ignore the writing on the wall any longer. Sure everyone knows that every business needs a web site and should be looking closely at social networking as well but there are so many that neglect to focus ad dollars and effort towards professional online advertising. It is a must to succeed in today’s changing marketing and messaging environment.

Here is what eMarketer has to say about it…

Online spending will grow 23.3% to $39.5 billion in 2012

US online ad spending will post growth well above 20% again this year to reach nearly $40 billion, eMarketer estimates, as the internet continues to prove its worth to advertisers in a tough economic climate.

“Advertisers’ comfort level with integrated marketing is greater than ever, and this is helping more advertisers—and more large brands—put a greater share of dollars online,” said David Hallerman, eMarketer principal analyst.

Double-digit growth is expected through 2014, when US online ad spending will reach $52.8 billion. In 2016, eMarketer expects advertisers to spend $62 billion online.

Fast growth has put online ahead of some traditional media, especially print newspapers and magazines. This year, US online ad spending will exceed the total spent on print magazines and newspapers for the first time, at $39.5 billion vs. $33.8 billion. And as online shoots up, the print total will continue to inch downward.

Spending on TV, however, appears largely unaffected by the growth of online. As internet ad spending rises, so will TV—albeit more slowly, and from a larger base. eMarketer estimates TV will grab $72 billion in US ad dollars in 2016, $10 billion more than will go online.

Overall, eMarketer expects total media ad spending to grow 6.7% this year to $169.5 billion, boosted by national election campaigns and gains in mobile spending. Growth will be in the 3% to 4% range for the remainder of the forecast period, with spending reaching nearly $200 billion by 2016. Online will be a major driver of that growth and will represent nearly a third of total media ad spending that year. Traditional media ad spending—aside from a few bright spots, like TV—will stagnate during the forecast period.

Read the complete article here.

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