Consumer Spending Insights Point To Recession-Busting Opportunities For Marketers
CONSUMER SPENDING INSIGHTS POINT TO RECESSION-BUSTING OPPORTUNITIES FOR MARKETERS
Powerful Creative can Compensate for Reduced Media Budgets
Sydney, Australia, 22 July 2009. The economic climate continues to impact consumer spending with new research by Millward Brown revealing 67% of Australian consumers are being more careful or actively reducing their spending. While men were most likely to simply buy less (53% of men versus 37% of women), women preferred to buy the same brands but wait for price promotions before making a purchase (52% of women versus 35% of men).
Encouragingly for brand owners and marketers, less than a third of consumers reported switching to cheaper brands and stores’ own brands.
Commenting on the survey, Ben Dixon, Managing Director of Millward Brown Australia, said:
“As this survey has shown, when economic conditions necessitate changes in spending behaviour, many consumers would rather wait until their favourite brand is on special than switch brands, illustrating the power of strong brands.
“When marketing budgets are under pressure, there is even more impetus to ensure the creative within campaigns works harder to effectively compensate for reduced media spend. Meat and Livestock Australia’s Sam Kekovich Australia Day executions perfectly illustrate the benefit of impactful creative. These ads deliver three times the punch of the average Australian advert and consequently triple the MLA’s effective media spend through great, memorable creative,” Mr Dixon said.
MLA’s manager of marketing strategy Andrew Cox said “Since its debut in 2000, our Australia Day lamb campaign has grown to the point where it is considered valuable content by media networks, who now pitch for the TVC each year. We would never have got there without a sound long term strategy, excellent creative ideas and powerful consumer insights. And these fundamentals are proving just as important in bad times as they are in good.”
Key survey findings:
- 67% of respondents actively trying to reduce spending or being more careful. Of the remainder, 30% say the economy has little impact on their spending and 3% feel comfortable increasing their spending.
- The global financial crisis has impacted the majority of households, regardless of income level. 71% of low income earners, 61% of middle income earners, and 57% of high income earners report being more careful or reducing spending.
- Where consumers are reducing spend or being more careful:
- 53% of men and 37% of women are simply buying less.
- 52% of women and 35% of men are buying the same brands but waiting for price promotions before they buy.
- Respondents in their forties were most likely to buy less; those in their thirties were most likely to buy the same brands but wait for price promotions; while the under thirties were most likely to buy cheaper branded products.
The survey of 9000 respondents was conducted by Millward Brown Australia between January and March 2009.
NOTE TO EDITORS:
About Millward Brown
Millward Brown is one of the world's leading research agencies with expertise in effective advertising, marketing communications, media and brand equity research (www.millwardbrown.com). The company employs more than 90 staff across Sydney and Melbourne, and has 77 offices in 50 countries. Through the use of an integrated suite of validated research solutions, both qualitative and quantitative, Millward Brown helps clients build strong brands and services. Millward Brown is part of Kantar, WPP's insight, information and consultancy group.
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