Tuesday, June 16, 2009

Recession Stirs Resourcefulness

Outsmarting the economic pinch may be one more item on their already full plates, but moms everywhere are rising to the challenge with gusto. Combining old-fashioned resourcefulness with digital-age savvy, today's moms are pioneering new ways to keep their families afloat.

They are leaning on social networks, tapping into online digital mom groups, scouring the Web for local events and freebies, and spending more time together as a family - which just might be the biggest silver lining in this whole financial mess.

Moms are learning new behaviors and adopting a mindset of homegrown innovation. Rather than viewing these changes as drastic sacrifices, moms are accepting them as necessary for the times and even consider them empowering. This dichotomy presents an opportunity for marketers to step up and provide these moms with innovative solutions.

What these moms are doing in response to the recession can be summarized into the following seven themes:

1. Shopping Smarter

Moms have always been smart shoppers but now they're elevating it to a science. It's not just that they are shopping less, but they are changing the way they shop. They are making more considered purchases and placing priority on basic needs. Thanks to web and mobile technology, they are also spending more time online, scouring sites such as Coupons.com.

2. Homemaking Is Back

The economy has got moms turning on the "nesting" dial. They are retro-fitting old-fashioned homemaking to save money. Rather than splurging on take-out, the humble brown-bagged lunch is all the rage. Beyond meal prep, moms are also cutting back on outside cleaning services, landscaping, etc., and trading off with their spouses for weekly chores.

3. Going Green To Save Green

The economy is prompting moms to shift into greener behaviors, protecting their pockets along with the environment. Many are routinely monitoring their thermostats and making sure to turn off unnecessary appliances. Following suit with the First Lady, moms are planting gardens and cooking vegetarian once a week to save on meat costs. Others are taking public transportation instead of driving and are tapping into tap water rather than purchasing bottled water.

4. The Family That Plays Together

Spending time together and participating in family-related activities seem to be other positive results of the economic downturn. Families are deciding to spend more nights at home, playing board games or renting movies. Rather than spending money on expensive sporting programs and faraway vacations, families are taking advantage of free local events at festivals and parks.

5. Making It Last

Taking a page from their frugal grandmothers and great-grandmothers, Gen X and Y moms are determined to make things last. Digitally savvy moms are turning to the Internet to find ways to recycle and reuse by selling unwanted items on eBay and buying used toys and fitness equipment from Craigslist. Moms' trips to the mall are being replaced with trips to their own closets. They're even extending the life of their cars and homes with do-it-yourself, fix-it projects.

6. Staying Healthy

In an effort to stave off the economy's toll on their mental and physical state, moms are boosting their mind and body resistance. Of all the extra services they're willing to cut out of their budgets, many won't let go of their gym memberships. They understand that staying healthy is the best way to steer clear of preventable sickness and unnecessary medical bills.

7. Kids Come First

The belief that kids come first has only been intensified as moms are forced to make top-line priorities. They're sacrificing name-brand apparel and personal care items for themselves but continue to purchase quality items for their children. It's all about priorities, and moms are clear as to where their focuses lie: It's about getting it right for their families first rather than themselves.

Editor's note: If you'd like to contribute to this newsletter, see our editorial guidelines first and then contact Nina Lentini.



Baysie Wightman is VP/group director of account planning at Digitas. She is a veteran and pioneer in the field. Focusing on P&G accounts at Digitas, she pioneers innovative methodologies to uncover insights that motivate consumers and fuel behavioral trends. Prior to advertising, she had a dynamic career on the client side, working in brand management for action sports companies like Reebok, Converse, Rollerblade, and Burton Snowboards. Her trend work was profiled in the seminal 1997 "New Yorker" article on trends, entitled "The Cool Hunt" by Malcolm Gladwell.

Tina Bronkhorst is VP/group director of account planning at Digitas. She focuses on providing clients with advanced and innovative marketing research expertise. Tina leads a team of marketing research professionals in support of all Digitas clients' primary research needs. A specialist in both qualitative and quantitative research approaches, Tina pushes the organization to utilize the latest research techniques. Reach her here.

Sunday, June 14, 2009

Mom bloggers gain influence

by Anne D'Innocenzio - Jun. 9, 2009 12:00 AM
Associated Press

When Melissa Garcia was frustrated by Old Navy's scanty coupon offerings, she didn't just complain to the store. She vented on a message board tied to her blog consumerqueen.com, which is read by at least 30,000 people each month and now, increasingly, by corporate America.

Within weeks, chatter in the so-called mommy blogosphere led Gap Inc.'s Old Navy to begin issuing coupons several times a week, instead of just once a week.

Moms have always had marketplace power, but a new frugality driven by rising joblessness, housing woes and other economic problems has them exercising it like never before with the help of the Internet.

In this recession, their talk online encompasses everything from complaints to advice on coupon clipping, low-budget meals and family finance. But it's not just fellow moms who are following every post: Retailers and consumer product makers are listening, too - and responding.

"We see (moms who blog) as a vital force for our brand strategy," said Gap spokeswoman Louise Callagy. "They are the voice of our customers, and we are working harder to develop and maintain their trust and respond to their feedback."

After picking up chatter on blogs that was advocating layaway purchase plans be restored at its namesake department stores, Sears Holdings Corp. brought them back over the holidays after a two-decade hiatus. And Sears' Kmart chain now accepts online coupons and has launched a Web site called Kmart.com/coupons that makes it easier to find specific deals, in response to chatter on mom-oriented blogs.

Companies and the bloggers themselves are mutually benefiting. Consumer-product companies like home-appliance maker Frigidaire and Unilever, maker of Suave shampoo, are hoping to enhance their brands by giving free samples of their merchandise to key women bloggers to test.

And bloggers who focus on penny pinching are helping broaden spending behavior like doubling up on online coupons because of their large collective audience.

Money-saving strategies can spread like lightning.

Traffic to blogs written by moms and devoted to saving money has exploded. Couponmom.com - cited by Nielsen Online as one of the five most influential of that breed - attracted 972,0000 unique visitors in March, five times more than a year earlier, according to Internet research company ComScore Media Metrix's latest data.

That's why last summer Walmart Stores Inc. created an online community - elevenmoms.com - on its company Web site that spotlights key women bloggers and pulls together the links to their blogs, including those that focus on frugality like dealseekingmom.com, couponcravings.com, beingfrugal .net and consumerqueen.com.

Walmart says the site fits with it's mantra of saving consumers money. Company spokeswoman Melissa O'Brien said the discounter doesn't pay the 24 bloggers featured, though it does give them free products for review or for giveaway. O'Brien said the retailer requests that the bloggers reveal such disclosure on their sites.

The big audiences and newfound influence have led to opportunity for some of the most prominent bloggers.

Among the most influential mom-oriented blogs Nielsen cites is 5dollar dinners.com, written by Dayton, Ohio, resident and mother of two Erin Chase, 31, who shares daily tips on how she plans and shops for nutritious $5 dinners such as homemade vegetarian pizza for her family of four. She just signed a deal with St. Martin's Press to publish a book on the subject.

Source: AZ Central

Saturday, June 13, 2009

Inside the Mommy Blogger Business

Retailers, Publishers and Agencies Adjust to a New Reality
June 08, 2009

NEW YORK (AdAge.com) -- Despite their lightweight moniker, mommy bloggers have become marketing business heavyweights. Now said to number in the millions, these online women have cobbled together content networks that rival some mainstream media companies. And they're clearly a force that retailers underestimate at their own peril. In this "About Digital" report, we talk to a retail giant, an analyst, major publisher and a PR agency to better understand how various segments of the industry are adjusting to this phenomenon.

Watch the video here.

Thursday, June 11, 2009

34 Million Moms Online

The neighborhood has gotten larger.

Keeping up with their children keeps moms on the leading edge of new technologies and online activities. In fact, they are among the most savvy of all online users.

They are also one of the larger user groups online.

eMarketer estimates 34 million mothers in the US go online at least once a month.


Moms are the key decision-makers for many family purchases, and increasingly the information they obtain and activities they engage in online affect those decisions.

“Moms visit parenting and family Websites, but they also regularly view news, weather and political content online,” says Debra Aho Williamson, eMarketer senior analyst and author of the new report, Moms Online: More Influential Than Ever. “They shop for their kids—and themselves, and when they find something great for their family, they talk about it, not only with their family and friends, but often with a much broader online audience.”

In ways that marketers are only beginning to understand, the Internet is influencing mothers—and enabling mothers to influence others.

A survey by Razorfish and CafeMom found that Websites, referrals from friends and family, and information from search engines were the most common sources online moms used to make a purchasing decision.


The moms were less likely to use TV, magazines, newspapers or radio.

According to Experian Simmons, 70% of online moms made a purchase online in the past 12 months.

When it comes to what moms shop for online, the Marketing to Moms Coalition found that 44% of online moms shopped for themselves—almost the same as the percentage who shopped online for their kids (45%).


In addition, 49% said they researched products online.

Moms surveyed by Razorfish and CafeMom were more likely to have shopped for clothing or accessories (40%) or food/cooking items (31%) online than baby/parenting gear (26%).

“Moms constantly seek and share advice, and they are routinely doing so online,” says Ms. Williamson. “Often they simply reach out to family and friends but as more of them use social media such as consumer review sites and blogs, an increasing amount of the information comes from strangers.”

To find out more about this important demographic, check out the new eMarketer report, Moms Online: More Influential Than Ever.

Wednesday, June 10, 2009

FTC Changes And Social Media

by Robert Wheatley

Could proposed sweeping changes in Federal Trade Commission (FTC) guidelines shipwreck social media marketing and alter the common practice of using third-party spokespeople to deliver brand messages?

"Agencies and clients, especially those working in the social media space, must understand that the FTC's efforts to address deceptive practices can create liability and exposure," said Michael Lasky, senior partner at Davis & Gilbert LLP, a New York law firm that specializes in advertising and communications law.

At issue are additions and modifications now under consideration in the FTC's, "Guides Concerning the Use of Endorsements and Testimonials." Final ruling on the Guides is expected sometime later this summer or early fall. Behind the proposed changes is what Lasky terms, "The 10 Commandments of commercial marketing as found in Section 5 of the FTC Act -- summed up as -- thou shall not commit a false or deceptive practice." The FTC is working to address this: A blogger or spokesperson's failure to disclose a fact or event that could alter the consumer's decision regarding a product or service.

The exploding role citizen journalists and bloggers now play, and the long-standing practice of employing third-party spokespeople for media interviews sit squarely in the bull's-eye of the proposed ruling.

Where's the Danger Zone?

Clients and agencies should look closely at the FTC's efforts in order to steer out of harm's way and any attending legal entanglements. The danger zone and acquired liability arise when marketers pay bloggers or provide other "consideration" such as free products and services in return for a favorable post. The problem is not in the consideration or payment but failure to disclose it. And, thus, tempting a breakdown of the Mom Test -- would mom feel differently about what she reads or hears in a blog post or interview if certain facts were disclosed, whether they be material data or the matter of payment?

Need for Transparency

With liability looming on the horizon, now is the time to carefully examine practices and procedures to help address the disclosure issue up front.

Written Guidelines

Agencies and clients, if they haven't already, should adopt written guidelines that come into play when any "consideration" is involved. The guidelines must work explicitly to "make it clear the company wants the blogger to disclose whether any compensation or any other item of tangible value, such as free product, has been received in return for a favorable post or review," said Allison Fitzpatrick, associate counsel at Davis & Gilbert LLP.

Spokesperson Agreements

When outside third-party experts or celebrity spokespeople are retained for interviews, the acid test is whether or not the consumer will recognize the relationship is paid. According to Lasky, if it is not readily apparent that a celebrity or expert is under contract, then the relationship with the marketer should be mentioned.

Again, the disclosure rule of thumb is transparency first. Spokesperson agreements should specify that the relationship be acknowledged in any interview. This can be accomplished through a statement such as, "I'm here today on behalf of (brand name goes here)."

Again, these rules apply when "consideration" is involved. The world changed concerning what is protected under the First Amendment during the famed Nike vs. Kasky case that put press releases in the spotlight as a commercial marketing tool.

So in the new age of transparency and disclosure, brands should navigate the communications landscape with care about being upfront. Look to the Mom Test as a starting point in your decisions about what to say and when.

Editor's note: If you'd like to contribute to this newsletter, see our editorial guidelines first and then contact Nina Lentini.

Tuesday, June 9, 2009

Women: Well-Connected And Wired

Among the fastest-growing demographics on Facebook are women age 55-plus! The growth of Boomer women on social networking sites is confirmed by a white paper released by VibrantNation.com, based on a survey of 1,000 well-educated Boomer women with household incomes above $75,000. The study reveals three major findings:

1) Vibrant Women, as this sector of the 50-plus crowd is dubbed, are better connected than marketers presume, and their connections are growing with age. They're defying stereotypes that their world of relationships shrinks.

Reasons for the growing network include technological advances in her lifetime (Internet, cell phones). In addition, these are the women that liberated the workplace, laying the groundwork for extended engagement in careers.

Before the workplace revolution and Internet, women's external connections declined as they aged, centering on family and home. The best-educated generation of women in history, many left home for college, backpacked around the world, and later followed their own, their husbands' or their partners' careers to multiple cities. Women 50+ expect to see new places, learn new things and meet new people.

The average active 30-day personal network for women 50-plus in this study is a robust 48. For the most highly connected third of these women, that 30-day network includes an average of 99 personal contacts.

2) After personal experience, Boomer women depend on the opinions of "women like them" (even strangers) more than anything else. Since so few marketing dollars are spent against these women (who spend so much more than their younger peers), they represent the most influential, underserved word-of-mouth marketers alive.

Eighty-eight percent of women declared referrals from others (including online testimonials from strangers) as one of the top three sources in making a purchase decision. In contrast, less than 60% identified advertising as a similarly important influence; less than half defined television as a primary purchase motivator.

Women 50+ are also highly selective about the sources of information they rely on when deciding which specific brand, product or service to purchase. Almost three out of four (71%) reported that they rely on advice from outside their personal networks only if the source exhibits great knowledge about the product or service in question.

3) Vibrant Women tap into existing relationships and seek out new connections not just because of social orientation, but because their needs and interests change as they age. They report motivational drivers that differ markedly from earlier life stages as well as from younger women's motivations to buy.

Almost every respondent reported that motivations regarding purchasing decisions changed dramatically as she entered her late 40s and 50s. This shift arises not from traditional assumptions about consumers nearing retirement, but rather from a constellation of psycho-social factors that come into play at midlife and beyond: financial stability (most reported increased income in their 50s), life stage transitions (empty nest, losing a parent/spouse), physical changes (menopause, surviving breast cancer), new family roles (grandparent, caregiver), and social changes (travel/volunteerism raise social and environmental awareness).

They're twice as likely to select brands based solely on personal needs than in their 20s or 30s. Similarly, they're four times less likely to focus on the needs of others (husband, children, etc.) in their 50s and 60s as they were during their 20s. Finally, this segment of women is more than six times as likely to make purchase decisions based on their personal values (environmental and/or social) as they were in their 20s.

Marketers who fail to address these powerful motivating factors among women who look to each other for answers and referrals - online and in the "real" world - will fail to win business from these valuable, well-connected consumers.

Editor's note: If you'd like to contribute to this newsletter, see our editorial guidelines first and then contact Nina Lentini.

Stephen Reily is the founder of VibrantNation.com, an online destination and peer-to-peer information exchange created exclusively for smart and passionate women 50+. Stephen also serves as Vibrant Nation's CEO and is an entrepreneur, marketing expert and VibrantNation.com Flash Forward Blogger. He graduated from Yale College, summa cum laude, and from Stanford Law School and currently lives in Louisville, Ky., with his wife and three children. Reach him here.

Sunday, June 7, 2009

Entertainment Jumps to Third Behind Cereal and Baking in Online Coupons

According to Coupons.com, entertainment advanced to the No. 3 spot on the list of most popular online coupon categories printed in April. Advancing from No. 6 in March, the Entertainment category includes products like magazines, games and DVDs.

Steven Boal, CEO of Coupons, Inc., says "Consumers are spending less on non-essentials during these tough economic times... many are cocooning... to save money on in-home meals and entertainment... "

Cereal continued to top the list at the No. 1 position, and Baking Ingredients advanced to No. 2 from No. 3 in March. Nutritional/Diet retained the No. 4 position. The ranking is based on the number of coupon prints by category on Coupons.com and sites across the Coupons.com publisher network.

Top Coupon Categories (April, 2009)

Rank

Category

1

Ready-to-eat cereal

2

Baking ingredients

3

Entertainment

4

Nutritional & Diet

5

Bathroom tissue

6

Eye care

7

Soap & body wash

8

Feminine hygiene

9

Pizza

10

Juice

Source: Coupons.com, May 2009

Driven largely by the economic slowdown, the use of digital coupons continued growing nationwide. Shoppers printed $50 million in savings from the Coupons.com publisher network in April, an increase of 160%, from the same month last year.

More than 40 million people currently print online coupons, up 20% from last year according to Simmons Market Research Bureau. In the same time period, the number of people that only print coupons from the Internet and never use newspaper coupons has risen a dramatic 46% to six million.

According to Nielsen NetRatings, Coupons.com is the No. 1 site on the Internet for Coupons/Rewards, reaching more than 75 million consumers through thousands of Web sites, including name brand sites and grocery and drug store sites.

For additional information, please visit here.