Madison Ave Insights

Madison Ave Insights

The New Auto Industry: Friend of the Environment and Tech Star

By Ronald R. Urbach on Posted in Digital, Environmental, Marketing, Technology

Back in October, I talked here on Madison Ave Insights about the FTC’s just-released Green Guides and what they would mean for marketers moving forward. The FTC moved against unfounded and overused “environmentally friendly” and “green” claims in marketing for a range of products. The standards as established challenge the use of unqualified general environmental benefit claims and asks advertisers to scientifically prove specific green claims.

One industry with a focus on the environment that needs to adapt to both the demands of the marketplace and the restrictions of the regulators is the automotive industry. At the North American International Auto Show in Detroit in January, consumers saw the latest model introductions from the automobile industry – domestic and foreign – that presented consumers with each company’s take on the best options for price, performance, versatility, fuel economy and being green.

So what’s next for the auto industry in terms of the future – both the future of the environmental and continued explosion of digital?

The Way I See It

  • Automakers see a double edge sword – a marketing and sales benefit from better fuel economy, but at a higher cost to engineer and build vehicles that consumers will want and can afford. They are facing new regulations requiring them to increase fleet-wide average fuel use to 54.5 miles per gallon by 2025.
  • I see the cycle of government pushing the industry and the industry reacting to the push to be a dangerous paradigm in the current political climate. I see the need for industry to move forward independent of government prodding by satisfying consumer demand with products that are innovative and revolutionary.
  • I see automakers, both current and new, pushing forward with battery-powered, electric cars and pushing the envelope with new retail standards and business strategy. I see electric cars as being a true “environmental” automobile.
  • I see the automotive industry continuing its comeback and becoming even more important as major advertisers.
  • I see the need for breathtaking creative, brilliant strategy and greater use of digital, social media and mobile.

The Way The Industry Sees It

I sat down with Joel Ewanick, President and Managing Director of Global Auto Systems. Currently Joel is involved in several projects most noteworthy is as Special Advisor to the CEO of Fisker. Until last summer, Joel was the Vice President and Global Chief Marketing Officer of General Motors and prior to that Joel was Vice President of Marketing for Hyundai Motor America. In addition, he is best known for being the guy behind Hyundai Assurance. I asked Joel to discuss what’s next for environmental marketing and how the auto industry is evolving with the times.

Q
Why is having an environmental strategy to the automotive sector important?  How does an automotive company present a credible environmental position?
A
Having an “environmental strategy” cannot be skin deep, it needs to run through the organization like blood through your veins and become a part of the company DNA. It needs to be a total commitment. If a company does not embrace an environmental position, it will be seen as a marketing gimmick – the “sexy” subject of the day, it’s pandering to the consumers. Eventually the consumer sees through it and calls it what it is, “greenwashing.” If a company genuinely cares about the environment, it should demonstrate it in products, offerings, and actions. It starts in the board room, from the top! A commitment from the companies’ executive management, if not – the accounting for such a commitment will eventually derail the programs. It doesn’t happen overnight – it takes time, research, and constant development – from raw material sourcing, to manufacturing, through the sales process, ownership and full circle to the recycling of the automobile at the end of its life. It all needs to be taken into account. As in any industry, there are leaders and there are followers, those who embrace a true commitment to certain technologies no matter the time and cost because it’s the right thing to do. They will reap rewards in decades to come. Fuel Cell technology is a perfect case. Some companies are demonstrating a total commitment to the technology and are in it for the long haul; while others have started but then backed off because the return on investment may be a decade away. These companies are not dedicated or committed, they will be followers.
Q
The auto industry has new fuel efficiency standards to meet.  Do you think this regulation will change the current “fuel economy” advertising strategies?  Will the fuel efficiency standards make the importance of fuel economy claims less powerful?
A
What will make the claims powerful is the cost of gasoline.  If we continue to experience significant increases in gas prices, like here in California, where gas is at $4.15 to $4.25, consumers will continue to flock to more fuel efficient brands, like Hyundai. If prices stabilize, it will still be important, but it will likely over time become another given, a commoditized feature in all automobiles, like safety.  Volvo and Mercedes Benz owned safety, but through legislation, all cars are basically safe.  It is now a given.  Eventually this could happen with MPG as new technologies emerge.  In the end consumers will look for value, and gasoline, for the foreseeable future, is part of that value equation.

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FTC Announces Mobile Privacy Disclosure Guidelines

By Ronald R. Urbach on Posted in Advertising, Marketing, Mobile, Privacy

February 1st was a big day for the Federal Trade Commission (FTC). Not only did the FTC release its report regarding mobile privacy disclosures, it also announced that it had reached a settlement with Path, a social networking app, which agreed to pay $800,000 to settle charges that it deceived users by collecting personal information from their mobile address books without their knowledge and consent, and that it collected personal information from children without their parents’ consent in violation of the Children’s Online Privacy Protection Act (COPPA).

The FTC’s report entitled “Mobile Privacy Disclosures: Building Trust Through Transparency” provides specific recommendations on improving mobile privacy disclosures for mobile platforms, app developers, advertising networks, and other third parties. Most notably, the report recommends that mobile platforms provide “just-in-time” disclosures to consumers and obtain their affirmative consent before allowing apps to access sensitive content, such as geolocation data. The report also recommends that mobile platforms consider providing “just-in-time” disclosures and obtain affirmative consent for other sensitive content, such as contacts, photos, calendar entries and audio/video content. The report further recommends that mobile platforms consider developing a one-stop “dashboard” approach to allow consumers to review the types of content accessed by the apps they have downloaded as well as icons to depict the transmission of user data. The report recommends that mobile platforms consider offering a Do Not Track (DNT) mechanism for smartphone users and makes several other recommendations aimed at providing better disclosures to consumers regarding mobile privacy.

The report also makes a number of recommendations to app developers, including that they have a privacy policy that is easily accessible through the app stores, provide “just-in-time” disclosures and obtain affirmative consent before collecting and sharing sensitive information, improve coordination and communication with ad networks and other third parties and participate in self-regulatory programs and industry organizations. In addition, the report recommends that advertising networks and other third parties communicate with app developers so that those developers can provide truthful disclosures and work with platforms to ensure effective implementation of DNT. Finally, the report suggests that app developer trade associations, academics and experts develop short-form disclosures for app developers, promote standardized app developer privacy policies and educate app developers on privacy issues.

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Advertising’s Big Night: Super Bowl 47

By Ronald R. Urbach on Posted in Advertising, Digital, Marketing, Mobile

It’s finally here. Football fans everywhere have spent the last year counting down to Super Bowl Sunday, the main event for the NFL. But advertising and marketing executives have spent the last year actively planning for Super Bowl Sunday. And let’s face it, a lot of people who are not football fans watch the Super Bowl for one thing: the commercials. The ads typically dominate water cooler conversation the next day, and now take over social media and traditional media as well – for many, the final score doesn’t even matter.

In ad land, Super Bowl Sunday is a holiday. A lot of us are like little kids on Christmas – only we’re glued to the television instead of staring at the chimney waiting for Santa to slide down. Year after year, brands deliver. The ads are creative, hilarious, inspiring. We talk about them for a year after they air… until the next Super Bowl. Which brand do you think will have the most popular ad this year?

The Way I See It

  • For advertisers, Super Bowl Sunday is the biggest day of the year. I see brands paying millions of dollars for 30-second spots during the Super Bowl and investing in ads that they hope will draw lots of sales and big returns.
  • I see brands using Super Bowl commercials not just to entertain, but increasingly to engage the consumer offer by incorporating social media or mobile elements to their TV ads.
  • I see each brand that advertises trying to push the envelope with creative spots that will stand out to consumers – helping the brand to achieve a coveted spot as one of the top ads of the year, but also boosting sales for the brand.
  • I see advertising executives from all ends – creative, compliance, consumer, privacy, legal – coming together to create ads that define their brands, attracting consumers and creating buzz – and making sure that the buzz around an ad translates into buzz around a brand, which is often easier said than done.
  • What is the lesson for advertisers from the “blackout in New Orleans”? How do you protect yourself when there is a problem at a live event? I see advertisers thinking about integrated campaigns not just on the positive side – how they can all work together, but on the negative side – what happens if something goes wrong.

The Way the Industry Sees It

I sat down with Jeff Klein, Senior Director of Marketing at Frito-Lay to discuss advertising during the Super Bowl and the importance of the NFL’s biggest game for the advertising industry.

 

Q
Doritos’ “Crash the Super Bowl” has become one of the most anticipated consumer contests of the year and is very successful, having won the USA Today ‘Ad Meter’ polling in three of the last four years. On a larger scale, consumer engagement through the use of contests, giveaways, and social media engagement, has become a huge trend for brands around the Super Bowl. Do you think consumers now have different expectations about the types of initiatives that brands will launch around the big game? How has consumer engagement with Super Bowl advertising evolved in recent years?
A
I think expectations of brand communication and activation have evolved considerably regardless of the communication medium, but they are certainly amplified at the Super Bowl. The days of talking at your consumer and expecting some sort of action are long gone. It’s more about consumer engagement – how can you continually engage your target in a conversation that goes well beyond the 30-second ad. How do brands achieve this on the world’s largest advertising stage? That depends largely on a brand’s narrative, but you can bet there will be innovative ways to extend their messaging beyond the game. Doritos literally invented the crowdsourcing model around the Super Bowl, and a few brands have been inspired to take similar approaches. It works for Doritos because it’s authentic. It’s not just a Super Bowl campaign, it’s part of our brand’s DNA.
Q
90% of Super Bowl ad spots were sold by early September 2012 – just over five months before the game airs. What makes so many brands look to invest in this expensive space year after year? What is it about the Super Bowl and its viewership that holds such importance for brands?
A
For brands, it is absolutely a huge investment, but it also offers a unique communication opportunity in today’s fragmented media environment. From a pure eyeballs perspective, no program comes even close to the reach Super Bowl offers. There are few opportunities better in the year to drive awareness of a brand’s positioning, innovation, or programming – and the timing of the game allows you to set the tone for the year. Beyond this, it’s important to understand that not all Gross Rating Points (GRPs) are created equal. It’s very easy for consumers to avoid a brand’s messaging with technology. Not only is the Super Bowl virtually DVR proof, but people actually tune-in FOR the commercials.

Peel back the curtains and read the rest of the Q&A here!

POM Wonderful

By Ronald R. Urbach on Posted in Advertising, Marketing, Media

Guess what? When it comes to the claims you make in your advertising, substantiation matters – a lot. The FTC’s recent Final Order against POM Wonderful (POM) in which it found nearly 40 claims made by POM about its pomegranate juice products to be false and misleading based on the absence of proper substantiation, should leave no doubt that the FTC takes the issue of claim support very seriously. And the fact that most of POM’s challenged claims – claims regarding potential health benefits of the products, including that consumption could help treat, prevent, or reduce the risk of heart disease, prostate cancer, or erectile dysfunction – were not actually express claims, but rather implied claims (from both the wording and imagery of the ad), should be a reminder to us all that the entire advertisement and the overall “net impression” it conveys must be carefully considered.

A little background: In September 2010, the FTC issued an administrative complaint alleging that POM had disseminated advertising materials claiming health and disease prevention benefits from consumption of its pomegranate juice products without having a reasonable basis to make those claims. We all remember those ads, a beautifully shot bottle of POM with a broken noose around its neck and the headline “Cheat Death.” In its defense, POM argued that consumers did not take many of its ads literally, so that any perceived health claims in those ads were not material to consumers, and that when it made express health claims in ads, POM had substantiation for the claims, in the form of surveys and of studies done on animals. The FTC’s position was that all the health benefit claims made by POM – whether express or implied – were material to consumers and therefore required a “reasonable basis” of support, which POM lacked. In addition, where POM claimed to have clinical proof of the claim, the FTC argued that POM had no such proof. The FTC’s position was that for the types of health and disease prevention claims POM was making, a “reasonable basis” of support required a well-designed, well-conducted, double-blind, randomized controlled clinical trial (RCT). In fact it required two RCTs. And for the establishment claims, the FTC’s believed clinical proof also meant RCTs.

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FTC Amends COPPA to Strengthen Children’s Privacy Protections

By Ronald R. Urbach on Posted in Advertising, Digital, Marketing, Mobile

The Federal Trade Commission (FTC) ended 2012 with a bang by adopting final amendments to the Children’s Online Privacy Protection Act (COPPA). For those of us who work in children’s advertising, these long awaited amendments came as no surprise. The final amendment, which goes into effect on July 1, 2013, came only weeks after the FTC issued a report that found that mobile applications have demonstrated “little progress” in addressing concerns about the privacy of children’s data.

COPPA was first enacted in 1998 and requires that operators of websites and online services that are either directed to children under thirteen or have actual knowledge that they are collecting personal information from children under thirteen notify parents and obtain their verifiable consent before collecting, using or disclosing personal information from children. The FTC initiated the review to ensure that keeps pace with evolving technology, such as mobile devices and social networking. In other words, the FTC wanted to ensure that COPPA protects the six year old child you see on the bus everyday playing with his parent’s iPhone.

Fast forward to the present. In a move intended to give parents greater control over data collected about their children online, the recent amendments to COPPA increase its scope, requiring additional types of companies to obtain parental consent before collecting personal information from children under thirteen. Specifically, child-directed sites or services that integrate outside services, such as plug‑ins and advertising networks, which collect personal information, are now covered by COPPA. Plug‑ins and ad networks whose operators have actual knowledge that they are collecting personal information through a child-directed website or online service are also now subject to COPPA. In addition to expanding the kinds of companies under COPPA’s purview, these amendments also expand the types of information sites and services are not permitted to collect, use or disclose without parental consent. Geolocation information, photos, videos, and audio files that contain a child’s image or voice, and persistent identifiers that can be used to recognize users over time and across different websites all require parental consent prior to collection. One important exception to the rule is any circumstance in which an operator collects a persistent identifier for internal operational purposes-for example, site analysis and network communications. In such instance, no parental consent is required.

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What’s Next in 2013: A Lesson in Trendspotting with Marian Salzman

By Ronald R. Urbach on Posted in Advertising, Digital, Marketing, Media

Spotting industry trends and making forecasts for a year ahead is a challenge, especially in an age of constant change and technological developments.  The way I see it, in terms of trends, it is critical to seek out the best when you need to spot trends and discern the real change elements at work.  After offering my year in review and looking back at the trends in 2012, it’s time to also look ahead.  We are at the dawn of a new year – a year filled with potential and uncertainty.  So, let’s get some clarity on what the future holds.

The Way the Industry Sees It


I had the pleasure of speaking with Marian Salzman, CEO of Havas (formerly Euro RSCG) Worldwide PR, North America, who is viewed as the trendspotter in the world today, about her thoughts for the year ahead and some secret tips to spotting trends for the advertising industry.

Q
I’m always fascinated by your annual trends reports.  Without revealing any secrets, could you explain your process for identifying trends and making forecasts for the coming year?
A
My thing is pattern recognition, incorporating an eye for the oddball statistic.  There would have been no metrosexual mania, at least not instigated by me, if there hadn’t been a few stunning numbers popping.  Back in 2003, guys began to feel they were no longer guaranteed to be CEO of the bedroom or the boardroom.  They suddenly had a serious interest in the kitchen.   Straight men were increasingly comfortable socializing with gay men.  2003 seems like the dark ages, but it illustrates the kinds of observations that set me off on an investigation.  Ever since Al Gore invented the Internet (kidding) in the early 1990s, I have been a huge information surfer.  Today, this process can be automated for me with services such as Factiva clipping in real time.  Finally, my trendspotting would be much less robust if not for an informal network of trendspotters around the globe who log in all kinds of sightings.  (In fact, I did not invent the word metrosexual—it was invented by journalist Mark Simpson in the early 1990s.  But it was forwarded to me by a colleague and I matched the word to my sighting, Men Get Softer – the rest was history.)  This past year, I launched TrendsU, an e-learning program about how to trendspot, for all Havas staff around the world.  About 550 people from around the world studied the four modules and shared their sightings with me, and even pictures are now compiled (the thousand-words adage never rang more true) on our TrendsU Pinterest board.
Q
In 2012, you focused on the trend toward achieving a grainy, “Polaroid” effect for digital photography with the popularity of apps like Instagram and Hipstamatic. How do you think the world of apps and wireless will evolve in 2013?
A
Wireless will be so ubiquitous that discussing it will be almost like talking about the Internet or even the dial tone.  I agree with a recent post of yours that it will be very interesting to see how the advertising, marketing and communications industries will adapt to a wireless world.  I remember helping on a pitch for IBM back in the dark ages for which we interviewed people about the future, and Kevin Kelly, the co-founding editor of Wired, talked to us about the future like it would happen a week from Thursday.  Well, it’s finally a week from Thursday, and always-on, constant connectivity is the new normal.  People take mobile devices to bed, to the toilet and onto airplanes and assume, voilà, they’ll be connected because connectivity is a given.  Back in 1993, Kelly told us connectivity would be like air or water.  Apps for 2013 are like software was a decade ago, except that the innovations are coming every 22 seconds.  Before you know you need an app, there it is.  Simplification has been a trend for 15 years, and apps are the epitome of simplification.  Branded apps are a given.  Tablets are making apps even more essential.  I want to do more on the fly, more quickly, and an app ensures I get it done, seamlessly.  The app I expect next year is for voting – the most prehistoric thing we still do without much connectivity.  Seriously, in 2013, you want me to walk to a school and fill out some paperwork and pull levers?  How very last century.  Once Americans can vote online using apps and smartphones or tablets, expect a much more engaged population to be that much more connected on issues and topics that matter to them.
Peel back the curtains and read the rest of the Q&A here!

Toasting to the New Year

By Ronald R. Urbach on Posted in Advertising, Marketing

Ah, December 31st.  Each year, the ball drops in Times Square, and people count down excitedly from ten as they plan their resolutions for the New Year, and clink champagne flutes to toast to the year ahead.  New Year’s Eve is all about glitz and glamour, from the sparkle of the Times Square crystal ball to the abundance of black tie affairs.  New Year’s Eve is the top and the most festive of holiday celebrations.  The holiday has become synonymous with a certain alcoholic beverage in particular: champagne.  Bubbly is the drink of choice for party-goers.  And leading up to this night, champagne brands are busy marketing to have their corks popped most on New Year’s Eve.

The Way I See It

  • I see champagne advertisers reflect the mood of the audience to ensure that its presentation is true to both the holiday and how consumers feel based on the economy and current events.
  • I see brands continue to focus on fun and romance. The holiday is synonymous with romance – kissing at the stroke of Midnight, planning a proposal for the big night, or even a New Year’s Eve wedding.
  • I see champagne marketers continue the shift towards advertising in digital and social in new and unique ways.
  • I see champagne brands continue to increase sales and market penetration beyond simply the traditional buyers and holidays.

The Way the Industry Sees It


I sat down with Jon Potter, Executive Vice President of Brands at Moët Hennessy USA, to discuss marketing around New Year’s and effective campaigns for the champagne market.

Q
There’s no question that champagne is the drink of New Year’s Eve. But how did it become that way?  What role does marketing and advertising play in terms of ensuring champagne “owns” the holiday? How do you continue to make champagne relevant for each new generation?
A
For as long as people have been socializing together, having fun and enjoying each other’s company, champagne has been present.  And what other night of the year embodies that better than New Year’s Eve, when friends and family join together to toast the past and look ahead to the future.  Champagne is the quintessential drink to mark occasions big or small.  As Napoleon is quoted as saying, “Champagne – in victory you deserve it; in defeat you need it.”  Today, consumers have more choice than ever when it comes to champagne, wine and spirits so marketing plays an important role in keeping champagne top of mind and relevant for consumers whether that is through limited edition packaging, special events or unique partnerships.

Q
With champagne typically viewed as a luxury good, how do champagne brands remain competitive in a tough economic environment? Did the economic downturn have an impact on champagne sales in recent years?
A
The recent economic downturn was challenging for many sectors of the luxury market.  However, we are fortunate that the Moët Hennessy portfolio of champagnes is second to none.  Our champagne houses have incredible heritage and an uncompromising focus on quality that consumers know and trust.  This is important in times of uncertainty when consumers are more cautious and less likely to try an unknown brand.

Peel back the curtains and read the rest of the Q&A here!

2012: A Retrospective

By Ronald R. Urbach on Posted in Advertising, Marketing

It’s hard to believe 2012 is coming to an end. It was a big year for us here, with the launch of Madison Ave Insights in October, and a notable one for the advertising industry. As always, agencies tried to top the year before with bigger and better creative, regulatory agencies stepped up oversight and enforcement, and technological advances happened at a pace that seemed like every minute. From the Super Bowl to Cannes to the Summer Olympics to the Presidential election, marketers have been busy year-round with how to balance rapid change and new technology with threats from regulators and competitors while doing great creative and effective advertising. This has been a very hard dance to learn.

Among countless others, here are a few key trends and developments from 2012 that will have long-lasting implications for the advertising industry (that is, if the Mayan calendar is incorrect).

Data: Data is without a doubt changing the advertising industry. With more platforms and devices collecting consumer data, including smart phones, tablets, and mobile apps, data has increasingly become a critical tool for marketers and advertising agencies. Of course, we are all still learning the best ways to collect, manage, and use data without violating basic data security and consumer privacy standards. This year, data brokers have faced scrutiny for selling consumers’ data, and brands have been questioned for data collection practices. With data collection and management tools advancing, and data analytics becoming the “it” profession, all of us are eager to see what will be next and how the advertising industry applies and develops data to benefit all of the constituencies – consumers, marketers, agencies, publishers and technologists.

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‘Tis the Season for Giving

By Ronald R. Urbach on Posted in Advertising, Marketing

During the holiday season, helping others is on many people’s minds.  We see more charitable branding and increased advertising to encourage people to give – to capture the true spirit of the holidays.  Right after the shopping whirlwind of Black Friday and Cyber Monday, we celebrated “Giving Tuesday” with the hashtag #GivingTuesday trending on Twitter. Many large charities are encouraging donations on social media, among other platforms. Text a number and you can donate $10 to American Red Cross to help the victims of Hurricane Sandy.  Salvation Army volunteers are ringing their bells on street corners and outside of suburban shopping malls.  St. Jude Children’s Research Hospital launched a Thanks and Giving campaign across a variety of platforms – television, online and print– partnering with a number of nationwide retailers to allow shoppers to make a donation to St. Jude during in-store or online checkout.

For most large companies, a Corporate Social Responsibility (CSR) strategy is a key component of each annual strategic plan.  Charitable giving is a large component of that plan, and the holiday season is prime time. Certainly business giving back is the right thing to do as a matter of societal obligation.  The question to consider is whether it actually helps build brand loyalty and makes business sense from a marketing, advertising and sales basis.

The Way I See It

  • I see more companies and influential brands not only making CSR strategies a significant part of their annual missions, but also striving to make CSR a part of their corporate identity and brand.  CSR has become a part of branding, marketing, and advertising efforts year-round.
  • I see new start up’s, especially in technology, social media and new products/services, have as their core positioning – a CSR backbone, and this as an element that both motivates the participants and attracts like-minded customers.
  • I see consumer brands continue to strategically partner with charitable organizations to integrate the process of raising funds for the charities with purchasing consumer goods and services.  I see marketers, advertisers and charities recognizing a real win-win.
  • I see skeptics who say “CSR is dead” and argue against strategies involving charitable giving – for instance, a business school professor recently published “The Case Against Corporate Social Responsibility” in The Wall Street Journal.  In a tough economic environment where every expense must be challenged, I see the increased use of hard data to support the economic proposition that CSR is good for the long term, and if done right, even better for the short term.
  • I see increased regulatory scrutiny of charitable giving and tie-in’s. With the rise of social media and web giving, there is a greater opportunity for fraud. Many states strictly regulate such programs. In October, the New York Attorney General’s Office issued “Best Practices for Transparent Cause Marketing,” after conducting a study of various CSR programs to benefit breast cancer.

The Way the Industry Sees It


I sat down with Dorothy Jones, Vice President of Marketing at Susan G. Komen for the Cure, to discuss Corporate Social Responsibility and what it means for branding, consumer engagement, and the importance of being strategic.

 

Q
In what ways have Corporate Social Responsibility efforts evolved in recent years?  Did the financial crisis and the current state of the economy have an impact on charitable giving efforts?
A
We did not see a change in commitment from our corporate partners overall, although we did see the impact of the recession and unemployment in certain industries and in fundraising from individuals, which we expect will improve as the economy improves.  This tells us that business people understand the value of their commitment to Corporate Social Responsibility programs especially in difficult economic times.  This kind of commitment allows us to meet the extra demands for services that organizations like ours provide to people in need.
Q
How important are the holidays to charities in terms of fundraising? Is there a seasonality to charitable efforts?
A
The holidays are always a special time in general.  Organizations also experience their own seasons – for example, we do a significant amount of fundraising in the fall during National Breast Cancer Awareness Month and in the spring, around Mother’s Day, when people are remembering, celebrating, or honoring the women in their lives who have faced breast cancer.

Peel back the curtains and read the rest of the Q&A here!

2012 Holiday Shopping Season: Significant Changes in Only Five Years

By Ronald R. Urbach on Posted in Advertising, Digital, Mobile

2012 is projected to be a big holiday shopping season, with consumer spending expected to return to near pre-recession levels.  The National Retail Federation’s 2012 consumer holiday spending survey forecasts that the country’s holiday spending will rise 4.1% to about $586 billion – the most optimistic forecast since the recession.  But a lot has changed since the pre-recession 2007 holiday shopping season.  The consumer shopping experience has seen significant changes in these past five years, and the holiday shopping season is different today than it was then – a sign of the technological advances that have been made, as well as the strides retailers and advertisers are making with digital, data, social media, and mobile.

The Way I See It

The ‘Holiday Shopping Season’ starts earlier and earlier every year, and this year was no exception, with retailers unveiling holiday displays and deals before Halloween.  And Thanksgiving Day became the new Black Friday this year, with major retailers opening on Thursday evening with outrageous “while supplies last” deals on technology, toys, big screen TVs, and other hot items.

  • I see online shopping continuing to boom with sales on the web and mobile devices continuing to grow – aligned with the growth in advertising on digital and social media, and the increased use of social media by retailers.  The NRF survey estimates that online sales this year will grow 12% during the holidays to $96 billion, with more than half of consumers surveyed – 52% – planning to shop for some gifts online, which is up from 47% last year.
  • I see gift card sales continuing to be a major “gift” for consumers and retailers alike.  Retail gift cards have always been a hot item, even five years ago, but now technology has infused the gift card medium, so some of the hottest gift cards are online gift cards, prepaid debit gift cards, and mobile gift cards.  With the NRF survey revealing that 81.1% of consumers will buy at least one gift card this year, it will be interesting to see how much of the pie is taken by the “new” gift cards.
  • I see the explosion in reliance on consumer data changing holiday marketing and shopping – by far the largest and most influential change for holiday shopping in the last five years.  With data, more relevant information – products, offers, and deals – are being delivered to more consumers than ever before.  This effectively results in advertising and marketing dollars doing a better job of getting consumers to shop and buy.

The Way the Industry Sees It


I sat down with Dana Traci, Vice President in Marketing Rewards at Discover, to discuss the countless ways that the holiday shopping experience has changed for consumers in the past five years.

 

Q
In your eyes, if you had to choose one development or area of change or growth that has had the largest impact on holiday shopping since 2007, what would it be?
A
Without a doubt, it’s the access consumers have to information via mobile and Internet channels.  They now have the ability to see a wide selection of products and prices without having to leave their houses.  They can browse deals and/or make purchases on the go, on their own time, without needing to visit an actual store.
Q
How has technology and data changed the way your company prepares for the holiday shopping season and the way you advertise to consumers?
A
It’s imperative for us to advertise our messages where consumers are, and that means whether they are shopping in-store, looking at products online, etc.  In order to stay relevant and competitive, we need to expand our reach and presence as new technologies change the way consumers shop.

Peel back the curtains and read the rest of the Q&A here!