Market Research Wrap: Black Friday in-store sales drop
by MarkLives (@marklives) Our weekly wrap of the latest market and consumer research:
- Black Friday retail fail
- Digital OOH growing
- B2B buying disconnect
Black Friday retail sales decline
Data from retail management platform, Vend, shows that in-store retail spending over the Black Friday shopping period this year dropped by 10% compared to 2017, with sales volumes also decreasing by 2%. [Cheryl Hunter]
This is despite discounting levels growing by 5% compared to 2017, and the average discount amount increasing by three percentage points. On Black Friday this year, the average discount offered by retail stores was 20%. Vend found, however, that Black Friday continues to provide a significant spike in the retail calendar. When looking at the Black Friday shopping period (24–27 November), spending increased by 20% compared to the previous weeks in October and November.
Says Higor Torchia, Vend EMEA country manager, “Our data shows this year has fallen flat. Most stores now offer Black Friday deals through until Cyber Monday, both in-store and online, so it could be that consumers are doing more of their Black Friday shopping online, or they’re focusing on the deals from big-box retail stores.”
In the major centres, sales growth was positive, particularly in Pretoria, where sales jumped by 19% compared to previous weeks. In Cape Town, sales increased by 13% and Johannesburg retailers saw a 10% increase. Pretoria was the only main city to see year-on-year growth however, with a 20% increase.
Vend’s data also found a big increase in shoppers paying by credit card this year, compared to last. This Black Friday, 53% of sales were taken in cash, and 45% were on credit card compared to 58% and 36% respectively.
• For more, go to Vend.
DOOH set to reach US$14.6bn
Spend on digital out-of-home advertising (DOOH) — video content and/or digital signs located in high-traffic public locations — is expected to grow 10.1% each year between 2018 and 2021, accounting for the entirety of growth in the OOH market as spend on traditional sites begins to decline from 2019. This is according to WARC’s latest Global Ad Trends Digital out-of-home report. [Cheryl Hunter]
Digital’s share of total global OOH adspend is expected to rise to 37.3% or US$14.6bn this year, up from 34.8% in 2017, 32.4% in 2016 and 22.7% in 2012. The rapid growth of DOOH is driven in part by the higher cost-per-thousand the format commands but also by the rising penetration of digital panels and the opportunity to combine data-driven targeting with powerful, dynamic creative.
Major providers are accelerating investment in digital sites, and this will further fuel growth over the coming years. JCDecaux, for instance, is building on its existing base of 59 744 digital screens worldwide with the ongoing digitalisation of street furniture in New York, Chicago and London.
Data from the Outdoor Advertising Association of America (OAAA) shows that digital billboards now account for 21% of all billboards in North America, and research by Nielsen shows that approximately 60% of US consumers see a digital billboard each month and 37% see one each week.
In the UK, DOOH plays a core role in the daily commute, generating £152m in adspend for Transport for London.
The outdoor ad revolution is not, however, problem-free. The collection of mobile phone data, for both targeting and measurement, raises privacy concerns. This is cited as a particular issue by almost one in three mobile marketers.
While DOOH provides the opportunity for improved targeting through facial recognition, consumers are yet to be sold on the idea. A full 65.2% of those surveyed were not happy for facial recognition to be used for personalised marketing messages.
• Download a free report excerpt at WARC.
The Eardley Analysis
The 2018 B2B Buying Disconnect
by Mark Eardley. Here’s a rare bird: a top-notch, down-to-earth report on what builds buyers’ trust in B2B vendors — and what doesn’t. It might be focused on selling/buying technology but I’d say the findings are spot-on for the whole B2B spectrum. This report’s a real good ’un.
For the 2018 edition, TrustRadius surveyed over 650 technology buyers and vendors to get deeper insights into the B2B purchasing process. Overall, it found: “There is still a significant trust gap between buyers and vendors, especially when it comes to understanding what a product really can — and can’t — do.” In other words, “[b]uyers want the brutal truth, but vendors aren’t keeping up.”
Lifted straight from the report, key findings include:
- 85% of vendors believe they are open and honest about their product’s limitations. Only 37% of buyers agree.
- Just 23% of buyers said their vendor was highly influential in the purchasing decision. Those vendors were 2x more likely to be candid about their product and provide unbiased customer insights.
- 84% of buyers said they were willing to share their perspective with prospects. There is potential for 2x participation in advocacy program, but vendors need to ask.
For me, the fact that marketers must really up their game in terms of creating relevant and credible content that triggers sales is summed up by this:
As the report says, “All of the vendor-provided sources of information scored at the bottom of the barrel for trustworthiness and influence.” Ouch! That comment typifies all the sharp, wide-ranging insights this excellent report provides. Great piece of detailed research, clearly presented, essential reading and definitely worth acting upon.
It’s also free. Hats off to TrustRadius.
Mark’s mark out of ten (is it worth reading?): 10/10
How long: 30 mins
Related B2B insights on MarkLives: B2B sales & margins — who really generates yours? and The B2B Buying Decision Cycle
“Market Research Wrap” offers readers a weekly overview and critique of the latest market and industry research.
Cheryl Hunter (@cherylhunter) has written for the South African media, marketing and advertising industries for more than 15 years. A former editor of M&M in Independent Newspapers and contributor to Bizcommunity, AdFocus, AdReview and the Ad Annual, she has also produced for various television networks and currently consults on communication strategy and media liaison.
Mark Eardley (@mdeardley) advises B2B companies on how to govern their marketing to attract and retain profitable customers; several of his clients have grown to become market leaders. His monthly “Back2Basics” column covers how B2B companies and their agencies should manage their marketing.
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