B4p Trends: Consumption and advertising in times of price increases
The consumer climate in Germany has improved following the price increases and the rise in inflation in autumn 2022. The income expectations of German private households are rising, leading to increasing optimism.
Despite ongoing concerns due to price increases, most consumers are trying to continue their lives as normal and consume in order to boost the economy. However, consumers are adapting their consumption behaviour and paying more attention to prices and promotions. Communicating offers via traditional channels is therefore fundamental to informing consumers.
However, price awareness in particular has changed: Special offers have become more important, especially for meat, fruit and vegetables. Traditional leaflet advertising, customer apps and digital advertising leaflets are important sources of information for consumers, and customer and discount campaigns are also gaining in popularity. But how can consumers be reached with this multitude of channels and platforms?
"The ideal media mix is based on data and geo-intelligence. No two retail locations are the same; the general conditions fluctuate hyperlocally. We use automated spatial data modelling to determine the best possible use of print and digital marketing as well as other channels for our customers," explains Jens Schwendicke, Director Account Management Cross Media at MEDIA Central.
Too much data leads to procrastination in management
Data is the new gold. But processing it intelligently is the real art. The growing flood of data is now even leading to a new challenge for managers and companies: Data based procrastination.
The current study 'The Decision Dilemma' by Oracle and bestselling author Seth Stephens-Davidowitz analyses the effects of the growing flood of data on companies. The results show that many companies have difficulties bringing together data from different sources and utilising it for decision-making processes. This "data-based procrastination" leads to a kind of decision paralysis in which business-critical decisions are postponed.
The consequences of this "decision paralysis" are manifold: most respondents feel overwhelmed by the flood of data and doubt the reliability of certain data or sources. Managers would therefore like support in making better and faster decisions, reducing risks and increasing the company's success.
Do you need support in handling your data correctly? Our colleagues at Yagora will be happy to help you.
Advertising-supported video-on-demand overtakes linear TV
Linear and digital television are increasingly merging across Europe: this is shown by the third edition of the streaming video study 'CTV Uncovered 2023' by AudienceXpress in collaboration with the independent market research institute Happydemics. According to the study, 42% of German connected TV viewers watch more content on ad-supported video-on-demand (AVOD) platforms than on linear TV programmes, including broadcast video-on-demand (BVOD) and free ad-supported streaming services (FASTs). When it comes to advertising acceptance, it's all about the right dose.
"The acceptance of advertising increases with the relevance that can be achieved through intelligent targeting - so the formula is: the right content + the right place = relevance," says expert Detlef Mager, Media Strategy Consultant at MEDIA Central. This is also underlined by the study: 22% of respondents prefer contextual advertising that is tailored to the content viewed, while 22% also appreciate advertising based on geolocalisation.