Consumer-research groups continue to publish position papers and syndicated reports supporting a growing, irrefutable fact — consumers are tuning out the traditional outbound marketing push. Supporting this idea are metrics showing the decline in overall television and radio habits and an increase in a host of interactive categories. Among these interactive categories are blogs, social-networking sites, RSS feeds and podcasts. The credibility of traditional advertising is also shown to be eroding.
And the response by marketers? Rather than engaging the changing realities of consumer preference, many have chosen to simply increase spending on traditional channels. But is this the most prudent approach?
The Sanders\Wingo 2007 urbanDNA consumer survey showed that, rather than relying on a single source point for information on products or services, most consumers gather knowledge from a number of places. When asked how they formed opinions on what to buy, 69.5 percent said either through friends, family or the Internet, whereas only 16.2 percent said television and 10.5 percent said radio. The obvious implication is that social networks matter. And we use the term “social networks” broadly, because it’s not just friends, it’s not just family and it’s not just the blogosphere. Rather, it’s the ability to engage all of them quickly to make an informed (at whatever level) choice.
A handful of important lessons falls out from this. First, don’t throw away the 30-second spot but also don’t dwell on it. Second, a multi-touchpoint strategy (that embraces not just brand visibility but also the ability to touch the brand and learn from it) is important.
Despite the growth in media options, the list is not infinite. Television, print, radio and DM (the traditional core) are now joined by SEM key terms, targeted banner placements, e-mail updates, viral video and the like. But how appropriate is each for your target customer set?
Defining the multi-touchpoint strategy balanced against who the brand is selling to is critical. Most veteran interactive strategists acknowledge a decline in interactive usage with age. But this doesn’t necessarily mean there is a decline in other technological categories. Our 2007 study found that respondents ages 50 and older were more likely to say TiVo, Netflix and other media-usage/control tools had “significantly” altered the way they consumed entertainment. This is in contrast to 50.6 percent of the 20–29 age group. The take-away is that despite some differences in usage, it is safe to assume no particular consumer group is a safe haven for traditional contact strategies.
Underscoring this notion is the recent report released by Yahoo! and ChannelForce showing consumers who researched their electronics purchase on the Web spent, on average, 10 percent more than those who didn’t. The ability for consumers to learn about products and prices in depth made them more confident in their purchase and thus willing to invest more. Of particular importance was that 80 percent said that, after going to the store, they purchased a brand that was in their original, researched consideration set. Only 20 percent said they felt the salesperson was influential in their decision. And where were these consumers searching? Retail Web sites were the most frequent source of information gathering, followed by the manufacturer’s sight and, pulling in third, search engines. The consumers were going straight to the source for information. If this is the case, are marketers justified in sinking so much time and money in traditional methods when they have the opportunity to redefine the consumer experience in a more experiential and 360-degree fashion?
For more information on real-world marketing insights, contact us at deepthoughts@sanderswingo.com.
