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Spending Expectations Are Up With Consumers And Marketers
11 May 2010 Posted by Market and Main Media
Consumers’ hibernation may be over, according to an article in Ad Age. While the recession kept consumers eating at home, limiting spending and buying private-label goods, there are some signs that these behaviors are beginning to change. For instance, March showed the largest one-month gain in consumer spending in over a decade and auto sales are up by 24% from a year ago, a huge positive gain. In addition, private label sales have been leveling off in the last few months. Furthermore, Consumer Edge Research’s tracking study found that people eating out more than they had been even a few months ago, are less likely to wait for a deal (in the form of coupons or price promotions) and are more likely to buy toiletries and cosmetics.
This is good news for marketers’ spending as well. Though Zenith Optimedia’s global ad-spending forecast still calls for a spending decline for 2010 in North America, the organization has changed that forecast twice recently in favor of more spending. CPG marketers seem to be ready to start spending again as well after sharp spending cuts last year, says a Sanford C. Bernstein report.
WHAT DOES IT MEAN TO ME?
Advertising budgets will take a while to catch up with consumer behavior. Therefore, it is critical that your advertising media plan is optimized to activate shoppers. Your media strategy will need to reach shoppers at every stage of the purchase funnel to make the most out of the increasing demand for products and services. Now is the time to partner with a best-in-class media planning team to maximize your advertising budget.
RELATED
“Spring Brings in Rosier Marketing Picture. With Consumer Spending Across Categories Back on the Rise, Ad-Spending Forecasts Are Also Up,” Advertising Age, 4/12/10 adage.com/article
“Spring Brings in Rosier Marketing Picture. With Consumer Spending Across Categories Back on the Rise, Ad-Spending Forecasts Are Also Up,” Advertising Age, 4/12/10 adage.com/article
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