Marketing Forecast from Ad-ology

Consumers have no shortage of options when it comes to entertainment. Will the popularity of newer forms of communication such as social networking reduce the amount of time consumers have for traditional entertainment? This is a valid concern according to NPD group which just released a report on this topic.

Consumers across the U.S. continue to support live entertainment events despite the recession. This is great news for producers of opera, symphony and theater groups. But these marketers must continue to advertise their offerings to stay top of mind with their core audience. Increasingly, this may mean using online media.

According to a recent Media Audit release, the media use statistic for live arts events patrons are as follows:

Heavy Internet users (3+ hours daily): 41.9%
Heavy Outdoor users (drive 200+ miles a week): 37.5%
Heavy Radio users (3+ hours daily): 21%

In general, about 3 out of 10 U.S. consumers attends at least one live arts performance annually. The audience demographics are typically more female (55.7%) than male (44.3%). And some U.S. markets enjoy higher attendance rates at these events. The Media Audit reports the following top five markets.
Ann Arbor, MI 40.6%
Hartford, CT 38.1%
Long Island, NY 38%
Washington, D.C. 37.6%
New York City, NY 35.7%

As producers of this year’s Christmas concerts and ballets consider where to advertise their events, it seems a safe bet that many will allocate a significant portion of the budget to online media outlets.

[Source: FYI Newsletter, The Media Audit, October 2009]

The top talent on nationally recognized sports teams are accustomed to signing multi-year, multi-million dollar deals. However, the recession has contributed to a slowdown in deals. And other factors are changing the endorsement industry. For example, there’s the awkward problem of what to do with athletes who fall short of expectations – professionally or personally.

A newly commissioned research study of nearly 4,000 moviegoers finds that an overwhelming number of people across all age groups have fully adopted digital technologies and increasingly depend on them to gain information about new movie releases and help with their decisions about which films to see. The study found that the Internet and word-of-mouth are gaining in importance (closely following in-theater trailers and TV commercials) as a way that moviegoers discover upcoming film releases and now rank ahead of traditional methods of advertising such as billboards and newspaper ads. The importance of peer group feedback (social networking, face to face interaction, texting) in the decision-making process was also a key finding of the study, with teens and young adults especially influenced by this consumer voice.

As marketers plan their ad budgets for the next six months, they might want to consider the results of the most recent poll released by Harris Interactive. Despite the glimmer of good news from recent stock markets gains, a leading indicator, consumers remain concerned about employment prospects. These concerns are revealed in the way consumers plan to handle their cash from now through Spring 2010.

As advertisers continue to search for the best way to reach consumers online they may want to review what consumers are doing online. The results of the Internet Activity Index published by the OPA (Online Publishers Association) shows consumers are spending more time than ever on content sites. Pam Horan, president of the OPA, notes that content ‘sites continue to be a place where consumers spend the majority of their online time and provide an environment for brand marketers to reach and engage with consumers.’