How Media Works: Advertising and the Purchase Funnel for Furniture, Mattress or Carpet/Flooring Store Advertising A Yankelovich Study for the Television Bureau of Advertising 1 Study Objectives Determine the role that TV plays as part of a multi-platform environment for advertising. More specifically, the goals of the research were to understand: The role of television advertising in driving consumer actions throughout the purchase decision process How television interacts with other media platforms, including new media such as the Internet How purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle Source: TVB/Yankelovich “How Media Works,” April 2009 2 Methodology Survey results were obtained via online interviews among 3,002 consumers who had seen a television ad in the past 2 months that made an impression on them. Interviews took place January 29 to February 10, 2009; Super Bowl Sunday was excluded. Respondents were first asked in which categories they have seen a television ad in the past two months that made an impression on them. Each respondent then completed an ad survey for up to three of these categories. The survey measured the overall impression of each ad, actions taken after seeing the ad, and whether ads for the same product or service were encountered in other media, etc. The respondents were asked questions on which media most increased awareness and interest, or prompted action across the range of categories studied. Source: TVB/Yankelovich “How Media Works,” April 2009 3 One-Third of Respondents are In the Market “Are you currently considering a purchase in the Furniture, Mattress, or Carpet/Flooring Stores Category?” (Asked of those who recalled seeing a TV ad for furniture, mattress, or carpet/flooring stores in the last 2 months) No 63.8% Source: TVB/Yankelovich “How Media Works,” April 2009 Yes 36.2% 4 Customer Profile: Furniture, Mattress or Carpet/Flooring Store Advertising Saw an Ad in This Category that Made an Impression Currently Considering a Purchase in this Category Made a Purchase in this Category in the Past 6 Months Made a Purchase in this Category in the Past 4 Weeks Male 43.6% 36.2% 37.6% 29.3% Female 56.4% 63.8% 62.4% 70.7% 18-34 29.0% 35.7% 36.1% 26.8% 18-49 56.0% 67.9% 64.7% 48.8% 25-54 54.3% 66.3% 60.9% 43.9% 55+ 37.2% 26.5% 30.1% 43.9% Urban 34.9% 36.7% 35.3% 34.1% Suburban 43.8% 42.9% 48.1% 53.7% Rural 21.3% 20.4% 16.5% 12.2% HHI <$30K 24.4% 23.0% 21.1% 19.5% HHI $30-$70K 41.4% 37.2% 37.6% 46.3% HHI $70K+ 25.5% 32.1% 35.3% 26.8% HHI $100K+ 11.8% 17.3% 19.5% 7.3% Source: TVB/Yankelovich “How Media Works,” April 2009 5 Over a Third of Consumers Recently Saw a TV Ad for a Furniture, Mattress, or Carpet/Flooring Store That Caught Their Attention Saw an ad that got your attention: 80% Any (NET) 55% Restaurants Vehicles or auto dealers Telecommunications or electronic products Entertainment activities Automobile or life insurance Department stores or discount stores Food, convenience, or grocery stores / supermarkets Furniture, mattress, or carpeting / flooring stores Travel or travel websites Financial services Healthcare products or services Home improvement stores or services Services Schools / colleges / learning centers / vocational schools Commercial websites Source: TVB/Yankelovich “How Media Works,” April 2009 46% 46% 46% 41% 40% 40% 36% 36% 34% 34% 33% 28% 27% 25% 6 A Third of Those Who Recently Saw an Ad in This Category Say They Bought a Related Product/Service in the Past Year Last time made a furniture, mattress or carpet/flooring store purchase: Within the last 2 weeks 3-4 weeks ago 1-2 months ago 3-4 months ago 5-6 months ago 7-11 months ago 4% 3% 7% 4% 7% 8% 19% 1-2 years ago 23% 3-5 years ago 42% 17% 6 or more years ago I have never purchased in this category 32% of those who recently saw a furniture, mattress or carpet/flooring store TV ad made a purchase in the past year 9% Furniture Source: TVB/Yankelovich “How Media Works,” April 2009 7 Two-thirds of Those Who Saw the Furniture, Mattress or Carpet/Flooring Store Ads Remember Them Positively Type of impression made by furniture, mattress or carpet/flooring store TV ad: 32% Very positive 25% 38% 41% Somewhat positive 26% 30% Neither positive nor negative Somewhat negative Very negative 65% of those who saw these advertisements rated them positively 3% 4% 1% 1% Source: TVB/Yankelovich “How Media Works,” April 2009 Total Furniture 8 Furniture Ads Are Seen as Informative and Attention-Getting Ratings of Furniture/Mattress/Flooring Store Television Ads: How much did it get your attention? 10 Completely 19.6% 15.0% 15.4% 13.0% 9 18.9% 19.0% 8 15.6% 17.0% 7 12.2% 15.0% 6 9.0% 10.0% 5 4 3 2 1 - Not at all How relevant was it? 3.6% 5.0% 2.8% 4.0% 1.3% 1.0% 1.5% 2.0% 16.4% 10 - Very 54% total 47% furniture How informative was it? 12.0% 34% furniture 11.7% 9 9.0% 14.1% 13.0% 8 11.9% 11.0% 7 16.9% 15.0% 43% 10 - Very total 15.0% 14.0% 9 18.1% 20.0% 7 9.7% 11.0% 6 5 9.9% 12.0% 5 12.3% 13.0% 8.8% 7.0% 3.1% 3.0% 4 5.3% 6.0% 4 3 4.9% 6.0% 3 2.1% 2.0% 2 3.9% 6.0% 2 1.0% 2.0% 1 - Not at all 12.3% 17.0% Total Source: TVB/Yankelovich “How Media Works,” April 2009 1 - Not at all 52% furniture 21.2% 23.0% 8 6 53% total 1.5% 1.0% Furniture 9 TV Ad Viewers Are Likely to Consider a Purchase, or Seek More Information Actions Taken After Seeing TV Commercial for Furniture, Mattress or Carpet/Flooring Stores Furniture, Mattress or Carpet/Flooring Stores Any (Net) 39% Considered purchasing the product or service 18% Talked with others about the advertisement 13% Remembered you had seen the product or service advertised before 11% Went online to learn more about the product or service advertised 9% Visited a store or location to learn more about the product or service 7% Purchased the product or service in a store 5% Tried to find the advertisement on the Web 3% Looked in a newspaper or magazine to learn more about the product or service 2% Purchased the product or service online 1% Contacted the company in the advertisement 1% Sent someone an Email about the product or service 1% Sent someone a Web-site link about the product or service 1% Other action 1% Did nothing 61% Source: TVB/Yankelovich “How Media Works,” April 2009 10 Nine-in-ten consumers who saw TV ads in this category report seeing the ads multiple times Number of times saw furniture, mattress or carpet/flooring store TV commercial in past 2 months: Just this one time Total Furniture 14% 10% 33% 33% 2-3 times 26% 26% 4-5 times 6-9 times 10 times or more 14% 17% 13% 15% Source: TVB/Yankelovich “How Media Works,” April 2009 11 Multiple Exposure to TV Ads Leads to a Much Higher Purchase Consideration Actions taken after seeing a Furniture, Mattress or Carpet/Flooring Store TV ad Among those who recently saw a TV ad for Furniture, Mattress or Carpeting/Flooring store # TV Ad Exposures Furniture/Mattress /Flooring Store Recall 1-3 ad exposures Recall 4+ ad exposures Any (Net) 39% 34% 43% Considered purchasing the product or service 18% 15% 20% Talked with others about the advertisement 13% 10% 15% Remembered you had seen the product or service advertised before (i.e., the newspaper, radio, or the Internet) 11% 7% 14% Went online to learn more about the product or service 9% 8% 9% Visited a store or location to learn more 7% 6% 8% Purchased the product or service in a store 5% 5% 6% Tried to find the advertisement on the Web 3% 4% 3% Looked in a newspaper or magazine to learn more 2% 3% 2% Sent someone an Email about the product or service 1% 1% 1% Contacted the company in the advertisement 1% 1% 1% Sent someone a Web-site link about the product or service 1% 1% 1% Purchased the product or service online 1% 1% 0% Other action 1% 0% 2% Did nothing 61% 66% 58% Source: TVB/Yankelovich “How Media Works,” April 2009 12 Those Who Saw TV Ads in the Furniture, Mattress or Carpet/Flooring Store Category Also Recall Newspaper Ads Saw ad for same product or service in a media other than TV: Total Furniture/Mattress /Flooring Stores 46% 42% 91 On the Internet 20% 9% 45 In a newspaper 18% 24% 133 On the radio 12% 12% 100 In a magazine 11% 7% 64 In an Email offer 8% 3% 38 On a billboard or other outside sign 7% 4% 57 Other media 3% 3% 100 Did not see, hear, or read in any other media 35% 41% 117 Not sure 19% 18% 95 Any (Net) Source: TVB/Yankelovich “How Media Works,” April 2009 Index to Total 13 Furniture/Mattress/Flooring Stores Advertising Impact at Various Stages of the Consumer Purchase Funnel 100% 90% 20% 24% 25% 80% 32% 33% 41% 39% 41% 49% 47% 47% 70% 62% 60% 50% 40% 80% 76% 30% 75% 68% 67% 59% 61% 51% 59% 53% 20% 53% 38% 10% 0% Awareness Interest Consider Purchase Media Influence (Any)-All Cat. Media Influence (Any)-Furn/Matt/Flrg Store Source: TVB/Yankelovich “How Media Works,” April 2009 Want to Purchase Visit Store/Website Make Purchase No Media Influence-All Cat. No Media Influence-Furn/Matt/Flrg Store 14 Furniture/Mattress/Flooring Stores Media Impact at Various Stages of the Consumer Purchase Funnel 100% 90% 24% 80% 32% 70% 6% 6% 60% 6% 6% 5% 11% 8% 50% 20% 50% 9% 7% 10% 40% 30% 41% 43% 39% 62% 6% 6% 6% 4% 7% 47% 47% 6% 4% 7% 34% 35% Want to Purchase Visit Store/Website 10% 0% Awareness Interest Television Consider Purchase Newspaper Internet 5% Radio Other 22% Make Purchase No Media Influence Media cited by less than 3% of respondents were incorporated into the total for “other.” Source: TVB/Yankelovich “How Media Works,” April 2009 15 Conclusions Over one-third of consumers are in the market for products in this category. This category is defined by a long purchase cycle; only 7% of consumers are in the purchase phase at any given time. Television advertising awareness is high, and TV ads are effective at creating consideration and conversation, and driving store traffic. TV is the dominant media driver, and is most effective mid-funnel, in the Consideration phase. Closing deals in this category happens in the showroom; driving consumers to the showroom is key. Source: TVB/Yankelovich “How Media Works,” April 2009 16