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November 2013

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Aggregates Manager
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Consumers Know Their Data Value, Demand Brand Rewards

From shopping histories to demographic details, consumers now understand the value of their data, and increasingly, expect to be rewarded for sharing such information with brands, publishers and other digital gatekeepers.

That was the thesis presented this week by Rick Chavez, the General Manager for Microsoft's Online Services Division.

In fact, 59% of people say they are more likely to buy from a brand that rewards them for their information, according to Microsoft's latest Digital Trends study, which relied on a global survey of some 8,000 consumers.

In addition, with the help of Future Laboratory and IPG Mediabrands, Chavez and his team have identified several new consumer trends, including a demand for more "intelligent" relationships with technology.

"We want intuitive 'off' modes that don't require action but that can be fully trusted," shared Chavez in a related blog post. "We want technology that disappears, but that doesn't disconnect – that's on in the right way, and by 'right,' we mean responsive to our needs in the moment. Not hyper-responsive, not intrusive and not constraining, but in the right way and at the right time."

Chavez and company suggest that consumers have come to expect such intelligent relationships because we have entered what they term an "age of serendipity."

"While in the marketing world, we may feel like it's all programmatic all the time. Consumers want encounters that surprise, challenge and enhance opportunities for discovery," Chavez blogged. "The Age of Serendipity is about receiving something at the right time and place, and in the right frame of mind. Give consumers a pleasant surprise, and they're more likely to build a long-term relationship with [brands]."

Although not quite a clear mandate, a full 50% of consumers are interested in using products and services designed to surprise and delight them, Microsoft found in its Digital Trends study.

© MediaPost Communications 2013

Events Calendar

CRMA Winter Publishers' Round Table
January 10 – 11, 2014
Scottsdale, AZ
www.citymag.org

Mastering Measurement – for Sellers:
Understanding the Metrics and Data in the Ad Ecosystem
January 16, 2014
New York, NY
www.laredogroup.com

AAN Web Conference
January 22 – 25, 2014
San Francisco, CA
www.altweeklies.com

2014 MAGGIE Competition Deadline
January 20, 2014
www.wpa-online.org

AABP Winter Conference 2014
January 24 - 26, 2014
Puerto Vallarta, Mexico
www.bizpubs.org

If you have an event that you would like to announce,
please send your information to e-newsletter@verifiedaudit.com.

Early To Rise, But Holiday Shopping Marginally Increasing

According to Nielsen's 2013 Holiday Spending Forecast, retailers are already rolling out their holiday promotions the day after Halloween. 22% of U.S. consumers report that they've already started their holiday shopping, but 60% say they will wait a bit before they start their shopping. The report says that this holiday shopping season will be marginally stronger than last year, with dollar sales rising just about 2% (Nielsen), buoyed by the strongest consumer sentiment in six years.

Even with the increase in overall consumer sentiment, there are still people feeling the effects of the Great Recession, says the report. 20% of consumers say they have no spare cash, and 68% say they still feel like they're in a recession. With respect to spending ability, 48% say they're living comfortably or spending freely, while 52% say they're limited to spending on only the basics.

Dollar-amount spending this holiday season appears consistent with last year:

• 30% of consumers from all income ranges say they plan to spend between $250 and $500 this season
• 20% say they'll spend between $500 and $1,000
• 6% will spend more than $1,000

Retail channel preference differs by household income. 17% of consumers say they are planning on increasing their online shopping this season and much of that traffic will come from households earning $100,000 or more per year. 20% of consumers in this group say they're going to spend more online, compared with 15% among consumers in households earning $50,000 or less. In contrast, 12% of consumers in households earning $50,000 or less say they plan to spend more at dollar stores this year, flanked by just 4% of consumers in households earning $100,000 or more per year.

Consumers say they plan on giving gift cards, tech products, toys and food this year. They also say they are planning on spending more this year on food, clothing, video games and cookware.

The report says beer, liquor and wine will drive between $60 million and $70 million in sales growth. Traditional seasonal fares such as cheese, jams and jellies should also see jumps in sales, while snacks and candy will drive $199 million and $95 million in sales, respectively. The report expects continued growth in pet care (5.3% dollar growth, 0.3% unit growth) and pet food (1.4% dollar growth, 0.4% unit growth).

Consumers are also expected to lean toward healthy options this holiday season, opting for bottled water and juices over carbonated beverages and shelf-stable juices. Health-conscious consumers are expected to lift vitamin sales this holiday season, driving strongest-value growth ($91 million) in the department (5.8% dollar growth, 5.2% unit growth). The report forecasts strong-value growth from fresh produce (8.2% dollar growth, 1.6% unit growth), while canned vegetables will likely see more than 2% dips in dollar and unit sales.

Nielsen publishes its holiday spending forecast annually and is a reliable indicator of actual holiday spending results. In 2012, five out of five category trends, as well as the highest performing category, were successfully predicted by Nielsen. Across four key categories, there was less than a 1 point difference between the Nielsen forecast and the actuals.

READ MORE ABOUT THE NIELSEN STUDY

© MediaPost Communications 2013

Tips & Techniques: Free Digital Bulk

Qualified Non-paid Bulk/Free Target Digital is defined as a free replica digital edition accessed through a publisher's website. The copy must be a replica of the print edition and contain the same content, advertising and general appearance (e.g., a flip book). A reader must actively request to view the digital edition (click a link, etc.) and the edition cannot open automatically when a visitor accesses the website.

A Non-paid Bulk/Free Target Digital Edition is not unrestricted access to the publisher's website, even if it carriers the same content and advertising.

Only the number of copies viewed by Absolute Unique Visitors during the on-sale period may be reported as qualified Non-paid Bulk/Free Target Digital. Digital editions served as a back copy (outside the on-sale dates) are considered non-qualified.

For the audit, publishers must provide the following:

• Report showing the number of Absolute Unique Visitors that successfully accessed the digital edition. Access is defined as reasonable assurance that the replica edition was viewed on a computer or other electronic device (i.e., smartphone, iPad, etc.).
  
  
• Reputable third-party analytics (Google Analytics, Omniture, Zinio, etc.) if the digital replica edition is hosted by a vendor or SMTP logs if the edition is hosted by the publisher. The report must include the number of digital editions accessed per on-sale period. For example, for a weekly publication, the report must be able to provide a week-by-week breakout of unique visitors to the digital edition.

Qualified Non-paid Bulk/Free Target Digital will be included in your total qualified circulation on the Audit Report and Publisher's Statement.

If you have questions about Qualified Non-paid Bulk/Free Target Digital, please contact Verified at 415-461-6006.

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