Despite the rocky economy weighing down on consumer spending and confidence, Americans credit media advertising with influencing their purchase considerations, according to a major study released 11/9 by the Futures Company (formerly Yankelovich) and TVB. The study was unveiled at the Paley Center for Media in NYC before an audience of advertisers and ad agency execs. See the full study by clicking on the PDF attachment, top right.
The study shows overall ad impact depends on the product category and where the consumer is in the purchase funnel, ranging from Awareness to Consideration to Preference to Purchase. The study examined advertising impact on 11 different ad categories.
Some key highlights:
“In-Market” consumers respond to media on a far stronger basis than non-buyers.
Younger and older consumers respond to media at different levels. No one size fits all, by category.
Actions Caused by media prompts vary enormously by category, from driving sales to word-of-mouth.
New Media is Growing but traditional media still dominate in most categories.
Television Works Down-Funnel:
With “In-Market” response boosted down the funnel, TV drives response and consumer action better than TVB thought.
This is TVB’s second look at the purchase funnel; a report released in April 2009 provided groundbreaking insights into how media influences consumers to move toward a purchase decision.
Susan Cuccinello, SVP – Industry Research for TVB, said: “The advertising community had expressed great interest in our first study. The follow-up client meetings raised additional questions and areas for study which are reflected in today’s report.”
TVB refined the categories that it examined in the first study. It also zeroed in on “in-market” consumers to focus on how media impacts those who are currently “in the market” for certain products and services. Jack Poor, VP – Strategic Planning, said: “And we’ve also asked respondents about secondary and tertiary media in addition to primary, to get a fuller picture of how media interact with and complement each other.”
The Futures Company conducted the survey among 2,500 U.S. adults between July 21 and July 29, 2010. The participants in the study produced 6,427 category ratings across the 11 categories. The studies studied were: fast good/quick service restaurants; casual dining restaurants; department stores; discount stores; grocery stores; hardware/home improvement stores; home, auto, or life insurance; banking services; automotive; furniture/bedding stores; and travel/travel services.
Two consistently strong contributors in most categories and purchase funnel phases, the study found, are television and the Internet. Other media experience a wider range of impact based on category and purchase funnel stage. Television is impactful at all stages of the purchase funnel.
TVB will be bringing more specific research, drilled down into individual categories, on one-on-one calls with advertisers and agencies in the coming weeks.