Stats, facts and future trends

March 25th, 2015

This month, we discover the public’s attitude to wearable devices, how smartphones are driving the reach of newsbrands, and how voucher codes are becoming a large part of the online shopping experience.

Coke in ‘one brand’ strategy

Coca-Cola’s European division will no longer treat its four Coke variants as separate brands, instead bringing them all under one overarching strategy. “We’ve failed to communicate clearly enough the product differentiation,” Bobby Brittain, GB Marketing Director for Coca-Cola, told Marketing Week. “We need to ensure that we are enabling consumers to make an informed choice.”

Coca-Cola: marketing all variants under master brand

  • Consumer research showed that half of consumers were not aware that Coke Zero has no sugar and no calories
    • The same research showed that many were unsure about the difference between Coke Zero and Diet Coke.
  • The new approach will roll out across the UK and western Europe from May.

“When people think about Coca-Cola there is an immediate jump to the product with sugar in it,” said Brittain. “Our ambition is that over time, when people think of Coca-Cola, they think about the choice that is available to them. When we tell people and have them understand the choice that’s available to them, we’re convinced they will make more choices more often.”

Sources: Warc, Marketing Week, Marketing

Read the full article here

Consumers sceptical on wearables

Wearable technology featured prominently at this year’s Mobile World Congress in Barcelona but, according to a new report, six in ten UK adult consumers say they have no intention of buying a wearable device. Experiential agency Fizz commissioned a survey exploring attitudes towards wearable technology and found that:

  • 61% of respondents wouldn’t buy a wearable device, with most simply failing to see the need (37%).
  • A further 15% dismissed them as a fad while the remainder were evenly divided between thinking they wouldn’t work or would break easily and “other reasons”.
  • The Apple Watch is the most recognisable piece of wearable tech, with 48% of respondents saying they were aware of it.
  • When asked what would make them more likely to buy wearable tech in-store, 41% of respondents cited the ability to touch the product or try it on.

“Companies are relying on their brands and the premise that just by bringing something out, people will buy it,” said Fizz founder Jill Pinner. “There needs to be better marketing of wearables online to help people who are researching these products, and that needs to dovetail with the experience in-store.”

Sources: Warc, Marketing Week

Read the full article here.

Newsbrands look to smartphones

New data has shown that UK newsbrands reach more than three quarters of the country’s smartphone audience. Following the recent introduction of its Mobile Metrix tool to the UK, figures from digital measurement firm comScore revealed that, in January 2015, newsbrands reached 22.4m people on smartphones – or 78% of the total smartphone audience.

  • More people are now accessing digital news via smartphones than by PC, which reached a total of 20.1m people.
  • Newsbrands reached 9.1m unique visitors on tablets, accounting for 44% of the total tablet audience.
  • Overall, newsbrands boasted a total digital reach of 37.1m across the course of the month.
  • The average newsbrand app user spent a total of 230 minutes reading on a smartphone, while 238 minutes were spent reading on an iPad app.

Breaking the figures down by newsbrand, MailOnline claimed the greatest mobile reach, with 15.5m smartphone readers and 5.4m tablet readers, followed by the Mirror, with comparable figures of 13.7m and 3.6m. In third place was the Guardian, with 12.1m smartphone readers and 3.9m tablet readers, with the Telegraph on 9.6m and 3.7m respectively.

Sources: Warc, Newsworks

Read the full article here.

Sainsbury’s reaffirms faith in superstores

The head of supermarket chain Sainsbury’s expects that UK consumers will continue to shop in large stores for the foreseeable future. But with rivals announcing extensive store closures, he also says there will have to be changes in the sector. “There’s a lot of stuff being written at the moment that the superstore is dead,” said Mike Coupe at Retail Week Live. “My own view is that is a gross exaggeration.”

  • Coupe anticipates that in ten years’ time, most people, most of the time, will still be shopping in large out-of-town superstores. But “there is no absolutely no doubt they will have to change” in terms of what they offer.
  • Coupe’s solution is “to put more goods and services into our out-of-town stores and turn them into shopping destinations.”
  • The discounter effect is evident in Morrisons posting a pre-tax loss of £792m, Tesco closing 43 stores and Sainsbury’s postponing 40 planned store openings.

Coupe admitted that he couldn’t win a price war with discounters such as Aldi and Lidl, but asserted that: “What we can win on is range, we can win on service, we can win on having an easier shopping experience, we can win on the quality of the products that we sell.”

Sources: Warc, Retail Week, Telegraph, BBC, Independent

Read the full article here.

UK online shoppers get savvier

New research has revealed that more of the UK’s online shoppers are hunting out voucher codes to use before making a purchase. Voucherbox.co.uk, a UK voucher code site that has a stable of more than 1,500 stores, surveyed 1,000 consumers to find out how often they used voucher codes when shopping online. Conducted at the start of 2015, the research found that:

  • 57% of people were using voucher codes at least occasionally, up from 48% a year earlier.
  • 17% said they now “always” used voucher codes, compared to 10% in 2014, while “regular” users had risen from 13% to 16% over the same period.
  • With one third of UK shoppers now falling into this frequent category, Voucherbox stated that they were “43% savvier than last year”.
  • Voucher code use has doubled since last year among consumers aged 18-24, going from a reported 32% to 63%.

“Responding to this growth in consumer culture benefits both parties,” said Shane Forster, UK country manager for Voucherbox.co.uk. “Sales generated by the incentive of a discount are proven to drive significant extra revenue for retailers.”

Sources: Warc, Voucherbox, The Drum

Read the full article here.

How does advertising actually work?

A leading ex-planner has said that there are many theories of advertising, none of which are wholly right or wrong, so it’s best to understand them all – or at least the six main ones. Writing in Admap, Paul Feldwick, a planner at BMP/DDB for 30 years, argued that “each theory, considered as a metaphor, image or ‘way of seeing’, could be useful – just as each, taken too dogmatically as ‘truth’, could become a limitation”.

  • Feldwick offered readers his six ways of thinking about advertising. These were advertising as salesmanship, as seduction, as salience, as social connection, as spin and as showmanship.
  • The salesmanship model contains many key ideas, from getting attention to factual persuasion and a proposition to the consumer, while the seduction model works at the subconscious level and is driven by non-verbal, emotional associations.
  • Salience is simply getting a brand in front of the consumer, while social connection highlights the need to entertain consumers.
  • Communication is not just about mere exchange of content but forms the basis of how people construct and maintain relationships, while spin enters PR territory.

Finally, Feldwick looked at the life of P.T. Barnum and concluded that advertising may not be an art or a science but mostly showmanship. “At any rate,” he observed, “it’s the theory that perhaps makes the best sense of dancing ponies, singing cats or a strong man doing the splits between two lorries.”

Source: Admap

Read the full article here.

Premium publishers pool audiences

Guardian, FT, CNN International, The Economist and Reuters pool 110m-strong global audience in programmatic Pangaea alliance

Four leading English-language publishers have joined forces to create a new digital advertising proposition that will allow brands to access a combined global audience of 110m readers via the latest programmatic technology. The Pangaea Alliance brings together the Guardian, CNN International, the Financial Times and Reuters as founding partners, with The Economist also providing access to advertising inventory.

  • Pangaea will offer display solutions both as a standalone product and alongside existing publisher initiatives, including native advertising programmes and publisher trading desks.
  • Pangaea claims the collective audience is made up of highly influential and affluent individuals, with one in four being in the top income segments and one fifth being C-suite/senior management executives.
  • Ads will work seamlessly across all the publishers and advertisers will be able to liaise with just one point of contact for all publishers within the alliance.

“Pangaea’s uniqueness lies in the quality of its partners,” said Tim Gentry, global revenue director at Guardian News & Media and Pangaea Alliance project lead. “We know that trust is the biggest driver of brand advocacy, so we have come together to scale the benefits of advertising within trusted media environments, which are geared towards delivering cutting-edge creative campaigns in technically advanced formats.”

Source: Warc, Guardian, Financial Times

Read the full article here.

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