Category Archives: Research
Nielsen’s Latest Report Reveals How Technology and Culture Drive Black Buying
African Americans want more for themselves and from corporate America, and they express it with their dollars as they move through the consumer journey, from brand awareness to purchase, as revealed today in Nielsen’s 2019 Diverse Intelligence Series (DIS) Report on African Americans.
It’s in the Bag: Black Consumers’ Path to Purchase explores the non-linear and uniquely technologically driven road that African Americans follow to make purchasing decisions, which ultimately maximizes both online and in-person shopping options. This path highlights several differences in shopping behavior and purchasing when compared to the total U.S. population. The report also includes deeper insights into how culture, socio-economics and business influences how, why and what motivates African American spending in a special co-authored section by advocate and media commentator Angela Rye, CEO and Principal of Impact Strategies.
“At 47.8 million strong and a buying power that’s on par with many countries’ gross domestic products, African Americans continue to outpace spending nationally,” said Cheryl Grace, Nielsen’s Senior Vice President of Community Alliances and Consumer Engagement and co-creator of the DIS Report. “This year, we wanted to help brands and marketers understand the multi-faceted process that Blacks take to buy the products they buy. There are several drivers, but culture is at the center of them all. Further, with their love for technology, they are much more savvy and conscious consumers. They are as we say, ‘woke.’ They pay attention to how companies are speaking to them. As they spend more, they want more for themselves and from the brands they support.”
Dating back to 2011, this is Nielsen’s ninth report highlighting the media consumption, purchasing habits, lifestyle interests and economic advancements of African Americans. It is the third in a theme, released by Nielsen this year following the comprehensive purchasing processes of Asian American and Latinx consumers. Key takeaways from It’s in the Bag: Black Consumers Path to Purchase include:
African Americans are welcoming recipients of advertising across all channels. However, while the trends of the Black buying power and over-indexing in spending continue to increase, companies’ investments to advertise to them have decreased.
- African Americans are more likely than the total population to agree that advertising provides meaningful information on most platforms, including a mobile (42% higher), television (23% higher), radio (21% higher) and the internet (18% higher).
- Advertising spend designed to reach Black consumers declined by 5% between 2017 and 2018.
Physical appearance reflects a sense of cultural pride and self-expression in the Black community. This is evidenced by the top spending priorities for African Americans from everyday soap to luxury handbags.
- African Americans outspend the total market on personal soap and bath needs by nearly 19% ($573.6 million).
- Men are making an impact on grooming habits, outpacing the total market by 20% on toiletry items.
- Blacks are 20% more likely than the total population to say they will “pay extra for a product that is consistent with the image I want to convey.”
- They are also more likely to say they shop at high-end stores including Saks Fifth Avenue (63%), Neiman Marcus (45%) and Bloomingdales (24%).
While online shopping grows, African Americans continue to head to physical stores for the personal touch and feel experience—but with more discerning eyes.
- More than half (52%) of African Americans find in-store shopping relaxing, compared with 26% of the total population.
- 55% of Black consumers say they enjoy wandering the store looking for new, interesting products.
- When shopping, African Americans are more influenced than the total population by store staff (34% more likely), in-store advertising (28% more likely) and merchandising (27% more likely).
The “for us by us” trend of Black-owned brands is profoundly impacting the African American path to purchase and consumer marketplace. Black consumers support brands that align with their lifestyles and values.
- African Americans dominate the ethnic hair and beauty aids category, accounting for almost 90% of the overall spend.
- 42% of Black adults expect brands they purchase to support social causes (16% higher than the total population).
- 35% of African American shoppers are more likely to agree, “when a celebrity designs a product, I am more likely to buy it.”
- Procter & Gamble (P&G) is the largest advertiser in African American media, spending more than a half-billion dollars ($544.3 million). Five of the top 20 baby care category products come from P&G’s Pampers and Luvs brands.
Soul food drives African American consumers’ top grocery purchases. These consumers are also passionate about the environment, wanting to buy safe, locally sourced food items.
- African Americans outpace the general market on Quaker grits ($19 million); Louisiana Fish Fry ($11 million); Glory Greens (frozen and fresh, $9.5 million combined) and Jay’s Potato Chips (nearly $2.7 million).
- 61% say produce is the most important category to buy local, followed by a bakery and prepared foods (56%), eggs (55%) and dairy (52%).
- Blacks over-index the total population concerned about food safety issues: antibiotic use in animal production (by 20%); artificial ingredients (by 19%) and GMO crop development due to climate change. The biggest worry is rising prices due to trade tariffs (68% Blacks vs. 56% total population).
“Nielsen continues to unearth undeniable data and insights that highlight both the agency and power of Black consumers, and the plethora of opportunities that exist for companies that are focused on nurturing and empowering how they move through the world,” said Jonathan Jackson, former 2019 Nieman-Berkman Klein Fellow in Journalism Innovation at The Nieman Foundation for Journalism and member of Nielsen’s African American External Advisory Council.
Nielsen uses U.S. Census data to determine population estimates that inform its U.S. panels and it’s understanding of consumer behavior. Given the rapid diversification of the U.S. population, an accurate census has never been more important. That’s why Nielsen has signed on as a 2020 Census Official Partner with the U.S. Census Bureau and utilized census data to show the economic and demographic impact of African American consumers. This is the second time the company has leveraged this partnership for the Diverse Intelligence Series, after the 2019 Latinx consumer report, released in August.
For more data and insights, download It’s In the Bag: Black Consumers Path to Purchase at Nielsen’s African American community site. Nielsen invites consumers to weigh in on the discussion using the hashtag #TruthBeTold on social media. Follow Nielsen on Facebook (NielsenCommunity) and Twitter (@NielsenKnows).
Sun Broadcast Group will utilize Nielsen Media Impact to quantify the effect of adding Network Radio to Media Plans
Today, Nielsen (NYSE: NLSN) announced that Sun Broadcast Group has expanded its relationship to licensing Nielsen Media Impact (NMI) powered by Nielsen’s Total Media Fusion. Nielsen Media Impact is a cross-platform media planning and optimization solution that helps clients understand total campaign reach, frequency, and duplication using advanced audience segments. Nielsen Media Impact will enable Sun Broadcast Group to demonstrate the value that its unique audiences bring to an advertiser’s media plan and illustrate radio’s incremental reach.
“With Nielsen Media Impact, we can show advertisers the effect on overall campaign reach and frequency when money is moved between media,” said Jay Bailey, President, and Founder, Sun Broadcast Group. “As we continue to expand our footprint to better serve our affiliates, advertisers and partners across the country, the usage of Nielsen Media Impact will have a vital part in evaluating the efficiency of our plans and demonstrating the true value of radio in driving sales.”
Nielsen Media Impact is a personalized media planning solution that enables cost-effective decision making about where and when to engage audiences with content and advertising. For national planning, Nielsen Media Impact uses respondent-level data from Nielsen’s Total Media Fusion, which includes TV, video-on-demand (VOD), subscription VOD (SVOD), TV-connected device, digital, digital-place based, print, radio, and cinema. Nielsen national radio data within Nielsen Media Impact allows buyers and sellers to understand the value of radio as a medium at the national level and the incremental reach achieved by including national radio in the media mix. Along with the ability to compare radio with other national media, radio within NMI is flexible and includes several market breaks, including custom dayparts, radio formats, owner groups, and RADAR networks.
One Platform. All Media. Nielsen’s Total Media Fusion, the data fueling Nielsen Media Impact, incorporates the most granular respondent-level data from Nielsen measurement panels along with U.S. census calibration for the most comprehensive view of the media landscape in one data set.
“We are pleased to welcome Sun Broadcast Group as a subscriber to Nielsen Media Impact,” said Brad Kelly, Managing Director, Nielsen Audio. “The media landscape is evolving quickly. Cross-platform planning and buying are becoming ‘table stakes’ with big advertisers. Equipped with this powerful new Nielsen solution, Sun Broadcast Group will be using real data to effectively demonstrate how its radio assets can supplement and amplify the effectiveness of TV ad campaigns.”
Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail, and fast-moving consumer goods industries. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.
ABOUT SUN BROADCAST GROUP
Named one of the fastest growing companies in America by Inc. Magazine three years in a row, Sun Broadcast Group is a national radio network reaching over 205 million listeners through its more than 5,500 affiliates in both English and Spanish-language. Headquartered in New York City and with offices in Boston and Boca Raton, FL, Sun offers ad sales representation, syndication, and programming support to producers, hosts and radio networks nationwide. Its growing program and sales offerings include the Sun Select RADAR® Network, The Hit List with Fitz, Country Fried Mix, The Michael Baisden Show, The Jim Brickman Show, Retro Pop Reunion, Throwback Nation Radio, Woody & Wilcox and many more.
Web Site: http://www.nielsen.com
National study also contains insights on implications for radio
Most podcast users are millennial males, listen weekly, and engage with podcasts at home, according to a major new study by the University of Florida College of Journalism and Communications (UFCJC) and Futuri Media, a leading audience engagement and sales intelligence technology firm.
Results were presented at the National Association of Broadcasters’ NAB Show on April 9 as part of a panel discussion titled “Radio’s New Analytics: Understanding Listeners, Delivering Results.”
The study, which included a national survey and in-depth interviews, was conducted in February 2019 with 2,000 regular podcast users who listened to podcasts in the past six months, and 18 participants who gave in-depth interviews on their habits. The study did not define podcasting vs. other types of on-demand audio, and respondents self-identified as podcast listeners. The study results suggest that consumers now consider several types of on-demand audio to be podcasts.
While the study was not limited to those who use terrestrial radio, the sample was large enough that it delivered several insights on the radio format preferences of those who also listen to podcasts regularly.
The study found that nearly three-quarters of users have been listening to podcasts for less than three years and, on average, listen to 4 podcasts per week for either 30 or 60 minutes. Users listen to podcasts on multiple platforms, but YouTube is far and away the dominant platform (70%), followed by Spotify (34%), iTunes/Apple Podcasts app (33%), Pandora (30%), and Google Play music app (23%).
Not surprisingly, nearly 80% of survey respondents listen to podcasts on their mobile devices. What is somewhat surprising is that the users listen to podcast most frequently at home (3.9 on a 5-point frequency scale), followed by in vehicles (2.8/5).
Politics and Government podcasts are the most popular, with 15% listing it as their favorite genre. Music was next (11%) followed by interviews/conversations, comedy, sports and recreation, and non-fiction storytelling, cited by 8 – 9% of respondents.
Listeners trust their podcast hosts highly, prefer host-read ads, and look for creative, informative, humorous, and integrated podcast experiences. They want to listen to hosts who are authentic, feel like a friend, and share the users’ passions and beliefs.
The study also found that among radio listeners who listen to podcasts regularly, 25-34 is the top age cell with both spoken word and music formats, with spoken word format attracting a more male audience (73% vs. 27% female), and music formats having a more even, but female-leaning split (51% female to 49% male). The top five favorite radio formats for regularly podcast listeners surveyed were Classic Rock (11%), Hip-Hop/Rap (10.9%), Country (10.4%), News/Talk (9.7%), and Alternative Rock (6.6%)
The study, which was supported by Futuri Media and their POSTpodcasting system, was designed and executed by UFCJC Telecommunication Professor and Director of Media Consumer Research Sylvia Chan-Olmsted with the help of doctoral student Ms. Rang Wang on the survey and undergraduate students in a capstone class who helped conduct the interviews. More insights from the study can be found at http://bit.ly/2019podcaststudy
SOURCE: University of Florida and Futuri Media
Westwood One to utilize Nielsen National Media Impact to quantify the effect of adding Network Radio to Television Media Plans
Today, Nielsen (NYSE: NLSN) announced that Westwood One has expanded its relationship with Nielsen to license the national version of Nielsen Media Impact (NMI) powered by Nielsen’s Total Media Fusion. Nielsen Media Impact is a cross-platform media planning and optimization solution that helps clients understand total campaign reach, frequency, and duplication using advanced audience segments. NMI will enable Westwood One to demonstrate the value that its unique audiences bring to an advertiser’s media plan and illustrate radio’s substantial incremental reach.
“With Nielsen Media Impact, we can show our advertising partners the effect on overall campaign reach and frequency when money is moved between media,” said Suzanne Grimes, EVP, Marketing, CUMULUS MEDIA and President, Westwood One. “Advertisers will be able to access this tool through the groundbreaking Westwood One ROI Guarantee audio insights platform. It’s a new dimension in making media investments work smarter for marketers using radio, podcasting, and streaming to drive ROI. We welcome the opportunity to demonstrate the power of adding audio to a media plan, giving agencies and brands the information they need to understand the true value of our medium in driving sales.”
“We are pleased to welcome Westwood One as a subscriber for Nielsen National Media Impact,” said Brad Kelly, Managing Director, Nielsen Audio. “With NMI we now have a much clearer understanding of how radio and TV complement, supplement and amplify one another. Westwood One is well positioned to make the most of this extraordinary new tool and shine a bright spotlight on how AM/FM radio can deliver more consumers that advertisers seek.”
“Brands are looking for strategies to fortify and enhance their TV plans, and as America’s largest audio network, we can now demonstrate the incrementality of adding radio to a media plan,” said Pierre Bouvard, Chief Insights Officer at Cumulus | Westwood One. “Radio makes your TV better, and now we have proof via the gold standard of Nielsen total audience measurement.”
In 2018, Nielsen enhanced Nielsen Media Impact, the industry-leading cross-platform media planning solution, to include national radio. Nielsen’s national radio data within Nielsen Media Impact allows buyers and sellers to understand the value of radio as a medium at the national level, as well as the incremental reach achieved by including national radio in the media mix. With the national version of Nielsen Media Impact clients can plan and optimize media allocation and compare total radio, radio formats and radio owner groups with other national media (including TV, digital, print, cinema, and digital place-based media) in advanced audience segments.
Nielsen Expands Nielsen Media Impact To Include Radio
Enhances Cross-Platform Media Planning Solution
Today, Nielsen (NYSE: NLSN) announced that Nielsen Media Impact (NMI) is expanding to include Radio as a media type available within its leading national cross-media planning and optimization solution. Nielsen Media Impact is a cross-platform planning solution available at a local and national level that allows users to understand cross-media reach, frequency, and duplication using advanced audience segments. This enables agencies, media owners, and advertisers to reach their desired audience with cost-effective media plans.
The Radio data will be derived from Nielsen’s National Regional Database (NRD) comprising Portable People Meter (PPM) and diary data. Nielsen national radio data within Nielsen Media Impact allows buyers and sellers to understand the value of radio as a medium at the national level and the incremental reach achieved by including national radio in the media mix. Along with the ability to compare radio with other national media, radio within Nielsen Media Impact is flexible and includes several market breaks, including Custom Dayparts, Radio Formats, Owner Groups and RADAR Networks.
“Having radio data incorporated into Nielsen Media Impact fills a clear need we have heard from the market,” said Jay Nielsen, VP, Product Leadership, Nielsen. “This enables clients to understand a more complete picture around advertising efficiencies across the media that consumers spend time with the most.”
“As the leading audio company in America with over a quarter of a billion monthly listeners on broadcast radio alone, we believe that including radio in Nielsen’s Media Impact offers a needed resource, enabling true comprehensive, cross-platform and cost-effective media plans for our national clients,” said Brian Kaminsky, President Revenue and Data Operations | iHeartMedia.
One Platform. All Media. Nielsen’s Total Media Fusion, the data fueling Nielsen Media Impact, incorporates the most granular respondent-level data from Nielsen measurement panels along with census calibration for the most comprehensive view of the media landscape in one data set. This means access to the de-duplicated insights necessary to make the most informed cross-platform decisions about where and when to engage your audience with advertising. The Total Media Fusion incorporates the following data: TV, radio, VOD, SVOD, mobile, tablet, desktop, print, cinema and digital place-based media.
Earlier this year, Nielsen launched Local Nielsen Media Impact, a local planning and optimization tool available in the 25 DMAs with Local People Meter (LPM) data, which included radio listening from the PPM’s in those markets. Having radio data in both national and local planning tools will give clients access to more comprehensive data for cross-media planning.