| Chart of the Week | Automobile Insurance

October 30th, 2019 Comments off

MSW’s RDE Analytic Framework rests on a study that found that three equity dimensions (Relevance, Differentiation, Emotion) are responsible for driving a significant portion of brand growth. Our Chart of the Week is dedicated to sharing RDE results for a variety of categories.  If you have questions about your category – give us a call.

RDE Assessment among 500 men and women for eight major brands in the Automobile Insurance category led to the following insights:

RDE Assessment among 500 men and women for eight major brands in the Automobile Insurance category led to the following insights:

  • Almost all brands score highest on the emotion dimension, perhaps because the category is heavily advertised with often whimsical copy that is light on functional details but seemingly designed to build an emotional connection with viewers.
  • Market leader State Farm is unsurprisingly viewed as most relevant, with this position driven more by emotional connection (after all, who doesn’t want a Good Neighbor) than differentiation.
  • USAA is the one brand where differentiation is strongest of the three RDE dimensions, perhaps due to the brand offering its services to past and present members of the Armed Forces.
  • In addition, those choosing USAA in brand preference collection had by far the fastest reaction times, revealing a very high degree of certainty among those preferring USAA.
  • The smallest brands, Liberty Mutual and Farmers, demonstrate by far the largest gap between emotion and relevance (the RDE dimension most strongly related to preference and market share).  These heavily advertised brands have succeeded in emotionally engaging consumers with the hope of being top-of-mind when purchase decisions are made in this high loyalty/low involvement category.
  • The RDE composite is strongly correlated to brand preference in this category.  AAA is something of an exception, with relatively lower preference.  This is likely due to AAA being known foremost for Automotive and Travel Services with automobile insurance only offered through some AAA Affiliates.

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Chart of The Week – Athletic Shoes

October 21st, 2019 Comments off

MSW’s RDE Analytic Framework rests on a study that found that three equity dimensions (Relevance, Differentiation, Emotion) are responsible for driving a significant portion of brand growth.  In the coming weeks our Chart of The Week will be dedicated to sharing RDE results for a variety of categories.  If you have questions about your category – give us a call.

RDE Assessment among men and women for eight major brands in the Athletic Shoe category led to the following observations:



  • As the runaway category leader, Nike easily outstrips the competition in terms of Relevance.  It’s lead in terms of Differentiation and Emotion is considerably less.
  • Sketchers most closely challenges Nike in terms of Differentiation and Emotion, and in fact surpasses Nike on those dimensions among women.
  • While among the lowest in relevance, Jordan is very strong in Differentiation compared to other competitors of a similar size.
  • Puma is lowest on all three dimensions and is especially weak among women.
  • And overall the RDE Composite scores for these 8 brands in the category correlate to MSW’s CCPreference at an extremely high .96, proving the connection between these measures and the predictive nature of both.

 

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Younger viewers watch more Online Video than Live TV – don’t worry though, we have tools for both.

January 15th, 2019 Comments off

You are almost certainly familiar with the changing landscape of media viewership in the US. The battle between traditional and newer media has many fronts, which has led to hypotheses attempting to answer “why” each is occurring.

First, for context, we will take a step back to explain: On the surface, both mediums return fairly similar overall exposure levels – with Live TV edging Online Video by about eight points.

However, when one breaks this data out by the standard generational age groups, it is easy to see why this is indeed a “battle” between these two mediums. Live TV viewership among Millennials is roughly half of what it is among Baby Boomers. On the other hand, Online Video is roughly twice as popular among Millennials as it is among Baby Boomers.

The trend is not necessarily going favorably for Live TV with regard to age. In fact, our data suggests that those below the age of 42 are actually more likely to consume Online Video than Live TV.

While we are able to put numbers on this trend in the above graphics, the overall theme is likely not terribly surprising to you.

Naturally, you may be wondering if this trend is contingent on other factors. One potential factor that we thought would be interesting to investigate is income. Specifically, we hypothesized that because younger consumers have less disposable income, they are therefore less able to afford Live TV packages that can be pricey and less flexible.

Our data suggests that while this may be occurring at some level, it is ultimately dwarfed by the age dynamic.

When we dive into the data split by age and income tiers, having a middle-to-higher income appears to yield a higher likelihood of having exposure to Live TV – among all age generations.  However, even among the middle-to-higher income consumers, there is still quite a gap between Boomers and Millennials of around 40 points.  Perhaps even higher income Millennials are constrained by their disposable income levels – as they are more likely to be paying off student loan debt as well as the earlier stages of mortgages, etc. than their older counterparts.  That said, this sizable gap between Boomers and Millennials hardly budges regardless of income levels.

Net: The higher income tide raises all ships, but there is still a very strong age dynamic that does not go away.

With Online Video, there are some similarities to Live TV in that the more income you have the more likely you are to be exposed to Online Video. Most entertainment costs at least some amount of money, so this trend among income tiers makes sense. However, regardless of income, there is still a sizable gap between Millennials’ Online Video consumption and that of Baby Boomers – nearly 40 points here too.

This data suggests quite a change is occurring with these mediums. Change can be uncomfortable, but it is quite an opportunity for greater success among those who are prepared. We here at MSW Research have many different tools that provide a validated assessment of advertising effectiveness across both Live TV and Online Videos – or a campaign involving both or more. We can help guide you through these changing times with solutions that are both trusted and flexible.

For more information, please contact Art Klein at aklein@mswresearch.com.

 

Thank you for reading.

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