Marketing to the Heartland 2017 PART 1: WINNING HEARTS AND MINDS. Arrow indicates significantly higher than comparison group at 95% CI

Transcription

1 Marketing to the Heartland 2017 PART 1: WINNING HEARTS AND MINDS Marketing to the Heartland 1

2 Marketing to the Heartland In the aftermath of the frenzied 2016 US Presidential election, many brands and news outlets realized that they were missing the mark in understanding and marketing to a massive swath of the US population namely those who live in the Heartland*. To help marketers better understand and reach this demographic with more relevant messaging, we conducted a national survey of 1,800 Americans with the purpose of identifying marketing strategies that best resonate with this often overlooked and misunderstood audience. In the following pages, we uncover the results of the study sharing valuable consumer insights and providing recommendations for marketers. In addition to significant variances between the behaviors and values of consumers living in the Heartland and those along the Coastal states, we saw notable differences between consumers living in urban, suburban and rural areas. For brands, understanding the difference in values and lifestyles between Heartland and Coastal Americans is critical. When making purchasing decisions, Americans living in the Heartland are more likely (53% vs. 48%) to shop with brands that share, or exemplify, their core values than coastal Americans. As such, it s a troubling fact for marketers that 46% of Heartland Americans say they rarely or never see ads that appeal to their core values. This signals a direct need for marketers to redefine their messaging strategies to connect with this audience. *See methodology for definition. Marketing to the Heartland 2

3 Here are some stark differences between Heartland consumers and their coastal counterparts: Coastal consumers are more likely to Heartland consumers are more likely to Consider education more important +31% Say that family is more important +12% BE MORE ETHNICALLY DIVERSE +31% non-white BE CAUCASIAN +21% Urban and Suburban Coastal consumers are more likely to deem cultural diversity (+20%) socio-economic equality (+19%) and political correctness (+15%) as important, compared to the rest of the country BE SOCIALLY LIBERAL +10% Be single +19% Purchase from brands that share their core values +10% BE CONSERVATIVE +11% View work-life balance as important +12% Be married +24% Say that saving money is 23% more important than education 23% more likely to view traditional marriage as important to society Learn about new brands and products via: Friends (+30%) Family (+23%) Social Media (+18%) TV segments on the shows they watch (+29%) Colleagues (+33%) Note: + indicates X% higher than the comparison group at a 95% CI Marketing to the Heartland 3

4 In addition to the differences between those in various geographical regions, there are also several notable distinctions between consumers who reside in urban, suburban or rural areas. Here are several cases of this: Rural Suburban Urban Family is more important Family is more important Education is more important Faith is more important Saving money is more important Saving money is more important More likely to be CONSERVATIVE More likely to be CONSERVATIVE More likely to be LIBERAL More likely to be WIDOWED More likely to be DIVORCED More likely to be SINGLE Less likely to say they see ads that appeal to their core values More likely to find ads that provide useful tips and tricks appealing More likely to purchase items on sale, use coupons, and go out of their way to get a deal Have more kids on average Exhibit larger income inequality: more likely to make under $35K, but also more likely to make over $150K More likely to pay more for higher quality products and pay more for convenience More likely to find aspirational ads appealing Marketing to the Heartland 4

5 Reaching Consumers in the Heartland 1 Tailor product messaging to consumers core values The core values for consumers in the Heartland include: Family Being Self-Sufficient Faith Work/Life Balance Traditional Marriage By aligning their marketing efforts to these core principles, brands can capitalize on the current disconnect in the marketplace. Currently, 46% of Americans living in the Heartland say they rarely, or never, see ads that appeal to their core values. Even if every campaign is not explicitly tied to a value, it is important to consider the audience and make sure that the messaging does not alienate or offend them. Presently, 15% of customers in the Heartland say that they have stopped purchasing from a brand because they saw an offensive ad, and another 10% say they have cut off a brand because it did not understand them. Most Important to Consumers Coastal Residents Heartland Residents 41% 46% Family Marketing to the Heartland 5

6 While all Americans find self-sufficiency and faith to be important, consumers in the Heartland additionally stress the importance of work/life balance (66% vs. 59% of Coastal Americans) and are more likely to feel that traditional marriage is important to society (59% vs. 48%). Importance of values (Extremely/Very Important %) Being self-sufficient Faith Work/life balance Patriotism Importance of traditional marriage to society Cultural diversity Socio-economic equality Political correctness 73% 72% 61% 65% 59% 66% 59% 62% 48% 59% 51% 51% 51% 49% 40% 43% Coastal Consumers Heartland Consumers When asked about their top priority in life, self-sufficiency is on top for all Americans, followed by the ability to save enough for retirement. Coastal consumers tend to get married later, and therefore starting a family is a current high priority for a larger number of them. Highest priority in life 24% 23% Coastal Consumers Heartland Consumers 17% 17% 13% 11% 14% 11% 6% 4% Being self-sufficient Saving enough for retirement Being able to afford big purchases Finding a job I like Starting a family Marketing to the Heartland 6

7 2 Inform consumers about how they can save money Saving money is the second most important item for consumers living in the Heartland, right after family. On the other hand, Coastal consumers tend to value education more, compared to their counterparts. Most important to consumers Coastal Consumers Heartland Consumers 46% 41% 16% 16% 14% 15% 17% 13% 8% 6% 4% 5% Family Saving Money Faith Education Wealth Gain status in my community Additionally, 29% of Americans say they want to see ads from brands that provide them with information on how they can save money. Ads consumers want to see from brands 31% 29% 12% 29% Providing info on how I can save Showcasing products or services Ads with a socially responsible message Providing useful tips and tricks Marketing to the Heartland 7

8 Americans in general are very cost-conscious; 65% say they look for the cheapest price all, or most, of the time and 54% purchase items on sale all, or most, of the time. Another 43% will go out of their way to find a deal. Interestingly, consumers living in urban areas are the most ardent deal shoppers. They are also most likely to pay more for quality and convenience. These trends may be driven by a greater availability of retailers in densely populated areas as well as income stratification in urban centers. How often do you (% All the time/most of the time) Total US Rural Suburban Urban Look for cheapest price 65% 66% 58% 71% Purchase items on sale 54% 51% 53% 60% Go out of way to get a deal 43% 40% 43% 48% Use coupons 40% 33% 40% 50% Pay more for higher quality products 34% 29% 32% 43% Pay more for convenience 33% 27% 33% 39% Wait for sales to buy large items 32% 26% 32% 39% Marketing to the Heartland 8

9 3 Highlight the high quality of products and emphasize products made in the USA All American consumers agree that the quality of a product is their most important criterion when deciding on a purchase. As the conversation about the cost of globalization and outsourcing continues in the US, it has become increasingly important for brands to support local production. While conventional wisdom would have one believe that people in areas affected most by job outsourcing would feel stronger about the importance of US produced goods, this consideration is equally important to Heartland and Coastal residents. More than 6 in 10 Americans feel that it is very important to them that brands produce goods in the US. Important criteria when deciding on a purchase (Extremely/Very Important %) Coastal Consumers Heartland Consumers Brand has high quality products 71% 75% Brand produces goods in USA 61% 65% Brand has cheap prices 55% 57% Brand shares my core values 48% 53% Brand is green/environmentally conscious 47% 49% Brand is active in the local community 47% 48% Brand has an online presence 44% 47% Marketing to the Heartland 9

10 4 Word of mouth is paramount. Invest in customer service and develop an organic following on social media. Americans living in the Heartland are more community oriented and are far more likely to say they learn about new brands and products via family and friends than Coastal consumers. Heartland consumers are also more likely to be influenced by social media as well as recommendations, so word of mouth recommendations are paramount. Share of consumers who learn about new products and brands via Coastal Consumers Heartland Consumers 4% 4% 24% 24% 21% 20% 14% 18% 16% 17% 12% 16% 13% 14% 10% 12% 9% 10% 43% 43% 34% 40% 33% 37% 56% 53% Friends Family Social Media Browsing in store Websites News Outlets TV segments newsletter Colleagues Search engine In-app ads Celebrities TV ads Marketing to the Heartland 10

11 Urban dwellers, whether they live in the Heartland or are Coastal, are more likely to learn about new brands and products through websites and in-app ads compared to their suburban counterparts. They are also more influenced by news outlets and celebrity endorsements than consumers living in rural areas. These findings highlight the importance of varied messaging, depending on the location of consumers a brand is trying to reach. Share of consumers who learn about new products and brands via... Rural Suburban Urban Websites 23% 21% 28% News Outlets 16% 22% 23% In-app ads 11% 10% 15% Celebrities 7% 9% 13% 5 Reach consumers in the Heartland via social media and ads on relevant TV segments Since Americans in the Heartland are more likely to learn about new brands and products through social media and TV segments they watch, there is an opportunity for brands to reach these consumers through targeted ads via these channels. Share of consumers who learn about new products and brands via... Coastal Consumers Heartland Consumers 34% 40% 14% 18% Social Media TV segments Marketing to the Heartland 11

12 Methodology *The Heartland region is comprised of 26 states in the Southwest, Midwest and parts of the Southeast (AL, AR, FL, GA, IA, IL, IN, KS, KY, LA, MI, MN, MO, MS, NC, ND, NE, OH, SC, SD, TN, TX, VA, WI, WV) and is based on a definition designed by the New Heartland Group. Fluent s Marketing to the Heartland study was conducted online within the United States by Fluent, LLC on March 20, 2017 among 1,865 US consumers (aged 18 and up). Respondents were randomly selected, and the findings are statistically significant at a 95% confidence level. Due to rounding, percentages may not always add up to 100%. Fluent s proprietary ad serving technology includes a real-time survey module that was used to facilitate the data collection for this study. Data was weighted to US Census 2010 population distribution and Census Bureau, American Community Survey 5-Year Estimates. ABOUT FLUENT Fluent, LLC, a cogint company (Nasdaq: COGT), is an industry leader in people-based digital marketing and customer acquisition, serving over 500 leading consumer brands and direct marketers. Leveraging a massive reservoir of proprietary audience data, as well as millions of real-time survey interactions with consumers every day, Fluent enables advertisers to more effectively target and acquire their most valuable customers, with precision, at a massive scale. The company is headquartered in New York City. For more information visit fluentco.com I sales@fluentco.com I Marketing to the Heartland 12