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UPCOMING WEBINARS. IMPROVING AD PERFORMANCE WITH THE 3 R’S – FEB. 28 TH. WHAT’s in store 2013. THINK SMALL FOR BIG RESULTS. James Russo - Global Consumer Insights Carman Allison – Shopper & Industry. TODAY’S PRESENTER. CARMAN ALLISON Director , Consumer Insights, Nielsen, Canada
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UPCOMING WEBINARS IMPROVING AD PERFORMANCE WITH THE 3 R’S – FEB. 28TH
WHAT’s in store 2013 THINK SMALL FOR BIG RESULTS James Russo - Global Consumer Insights Carman Allison – Shopper & Industry
TODAY’S PRESENTER CARMAN ALLISON Director, Consumer Insights, Nielsen, Canada Carman Allison is responsible for creating and delivering thought leadership to manufacturer and retailer clients and at CPG industry events. A frequently sought-after speaker, Carman is often quoted in the Canadian press on consumer trends including a monthly column in Canadian Grocer. Carman has more than 20 years of experience in the consumer research industry with Nielsen, where he held various account management and analysis roles.
WHAT’s in store 2013 THINK SMALL FOR BIG RESULTS James Russo - Global Consumer Insights Carman Allison – Shopper & Industry
Source: Nielsen Demand Institute AND THE OPPORTUNITIES ARE IMMENSE $450 TRILLION 38% increase in 5 years 29% increase in 5 years $45 trillion $62 trillion $35 trillion 2010 2015 2020
IT’S TIME TO ACT DIFFERENTLY IN THIS SESSSION, WE ARE CHANGING: The way you assess your marketplace How you sell to your consumer Your views of advertising Where you innovate Where your growth will be achieved 1 2 3 4 5
Canadian Growth is slowing Actual and Projected Canadian GDP Growth (2006-2017) v Source: October 2012 World Economic Outlook Report and Statistics Canada, December 2012
Future growth projections modest Actual and Projected Canadian GDP Growth (2006-2017) Source: October 2012 World Economic Outlook Report and Statistics Canada, December 2012
Consumer CONFIDENCE highest since mid 2011 Nielsen Canada Consumer Confidence Index Source: Nielsen Global Omnibus Consumer Confidence Survey 3Q12
What are your Top 2 concerns over the next six months… DEBT and economic concerns remain in the forefront of consumer minds Source: Nielsen Global Omnibus Consumer Confidence Survey 3Q2012 vs year ago - Canada
volatile, uncertain but improving FACTORS FUEL COSTS EQUITY MARKETS HOUSING INFLATION GOVERNMENT LABOUR MARKETS
Household balance sheet not improving INCOME TO DEBT RATIO AVG INCOME • 2012: 164.6 +6% • 2011: 160.9 • 2007: 124.9 • 2012: $46.6K • +3% from 2011 • +14% from 2007 Source: StatisticsCanada
CPG PERFORMANCE STILL STRAINED Source: Nielsen MarketTrack, Canada National All Channels – 52 weeks ending December 15, 2012 Total Tracked Sales excluding Fresh Random Weight
Poll #1: DO YOU THINK CANADA IS CURRENTLY IN A RECESSION? YES NO NOT SURE
Source: Nielsen Global Omnibus Consumer Confidence Survey 3Q2012 vs year ago - Canada As we Head into 2013….. • 3.5 years Nov 2012 NIELSEN June 2009 NBER Canadian Recession Officially Ends 49% of consumers say we are in a recession
Source: Nielsen Global Omnibus Consumer Confidence Survey 3Q2012 vs year ago - Canada consumer STILL Cautious about the future DO YOU THINK CANADA WILL BE OUT OF A RECESSION IN THE NEXT 12 MONTHS? % SAYING YES
1. Economic 2. Demographic 3. Retail 4. Consumption Innovation 6. Advertising 7. Digital 8. Viewing Habits 9. Entertainment 10. Analytics EVIDENCE FOUND ACROSS THE ORGANIZATION
CONSUMERS ARE Redefining HOME OWNERSHIP 67% Single Dwelling -11% Multi +14% homeownership Average Household Price $363k • Vancouver $780k • Toronto $466k • Montreal $314k Source: CMHC 2012 Report
AS A RESULT, SHOPPING HABITS WILL CHANGE MORE FREQUENT SHOPPING & SMALLER BASKETS MORE ONLINE REPLENISHMENT MORE INTEREST IN LOCAL STORES SMALL HOME FURNISHINGS FURNITURE & APPLIANCES SMALLER PACK SIZES WILL CONTINUE TO THRIVE WILL BE SMALLER DUE TO LESS STORAGE Source: The Demand Institute
Household size continues to shrink 1-2 MEMBER HOUSEHOLDS • 1970: 38.7% • 2012: 62.7% Source: StatisticsCanada
Smaller in size, but shops more frequently TRIPS PER SHOPPER SPEND PER TRIP 1-2 mem: 182 3+ mem: 177 1-2 mem: $36 3+ mem: $51 Source: Nielsen Homescan: 52 weeks to June 30 2012 - Canada
RETAIL FORMATS CONTINUE TO EVOLVE TO SMALLER STORES TO VIRTUAL STORES BIG BOX TO ONLINE TO SMART PHONES
SMARTPHONES ARE REDEFINING CONSUMER CONNECTION POINTS 39% Willing to shop a virtual store 35% 37% of Canadians Own Willing to use a retailer loyalty app 24% Willing to use phone to pay Source: Canadian PanelViews Social Media Survey Oct 2012
WITH SHOPPER TRIPS DECLINING, DIFFERENTIATION IS ESSENTIAL ECONOMIC GROWTH GREAT RECESSION POST RECESSION 226 Avg Annual Trips Per Shopper 200 Avg Annual Trips Per Shopper 179 Avg Annual Trips Per Shopper 2006 2009 2012 Source: Nielsen Homescan: 52 weeks - Canada
FRESH DRIVES GROWTH AND DEMAND 33%GroceryStore Sales 1.5 to 2.1Times Larger with Fresh 53%look for quality fresh when deciding where to shop Sources: Homescan, Canada Grocery Stores: 52 weeks to July 7, 2012
GLOBAL PRODUCT INNOVATION • Reviewed 35 years of new product concepts • Over • 175,000 • concepts were tested • across 73 countries between 1978 - 2012. • 1978 • 2008 • 2012 50% Sources: Nielsen BASES
Population of SUB-SAHARAN AFRICA 68thKenya 40,046,566 64thTanzania 41,892,895 52nd S. Africa 49,109,107 15thNigeria 152,217,341 52nd 68th 15th 64th Sources: CIA Worldfactbook
HOWEVER IT IS THE ONLY GLOBAL REGION, WHERE EACH COUNTRY REALIZED GROWTH IN INNOVATION • 2012 vs 2011 +43% Kenya +17% Tanzania +12% Nigeria +9% South Africa 9% 43% 12% 17% Sources: Nielsen BASES
POLL #2 Of the tv channels you receive in your home, what is the avg. number of channels you watch each week?" 0% to 10% 10% to 20% 20% to 30% 30% to 40% 40% to 50% Over 50%
Average Channels Receivable and Viewed Average hhld receives 180 channels but views only 17 of them each week 9% Source: NPOWER Length of Tuning, 10/01/2012 - 10/07/2012
Tuning in to large and small networks With at least 15 minutes viewed, the likelihood of viewing commercials are just as high. Source: NPOWER Length of Tuning, 10/01/2012 - 10/07/2012
Digital media is capturing more eyes • -1.7% - Watching TV in Home • 4.9% - Watching Time Shifted TV (all TV homes) • 7.1% - Watching Time Shifted TV (only in DVR homes) • 1.5% - Using the Internet on a Computer • 4.2% - Watching Video on the Internet • 1.0% - Using a Mobile Phone • 35.7% - Mobile Subscribers Watching Video on a Mobile Phone Overall Usage – Number of Users Persons 2+ (in 000s) – Monthly Reach Year over Year Change Q4 2010 vs Q4 2011 Sources: Nielsen Cross Platform
However, TV still accounts for 80% of time Average Daily Time Spent on Media Activity (h:mm) Total Population, March 2012 OTHER 1:05 TV VIEWING 4:32 Online Web Browsing | 0:32 Mobile App Usage | 0:13 Time Shifted TV Viewing | 0:11 Online Video Streaming | 0:04 Mobile Web Browsing | 0:03 Mobile Video | 0:01 Source: Nielsen NPower, NetView, Video Census, and Smartphone Analytics
Advertising effectiveness 8 Strategic use of spots
WITH NEW FORMS OF MEDIA, COMES THE NEED FOR SHORTER SPOTS What is the Ad’s net branding success if we consider BOTH Breakthrough & Brand Linkage? How successful is the Ad at connecting to the brand? How successful is the Ad at breaking throughand being remembered? Source: BETV Cross-Sector View of 15s vs, 30s Performance
SUCCESSFUL BRAND CAMPAIGN ILLUSTRATING AN EFFECTIVE USE OF SPOTS Source: BETV Cross-Sector View of 15s vs, 30s Performance
ENTERTAINMENTLeverage demographic shifts and endorsement potential 9
WHAT DO THESE 5 ATHLETES HAVE IN COMMON? DAVID BECKHAM JEREMY LIN MICHEAL PHELPS PEYTON MANNING MANNY PACQUIAO
ASIAN CONSUMERS HAVE VARIED SPORT ICONS Sports personalities N-Score, among Asian consumers 01/01/2012 to 12/31/2012 TOP 10 SPORTS PERSONALITIES AMONG ASIAN CONSUMERS 50