Back in January, reports in Mediaweek suggested a slight upturn of 2-3% in local radio revenues for this year. Now that 2010 is well underway, executives such as Stu Olds at Katz Media say that overall radio revenue could be up as much as 19% for the first quarter when compared to last year.  Olds attributes this optimism to “broad-based category support, tightening marketplaces pushing up pricing and radio’s rediscovered value in the marketing mix.”

The following categories comprise the majority of the national spot radio market and have the increased spending rates shown in parentheses:

• Retail (+7.6% )
• Finance (+8.7% )
• Entertainment (+36.4%)
• Auto (+35.6% )
• Telecom (+22.5% )
• Consumer Products (+34.9% )
• Professional Services (+21.5%)

Olds also reports that higher demand is widespread throughout the U.S. The highest growth rates are occurring in the Northeast at 37.4% while the West has the lowest growth rate at 11.4%. The improved health in the radio ad market is cutting down on the number of no-charge spots. These changes mean inventories are tightening so marketers should plan ahead when considering media buys and be prepared to pay more this year for air time.

[Source: Katz: Radio Ad Revenue Continues to Rise, AllAccess, 2.8.10]

Ad-ology Research recently updated their Industry Marketing Insights report for Auto Insurance Companies. The following are the predicted Top 5 Opportunities/Challenges from the report for this industry for the upcoming 12 months:

• Consumers are increasingly buying insurance online due to convenience.
• A new trend maybe be pet coverage, as some providers being offering collision coverage for customers’ dogs or cats at no additional premium cost.
• Some insurance companies are offering breaks for hybrid cars.
• The market continues to be highly competitive, especially with the emergence of Internet-based providers.
• The weak economy is forcing many consumers to shop around for lower prices.

The Industry Marketing Insights report for Auto Insurance Companies is available on Ad-ology.com (Research Store) for $195 USD with local market data for any U.S. market.

[Source: Ad-ology Research. February 9, 2010]

A new report from Mintel confirms the importance of convenience, particularly to the out-to-eat crowd, especially those under age 34.

Over half of younger adults rank a restaurant’s proximity to their workplace as very important/important when selecting where to dine (62% of 25-34s and 55% of 18-24s, versus 41% of all respondents). The ability to order online ahead of time is also essential to young, time-strapped consumers (31% of 25-34s and 24% of 18-24s, versus 19% overall). The younger demographics also rank extended hours (i.e. late-night) and speed of service highly in their restaurant selection processes.

“Though value remains important to diners in this economy, our survey reveals convenience may be equally as important. Young adults and young families, especially, are pressed for time, making restaurants an easy and often necessary solution for meals. As foodservice establishments struggle for revenue, improving convenience may help them get diners in the door,” states Chris Haack, senior analyst at Mintel.

While 43% of respondents told Mintel they’ve cut spending on delivery and takeout this year, approximately one in six 18-34 year-olds say they’re spending more on these convenient services compared to 2008. In the past three months, 18-34s were twice as likely as the general population to have ordered delivery. Approximately 30% of them picked up food from a restaurant, compared to 20% of all respondents.

In its latest food and beverage market research, NPD finds that 72 million adult consumers—nearly one in three adults—are “Convenience Consumers,” but their needs are varied depending on their life stage and other characteristics.

According to the NPD report, Convenience Consumers, who attitudinally place a premium on convenience, tend to fall into one or more of the following groups: younger adults, males, singles who have never been married, single-member households, working parents, parents with a young child (age 5 or younger), or lower-income households. Convenience Consumers feel their lives are hectic and rushed and that a dinner taking more than 30 minutes to make is inconvenient. While they believe convenient foods are more expensive, less healthy, and don’t taste as good, they also indicate “convenience is worth paying for.”

The NPD report, which examines how consumers define, value, and fill their need for convenient foods throughout the day, also found that while Convenience Consumers differ attitudinally from other consumers in many ways, they are similar in some regards: two-thirds of them, on par with other consumers, say they enjoy cooking; and, like other adults, the majority of Convenience Consumers plan meals ahead of time.

“Convenience has been a buzz word in the food and beverage industry for a long time, but we found through our research that it’s really not a one-size-fits-all concept,” says Ann Hanson, director of product development in NPD’s food and beverage unit. “Americans differ in how they define and value convenience. It’s important that food and beverage marketers differentiate the various meanings of convenience among their consumers and message accordingly…or they’ll miss the target.”

“Convenience still top order for younger diners,” Mintel Oxygen Reports/Mintel Menu Insights, January 2010.  Website: www.mintel.com

“The Many Facets of Convenience, ” conducted by The NPD Group, January 26, 2010.  Website: www.npd.com.

Marketers believe the $2 billion they spend annually on loyalty programs ensures participation by their best customers and builds the platform for higher sales. But a report by the Chief Marketing Officer Council shows there is room for improvement. Marketers are not always measuring the results of their expenditures on these programs and they aren’t always listening to what the customer is saying.

According to the report,  consumers had the following complaints about loyalty programs:

• Too much email/junk mail generated by these programs 44%
• Too many conditions/restrictions 38%
• Rewards have little or no value 37%
• Had trouble redeeming points/miles 35%
• Little or no added value because of membership 35%
• Communication not personalized 19%
• Little personalized attention 16%

The report reveals that nearly 8 out of 10 marketers say loyalty programs are so important that they will continue either level-funding or will increase the size of these programs.  Marketers also understand the need for increased personalization and at least 51% will engage in this way with consumers from now on.

Marketers use the following methods to communicate with members of loyalty programs:

• Email 84%
• Printed mailings/statements 51%
• Corporate Web site 45%
• Club sites 32%
• SMS Text messaging 24%
• Social networks 16%

Over half of consumers say membership in these programs strongly influences their buying decisions. The same percentage indicates that they would terminate membership after a poor experience with a product or service. As a result of these findings and a desire to improve consumer satisfaction, marketer focus on personalizing loyalty programs is likely to grow.

[Source: Feeling the Love from the Loyalty Clubs, CMO Council, February 2010]