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Direct Response Marketing

Field Reports

5 Apr, 2010 By: Jacqueline Renfrow Response


Facebook, Twitter Make Consumers More Likely To Buy, Recommend

By Jacqueline Renfrow (jrenfrow@questex.com)

BOSTON — A recent study of social media usage shows that consumers who are Facebook fans and Twitter followers of a brand are more likely to recommend and buy those brands then before they were fans and followers.

The Chadwick Martin Bailey and iModerate Research Technologies study looked at more than 1,500 consumers and found that 60 percent of Facebook fans and 79 percent of Twitter followers are more likely to recommend those brands. It also revealed that 51 percent of Facebook fans and 67 percent of Twitter followers are more likely to buy the brands they follow.

“While social media is not the silver bullet that some pundits claim it to be, it is an extremely important and relatively low cost touch point that has a direct impact on sales and positive word of mouth,” says Josh Mendelsohn, vice president at Chadwick Martin Bailey. “Companies not actively engaging are missing a huge opportunity and are saying something to consumers — intentionally or unintentionally — about how willing they are to engage on consumers’ terms.”

Also, the study looked at the perceptions consumers have of brands not engaging in social media. For brands not involved with Facebook or Twitter, women ages 50-54 said that a company is expected to have some sort of digital face to be relevant in the marketplace and younger women, ages 18-24, said that if they don’t, it “shows they are not really with it or in tune with the new ways to communicate with customers.”

Men in the older demographic said these companies were not interested in or unaware of the demographic that uses these networks, and the younger group of males said that if they’re not on these networks, “they aren’t in touch with the electronic people.”

 

U.S. Advertising Expenditures Down 12.3 Percent

By Jacqueline Renfrow (jrenfrow@questex.com)

NEW YORK — Total advertising expenditures for 2009 fell 12.3 percent to $125.3 billion, according to data from Kantar Media (formerly TNS Media Intelligence, provider of Response’s exclusive short-form DRTV and DR radio media billings research). In fourth-quarter 2009, ad spending was down 6 percent from the same quarter in 2008, with most media improving from its January-September performance.

“The advertising recession began to ease in the final two months of 2009 and preliminary figures from the first quarter of 2010, when compared against the abyss of a year ago, indicate many sectors are experiencing growth,” says Jon Swallen, senior vice president of research at Kantar Media. “Given the restraint in consumer spending, it appears marketers have more confidence right now than their customers.”

Internet display advertising increased 7.3 percent in 2009, helped by higher spending in telecom, auto and travel. The only other medium achieving full-year growth was free-standing inserts, up 3 percent.

National TV media outperformed the overall ad market. Cable TV expenditures dropped 1.4 percent, while network TV (down 7.6 percent) and Spanish language TV (down 8.9 percent), each saw improving results toward the year-end. By contrast, spot TV lagged behind with a 23.7-percent spending drop.

Print media was hit by reductions, including newspaper ad spend falling 19.7 percent, consumer magazines down 16.6 percent, and Sunday magazine expenditures down 11 percent.

Among the top 10 advertisers of 2009, the combined spend of measured media was 0.9-percent lower than 2008 outlays. Among the top 50 marketers, 2009 spending fell 5.1 percent, and those outside the top 1,000 (small advertisers) trimmed their budgets by 20.3 percent.

 

 

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