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BizReport : Ecommerce archives : October 07, 2010

Studies: Consumers won't cut back, advertisers shouldn't, either

Two recent studies may change the way advertisers look to the 2010 holiday shopping season. Rather than cutting back on spending, one study finds that consumers will likely spend more in 2010 than they did in 2009. With consumers spending more, advertisers may also want to increase their ad exposure. Here's why:

by Kristina Knight

First, the consumer study. Burst Media found that more than 53% of consumers will either increase or spend the same amount on the 2010 holidays than they did in 2009. Many of these shoppers turning to the Internet to find good buys. Researchers believe that nearly 80% of consumers will be turning online this holiday season.

One thing, though, consumers are still looking at price and incentives for their buys, so in advertising brands would be well served to highlight pricing, exclusive online promotions, free shipping and other offers that make purchasing online an easy decision.

"Consumers are very mindful of where and how they'll spend their dollars this holiday season," said Mark Kaefer, Director of Marketing with Burst Media. "The Internet provides a wealth of targeting and ad units that allow marketers to creatively promote these offerings - and allow marketers to quickly adjust their advertising in response to changing consumer demands or market forces."

In the second study, MediaMind researchers indicate that consumers are underexposed to retail campaigns during the holiday season. Although the perceived peak for campaigns is between four and six exposures, the study found that consumers actually received only one exposure (average). This is a sign that, as consumers won't cut back this holiday season, neither should advertisers.

"Online retailers have an opportunity to strategically drive customers to their stores or to their website during the most crucial time of the year," said Gal Trifon, CEO and Co-Founder of MediaMind. "Advertisers should not hesitate to increase the exposure frequency for their target audience, even before scaling their campaign reach."

Why does ad exposure matter? Because consumers are more apt to engage with an ad they have already seen - meaning that the first exposure is great, but the later exposures will drive traffic and increase conversion.

Tags: 2010 Holiday Spend, ad impressions, Burst Media, ecommerce, MediaMind, online advertising, retail advertising

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