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DUMENCO’S STATE OF THE
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Simon Dumenco, Ad Age’s popular
columnist and always sharp media
world observer is a veteran straight
out of the trenches of the shift from
traditional to new media. For this Ad
Age Insights white paper, he turns
his critical skills to explaining just
what is going these days. Where are
consumers actually spending their time and what does it mean
for the people who are trying to target them?
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TALENT FROM P. 3
tisers and the unions for the next
contract up for renewal in 2012, it
would replace the current system
built over decades. After that, Mr.
Wood said members of the
Association of National Advertisers
and American Association of
Advertising Agencies would be covered by the deal regardless of how it
affects them, provided they use
union talent.
“By definition, there are going to
be advertisers who are going to be
paying more than they’re paying
now and advertisers who are paying
less,” he said. “While there’s no
assurance to this, if you’re a very
heavy network buyer, you’re likely
to pay less. If you’re a very heavy
cable buyer, you’re likely to pay
more. It will kind of level the playing
field.”
The JPC and unions agreed in
their last contract, effective last year,
to study changing the system. The
unions will also have access to aggre-
gated data to help evaluate the
results. PriceWaterhouseCoopers
will handle the data to avoid breach-
ing confidentiality of clients partici-
pating in the pilot.
The JPC is made up of 30 mem-
SHOPPER FROM P. 1
been the place where marketers seal
the deal—hitting consumers close to
the purchase—their role in driving
awareness has been growing, relative
to other media. The store beat TV as
an awareness driver by a 50% to 36%
margin across the six countries—U.S.,
Canada, U.K., Germany, France and
Italy—in 2008, the latest year for
which Bases has released figures. That
compares to a near tie only four years
earlier, when the store barely edged
out TV, 52% to 48%.
Heavy category buyers (defined
as those three times more likely
than average to buy a product) were
even more likely to cite the store as
their source of awareness (55%)
and less likely to cite TV (35%).
And in the U.S. both the store and
TV were bigger awareness drivers
than in the six countries overall,
with the store cited as a source of
product awareness by 53% and TV
by 39% of consumers.
In the two years since those findings have made the rounds of package-goods marketers, more companies have started to pay attention to
what is going on in the aisles, with
estimates now pegging in-store marketing spending at $542 billion.
The growing sophistication of
retailers and marketers at marketing
and merchandising in-store probably has played a role, said Mike Hess,
Carat’s exec VP-research, marketing
science and consumer insights.
While competition from a wider
array of media clearly is a factor in
the decline of TV relative to the store
over time, Mr. Hess notes the store
remains one place almost everyone
is exposed to new products, regardless of how fragmented the rest of
the media world becomes.
The Bases research is among fac-
tors that have made marketers aware
of the importance of the store and
bers, half appointed by the ANA, half
by the 4A’s, which collectively includes
advertisers and agencies responsible
for about 90% of commercial produc-
tion. The 36,000 commercials pro-
duced under the contract make it the
largest U.S. talent contract, bigger than
those for TV or motion-picture pro-
duction,Mr.Wood said.
How we learn about products
SIX COUNTRIES TOTAL U.S.
Store
TV
Print
Word-of-mouth
Internet
0 10 20 30 40 50 60
Source: Nielsen Bases
driver of new-product awareness in
store was simply seeing the product
on the shelf—accounting for product
awareness in 71% of cases where
people cited the store. All the other
tools marketers and retailers use to
drive in-store awareness—including
off-shelf displays, retailer circulars,
product demos, in-store media and
samples, accounted for awareness in
only 2% to 18% of those cases. In-store media and product demos both
scored in the low single digits. That
helps drive home the importance of
packaging and signage, Mr. Twitty
said.
But because marketers get so little time to make their point with
consumers at the shelf, Carat’s Mr.
Hess cautioned that marketers also
need to take the quality of awareness
into account, not just the quantity.
“My concern as a media person is
that I’m not sure in-store awareness is
the same as the awareness you get
from TV in terms of strategic attributes and benefits,” he said. “A 30-sec-
ond spot gives you that ... the unique
selling proposition.”
