Wednesday, February 22, 2012 | Edited by Daniel Moores
Radio Ads Are Coming Back, and the Presidential Run Will Help

Radio advertising, badly hit by the recession, is bouncing back.

According to a report released Friday by the Radio Advertising Bureau, revenue from radio advertising last year was $17.4 billion, up 1 percent from the year before.

It was the second year of growth for the industry, after three down years. Spending in 2010 was $17.3 billion, up 6 percent from the year before. But the market is still down 18 percent from 2007, when ad revenue was $21.3 billion, according to the advertising bureau, whose data is collected by the accounting firm Miller, Kaplan, Arase & Company.

Jeff Haley, the bureau's chief executive, said that radio's ad market has been helped by an aggressive pursuit of national ads by major broadcasters like Clear Channel Communications and CBS Radio. It was also helped, he said, by big events like Clear Channel's iHeartRadio festival in Las Vegas last year -- featuring Lady Gaga, Coldplay, Sting, the Black Eyed Peas and other stars -- which attracted national advertisers.

Radio also expects to benefit from campaign spending this year, including spots paid for by "super PACs" supporting the presidential candidates. The advertising bureau's report cites projections from PQ Media, a research firm, that campaign spending in 2012 across all media will exceed $5.6 billion; during the 2010 midterm campaigns, radio received 7 percent of total political spending, according to PQ Media.

"We all suffered some pretty drastic declines, but radio has jumped back pretty well," Mr. Haley said. "But like everybody else we'll benefit from the compression of inventory from the Olympics and political expenditures, and it looks like we'll have an unprecedented growth streak for the radio business."

(Source: The New York Times, 02/20/12)
Warm Weather Puts Chill on Brands' Winters

It's the winter that never came.

Across most of the country, a lack of snow and frigid air has left marketers in the lurch. Winter boots and snow shovels are languishing on store shelves while a brisk business is done in live plants and lightweight jackets. It was the fourth-warmest December-through-January period on record, with snowfall 91% below normal last month.

"It's been an amazing winter, with virtually no snow," said Paul Walsh, VP-weather analytics at The Weather Channel. "That follows last year's winter, when we had some areas that had the coldest winter in 100 years. There are big implications from a year-over-year comparison."

Mr. Walsh, once a meteorologist for the Air Force, said most forecasters predicted a milder winter, though they didn't expect it to be this warm for this long. As one forecaster put it, the season was an "epic dud."

With March approaching, industry experts say that even if a major snowstorm or cold temperatures do finally arrive, consumers will postpone winter purchases until next year.

"The reality is that we are 'buy-now, use-now' consumers," Mr. Walsh said. "It's pretty much over. When it comes to weather and driving demand, timing is everything. By the time you get to President's Day, it's all about spring."

While most retailers have yet to report fourth-quarter results, those who have are already citing the necessity of aggressive markdowns to clear winter merchandise. Teen clothing retailer Abercrombie & Fitch told investors that big bets on cold-weather gear and fur-lined garments didn't pay off thanks to the warm weather. And retailers of all stripes reported sluggish sales of cold-weather merchandise as early as December.

"If you planned outerwear up after last year, you're crazy," said Scott Bernhardt, president of Planalytics, a business weather-intelligence firm. "Some (marketers) were more prepared than others. But in all candor, it's very difficult to plan a business down."

But plenty of businesses were down this year. Planalytics reported weather-driven demand for electric blankets and ice melt was down in January, while demand for hot cereal, portable heaters and snow shovels was down in December. Likewise, consumers aren't flocking to The Weather Channel properties in the same numbers they were a year ago, said spokesman David Blumenthal. Viewership soared as the mercury dropped last January, and Weather.com saw record visits.

"It's a tough comparison, because (last year) was so out of the ordinary," Mr. Blumenthal said.

Campbell Soup Co. said U.S. soup sales fell 2% in the quarter ending Jan. 29, with execs noting the warmer weather had "some impact."

"We're absolute advocates of global cooling," joked CEO Denise Morrison. "We acknowledge the fact that the weather was warmer. But we also sell a lot of soup in warm weather climates. So we've got to deal with that. And we are. I think where we're going, particularly with our soup business, is we want to increase usage of the product in some 'positive need states,' not necessarily the negative ones, like when people are sick or when they're cold. So we're not going to use weather as an excuse."

And, in fact, it looks like fewer people need chicken soup. Cold and flu product sales have also been weak, sending U.S. facial-tissue volume down almost 10% in the fourth quarter vs. a year ago. And the news was even worse for the four weeks ended Jan. 22, with facial-tissue volume down 12.5% according to SymphonyIRI. Kimberly-Clark Corp., marketer of Kleenex, blamed a slow start to the season in part for an unspecified double-digit decline in North American facial-tissue volume. The SymphonyIRI data peg the volume decline for Kleenex at 21% in the fourth quarter.

Likewise, volume for cough syrup was down 8.5% in the fourth quarter. And earlier this month, Walgreen's reported it had administered 5.5 million flu shots compared with 6.3 million last year. It also cited lower incidences of flu for a decline in prescriptions filled by consumers.

But there have been some warm-weather winners. Consumers haven't been stuck at home and have been more likely to frequent malls, movie theaters, bars and restaurants.

Beer marketers, for example, root for mild temperatures because people tend to go out drinking more often. "We did have good weather, no question about it, (and) we're delighted for that," MillerCoors CEO Tom Long told Wall Street analysts last week.

Outdoor activities from painting and gardening to hiking and running have also been popular, thanks to the unseasonable winter. Matthieu McAuliffe, head of industry-retail at Google, said searches for outdoor activities and yard maintenance are already starting to pick up, a couple of weeks earlier than is typical. For example, Home Depot is already promoting live plants and seeing brisk sales in Texas, Mr. Bernhardt pointed out. And with consumers having potentially saved money allocated for snow gear, retailers could be poised for a strong spring season.

"While certain sectors are hurting, on a macro level it's good for our economy that it's been so mild," Mr. Walsh said. "There's a lot more opportunity to get out and swing hammers, so it's a tailwind for employment. Arguably it's good for home sales, with consumers spending fewer days inside hibernating. And municipalities don't have to spend all that money for overtime for snow removal."

(Source: Advertising Age, 02/20/12)
Low Prices Less of a Differentiator When Choosing a Supermarket

Consumers have it tough today, but most don't focus unduly on low prices when selecting a primary supermarket, indicate findings of the 2012 National Grocers Association-SupermarketGuru Consumer Panel Survey Report.

Asked how much low prices affect their choice of a store where they'll buy most of their food, the percentage of U.S. adults who say it is "very important" slid again -- from 51.0% in 2009 and 2010, to 44.0% in 2011, and to 39.5% in 2012, the data show.

People seem to realize there's just so much supermarkets can do to keep prices low. Of the consumer groups that do regard low prices as "very important," nearly half (45.0%) come from the three lowest income tiers -- $45,001-$65,000 (19.2%), $25,001-$45,000 (15.8%), and $25,000 or less (10.0%). That may not surprise, but this might: The collective 45.0% figure is lower than 2011's 49.0% and 2010's 56.0%. Even if the food price pain isn't as intense as it was during the recession, it seems as if upper income tiers are feeling it as well.

The research also shows that low prices are more of a concern to African-Americans (55.1%) and Hispanics (51.4%) than to Caucasians (38.4%); these are the percentages of each group that call low prices "very important."

Still, we're in a period of food price inflation, and keeping food costs within the household budget remains an ongoing concern for consumers overall. A majority of U.S. adults surveyed (56.4%) says low prices are "somewhat important" in their selection of a primary supermarket.

Money pressures are also why people continue to implement numerous savings strategies. One of the main ways they stretch their dollars is buying items on sale and money-saving specials. Most consumers (54.8%) still feel this is "very important," although the figure is less compelling than in recent years. In 2010, 60.0% said this, and in 2011, 55.0% did. It appears that four years of bargain hunting has worn thin on a stressed public, who'd rather pay fair prices at a convenient supermarket they generally like.

That's not to say people don't get excited and stock up when they score a deal. In all, 93.8% think items on sale and money-saving specials are "very/somewhat important." This includes 39.0% in the "somewhat" slot, up from 37.0% in 2011. Of 11 income tiers represented in the survey, the four lowest (from $25,000 or less to $85,000) account for a collective 57.5% of respondents who call this "very important."

Although consumers can save automatically when they belong to a retailer's frequent shopper program or savings club, survey findings show this isn't a key factor in their choice of a primary supermarket. Perhaps if food stores targeted their promotions better to deliver relevancy and value, these percentages would be higher. As it is, fewer than one-quarter of U.S. adults (23.2%) say this is "very important," and four out of ten (39.8%) feel it is "somewhat important."

(Source: The Lempert Report, 02/15/12)

Daily Sales Tip: 6 Steps to Achieving Sales Goals

Over the years I've seen many salespeople (and sales managers and companies) get goal planning, action planning, and commitment right, and I've seen many fall short. Without a clear goal they don't know where they're headed, so any path will get them there.

In my experience, only two things set apart those who live by goals and those who don't. Salespeople who live by goals:

-- Know where they're headed
-- Commit to a goals routine

Here's a roadmap you can follow for achieving your sales goals:

1. Review your sales goals first thing in the morning every day. Say your big picture goal out loud (yes, seriously), then go scan your plan for the week and review goals and actions for the day. At the end of each day, review how the day went, and set goals and actions for the next day.

2. On Friday or Saturday, review the week and set goals and actions for the next week.

3. Once per week (this can be at your Friday or Saturday review session), review your goals with a goals partner. Your goals partner can be a peer, a mentor, a coach, or a friend, but it's someone you explicitly work with each week to make sure you're on top of your goals, staying committed, and pushing yourself. Along with goals, milestones, and progress, you should discuss any hassles or potholes that are holding you back so you can fight your way through them.

4. Once per month, meet with a small group of people you trust to review what you're doing, where you're headed, what you'll do in the next month, and get ideas for how you can achieve more and shake off any nagging hassles that are holding you back.

5. Once per quarter, review your progress toward your annual goal. Set no more than 3 quarterly priorities that you'll direct all your passion, energy, and intensity toward so you can stay on track to meet your annual targets. During the quarterly meeting, step back and ask yourself, "What do I absolutely, positively need to get done over the next three months to achieve my annual goals?" Define it, commit to it, and set your monthly targets and actions for the next three months.

6. Once per year, set your targets for the next year. Make sure you ask yourself, "What do I need to do to get to my big picture goal?" When you're done with your goals and plan, ask yourself, "If I get done what I am about to do, will it help me get to my big-picture goal?" Make sure it does before you put your head down for a year and make it happen.

As you're crafting your goals, you should also take care to take your big picture goals and align them to shorter term goals, including what you need to do this year, this quarter, this month, this week, and today.

Sometimes when we're working with salespeople to craft their goals and actions they get hung up on having "the right template" or detailed tracking mechanism, and since they don't have it, they don't even get started. Don't fret too much about the tracking sheet, but do concentrate on taking a step toward your goal every day.

Source: John Doerr, president of RAIN Group, a sales training/assessment company

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