Are Digital Marketers Ignoring Baby Boomers?

Boomers' lives are going in many different directions, as empty-nesters, step-parents, grandparents and caregivers. For all of these roles, the Internet and digital media are absolutely essential.

eMarketer estimates 78.2% of this cohort is online, nearly 60 million adults. Even as their numbers decline, that penetration rate will remain high through 2015. And they control more than $2 trillion in annual spending.

"The baby boomers grew up being chased by marketers and advertisers that tailored products and brands to appeal to them," said Lisa E. Phillips, eMarketer senior analyst and author of the new report, "Digital Lives of Boomers: Reaching Them Online." "Now the median age of this cohort is 55, and many boomers feel as if they have dropped off many marketers' radar."

Boomers spend more time and money online than any other demographic. Younger boomers (ages 47 to 55) spent an average of 39.3 hours online per month in 2010, according to the Pew Internet & American Life Project. Older boomers (ages 56 to 65) averaged only slightly less, at 36.5 hours. A lot of that time was spent shopping -- and buying. Forrester Research reported that boomers spent an average of about $650 online over a three-month period in 2010, compared with $581 by Generation X internet users (ages 35 to 46) and $429 by Millennials (ages 18 to 34).

Boomers also stay connected on the go. eMarketer estimates 86.9% will have a mobile phone this year, and 16.9 million boomers will access the internet from a mobile browser or installed app. In 2015, that number will reach 25.4 million, or nearly 40% of boomer mobile users. This is a market that content providers, game publishers and brand marketers should not pass by.

Marketers who widen their messages to include boomers would be wise to make their efforts ageless, rather than targeted at an older set.

"Boomers are immediately turned off by association with old age, infirmity and decline," said Phillips. "Most brands do not want to 'age' their products with blatant appeals to older consumers. The win-win is to create an overarching brand message that gives a nod to boomers, but also includes younger adults and even grandchildren."

This often means turning a negative -- fears about failing health, for example -- into a positive, such as showing the benefits of products that contribute to a healthy lifestyle.

(Source: eMarketer, 04/04/11)

Rising Food Prices Spiking Coupon Use

According to a new survey conducted by Harris Interactive, and commissioned by Coupons.com, rising costs of food are giving Americans sticker shock at the grocery store, and 95% of U.S. adults plan to employ at least one savings strategy at the grocery as a result. And, says the report, consumers, particularly those in higher income brackets, are responding with additional saving strategies.

The survey found that incorporating coupons was the most popular planned activity to off-set rising food prices, followed by other budget-stretching actions:

* Using coupons (72%)
* Comparing unit prices of package sizes (71%)
* Shopping at discount grocery stores (66%)
* Stocking up when items reach rock-bottom prices (64%)
* Buying in bulk (57%)

Steven Boal, CEO of Coupons.com Incorporated, opines that "...(since) food prices are expected to continue to rise this year to potentially all-time highs...consumers are...stretching budgets, and...will take matters into their own hands when it comes to mitigating the effects of higher food costs."

Adults with higher incomes are actually much more likely to pinch pennies than their lesser earning counterparts, notes the study. Households with incomes in the $75 to $100K range were more likely than households that make less than $35K per year to plan to employ saving strategies, including:

* Using coupons (81% compared with 63%)
* Comparing unit prices of package sizes (88% versus 61%)

Additional impacts of budget stretching needs and solutions include:

* Adults with college degrees are not only significantly more likely to plan to use coupons than those without high school degrees (78% vs. 51%), but they also plan to use other savings tactics more frequently, including comparing unit prices (83% vs. 66%) and buying in bulk (62% vs. 42%)
* Women are more likely to use coupons to gain more savings compared to men (78% vs. 66%)
* Women are also more likely to compare unit prices of package sizes over men (75% vs. 67%), and stock up on goods when they reach rock-bottom prices (68% vs. 60%)
* 71% of U.S. adults plan to compare unit prices to get the most out of their grocery budget.
* Adults in larger households (3 or more people) were more likely than those living alone to comparison shop (72% vs. 61%)

(Source: The Center For Media Research, 04/04/11)

Nine Social Networks Your Business Should Be Using

Part of putting together your social media strategy is choosing which social networking platform works best for you. You may assume that Facebook is the end-all of social networks, but there may be better opportunities for your business with different platforms. Here are nine different social networks and how your company can benefit from each:

1. Facebook. You will be hard pressed to find any company or business that wouldn't benefit from Facebook. Easily the largest social network, your organization will be able to reach the largest amount of fans. Facebook ads targeting feature is interest specified which means you can connect with the exact people who would be interested in your product. Facebook Insights also allows you to measure your page activity so you can track your progression.

2. Twitter. Twitter is the second most popular social networking site. Use Twitter to humanize your brand, provide excellent customer service, and engage with your fans. It is also great for seeking out new fans by searching people who are talking about your brand, product, or field of interest. The one thing businesses need to remember is not to tweet as a brand. Remind your followers that there is a real live person on the other end of cyberspace.

3. Foursquare. Businesses can benefit from Foursquare in a number of ways. Offering deals for check-ins or mayorships are a fun, competitive way to get your customers coming back for more. For bigger brands and promotions, you can even have your own badge. Although they are a huge investment, the badge will live on forever, even if it is only accessible for one day!

4. LinkedIn. To be the best, you have to have the best employees. Instead of waiting until the perfect fit comes and finds you, you can go out and seek them. LinkedIn has not only become the number one professional social network, but also one of the top places for recruitment. You can create a company profile and allow others to follow your organization. Also, LinkedIn ads now has the same targeting features as Facebook. Use this to advertise your company or find great employees.

5. YouTube. Using YouTube is another great way to give a human face to your brand. Posting videos of behind the scenes interactions will give your fans an inside look into your organization. Also, having videos of the CEO, or other top executive, will bring your fans even closer to your company. A video only takes about a minute to make, so grab a FlipCam and start engaging your followers!

6. Quora. If you are a company with a special expertise, then Quora can be very beneficial for you. Not only can you follow similar thought leaders, and ask questions about your industry, but you can also reach out to those in need and answer questions. Spread the work about your company by answering questions and becoming an expert in that field. This is a direct way to connect with fans that have similar interests to your business.

7. Flickr. Flickr can be especially beneficial for companies that are visual. Whether you are showcasing products or homes, you can use Flickr to have easily searchable photos. The tagging features on Flickr make it effortless for your fans to find exactly what they are looking for. They are also a great place for you to hold photos when having contests and giveaways. When using Flickr, it is important that you integrate it well into your other social media platforms.

8. Tumblr. Corporate blogging is the new frontier. Having a company blog will create a real conversation about your brand. Many organizations have corporate blogs, and not just social media companies. These blogs will help you showcase your expertise, attract customers and future employees.

9. Meetup. Meetup is all about bringing your social relationships into a real-life setting. Whether it is once a month or once a year, schedule a meetup where your fans and followers can get together and interact in real life. Make a special event out of it! Have a fan-appreciation meetup or maybe just a meetup for other thought leaders to gather and network. Social media may be enhancing communication from companies to fans, but nothing beats face-to-face communication.

No matter what your business, there is a social network for you. Do you need them all? Probably not. Specify what your social media strategy is, what your goals are, and from there decide which social network will help you best accomplish that.

Which of these social networks does your business use? Which ones would you have added? Share your thoughts in the comments below!

(Source: Online Marketing Connect, 03/03/11)

Online News Surpasses Newspapers

The inevitable shift finally came in 2010, as more Americans got their daily news from online sources other than print, according to the Biannual News Consumption Survey from the Pew Research Center for the People & the Press. The findings were released this week as part of Pew's annual overview of the news media.

Specifically, Pew found that the proportion of U.S. adults who said they got their news online the day before increased from 29% in 2008 to 34% in 2010. The proportion that cited print newspapers as the source of their recent news fell from 34% in 2008 to 31% in 2010.

The Internet came out ahead of print in terms of time spent with news sources, with an average 13 minutes per day, according to Pew. That stat beats print newspapers at 10 minutes, but trails TV at 19 minutes and radio at 15 minutes.

This good news for broadcast and cable TV was tempered somewhat by a more pronounced shift in news consumption habits among younger adults. Pew found that the Internet is now the No. 1 news source for the 18-29 cohort, with 65% saying they get most of their news online, compared to 52% for TV and just 21% for newspapers.

By contrast, TV still dominated in the 30-49 cohort, with 63% citing TV news as their top news source compared to 48% for the Internet.

It's worth noting that online news consumption is still dominated by traditional news sources -- including Web sites maintained by newspapers, which many publishers see as the key to future success.

Conversely, Pew noted that online advertising has not proved nearly as lucrative as print for newspaper publishers, raising questions about their ability to maintain both profitability and large news-gathering organizations.

Pew also noted the rise of online-only news operations, such as The Huffington Post, which now hold seven of the top 25 spots for online news consumption. However, five of these seven generate most of their traffic by aggregating traditional media.

(Source: Media Daily News, 03/15/11)

Learn from Groupon and Pepsi's Mistakes

When you build a business from zero to several billion dollars in sales in a couple of years, quality control is bound to suffer somewhere.

For Groupon, that weak link proved to be Super Bowl advertising development. (I assume you've all seen the ill-conceived ads. Groupon yanked them after a public outcry, but as of Sunday you could see the Tibet creative on this TV station website .)

Instead of adding another critique of the flawed campaign to the chorus, I have some advice for Groupon and anyone else creating cause-related programs:

Build a feedback loop into your work.

It's depressing how rarely solid market research analysis is conducted on cause-related campaigns. Investing in understanding how your campaign will be perceived and later determining what went right and what went wrong can pay huge dividends.

Serious research (described in this MediaPost article) has helped Pepsi make some very smart alterations to this year's version of its crowdsourced Refresh campaign. For example, it's creating more opportunities for smaller groups and cutting down on abuse by substituting a lottery for its first-come, first-served entry system and eliminating $250,000 awards to fund a greater number of smaller awards.

Internal Pepsi research revealed that bottlers and other stakeholders didn't feel the program supported sales. In 2011, cans and bottles will carry promotional messaging and offers such as bottle cap offers for extra votes.

Another example: Since eBay Giving Works launched in 2003, ongoing analysis has transformed it from a nice program to a serious business-building enterprise that keeps growing in terms of sales impact and charitable contributions.

Improvements such as making it easier for consumers to donate to their favorite nonprofits pushed donations from eBay sellers and buyers to a record $54.8-million in 2010, a 7-percent bump.

Lets hope that armed with solid research and planning, Groupon will use its marketing muscle to create future cause campaigns that generate as many accolades as this year's effort yielded brickbats.

(Source: David Hessekial, Cause Marketing Today, 02/22/11)

Most Popular Marketing Tool For Local Biz: Facebook

Engaging local marketers like never before, a striking 70% of small businesses now use Facebook to reach consumers, according to new research from small-business social network MerchantCircle.

Up from 50% a year ago -- and topping the 66% of small businesses that currently use Google search advertising -- Facebook now ranks as the most popular marketing tool among local businesses.

True, adoption doesn't equal effectiveness, but 37% of local merchants now rate Facebook as one of their most effective tools -- just behind the 40% that cite the prime effectiveness of Google search.

Supplementing search and email marketing, time- and cash-strapped business owners are gravitating toward simple, low-cost online marketing methods like Facebook. "Many merchants are working with very small budgets and almost no marketing resources," said Darren Waddell, VP of marketing at MerchantCircle. As result, "the marketing methods we see gaining the most traction are therefore the ones that offer merchants simplicity, low costs and immediate results."

On the other hand, buzzworthy marketing methods like mobile and group buying have yet to win over most local merchants, according to MerchantCircle's quarterly Merchant Confidence Index survey of over 8,500 small and local businesses nationwide.

According to the report, more than half of local merchants are spending less than $2,500 a year on marketing, and the majority -- 60% -- have no plans to raise their budgets this year.

These merchants are also price-sensitive, as one quarter of merchants cite high costs as their chief complaint about online marketing. Merchants are also struggling to manage their existing programs, the research finds, and don't have the time or money to take advantage of new, unproven services. Indeed, 37% cite lack of time and resources as their top online marketing challenge.

Also of note, Facebook Places has soared past Foursquare to reach a 32% current usage rate -- with an additional 12% of small businesses expressing their intention to use Facebook Places in the coming months. By contrast, Foursquare's usage has remained unchanged from the fourth quarter of last year at about 9%.

Twitter has also grown in popularity over the past year, with nearly 40% of local merchants using the microblogging platform to build awareness and community around their products and services -- up from 32% since the fourth quarter of 2009.

Overall, less than 15% of merchants report doing any sort of mobile marketing or advertising, and more than half have no plans to do so in the coming months. Lack of understanding remains a huge barrier to adoption, as 74% of merchants report not having a good idea of how to reach consumers via mobile marketing.

Group buying will also take time to penetrate the local market, according to MerchantCircle, as only 11% of local merchants have offered a "daily deal" using a service like Groupon or LivingSocial, with an additional 20% planning to do so in the coming months. Results of group buying have also been mixed and may be hindering growth, as 50% of businesses that have run a daily deal campaign say they would not do so again

(Source: Online Media Daily, 02/15/11)

Home Improvement Retailers Trying to Woo Women

To appeal better to women, Home Depot has started offering Martha Stewart curtains in hues of "tilled soil," paint in "cornbread," and rugs in colors like "Wilderstein brook trout."

To make shopping simpler for women, nearly all Martha Stewart Living products carry an icon, such as a moon or a star, to help coordinate and match items to room makeovers. Of course, a more obvious part of the women's push is the Martha Stewart line, which debuted in late 2009 with patio furniture and has since expanded into cabinets, draperies, carpets and paint. Lighting, vanity tables and bathroom décor will be added this spring.

With major renovations and big-ticket items stalled by a slow housing recovery, smaller projects are the big focus for home improvement stores and women are more of the target customer.

"For years, we've always had a bad -- I don't want to say a bad reputation, it's more that people look at our business and think it is male-oriented, dominated," Gordon Erickson, the senior vice president for merchandising and décor at Home Depot, told The New York Times.

"Fifty percent of our customers are female. We need to offer her products that she wants."

Among other chains, Lowe's, which claims to have had a more women's-oriented focus as part of its founding, designs its stores with less steel and more wood tones, and "comfort zones" where customers can review paint samples or remodeling plans.

In another effort, True Value recently opened a corporate-owned store near Chicago touting wider aisles, better lighting and clear signs.

The Times article points to the challenges the DIY channel has creating a comfortable shopping environment for women. Lauren Butler, who grew up helping her parents with home improvement projects, told the Times she was pleased to see that Home Depot had added Martha Stewart items at reasonable prices. But she still often feels unwelcome in the DIY channel.

"Sometimes they seem to feel like you're just a girl, you don't know what you're doing, you need to get your husband in here," said Ms. Butler. "It's intimidating for any female to walk into a home improvement store."

(Source: Retail Wire, 02/07/11)