4 A Nicola Hepenstall

471 views
379 views

Published on

Published in: Technology, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
471
On SlideShare
0
From Embeds
0
Number of Embeds
11
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

4 A Nicola Hepenstall

  1. 1. Understanding consumer media preference and channel integration: A research perspective Nicola Hepenstall Director of Quantitative Research Open Mind Research Group  +61 3 9662 9200,  +61 3 9662 9277 or  nicola@openmind.com.au  www.openmind.com.au
  2. 2. The media universe… 2
  3. 3. Media fragmentation… 3
  4. 4. The media universe… 4
  5. 5. 0 10 20 30 40 50 60 70 80 90 100 Jul97-Jun98 Jan98-Dec98 Jul98-Jun99 Jan99-Dec99 Jul99-Jun00 Jan00-Dec00 Jul00-Jun01 Jan01-Dec01 Jul01-Jun02 Jan02-Dec02 Jul02-Jun03 Jan03-Dec03 Jul03-Jun04 Jan04-Dec04 Jul04-Jun05 Jan05-Dec05 Jul05-Jun06 Jan06-Dec06 Jul06-Jun07 Jan07-Dec07 Jul07-Jun08 Jan08-Dec08 Watched any Commercial TV on a normal weekday Listened to any Commercial Radio on a normal weekday Been to Cinema in last 4 Weeks Read any Newspaper in last 7 days (excl. Community Newspapers) Read any Local/Community Newspapers in the last 7 days Read any Magazine (last issue) Accessed the Internet at least monthly (from Apr99) Watched Pay TV in the last 7 days Read any Addressed Mail in last 7 days Commercial television Magazine Newspaper Internet Addressed mail Commercial radio Local/ community newspaper Cinema Pay TV The media universe… 5
  6. 6. 21% 26% 63% 67% 73% 75% 76% 77% 82% 93% 0% 20% 40% 60% 80% 100% Watched Pay TV in the last 7 days Been to Cinema in last 4 Weeks Listened to any Commercial Radio on a normal weekday Read any Unaddressed Mail in last 7 days Read any Addressed Mail in last 7 days Read any Catalogue in last 4 Weeks Accessed the Internet at least monthly Read any Newspaper in last 7 days (excl. Community Newspapers) Read any Magazine (last issue) Watched any Commercial TV on a normal weekday Channel usage… 6 Base: All respondents, n=51,733 Source: Roy Morgan Single Source, Dec 2008 Mail has reasonable penetration with even unaddressed mail being read by 67% in the past 7 days
  7. 7. Mail in the household… 7 1.9 The average number of addressed promotional mail items received per week, per household in Australia 71% Addressed promotional mail that is read, filed or passed on 23% Unique open rates for emails Sources: Roy Morgan Single Source, Dec 2008; Vision 6 Email Marketing Metrics Report, Jul-Dec 2008
  8. 8. Overseas experience… 8 How does Australia compare to the UK in terms of direct mail spend?
  9. 9. Mail and the media landscape… 9 If we look to the UK experience, there appears to be an opportunity for increased use of mail in a number of industries. Source: Nielsen AdEx (AUS) and Nielsen Market Movements (UK), February 2007 Sector AU total media spend AU DM spend AU DM % of total media spend UK DM % of total media spend Insurance 206M 13.9M 7% 30% Retail 1,858.5M 28.3M 2% 4% Media 246.8M 31.9M 13% 30% Travel/Accomm 369.2M 4.7M 1% 9% Finance 559.7M 71M 13% 17% Motor Vehicles 972.5M 4.1M 0% 3% Entertainment/Leisure 676.5M 8.3M 1% 5%
  10. 10. What are we talking about? 10 With so many messages coming from so many different channels, we asked consumers what their preferred channels were…
  11. 11. Preferred channels… 11 We looked at consumer preferences across 19 different industries, representing 3 broad sectors (services, retail, and non-profit/government), covering 12 communication channels Channel preferences were varied, depending on: •the industry •whether or not they were existing customers •demographic factors eg. age
  12. 12. Broadly speaking… 12 Mail is a highly desired form of communication across all industries and among both customers and non- customers.
  13. 13. 18 18 17 17 22 20 20 22 39 43 41 32 16 41 45 11 8 9 8 11 14 10 8 15 0 0 0 0 0 0 0 0 2 1 1 1 0 1 1 2 0 0 0 0 0 0 0 0 18 8 6 6 6 6 8 8 1 1 1 0 0 0 1 0 1 0 1 0 0 1 1 1 1 0 0 0 0 0 0 1 3 5 5 4 4 5 3 6 2 1 1 2 2 1 1 4 2 1 1 0 1 0 0 0 0 0 0 1 1 1 0 1 14 21 25 31 19 24 21 38 Local businesses in your area Hardware outlets Home whitegoods retailers Fashion stores Home electronics retailers Department stores Supermarkets Car manufacturers and retailers Personalised mail and catalogues Unaddressed mail and catalogues Email Inserts with bill or statements Magazines Mobile phone (SMS/MMS) Newspapers Outdoor or billboards Radio Telephone Television Websites Other Don't know None For example… Channel preferences amongst customers of Retail industry 13 Base: Customers, n=503 Addressed and unaddressed mail are preferred channels across all businesses within the retail sector. Please note that when printed in black and white, labels are in the correct order when read from left to right
  14. 14. On closer examination… 14 Preferences change across different communication types…
  15. 15. Stronger preferences for addressed channels where there are ongoing, established relationships Preferences by information type 15 58 28 46 53 39 32 0 21 17 1 11 27 27 22 25 36 33 23 6 3 2 2 2 5 1 2 2 0 0 0 0 10 4 6 7 0 0 0 3 1 2 2 0 1 1 0 15 5 7 9 3 1 4 2 0 0 0 0 0 0 3 1 0 1 1 0 7 3 12 12 10 15 Loyalty statements & information New product announcements Invitations to special events or sales Club or membership newsletters News & updates about an organisation Advertising or promotional information Personalised mail and catalogues Unaddressed mail and catalogues Email Inserts with bill or statements Magazines Mobile phone (SMS/MMS) Newspapers Outdoor or billboards Radio Telephone Television Websites Other Don't know None Base: All participants, n=1,004
  16. 16. On closer examination… 16 There are distinct shifts in preferences across different industries…
  17. 17. For example… Retail business communications with existing customers 17 18 18 17 17 22 20 20 22 39 43 41 32 16 41 45 11 8 9 8 11 14 10 8 15 0 0 0 0 0 0 0 0 2 1 1 1 0 1 1 2 0 0 0 0 0 0 0 0 18 8 6 6 6 6 8 8 1 1 1 0 0 0 1 0 1 0 1 0 0 1 1 1 1 0 0 0 0 0 0 1 3 5 5 4 4 5 3 6 2 1 1 2 2 1 1 4 2 1 1 0 1 0 0 0 0 0 0 1 1 1 0 1 14 21 25 31 19 24 21 38 Local businesses in your area Hardware outlets Home whitegoods retailers Fashion stores Home electronics retailers Department stores Supermarkets Car manufacturers and retailers Personalised mail and catalogues Unaddressed mail and catalogues Email Inserts with bill or statements Magazines Mobile phone (SMS/MMS) Newspapers Outdoor or billboards Radio Telephone Television Websites Other Don't know None Base: Customers, n=503 Unaddressed mail was more accepted from some industries than others… For example, while unaddressed material is preferred from supermarkets, it is not as acceptable from car manufacturers and retailers
  18. 18. On closer examination… 18 And there were also different preferences between existing customers and potential customers…
  19. 19. For example… Preferences for communications from Insurance companies 19 58 19 2 2 2 1 0 12 0 0 Personalisedmailandcatalogues Email Unaddressedmailandcatalogues Insertswithbillorstatements Websites Television Telephone Newspapers Radio None Other Don'tknow 1 1 1 4426 14 10 9 7 4 2 2 35 Customers Non-customers Customers tend to have higher preferences for addressed channels such as mail and email Non-customers tend to demonstrate more resistance to receiving advertising and promotional material Base: Customers, n=503 Non-customers, n=501
  20. 20. How times change… 20 Three major themes emerged when the findings from 2008 were compared to those from 2003, namely… 1. Mail has remained relatively strong 2. Preferences for email have grown 3. Higher levels of rejection for all marketing messages
  21. 21. Ch ch ch changes… 21 Mail has remained relatively strong as a preferred media channel…
  22. 22. Ch ch ch changes… 22 There is a growing number of consumers who prefer to receive information over email…
  23. 23. Email Online advertising Comparing the channels… 23 Direct Mail Believable Credible Immediate Tangible Significance/ meaning Long term Attention grabbing Leaves me feeling valued Professional Easy to respond to Short and snappy contact Short term Environmentally friendly Easy to share with others Easy to respond to Short and snappy contact Short term Environmentally friendly Less intrusive than email Less attention paid Lower expectations A level of suspicion -Viruses -Security of information
  24. 24. Assists the action and interacts with the leading man/ woman… Email Online advertising The roles… 24 Best Actor Best Supporting Roles The starring role, the foundation from which the rest takes its cue Direct Mail
  25. 25. Combining strengths As each channel has its own role and benefits… this opens up the opportunity to use them together, thereby strengthening the impact of messages 25
  26. 26. Ch ch ch changes… 26 Customers are more rejecting of marketing messages than they were 5 years ago…
  27. 27. For example… Percentage of customers preferring no promotional material from retail businesses 27 Base: Customers, n=503 There was a significant increase in the percentage of retail customers who rejected promotional material 21 16 31 22 24 12 21 11 38 26 Hardware outlets 2008 Hardware outlets 2003 Fashion stores 2008 Fashion stores 2003 Department stores 2008 Department stores 2003 Supermarkets 2008 Supermarkets 2003 Car manufacturers and retailers 2008 Car manufacturers and retailers 2003
  28. 28. Mail in the media landscape… 28 Mail might be popular amongst consumers, but marketers don’t seem to feel the same way. According to Nielsen… of the $6.9B media market in Australia, mail’s share is only 2%. Metro TV and Metro Press get the lion’s share of budgets, with 29% and 29% of media spend respectively. Source: Nielsen AdEx, March 2009
  29. 29. 29 So where does this leave mail?
  30. 30. Mail… 30 …is opened and read by most …is relevant across the ages …lends credibility through trust …is more likely to grab attention
  31. 31. Most importantly… 31 Mail can be tailored to the individual…
  32. 32. And therein lies the opportunity… 32 Consumers say they prefer to receive promotional messages through the mail… …and the mail channel offers marketers an uncluttered environment where messages received are read.

×