grocery

’99% Of Sales Come From People Who Don’t Interact With Ads’

Source: http://www.businessinsider.com/facebook-99-of-sales-come-from-people-who-dont-interact-with-ads-2012-10

facebook money

Facebook is trying to close the loop between ad exposure on the social network and real-life buying habits. 

For years, it has been difficult to prove that someone seeing an ad on Facebook (or anywhere else for that matter) became more likely to buy the product.

Brad Smallwood, Facebook’s director of Monetization Analytics, expanded on what the social network’s new partnership with Datalogix means for marketers at the IAB Mixx Conference during Advertising Week.

The partnership will allow Facebook clients to match user data with Datalogix sales data, and draw conclusions about whether ads on Facebook actually increased purchases. (Datalogix purchased data on 70 million American households.)

“The outcomes that happen in the grocery store, at the car dealership,” Smallwood said of the initiative that “for the first time ever that draws that elusive straight line from ad exposure to purchase.”

One overall takeaway from the data — which Smallwood said doesn’t identify consumers by name — is clear: Unless you’re dealing with a specific type of campaign (i.e. direct online sales) the answer isn’t direct response or clicks.

According to Smallwood, “99 percent of sales come from people who don’t interact with ads. They consume the message and then when they go to the store they purchase.”

Other important takeaways include:

  • Of Facebook’s study that measured 50 campaigns, 70 percent saw a 3x greater return on ad spend, and 49 percent saw a 5x or greater return on ad spend.
  • “Reach is a crucial driver,” Smallwood! said. A nd digital campaigns that managed to find the proper reach were 70 percent more effective at driving purchases than ROI.
  • Smallwood said that marketers see a 40 percent increase in ROI by finding the “optimal frequency point.” He compared finding the frequency “sweet spot” in social to other platforms: “In TV you don’t want to send 50 impressions to one person, but you also don’t want to send one.”

Although some privacy groups are asking the FTC to investigate whether this partnership violates consumers’ privacy, Smallwood portrayed the new initiative as a “move away from the models that don’t maximize.”

“We at Facebook are dedicated to help you understand stuff like that.”

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Besides the elderly gentleman paying in nickels, the biggest holdup at supermarket checkouts is the cashier finding an item’s barcode and properly scanning. So Toshiba has developed a faster camera-based system that recognizes the food, packaged or fresh.

The system uses pattern recognition technology, so it can identify labels or packaging, as well as fresh items like fruits or vegetables that are typically lacking even barcodes. Mistakes are reduced since cashiers don’t need to punch in codes for fresh items, and the system is fast enough to recognize items even when they’re in motion.

Of course it still won’t stop the line from being held up as someone contests the ten cent yogurt coupon the store won’t accept, but it’s a step in the right direction of making grocery shopping easier to endure. [DigInfo via Ubergizmo]

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Thursday, March 8th, 2012 Uncategorized No Comments

Consumers Won’t Settle For Cheap, Discounted Products

Source: http://www.businessinsider.com/consumers-are-not-willing-to-settle-with-discounted-cheap-products-2011-10


sam's club shopping

No matter how thin your wallet is, you’re probably not willing to sacrifice beauty to save. 

Less than one-fifth of 25,000 respondents from 51 countries say they’d buy cheaper health and beauty products for the price, according to a survey by Nielsen, a global information company

Meanwhile, 61% chose “good value” over “low price” for any retail products their families may need, meaning a generic brand of bread may get passed over for a loaf of tastier (and possibly healthier) Pepperidge Farm bread.

“Value is not about price alone,” James Russo, vice president of Nielsen’s Global Consumer Insights, said in a statement. “Retailers and manufacturers who offer good values tailored around benefits of the product beyond price will resonate with consumers who continue to look for ways to stretch their money in a tough economy.”

The study found product preference also depends on where the respondents live, with those in Asia Pacific, Europe, Latin America, and North America preferring good value over lower prices, and those living in Africa and the Middle East choosing price over value.

But just because North Americans prefer value over lower prices doesn’t mean that they’re willing to pay full price. In fact, Americans are among the world’s leading coupon-users, followed closely by China and Hong Kong.

We also buy in bulk more than anyone else in the world. According to Nielsen’s chart below, the main reason Americans visit the grocery store is to stock up, whereas a quick trip to replenish products is more popular in other parts of the world.

consumers Nielsen

Learn why consumer brand loyalty may never recover from the recession>

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Monday, October 17th, 2011 news No Comments

Despite massive increases in advertising, the biggest beer brands see massive drops in sales

Beer is yet another commodity and category that is being decimated by better quality alternatives. The means of production and distribution are no longer controlled by a very small number of big companies. Consumers find attractive alternatives in micro-brew beers or local beers. They have the means to access them (online) and have the product shipped directly to their homes.  So no matter how much advertising the big companies do, if their product is just not that great, they will continue to lose customers to alternatives. The “lime” version of Bud Light was said to cannibalize sales of regular Bud Light. And rightly so, consumers are looking for a better product.

Source: http://adage.com/article?article_id=138141

Fourth of July Holiday: Bargain Brands Gain, but Big Spenders Bud, Miller Lite and Corona Tap Out

By Jeremy Mullman

Published: July 27, 2009

Despite a flurry of new and improved ad pushes for the country’s leading brews, the days leading up to Independence Day, usually the biggest-selling period of the year for the category, led to gruesome sales declines vs. the same period last year. Sales for Anheuser-Busch’s Bud Light and Budweiser plunged 7% and 14%, respectively, in grocery, convenience and drug stores during the two-week period ending July 5, according to scanner data from Information Resources Inc. Miller Lite suffered a 9% drop. The big importers were hurt badly too: Corona marketer Crown Imports watched sales decline 6% to 8%, while Heineken and Diageo each saw double-digit drops.

beer-declines-in-sales-2009

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Sunday, July 26th, 2009 digital No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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