The fifth edition of Power of Meat, a study released recently by the American Meat Institute and the Food Marketing Institute, has found that the recession is continuing to impact food purchasing and consumption behavior, including the meat department.

While the volume of meat consumed in 2009 was up significantly, dollars were lagging as shoppers opted for cheaper cuts and prices dropped during the year, the study said.

Forty percent of shoppers say they have changed the way they purchase meat and poultry compared to before the recession, down from 51% in 2009. This is also significantly less than the 50% who are spending less on groceries overall, signifying the strength of meat and poultry in the total food consumption.

Sixty-two percent of shoppers who saw a significant drop in household income have altered their meat shopping. More customers are also cooking at home versus eating out, leading to an increase in meat purchases at supermarkets and other retail outlets.

“Power of Meat,” conducted by the American Meat Institute and the Food Marketing Institute, Nov. 2009.  Supermarket News, Web. 8 Mar. 2010.

As the use of digital video recorders (DVRs) continues to rise – the market penetration at the end of 2009 was measured at 32.3% – marketers are looking for new ways to reach TV viewers.  Often, this means weaving the discussion of or appearance of products into the program itself. According to a report by VSS Communications, marketers spent at least $3.9 billion in 2009 to get their “products, services and brands” onto the TV screen.

Arrangements for product promotions and branded entertainment are often established prior to the traditional upfront selling season, May, for the industry. For example, last year, Rob Master, Unilever’s director of North American media  wanted to change the way TV advertising was working for his brands yet still get the most out of the value proposition built on “flexibility, value and quality.” Masters says the “days of simply running a schedule of 15-seconds or 30-seconds and just buying straight [gross rating points] are over.”  During 2009, Unilever asked media companies to come up with ideas for plans to get brands in front of TV viewers but outside the realm of traditional ads. Subaru is another major advertising that has shifted to this strategy.

The use of branded entertainment will grow as TV stations compete with online media for audience share. An early report on the 2010 upfront season indicates that  nearly 4 in 10 advertisers will increase their expenditure on branded entertainment “as an alternative to the 30-second spot.”

And on the horizon, look for advanced TV advertising to come into play over the next few years. As more consumers use interactive devices, such as DVRs to watch TV, marketers will be exploring addressable and interactive marketing strategies.

[Sources: Atkinson, Claire. Preview: Handicapping the Upfront Stakes. Broadcastingcable. 15 Feb 2010. Web. 17 Mar 2010; Media Trends Track. TVB. n.d. Web. 15 Mar 2010; Neff, Jack. Upfront Not Working for You? Try Reversing It, Like Unilever. Advertising Age. May 2009. Web. 15 Mar 2010; Quinton, Brian. Pride of Placement. PromoMagazine. 1 Dec. 2009. Web. 17 Mar. 2010]

After predicting a 19% growth rate for radio in the first quarter of 2010, Stu Olds, CEO of Katz Media, sees  revenue continuing to grow in the second quarter as well. Olds may be uniquely positioned to predict these revenue shifts as his organization oversees ad sales for both Katz radio and the Clear Channel Radio sales portals.

Growth targets by month for the second quarter for Katz Media Group Consolidated Radio are as follows:

• April +17%
• May + 23%
• June +20%

Olds indicates that “[t]he outlook for continued growth is supported by the advertising community’s optimism about an improving economy.”  Many media outlets are expecting the upcoming fall elections to result in additional revenue and radio is no exception. Olds reminds industry watchers that all members of the U.S. House of Representatives are either running for re-election or retiring. This turnover means candidates for 400 campaigns will buy advertising.  In addition, politicians will be competing for 38 Senate seats across the country. Combined, these political battles will result in  spending of at least $3.3 billion. Radio station operators hope to claim 7.6% of the spending or $250 million.

Nationwide, 2010 looks to be a strong year for radio revenue.

[Source: Katz: Spot Biz Rising With 20% Bump in Q2. AllAccess. 15 Mar. 2010. Web. 17 Mar. 2010]

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

• Improving technology continues to provide opportunity for this industry.
• Demand for wireless access continues to grow, especially among young and affluent demographics.
• Businesses in this industry are faced with high network maintenance costs.
• Cost and availability continue to be challenges to more widespread use among Americans.
• The industry is highly competitive.

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

[Source: Ad-ology Research. March 16, 2010]