Consumers are feeling better about their personal finances and job prospects these days. The sense of well-being won’t change the kind of behaviors most consumers learned during the Great Recession: there’s no need to pay extra for a product when they don’t have to. Ads that emphasize deals and private label savings will continue to drive sales.
The new IRI Consumer Connect survey reveals that 33% of consumers under age 35, and 38% of consumers aged 35 to 54, believe their household finances will improve in the next 6 months. Less than 20% of consumers aged 55+ hold the same rosy perspective.
Optimistic consumers indicate they’re willing to spend a little extra for products in some categories. OTC medications, natural and organic products, environmentally friendly household cleaners and anti-aging beauty care products are in demand. Consumers are more interested in the effectiveness and safety of these products. Price isn’t the top concern. Your clients’ ads should tout the benefits of products in these categories.
Keep in mind that at least 30% of the U.S. adult population falls into the ‘pessimistic’ category. These shoppers will not be freely spending their hard-earned cash. Your clients can still get them to come to their stores by promoting private label savings – 85% of these consumers buy these products to cut their bills. 77% of pessimistic shoppers also turn to lower-priced brands to stretch their dollars.
The traditional advertising circular still rules for pessimistic shoppers and drives 75% of these folks to comparison shop. Advertising in a circular can also be enough to influence 64% of pessimistic shoppers to visit more than one store to cut grocery costs.
Susan Viamari, vice president of Thought Leadership for IRI, reminds marketers to use “targeted messaging that reinforces the value proposition.” Talk with your clients about incorporating the deals and value message in their ads in order to drive sales.