A Place in the Sun for Everyone

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Presentation transcript:

A Place in the Sun for Everyone Whether you’re a retailer, business owner, consumer or a TV advertising account executive, summer is always that special season when the living is easy – and consumers have many reasons to spend. Although the Trump administration has proposed tax changes that could adversely affect retailers, it is unlikely that any significant tax changes, positive or negative, will be in place by summer 2017. Despite no Olympics or presidential race, this summer will still offer many opportunities for savvy retailers and local businesses as well as TV advertising account executives to find their place in the sun.

TV Remains the Top Summer Media Choice According to Nielsen’s Q3 2016 Total Audience Report, adults 18+ spent 4 hours, 6 minutes on average per day with live TV, just a one-minute decrease from Q3 2015. Time spent on an app or the Web on a smartphone increased 56 minutes, to a total of 2 hours, 10 minutes, but much of that time is spent while watching TV and interacting with shows, brands, retailers and friends and family members. The combination of live TV’s #1 position and app/Web on a smartphone’s #2 position, or a total of 6 hours, 16 minutes, once again, reinforces the complementary nature of these two media.

Age-Group Differences Not surprisingly, adults, 18−24, spent the least time weekly (14 hours, 21 minutes) with Live TV and DVR/time-shifted TV, according to Nielsen’s Q3 2016 Total Audience Report. Adults, 65+, spent the most time weekly (48 hours, 32 minutes) with Live TV and DVR/time-shifted TV. Among the important 35–49 adult age group, they spent the most time weekly with a DVD or Blu-Ray device, at 52 minutes, and accessing the Internet on a PC, at 8 hours and 48 minutes.

The Motherhood Market The Nielsen Q3 2016 Total Audience Report also focused on stay-at-home and working mothers, 25.1 million of which are 18–49, living in their own homes and have at least one child younger than the age of 12.   The largest percentage of stay-at-home moms, 34%, are 18–24 while 77% of working mothers are 45–49. Stay-at-home moms spent 32 hours, 40 minutes weekly with TV, while working moms only had time for 26 hours, 10 minutes. Stay-at-home moms also spent slightly more time on their smartphones than working moms.

The Summer Sports Beat The highlight of sports on Summer TV 2016 was the Olympics; however, the games’ average of 27.5 million viewers across all platforms, including digital streaming, was 9% less than 2012. For Summer 2017, sports fans and advertisers will have to turn to the stalwart of the summer months – baseball – which had a 5% increase in viewership during the 2016 season, despite the Olympics. According to analysis from FanGraphs, most teams averaged 50,000 to 100,000 households per game, which are not large compared to primetime TV, but those numbers do represent significant totals in most local markets.

The Tennis and Golf Alternative Without major sporting events scheduled for summer 2017, local advertisers will have more opportunities to reach affluent consumers with affordable buys in tennis and golf. ESPN and other networks that broadcast tennis can only hope that this summer’s Wimbledon and US Open can duplicate the 2017 Australian Open’s exciting finals, with a 36% increase in the women’s final and a 106% increase in the men’s. Despite lackluster ratings for PGA golf broadcasts, the 2016 season ended on a high note with the final round coverage of The Tour Championship recording a 19% increase in ratings, a 1.9, and a 24% increase in viewership, 3.0 million.

A Better Year for Retail Retail sales increased very slowly during the first half of 2016; however, 2017 has started much better, with January retail sales increasing 0.4%, which was more than expected, and 5.6% better than January 2016.   The National Retail Federation is forecasting a 3.7% to 4.2% increase in 2017 retail sales, compared to 2016’s 3.8% increase. Online sales for both stores and non-store retailers are predicted to increase 8% to 12%. The stock market’s bull run and new indications of wage growth could boost luxury goods purchases, while continued job growth and relatively low gasoline prices and declining food prices should increase disposable income for all consumers.

Follow the Trends to More Revenues Consumers want experiences and not just the acquisition of more possessions. Brands and retailers must create experiential shopping moments for consumers that are as attractive as travel, adventure, family entertainment venues, etc. “Made in America” and locally sourced products will gain additional traction with consumers during 2017. Macy’s, Sears, JC Penney and 7 other major retailers will account for the closing of almost 1,000 stores during 2017, which may provide local retailers with access to experienced sales associates and opportunities to attract those retailers’ shoppers.

Attracting Confident Consumers Although the January 2017 US Conference Board’s Consumer Confidence Index® declined to 111.8 from December’s 113.3 (the highest since August 2001), the Present Situation Index increased from 123.5 to 129.7. Those consumers who thought there were “good” business conditions increased from 28.6% to 29.3%, and “plentiful” jobs from 26.0% to 27.4%. The Expectations Index decreased from 106.4 to 99.8 and fewer consumers thought their incomes would increase, declining from 21.5% to 18.0%.

Financial Optimists Are the Most Confident According to The Media Audit’s Winter 2017 surveys, 26.2% of adults 18+ in Pittsburgh, PA considered themselves financial optimists, compared to 34.6% in Denver, CO. The cause of this difference may be that Denver’s December 2016 unemployment rate (2.6%) was half of Pittsburgh’s (5.2%), and much lower than the nation’s unemployment rate of 4.7%. A CrossTab report from The Media Audit also reveals that financial optimists in Denver had significantly higher indices than those in Pittsburgh for future major consumer purchases: new vehicle, home, new furniture, etc.

Targeting the Active Summertime Crowd Stores can offer free bottles of water (from a limited supply) to anyone who includes the store on their morning or evening jogging route, with a special coupon attached. June 2 is National Donut Day, which creates many promotional opportunities for local bakeries, coffee shops, grocery stores and restaurants to offer a free donut with a qualifying coffee, breakfast or other purchase. A motorcycle dealer could sponsor a special “Bring-A-Friend” weekend ride to promote Women’s Motorcycle Month during July and co-promote it with a local food truck to provide lunch/refreshments at a special price on the route.

A Summer Marketing Makeover Show your clients that you’re a problem-solver and expert media and advertising consultant by offering to review which sales promotions and advertising media and messages worked and didn’t work during the first half of the year. Help your clients to prioritize the improvement of their digital media presence, especially a mobile marketing strategy, creating and posting videos and using location-targeted marketing tactics. Suggest a complementary summer TV and digital advertising campaign to test the value of these new digital marketing tools, and then develop a plan to use one or more of them more aggressively during the holiday shopping season.