Reaching Consumers during the Purchase Process

Transcription

1 Reaching Consumers during the Purchase Process Starcom MediaVest Group Reaching Consumers During the Purchasing Process

2 In today s frenzied and increasingly timepressed world, consumers are deciding what and when to buy in decreasing time units. In an always on environment, marketers are challenged to reach their target audiences at the most opportune and influential moment. And with more granular data able to identify and attribute the precise impact of each impression on a consumer outcome, the ability to serve tailored/sequenced messages close to the moments of purchase consideration and purchase opportunity is available and should be leveraged. SMG s approach to this shopping evolution has been through extensive explorations of consumer activity prior to purchase, to better understand which media types and vehicles can impact that decision-making. In developing a proprietary global consumer panel, called PACE, SMG can evaluate the data signals that consumers share when on the journey to purchase by category, by target, and by media type. For example, by looking at consumers detailed web activity and search behavior when considering what movie to see, SMG was able to determine the best time to reach them when they were in the right mindset to be receptive to messaging. The SMG PACE panel was launched globally in 25, and is now live in more than global markets. It is a proprietary global audience knowledge platform that unlocks rich insights about people s daily lives in order to better connect brands with the pace and purpose of people. It was developed in partnership with RealityMine, the company that fuels the syndicated TouchPoints cross-platform research product. Each panelist uses an optin ediary that collects information on location, social settings, activities, media usage and emotions every half hour and also passively tracks the activities of mobile device usage continuously. With this enhanced ability to explore the role of different media channels in consumers lives closer to the point of purchase, SMG conducted an analysis with iheartmedia to see how audio as a medium fits in to and impacts the decision-making and purchase of both CPG and Auto categories. Correlations of Purchase Activity with Media Usage Starcom MediaVest Group Reaching Consumers During the Purchasing Process

3 The Role of Radio There have been various studies conducted by or for the radio industry over the years that have identified its value as a medium consumers are exposed to closest to the point of purchase. But with today s digital and social media readily available via smartphones, the question arose of whether audio would maintain its prominent position in the purchase process. with any digital video, a 53 percent correlation with any print, and a 55 percent correlation with any television. Not surprisingly, search and social are also strongly related to purchase consideration. When it comes to purchase decision-making, the results are very similar. For actual purchasing, however, out-of-home enjoys the strongest relationship with search and audio close behind. When we look at this by type of audio exposure, we find high correlations with all forms of audio, particularly during purchase consideration and decision-making. At the time of the actual purchase, the strongest relationship is with satellite radio, perhaps because consumers are listening in-car shortly beforehand. Through an analysis of the SMG PACE tool, we looked at consumers media usage immediately prior to when they were considering, or deciding, or making a purchase. We looked at the correlation between each action and the media exposure, and found that the strongest relationship is seen consistently for audio and out of home. There was a 9 percent or greater correlation between purchase consideration (across categories) and exposure to any audio or any out-of-home media in the half hour before. This compares with a 33 percent correlation Correlations of Any Purchase by Type of Audio Usage Starcom MediaVest Group Reaching Consumers During the Purchasing Process 2

4 Purchase Activity by Category We then dived deeper into select product categories to see if any differences emerged in the correlation of media exposure and the purchase behavior. We did so for two major categories: CPG and Auto. out-of-home messaging in this category. It is worth noting that when consumers are considering or deciding about CPG, there are consistently high correlations to all audio types (above.9). Once consumers are instore, not surprisingly, the levels drop. CPG The strength of audio was even greater here. While the correlation for purchase consideration and decision-making with outof-home remained the strongest, the figures for audio were very close behind, making it an important medium for reaching consumers as they are about to buy groceries. The results for other media show a slightly lower relationship than for all categories, perhaps further reinforcing the value of audio and Correlation of CPG Purchase by Type of Audio Usage Correlation of CPG Purchase Activity with Media Usage Starcom MediaVest Group Reaching Consumers During the Purchasing Process 3

5 Auto As we might expect in a category where the purchase decision process is more extended, the correlations with media exposure for the half-hour prior are all slightly lower than the average. Yet audio and out-of-home enjoy the strongest correlations for purchase consideration and decisions. Media exposure prior to the actual automotive purchase favors out-of-home, with audio and search close behind. Correlation of Auto Purchase by Type of Audio Usage Looking at the relationship to purchase activity in this category by audio type, AM/FM is strongest overall, and in particular during the critical consideration stage. Correlation of Auto Purchase Activity with Media Usage Starcom MediaVest Group Reaching Consumers During the Purchasing Process 4

6 Focus on Millenials When we go beneath the broadest Adults 8+ demographic and look at these results against the all-important Millennials group (Adults 8-34), we find some surprises. Audio and out-of-home still show the highest correlations to consideration, decisionmaking and actual purchase relative to other media, although not surprisingly, social is stronger for the younger group compared to all adults in the consideration and decisionmaking stages. Perhaps unexpectedly, the strength of the correlation for search is lower with young adults. Also of note, the correlation for any digital video and TV is considerably higher with this target albeit still at lower levels than for other media. For specific product categories, the story is largely similar. Audio and out-of-home are most highly correlated to consideration, decisioning, and purchase for CPG, while social is somewhat more important to this group than to all adults. Digital video and TV also exhibit stronger correlations for the Millennial target compared to all adults, while still lower than audio and out of home. In looking at the type of audio preferred among Millennials during the CPG purchase cycle, Internet-streamed radio is slightly less correlated and satellite radio is somewhat more important to them. For automotive purchases, almost all correlations are lower for Millennials than for Adults overall, except for digital video and TV which are higher with younger consumers. Nonetheless, audio and out-ofhome continue to be critical ways to engage this younger target, showing the highest correlation strength, along with social media. The relationship for Millennials with the type of audio during the automotive purchase process looks similar to that of CPG. AM/FM and satellite radio are both more strongly correlated than Internet streaming, but at lower levels than seen with Adults 8+. A8+ vs. A Any Category Consider Consider A834 Decide Decide A834 Purchase Purchase A834 Starcom MediaVest Group Reaching Consumers During the Purchasing Process 5

7 A8+ vs. A CPG Consider Consider A834 Decide Decide A834 Purchase Purchase A834 A8+ vs. A Auto Consider Consider A834 Decide Decide A834 Purchase Purchase A834 Correlation of CPG Purchase Activity by Type of Audio Usage A8-34 Correlation of Auto Purchase Activity by Type of Audio Usage A Starcom MediaVest Group Reaching Consumers During the Purchasing Process 6

8 Focus on African Americans The African-American consumer is often thought of as a heavy media user across the board, but the impact of that media usage when linked to purchase decision making reveals some important differences. In looking at the relationship of media consumption and purchase consideration or decision making across categories, it is still audio and out-of-home that demonstrate the highest correlation. Digital video, television and print all enjoy stronger correlations with purchase consideration and activity for African Americans than among the general population. Within the CPG category, while audio and out-of-home show the two highest correlations among African Americans, just as they do among the total adult population, the strength of the relationship between media consumption and purchase consideration or activity is weaker in almost all media types. Digital video is the one exception here, along with television or print for making purchases in this category. As far as the type of audio consumption is concerned, for CPG, it is apparent that all forms of audio are important for African Americans during consideration and decision-making, with streaming dropping down during purchase. The overall picture looks fairly similar for African Americans in the automotive category. That is, audio and out-of-home have the top two correlation strengths to purchase consideration and activity for African Americans and for all Adults, but the levels are consistently lower among the African American segment. Digital video and TV consumption have a higher correlation with purchase consideration or action for African Americans than for the general market, suggesting these may be more influential media to consider. Both AM/FM and satellite radio are important for consideration and decision making in the automotive category among African Americans, while AM/FM is most strongly linked to the actual purchase phase. A8+ vs. AA - Any Category Consider Consider AA Decide Decide AA Purchase Purchase AA Starcom MediaVest Group Reaching Consumers During the Purchasing Process 7

9 A8+ vs. AA - CPG Consider Consider AA Decide Decide AA Purchase Purchase AA A8+ vs. AA - Auto Consider Consider AA Decide Decide AA Purchase Purchase AA Correlation of CPG Purchase Activity by Type of Audio Usage - African Americans Correlation ofauto Purchase Activity by Type of Audio Usage - African Americans Starcom MediaVest Group Reaching Consumers During the Purchasing Process 8

10 Implications for Marketers and Media Companies The importance of consumer engagement with audio and out-of-home media prior to and during the purchase journey is extremely clear. There is a strong relationship between consumption of these media and consumer consideration, decision-making, and purchase, across all categories. For CPG in particular, there is a near : association as people consider or decide to shop. For the key Millennial target, radio and out-of-home continue to exhibit a solid relationship to purchase activities, although the association is lower than among adults overall. It is worth noting that media typically thought of as critical to this consumer group such as social or search are not uniformly more strongly associated with the purchase journey. However, compared to all adults, there is a stronger correlation for digital video and TV when younger consumers are considering or deciding to buy in the automotive and CPG categories, while social media exhibits higher relationships in the CPG category. All of this suggests opportunities for radio companies to ensure they maintain a strong social and digital presence for their radio stations. With the African-American target, radio and out-of-home are still very important for purchase, but digital video and television may be additional considerations for marketers wanting to reach and influence this target during the purchase journey. AM/FM and satellite radio are critical throughout all aspects of that process, with internet-streamed audio playing a key role during consideration and decision-making. While this analysis focused on two categories and three audiences, it exemplifies the power that more granular data offers to help marketers and media companies more fully understand the consumer experience. Our ability to not only keep up with consumers, but to do so at their pace and with an understanding of their purpose, is a critical component of successful marketing in the 2st century. Despite being one of the oldest advertising media forms around, it is clear that radio and all forms of audio will continue to play an important role in the decision making and purchase process and it is up to us to create ever more compelling content to share with them and connect them to the brands we serve. As far as the type of audio is concerned, AM/FM enjoys the highest correlation for the categories assessed, and for both Millennials and Adults 8+. With the younger group, Internet-streamed audio has a weaker relationship than the other two audio types reported. Starcom MediaVest Group Reaching Consumers During the Purchasing Process 9