Facts – Other Marketing

 

Social Media

Word-of-mouth

Retail Marketing

Sponsorships

Celebrities

Miscellaneous

SOCIAL MEDIA

FACT: “Marketers who buy ads on Facebook are more focused on building brand awareness than accumulating fans, according to a new survey of Ad Age subscribers by Ad Age and Citigroup. Asked to identify their primary goal in Facebook ads, 45.9% of respondents put building awareness and sentiment for their brands at the top. Driving traffic to brand websites was the second most-cited goal, with 17.6% of respondents saying it is their most important objective, followed by building fans or likes, staying in touch with customers, generating sales leads and social commerce” (Ad Age survey 658 subscribers; Advertising Age, 7/9/12).

FACT: Baynote’s (2011) annual holiday shopping survey of 1,000 shoppers found (Tech Crunch, 1/12/12):

  • 62.5% of respondents said email was the most useful way to receive retail promotions.
  • 16.7% said direct mail was best for promotions.
  • 11.8% said engine results were the best for promotions.
  • 4.9% said daily deals were best for promotions.
  • 2.5% said Facebook was the most useful promotion channel.

FACT: 31% of mothers will proactively seek out and “like” a brand on Facebook without any prompting from the brand. 11% of mothers will seek out and “like” a brand on Facebook after seeing that a friend has “liked” it (survey conducted by Mom-entum and SheSpeaks; Advertising Age, 6/21/11).

FACT: 49% of Internet users give shopping advice to others via social networks (Yahoo/Universal McCann Comprehensive Online Quantitative Survey of 2,500 consumers; Ad Age blog, 5/24/11).

FACT: 41% of Facebook users said they want to receive communications from marketers on Facebook – more than double any other digital platform. One in three say Facebook is their “preferred” platform. Platform preference for communications from marketers (Ad Age/Ipsos survey of digital media habits; Ad Age, 2/27/11):

  • Facebook = 41%
  • Twitter = 18%
  • MySpace = 17%
  • Linkedin = 11%
  • Foursquare = 7%

FACT: A near majority (47%) of people between the ages of 50 and 64 are now using social networks — a trend that has doubled in the past year (in April of 2009, just 22 percent of Americans 50 and over were using social-networking tools); Pew Research Center “Internet & American Life Project;” San Jose Mercury News 8/27/10).

FACT: "Despite marketers' embrace of Twitter, brands are still finding themselves on the outside of the conversation" (360i Twitter usage study; Ad Age Digital, 7/27/10):

  • 90% of Twitter messages are sent by real people; 10% are from businesses.
  • Only 12% of all Twitter messages mention a business or brand (usually Twitter itself).
  • Only 1% of consumer tweets that mention a brand are part of an active conversation with that brand.
  • The vast majority of real people's tweets, 94%, are personal in nature (43% are conversational, 24% are status updates, 12% are links to news or comment on current events, and 3% are seeking or giving advice).
  • Only 2% of tweets are professional updates or career-related.
  • 43% of tweets begin with an "@" sign, meaning they're directed at another user, not the sender's followers at large.
  • 85% of tweets are original and not re-tweets of other messages.
  • Only 12% of messages from marketers are directed at individual Twitter users, meaning marketers still see it as a broadcast medium rather than a conversational one.

FACT: 79% of the Fortune Global 100 companies are using at least one of the most popular social media platforms (Twitter, Facebook, YouTube and corporate blogs) to actively engage with customers, prospects and other stakeholders (Burson-Marsteller study of the top 100 companies of the 2009 Fortune Global 500 companies, 2/23/10).

FACT: 22% of consumers have a “positive attitude” towards ads on social media Web sites. Some 40% of consumers have a positive attitude towards ads on TV and in print (magazines and newspapers); Dynamic Logic Ad Reactions 2009 study; Ad Age magazine, 1/27/10.

FACT: According to the latest Nielsen mass market survey, Internet users are now spending, on average, 17% of their online time using social network and blogging sites — that's nearly triple the percentage of time spent using the sector a year ago (Nielsen Company press release, 9/23/09).

FACT: A late 2006 Ipsos MORI survey found that blogs were a more trusted source of information than advertising or e-mail marketing. One-third of respondents said they had decided not to buy a product after reading a negative blog post, while 52% were persuaded to buy after reading a positive review (Ad Age, 6/5/07).

WORD-OF-MOUTH

FACT: Where mothers turn for advice and insight concerning purchases: 72% of mothers trust what they read on a brand/product website; 68% trust what others write on Facebook; 68% trust what they read in news articles (survey conducted by Mom-entum and SheSpeaks; Advertising Age, 6/21/11).

FACT: One of the Web's little secrets is that when consumers write online reviews, they tend to leave positive ratings: The average grade for things online is about 4.3 stars out of five, according to Bazaarvoice Inc., which provides review software used by nearly 600 Web sites and Buzzillions.com, which aggregates reviews from 3,000 sites. Ratings in the U.K. average an even higher 4.4, reports Bazaarvoice (Wall st. Journal, 10/5/09).

FACT: "It's an urban myth that people are more likely to express negatives than positives," says Ed Keller, CEO of Keller Fay Group. Keller Fay surveys 100 consumers each week about the products they're recommending to friends, and Keller says approximately 65 percent of word-of-mouth reviews are positive and only about 8 percent are negative (Wall St. Journal, 10/5/09).

FACT: 22% of word-of-mouth conversations were sparked directly by advertising. Moreover, those 22% are much more likely to include brand recommendations than the remaining 78% of brand-related conversations that weren't spurred directly by an ad ("The Influentials," a Keller Fay group study based on interviews with 3,000 consumers; Ad Age magazine, 6/1/09).

FACT: A recent Nielsen Global Survey of over 26,000 people found that nearly 78% of respondents trusted "recommendations from consumers," a total 15% higher than the second-most credible source: newspapers (Ad Age magazine, 11/15/07).

FACT: A late 2006 Ipsos MORI survey found that blogs were a more trusted source of information than advertising or e-mail marketing. One-third of respondents said they had decided not to buy a product after reading a negative blog post, while 52% were persuaded to buy after reading a positive review (Ad Age, 6/5/07).

FACT: Approximately 90 percent of word-of-mouth marketing happens off-line: 18% via phone, 72% face-to-face (study by Proctor & Gambel and Keller Fay Group; Time magazine, 4/12/07).

FACT: 77% of the people surveyed prefer consumer reviews of restaurants over professional reviews and advertising (Outsell survey, 2/13/07).

FACT: 60% of people say word-of-mouth has the greatest influence on their purchasing decision, 47% of people say advertising is the most influential, 43% say online information is the most influential (Accenture survey of 600 consumers, 4/4/07).

FACT: 64% of people learn about new products via TV; 47% learn about them via word-of-mouth; 37% learn about them via print ads (Accenture survey of 600 consumers, 4/4/07).

FACT: 70% of consumers who have a positive shopping experience are likely to tell others about it (2.5 other people, on average). National Retail Federation Foundation survey; Seattle Times 3/25/07.

FACT: The person who has a satisfactory experience with a company typically tells no one. If they receive superior service, they may tell one other person. Should they have a bad experience, they tell nine people on average (MIT engineering lecturer Steve Spier; CBS Sunday Morning News, 1/14/07).

FACT: 92% of women and 87% of men say they're likely to tell others about a product or service they've tried (Ad Age magazine, 11/20/06).

RETAIL MARKETING

FACT: Store redesigns and other factors that make it easier and faster to shop actually increase purchases, contrary to the old strategy that making things hard to find boosts sales by making people spend more time in the store (The Future of Advertising project, a review of seven marketing databases and 388 marketing studies underwritten by the Wharton School and performed by the Advertising Research Foundation; Ad Age magazine, 6/1/09).

FACT: More than one-third of Americans who tried a sample during a shopping trip say they ended up buying the product on that visit. In addition, 24% of those people said they bought a product they sampled instead of the item they initially set out to purchase (Arbitron telephone survey of 1,857 people in the U.S.; Daily Mail, 10/08).

FACT: 67% of consumers would rather shop at a physical store than online. However, 69% of people in that same study group say they research products online before visiting the store. Some 68% research prices before visiting the store. Some 58% use the Internet to find a store that carries the product they want (Accenture study of 600 consumers, 4/4/07).

FACT: Major music labels can pay as much as $5 per CD for albums to be displayed on the ends of aisles in a retail CD store. Publishers pay $1 or more per book for special placement in retail bookstores (Wall St. Journal, 3/6/07 and 3/9/07).

FACT: 85% of consumers surveyed say the most important factor when deciding where to shop is price; 69% say product selection; 57% say store proximity (Accenture survey of 600 U.S. consumers, 4/4/07).

FACT: Typical supermarket carries 40,000 items; while typical Costco store carries just 4,000 of the most popular items (Today Show, 2/8/07).

FACT: 49% of women say shopping is an activity that positively contributes to their well-being; 25% of men say the same (Ad Age magazine, 11/20/06).

FACT: Redesigning the packaging for Comtrex caused 12% more shoppers to stop and consider the product (Ad Age magazine, 10/16/06).

SPONSORSHIPS

FACT: Consumers don’t really know who sponsored the 2012 summer Olympics in London (Toluna survey of 1,034 consumers; Advertising Age, 7/27/12):

  • 37% said Nike was a sponsor [it was not]
  • 28% said Pepsi was a sponsor [it was not]
  • 19% said Burger King was a sponsor [it was not]
  • Only 24% said Adidas was a sponsor [it was]
  • 47% said Coca-Cola was a sponsor [it was]
  • 40% said McDonalds was a sponsor [it was]
  • 54% of consumers said Olympic sponsorship made them feel more positively about Nike [not an Olympic sponsor]; 52% said the same about Burger King [not a sponsor]; and 48% said the same about Pepsi [not a sponsor].

FACT: Insurance company AIG is paying $83.3 million over four years to have its logo displayed on the jerseys of English soccer team Manchester United (Wall St. Journal, 12/11/08).

FACT: Cost for Group Health to have its name on the velodrome at Marymoor Park: $120,000 for three years (Seattle Times 8/06).

FACT: Microsoft signed a one-year deal to be the official supplier of Wi-fi access at Marymor and White Center parks, and at the King County Aquatic Center (Seattle Times 8/06).

FACT: Starbucks paid $250,000 to sponsor 17 new trail-map kiosks at Marymoor Park (Seattle Times 8/06).

CELEBRITIES

FACT: “Recent studies of hundreds of endorsements have indicated sales for some brands increased up to 20% upon commencing an endorsement deal” (Advertising Age, 9/23/10).

FACT: Some companies have seen their stock increase by 0.25% on the day a celebrity endorsement deal was announced (Anita Elberse, associate professor, Harvard Business School; Advertising Age, 9/23/10).

FACT: U.S. celebrities show up in more than 15% of all U.S. advertisements (and 24% of India’s ads; and 45% of Taiwan’s ads); Advertising Age, 9/23/10.

FACT: 30% of consumers age 18 to 34 say they would try a product promoted by an admired celebrity. Only 14% of those age 35 to 54 say the same. Only 11% of those age 55-plus say the same (WPP Group Mediaedge:cia study of 24,000 consumers across 25 countries; O’Dwyer’s PR Report, 12/09).

FACT: New York car dealer Frederick Laurenzo said, in 2005, he allowed star Giants wide receiver Plaxico Burress to borrow a sport-utility truck worth more than $36,000 in exchange for Burress agreeing to sign autographs at promotional events (Associated Press, 1/14/09).

FACT: When photos of celebrities with books appear, sales for the book spike: The week after Drew Barrymore was photographed with Tom Robbins' book "Skinny Legs," it sold as many as it had during the whole previous month (1,000 copies); after Jennifer Garner was photographed with the kids' book "The Elf on the Shelf," sales spiked 300% (4,000 copies); after Paris Hilton was photographed with "The Power of Now," one-week sales increased 50% over the previous week (3,000 copies) Portfolio magazine, 12/07.

FACT: Consumers will pay up to 25% more for celebrity-branded products (CBS Sunday Morning News, 2/25/07).

FACT: Gift certificates to the Opus Hotel in Vancouver B.C. have been included in the Academy Award gift bags for three years, but only a few celebrities have actually redeemed the certificate. The gift certificate is worth $7,000, but the redemption rate is less than 10% (CTV News, 2/22/07).

FACT: What celebrities are paid to attend events (People magazine, 4/07):

  • Young starlet Kristin Cavallari from the hit cable show Laguna Beach = $50,000.
  • Justin Timberlake = $200,000 to appear ($700,000 to perform something).
  • Ashlee Simpson = $75,000.
  • Kevin Federline = $35,000 to $50,000.

MISCELLANEOUS

FACT: In 2009, U.S. consumers used 23% more coupons than 2008 — the first gain in 17 consecutive years, according to data from Valassis Communications, which also owns NCH, one of the largest coupon clearinghouses. Then usage surged again in 2010: up 5.3% in the first nine months so far. Even consumers in their 20s and 30s appear to be adopting the coupon-clipping habit during the current recession (Advertising Age magazine, 11/1/10).

FACT: Despite the rapid growth of coupon usage in 2009 and 2010, internet coupons still account for only 1% of distribution. The majority of overall growth in redemptions still come from free-standing print inserts (data from NCH, one of the largest coupon clearinghouses; Advertising Age magazine, 11/1/10).

FACT: Some 91% of consumers ages 25 to 34 use newspaper coupons — a rate that’s remained consistent among this group for many years (National Newspaper Network report; Advertising Age magazine, 11/1/10).

FACT: 60 million U.S. households receive discount coupons via their newspaper, while 14 million homes get them via direct mail (Advertising Age magazine, 11/1/10).

FACT: 2009 redemption rates for coupons (Advertising Age magazine, 11/1/10):

  • Free-standing inserts: 0.8%
  • Direct mail: 2.7%
  • Electronically dispensed: 7.9%
  • Internet: 15.9%

FACT: 66% of merchants who participate in Groupon offers found the program profitable. 32% said it was unprofitable. 40% said they would not run such a promotion again (study by Rice University of 150 merchants; Wall St. Journal, 10/1/10).

FACT: Visits to Gettysburg jumped 300% following the debut of the documentary “The Civil War” (Forbes, 8/30/10).

FACT: The national parks service attributes 10 million of its 2008/2009 national parks visitors to the documentary “The National Parks” (3.5% of its total visitors); Forbes, 8/30/10.

FACT: Obvious branding works in ads. The more often a brand appears in a TV ad, the more likely consumers are to remember what brand it was for. However, obvious brand placements in TV shows are more likely to backfire (The Future of Advertising project, a review of seven marketing databases and 388 marketing studies underwritten by the Wharton School and performed by the Advertising Research Foundation; Ad Age magazine, 6/1/09).

FACT: Store redesigns and other factors that make it easier and faster to shop actually increase purchases, contrary to the old strategy that making things hard to find boosts sales by making people spend more time in the store (The Future of Advertising project, a review of seven marketing databases and 388 marketing studies underwritten by the Wharton School and performed by the Advertising Research Foundation; Ad Age magazine, 6/1/09).

FACT: Each 1% increase in advertising produces a roughly 0.1 point change in sales or market share. As a result, an optimal ad budget is about 10% of gross profits (The Future of Advertising project, a review of seven marketing databases and 388 marketing studies underwritten by the Wharton School and performed by the Advertising Research Foundation; Ad Age magazine, 6/1/09).

FACT: Face-to-face canvassing (fund-raising) generates about $5 for every $1 invested, compared to $3 generated for every dollar invested in direct mail (Adrian Sargeant, fundraising expert at Indiana University; Oregonian, 2/21/09).

FACT: According to the latest survey from the Promotional Products Association International, 76% of people who received a promotional product in the previous 12 months could recall the name of the company imprinted on the item. Even better, some 34% of these people actually had the item with them at the time of the survey (Promotional Products Association International survey; Promo Magazine, 10/08).

FACT: The rate of coupon redemption in the U.S. has been declining for 15 straight years. But with the U.S. economy now in the doldrums, last year marked the first year that the redemption rate didn't decline. In the first quarter of 2007, the percentage of product volume sold via coupons — for all stores and all categories — was 7%. In 2008, it was 7.4% (Wall St. Journal, 9/25/08).

FACT: The redemption rate for coupons is about 1%. Manufacturers issued 279 billion coupons in 2006, the most in a decade. For a 50-cent coupon, the supermarket gets 50 cents back from the manufacturer, plus a few cents more (those extra cents are split with the processor). Wall St. Journal, 2/16/08.

FACT: Marketers spent an average of $4,500 to produce an online video in 2007 (Forrester Research; Wall St. Journal, 7/17/08).

FACT: During American Idols' sixth season, there were 4,349 product placement occurrences. This season, there were 3,291. These range from a Coca-Cola sitting on the table in front of the judges, to overt mentions of brands: "text-message your vote on the best singer using your At&T phone!" (Nielsen research; Seattle Times, 5/18/08).

FACT: Today, just more than 11% of Fortune 500 companies have corporate blogs, according to SocialText, and only a handful have a designated chief blogger. The number of corporate blogs has risen slowly and steadily since the end of 2005, when four percent had any kind of blog (Ad Age magazine, 4/14/08).

FACT: Only 10% to 15% of salespeople rely on referrals to generate at least 25% of their business (four-year study of 2,500 salespeople by McCord and Associates; Seattle Times, 5/13/07).

FACT: 58% of the companies surveyed use their customer-support call centers to try and up-sell and cross-sell customers who make contact. What's more, the majority of those companies saw improvement in customer satisfaction and customer retention when they added these sales capabilities to their call centers (Aberdeen Group report, 4/18/07).

FACT: 1% to 2% of the people who try free trials of online games (sudoku, cards, puzzles, arcade games and video games) end up buying them (Ad Age magazine, 5/14/07).

FACT: In 1999, 87% of the $13.9 billion spent on drug promotions was aimed at physicians, with an estimated expenditure of $8,000 to $13,000 spent per year per physician (New York Times, 8/05).

 

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