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What: We spoke to Steve Barr, Consumer Markets Leader at PwC, about consumers’ shopping behaviors during this year’s holiday season.
Why it matters: Thanksgiving and Black Friday are the busiest shopping days of the year; however, traffic has declined from previous years. PwC’s insights provide valuable information to engage consumers more effectively.

PwC’s 2018 Holiday Outlook report reveals findings from a national survey of 2,071 consumers, offering details about where and when consumers shop, what drives their purchasing decisions, their holiday travel, and movie-going plans and how retailers are preparing for the season. Economic growth in 2018 is poised to be the strongest since 2005.

Consumers told PwC they would spend an average of US $1,250 each on Thanksgiving on gifts, travel, and entertainment, an increase of 5% over last year. Thanksgiving and Black Friday are still the busiest shopping days for stores, but traffic is declining.  In 2018, it fell as much as 9 percent from 2017.

More people went online since stores put their best deals on their websites. Online sales for Wednesday through Black Friday was 26% higher than in 2017, estimated Adobe Systems. In 2017, online sales rose 18%, according to Adobe Systems Inc. Sales hit a record of US $7.9 billion. 40% of these purchases were done from mobile phones.

Black Friday is part of the holiday shopping season. According to the National Retail Federation, sales during the last part of the year will be up 4.1% when compared to 2017.

We talked to Steve Barr, Consumer Markets Leader at PwC, about what brands can learn from the new shopping trends and how to target consumers in the best way.

Portada: What can brands learn when looking back to previous years?

Steve Barr: Consumers continue to prefer an omnichannel shopping environment, and innovation is key to staying relevant in this increasingly competitive retail landscape. Additionally, brand trust continues to be an important factor for consumers when making purchase decisions, a trend that we’ve seen in the past and that continues to prevail. Finally, experiences are critical. Shoppers want to have an enjoyable and stress-free experience, whether in-store or online.

Portada: Why do you think U.S. Hispanics are spending more than non-Hispanics?

S.B.: Hispanic consumers are the second fastest growing ethnic group in the US, and constitute almost one-fifth of the overall population in the US. As true omnichannel shoppers, Hispanic parents prefer to seek ideas and inspiration in stores, while also being ahead of the curve on mobile shopping and smart payment. This holiday season, more than half (57%) of Hispanic parents will be shopping in stores.

Portada: What is your view on what is coming in 2019? 

S.B.: Retailers should continue to keep an eye on the impact of trade and tariffs as we move into 2019. A decent consumer sector and strong consumer sentiment in Q4 – consistent with the outlook for holiday spending – will be positive for growth overall, but it’s unlikely to prevent an overall slowing from the Q2 and Q3 pace. If they were looking for a GDP “pop” from holiday sales, I’d say that is unlikely – it’s probably going to be more of a stabilizer.  The one upside risk to that is, if it looks like we are going to see existing tariffs move from 10% to 25% on January 1 – or tariffs expanding to all US $500bn of Chinese imports – consumers may be incented to pull demand forward, to near the price increases.

Portada: Can you tell me more about the methodology of the study? 

S.B.: Every year, PwC releases a holiday outlook report that compiles responses from consumers about their shopping habits during the holiday season. This year we surveyed 2,071 individuals. The methodology behind the report is to showcase trends impacting consumers around the holidays. This year’s report focuses on different trends and demographics, and found that consumers will spend 5% more this holiday season than in the past.

  If retailers are able to reach Millennials and Gen Z consumers, they have a lot to gain. Combined, the number of individuals making up these generations is clearly bigger than any other generational consumer grouping.

Portada: What should brands do in order to leverage the opportunity in Holiday Shopping and stand out among the fierce competition? 

S.B.: Millennials and Gen Z will be shopping this holiday season – online, on their phones and in stores. Our Holiday Outlook Report revealed these younger consumers (17-35) plan to spend more or the same as the last holiday season, and consumers across the board will spend 5% more this holiday season. If retailers are able to reach Millennials and Gen Z consumers, they have a lot to gain. Combined, the number of individuals making up these generations is clearly bigger than any other generational consumer grouping. They also yield a lot of retail power.

Portada: What role do you think technology is playing?

S.B.: Technology plays a huge role in how consumers shop during the holiday season. Mobile devices like smartphones and smartwatches will continue to dominate how consumers pay for their holiday purchases. In fact, among Gen Z-ers who plan to do all their holiday shopping online, half will use their smartphones. Overall, 30% of consumers will use smart payment in stores in the holiday season – 24% will pay by smartphone and 16% will pay via a wearable device.

Portada: Do you have any info on what categories will benefit the most from the shopping frenzy?

S.B.: Streetwear – a style of casual clothing that blends diverse global elements is currently valued at upwards of US $100 billion. More than 70% of both Gen Z and Millennials wear streetwear, while 54% of millennial dads and 44% of African-American consumers responded they plan to purchase the stylized form of clothing this holiday. Today, streetwear attracts attention from both private equity and couture, forging a variety of creative alliances with luxury brands.

Images source: PwC

What: A summary of the most relevant consumer insight research in the US, US Hispanic, and Latin American markets.
Why it matters: If you’re trying to keep up with the latest happenings, this is your one-stop shop.

  • Recent Nielsen data shows that sales in the fast-moving consumer goods (FMCG) market are up. Specifically, on and offline FMCG sales totaled more than US $1.01 trillion in the year ended Aug. 25, 2018, which is 2.6% more than a year ago. It is worth noting that e-commerce accounted for 5% of total omnichannel sales, but drove 40% of its growth.

 

  • According to Simmons‘s 2018 State of the Hispanic-American Consumer report, although the Hispanic population is growing among all age groups, it’s the younger generations where we can see the greatest growth. In fact, while 13% of Americans age 35 and older are Hispanic today (up slightly from 12% in 2013), nearly one-quarter of Americans ages 6 to 34 are Hispanic or of Latin origin (up from 23% in 2013).

 

  • As shown in a new survey by Convey, a delivery experience management provider, 98.1% of US internet users agreed that shipping impacts brand loyalty and 83.5% said they wouldn’t buy from a retailer again after a negative delivery experience. Most still choose cost (61.8%) over all other factors, but 9.7% said next- or same-day delivery is the most important factor when choosing shipping, a 59% increase over 2017.

 

  • PwC’s 2018 Holiday Outlook report, a national survey of 2,071 consumers, has found that economic growth in the 2018 holidays is poised to be the strongest since 2005. Consumers said they will spend an average of US $1,250 each this holiday on gifts, travel, and entertainment, an increase of 5% over last year. More than 70% of respondents said they plan to shop on Thanksgiving compared to a scant 40% in 2016.

 

  • As shown in social listening data gathered by Circus Marketing, Mexican consumers have changed their fall-holiday priorities during the last 5 years. In 2014, Halloween generated 51% more conversations on social media than Dia de Muertos, but this has occurred in reverse in 2018 with Día de Muertos generating 9.5% more posts than Halloween, which shows an average annual growth of 17%.

 

  • According to research by Nielsen, 49% of U.S. consumers adhere to a particular diet or health-related eating program. Also, 44% say food allergies, intolerances or sensitivities affect the way they shop. These metrics complement findings from Nielsen’s 2017 sustainability survey, which found that 67% of consumers want to know everything that goes into the food they buy. Additionally, 46% of Americans say that claims on food products have a direct influence on their purchase decisions.

 

What: A summary of the most relevant consumer insight research in the US, US Hispanic, and Latin American markets.
Why it matters: If you’re trying to keep up with the latest happenings, this is your one-stop shop.

  • A recent report by PwC found that 90% of U.S. Hispanic consumers stream video on their mobile devices. PwC analyzed streaming languages for across generations, and it found that 32% of 1st generation Hispanics say they stream in Spanish and English equally, while 41% of second-generation users prefer English over Spanish, and 58% of third-generation consumers stream in English only.

 

  • According to Nielsen’s National Television Household Universe Estimates, there are 119.9 million TV homes in the U.S. for the 2018-19 TV season. The number of persons age 2 and older in U.S. TV Households is estimated to be 305.4 million, which represents a 0.3 % increase from last year. Increases in U.S. Hispanic, black and Asian TV households were also seen, due to estimated increases in population growth.

 

  • New research about insurance buying by Claritas shows that 60% of 18-34-year-old decision makers consider themselves to be early adopters of new products. That’s over four times more likely to try new products than their 65+ counterparts. Millennials are also two times more likely to purchase from a trusted company. They are more heavily influenced by brand name, feeling that it is the best indication of quality.

 

  • A survey of 1000 U.S. adults by Adobe Analytics has found that 32% of consumers now own a smart speaker. Almost half (47%) of smart speaker owners use voice assistants for product research, 43% to create shopping lists, 32% for price comparisons, 28% to research store information and 27% to check for deals and promotions. The Adobe study concludes that after the upcoming holiday season, nearly half (48%) of U.S. consumers will own a smart speaker.

 

  • According to Nielsen’s data, sales of products featuring American’s favorite fall flavor are already moving off shelves. In the week ended Aug. 25, 2018, sales of products with pumpkin flavorings reached over US $6.9 million, up nearly 10% in dollar growth and more than 7% in unit volume from the same time last year.

 

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the market and/or targeting Multicultural consumers right now.

To subscribe to Portada’s Interactive Database of Marketers targeting U.S. consumers, please contact Sales Research Manager Silvina Poirier silvina@portada-online.com.

For prior Sales Leads editions, click here.

  • Molson Coors

18bd4c62e115703b3feaae375fdf2a43_400x400Brewing company Molson Coors has moved its’ US media business to Publicis Media, with the creation of a bespoke ‘Connect’ media solution. Zenith Media retained the account in the UK. The US account was valued by Kantar Media at US$340m in ad expenditures during the first nine months of 2016. IPG’s Initiative was the incumbent since 2008.Kinetic will continue to be the out-of-home partner in both the UK and the US. Recently, Molson completed its US $100 billion takeover of MillerCoors, which is now the larger company’s US division and the country’s largest single brewer. Publicis Media has created two Molson-dedicated units to service the account, including Chicago-based Connect powered by Publicis Media for their U.S. business, and London-based Connect powered by Zenith for the U.K. business.

To get detailed contact information about the DECISION MAKERS BEHIND THESE CAMPAIGNS AND ACCESS AN INTERACTIVE DATABASE OF MORE THAN 2,500 MARKETERS targeting U.S. consumers, please contact Sales Research Manager Silvina Poirier silvina@portada-online.com to activate your subscription.

  • Mattel

7219_152274167599_148757037599_2648143_8226052_n_400x400Toy maker brand Mattel has appointed two Publicis Groupe’s MediaVest|Spark and DigitasLBI for media planning and buying duties following a review that began last October.Mattel spent around US$120 million annually on ads in 2015, according to Kantar Media. Prior to the new assignment, Publicis Groupe’s Starcom  handled planning and WPP’s Mindshare did buying.

 

To get detailed contact information about the DECISION MAKERS BEHIND THESE CAMPAIGNS AND ACCESS AN INTERACTIVE DATABASE OF MORE THAN 2,500 MARKETERS targeting U.S. consumers, please contact Sales Research Manager Silvina Poirier silvina@portada-online.com to activate your subscription.

  • Destination Canada

descargaDestination Canada has two new agency partners who will help bring more travelers to Canada.The two media agencies selected to work on the account are IPG Mediabrands Canada (IPG) and DIG Digital Innovation Group Inc. (DIG).Destination Canada’s media agencies will be responsible for channel strategy; media purchasing for paid search; social media, programmatic digital media buying and traditional media; global and regional content partnership negotiations; technical media production and tag management implementation as well as analytics and reporting.Incumbents were OMD, in collaboration with DDB, and Acronym. Destination Canada will continue to work with OMD and Acronym through to the end of April.

  • CoStar Group

jjCoStar Group, Inc. launched the nation’s only exclusively Spanish apartment-listing site, Apartamentos.com. Built and tailored to meet the needs Spanish language households in the U.S., Apartamentos.com is the newest addition to the Apartments.com network of sites– joining Apartments.com, Apartment Finder, Apartment Home Living, move.com, doorsteps.com and realtor.com®. As part of CoStar Group’s process in pioneering a Spanish language apartment site, community listings have been subject to human translation for the most accurate and authentic presentation. Property Managers can receive leads in either English or Spanish, with on-line translation available. Every current and future paid advertiser on Apartments.com will receive a translated ad on Apartamentos.com to reach an even broader audience.

  • Philly Cream Cheese

images-1Philly Cream Cheese, a Kraft Heinz brand, is running its new “Tiene que ser Philadelphia”  Spanish-language advertising campaign. Ads are running in Telemundo, Univision and Unimas with online video ads also planned. In the new “Tia” spot, the power of creamy Philadelphia cream cheese transforms a family event into something enjoyable and irresistible for everyone. It showcases how the authentic and fresh ingredients that go into Philly give it power to transform everyday moments like these. The spot also highlights the brand’s less processed credentials – no artificial preservatives, flavors, or dyes in the soft cream cheese spread. For Philadelphia, this spot is geared towards their growing Hispanic market, supporting an affinity for this beloved brand. In addition to launching this new creative campaign, Philly is pushing into snacking with three new products launching early 2017 in nationwide retailers: Cheesecake Cups, Bagel Chips and Cream Cheese Dip, and Garlic & Herb Cream Cheese Spread. Creative agency behind the effort was Lapiz. Starcom Mediavest is Kraft Heinz media agency of record. Kraft Heinz spent $44.2 million on measured-media for Philly brands from January through October 2016, after spending $33.7 million in calendar 2015, according to Kantar Media.

  • PwC

descarga-2PwC (formerly Pricewaterhouse Coopers) is reviewing media agencies to assist in the execution of an advertising campaign, according to AgencySpy. A spokesperson indicated that this would be a strictly media agency review, but several parties close to the matter tell AgencySpy the remit goes beyond media strategy to include creative—and that Huge and Deutsch are among the shops currently pitching. PwC has been steadily building its internal agency Digiday profile for the last three years. PwC spent around US$11 million on paid media in 2015 and just under US$10 million during the first 9 months of 2016, according to Kantar Media.

  • DishLATINO

eugenio_derbez_photo_storytelling_exampleDishLATINO launched Sigue Haciéndola (which translates “keep pressing on”), a comprehensive campaign recognizing and celebrating U.S. Hispanics, from their cultural heritage to the values, dreams, and even challenges that inspire them to keep moving forward. The campaign features new TV commercials starring actor, producer and director Eugenio Derbez. One of the spots, known as Reconocimiento (“Recognition”), shows fans recognizing Derbez because of his fame, then turns the focus to the hard-working Latinos who are dedicated to providing for their families and communities. Latin Grammy “Best New Artist” nominees Periko & Jessi Leon wrote and recorded an uplifting, original anthem, “Somos Latinos.” Periko & Jessi Leon star in a new music video. The song can also be heard in the TV spots featuring Eugenio Derbez, as well as in other elements of the campaign. DishLATINO will be inviting U.S. Hispanics to share their story by customizing an image (such as a social media profile picture) to show where they’re from and where they’re making it. Users can then upload the image directly to social media and add a message about their unique story. Eugenio Derbez, who will be among the first to create and share a customized image, shares more about how to create an image in this video (Spanish only).

https://youtu.be/r_c2Qhuw5CY

Join us at PORTADA Mexico!

What:Mexico becomes a very interesting country for ad marketers for mobile ad marketers after leading Smartphone Market in Latin America in 2013.
Why it matters: The country is expected to outdo every Latin American market in mobile ad spending during 2014.

Photo: Esther Vargas. CC Licence.
Photo: Esther Vargas. CC Licence.

Smartphone usage in Mexico has aroused mobile marketers’ interest.

According to eMarketer, smartphone penetration in Mexico is “comparatively high” to other major Latin American countries. Smartphone usage in Mexico doubled in 2012. In 2013, it grew by 50 percent. EMarketer estimated that 6.1 million people will be added to Mexico’s smartphone owners population.

smartphone

Mexico could see approximately 33.3 million smartphone users, which is more than one-quarter of the country’s population (118.4 million inhabitants). Mexico’s “lack of competition” in the mobile industry, has led to high priced mobile data plans and device prices. For this reason smartphones have been “out of reach” for many people in Mexico. Mexican smartphone users usually come from top-earning socioeconomic groups, which is why alternatives to provide smartphones to “less-banked and credit-card-lacking portions” of the Mexican population are being considered by mobile carriers.

The country is expected to outdo every Latin American market in mobile ad spending during 2014, at the expense of advertisers and marketers time spent in the country. Mobile markets revenues in Mexico ,including development and production costs and ad spending, was of US $60.3 million(794 Mexican pesos) in 2012. It increased by 98 percent in comparison to previous year’s US $51.9 million revenues.
ads im.According to the Interactive Advertising Bureau Mexico (IAB México) and PricewaterhouseCoopers (PwC):
• Display advertising, from mobile browsers to games and apps, accounted for 79.3 percent of mobile advertisement in Mexico during 2012.
• Mobile advertisement network StartMeApp noted 74 percent of network StartMeApp’ mobile ads took place in Mexican smartphones during the second quarter of 2013.
• While mobile advertisement impressions among smartphones hit 74 percent in Mexico, it accounted for 62 percent for all of Latin America and 76 percent in upper North America.

Latin Link suggested that:

• Mexico leads the Latin American smartphone penetration
• Brazil came in second with 23 percent
• followed by Argentina’s 20 percent
• Chile’s 19 percent
• Peru’s 17 percent.

Sources: Latin Postemarketer , Latin Link