Google has the #1 app in terms of reach for 5 out of top 7 genres, while Facebook dominates social networking

Google properties occupy the top spot in five of the top seven genres, by reach. Facebook and Nimbuzz lead the social networking and chat genres respectively.

Google does well in time spent with the top app categories
Google apps dominate in terms of time spent for streaming video, GPS, email, and search. 94% of time spent on streaming video goes to YouTube, while 86% of time spent on GPS is with Google. However, when it comes to social networking and chat applications, Google struggles to obtain more than a few percentage points of time spent.

Google apps dominate across age groups
Google Apps have a fairly uniform usage across age groups indicating the success Google has had in establishing itself with all mobile users.

About Nielsen Informate Mobile Insights
Nielsen Informate Mobile Insights leverages innovative smartphone metering technology to provide insights into evolving consumption patterns of mobile device users. Based on accurate, real-time usage data, we help clients understand consumer behavior and develop product and marketing strategies. Nielsen Informate Mobile Insights maintains opt-in smartphone panels to generate syndicated reports, in addition to building custom panels and conducting custom surveys for clients. Our insights aid decision makers across various segments like operators, OEMs, publishers, advertisers, content creators and aggregators and application developers.

Middle India, a region made up of approximately 400 towns each with a population of 1-10 Lac, are home to 100 million Indians and today constitute up to 20 percent of the country’s FMCG consumption. In fact, only the metros and Middle India have outpaced the all-India growth story in the last eight years. Even today, Middle India leads the pack across urban and rural segments for FMCG value growth rates.

Although some companies have partially penetrated the Middle India market, many tend to overlook smaller towns, ignoring the fact that these markets are perhaps easier to penetrate due to relatively sparse competition. Considering the expected growth of population in this area, rise in incomes and aspirations and the expected influx of people from even smaller towns to Middle India, this market is expected to create huge opportunities for marketers in the coming few years.

Why do Middle India cities matter?
These cities are ready to behave like the metros of tomorrow. Of the total INR 1.4 Trillion (280 Billion USD) in FMCG sales in 2010, goods worth about INR 287 Billion (5.74 Billion USD) were consumed by the Middle India population. This number makes up more than 20 percent of the overall FMCG sales, and 30 percent of the urban FMCG sales.

Middle India is also home to 30 percent of all urban stores, comprising over 900,000 million stores today. In addition to this, the annual per capita FMCG consumption of Middle India towns touched INR 2,800 (56 USD), which exceeded the national average by INR 1,600 (32 USD). This is a significant achievement for these smaller towns, considering the fact that the metros breached the INR 2,800 (56 USD) mark as recently as 2009.

Strong and vast market market potential
Out of 81 FMCG categories tracked by Nielsen, 49 product categories across personal care, over-the-counter drugs, household care, and food outgrew the all-India rate. Over 30 categories saw growth rates faster than 1.15 times the all-India rate. The top five fastest growing categories like diapers, scourers, liquid toilet soaps, acne preparations and air fresheners, which fared strongly in the past year, performed even better in 2011, indicating continued possibility of robust growth in the near future.

Interestingly, the focus on hygiene, health, personal grooming and convenience seems to be driving the rapid growth in these towns. Middle India is also accepting evolved categories like breakfast cereals, air fresheners, acne preparations, and liquid toilet soaps. The metros took on to many of these categories in a big way just a few years ago and Middle India does not want to be left out.

These developments bode well for FMCG companies, especially in light of the fact that this market is still in a nascent stage, and is expected to grow substantially in the next five years. The rise in demand for consumer products and relatively lower penetration of FMCG companies in these towns means that competition is not as fierce in these towns as would be in larger metros. A few major players with adequate capital and wide distribution networks are already cashing in on the opportunity. The annual turnover of the top ten FMCG players from the Middle India segment rose more than 42 percent by INR 35.8 Billion (716 Million USD) in just two years between 2009 and 2011.

For more detail and insight, download Nielsen’s Managing the Middle India Gold Rush report.

With 50+ million active social media users, Indians spend more time on social media than on any other activity on the Internet, according to Nielsen. In fact, 80 percent spend more than 15 minutes per day on social media every day. And social media usage on mobile phones is expected to exceed those accessing similar sites on personal computers in the coming year. But is this audience engaged?

At the Nielsen Consumer 360 Conference in New Delhi, India, Farshad Family, Nielsen Managing Director of Media, discussed how brands can effectively break away from the pack in order to differentiate and improve social media engagement levels.

More Consumers ≠ Higher Engagement
A Nielsen analysis among brands in the telecom, soft drink and auto categories reveals that a higher brand-page count does not translate to a higher level of engagement. In the study, engagement was defined as how a consumer interacts on the brand page: visiting, downloading and using an app on a page and/or sharing, commenting and “liking” updates on a timeline.

On a scale of one to 10, where a level of 10 is the most engaged, a Nielsen Engagement Index shows that all consumers in the study cluster around a score of seven—regardless of whether a brand page has one or 4.5 million fans. Clearly, brands are not differentiating on engagement levels. But how do I break away from the pack?

Top Six Drivers of Engagement
Company interaction and brand aspiration are the two most important drivers of social media engagement. Other key factors of engagement success include offering free giveaways, posting lively discussions and general updates about the brand, having a “hip” brand and being “liked” by friends.

The consumer is open and willing for engagement, but marketers need to experiment and innovate with brands in order to build commitment. A Nielsen survey reveals that one in six respondents want brands to share updates with them on new products and services. More than half (53%) want announcements on sales/discounts and half want to hear about the latest industry trends. Consumers also want brands to provide tips and tricks about how to maintain and use products/services (48%), conduct a greater number of contests (42%), resolve concerns (41%), create more utility applications/games (35%) and conduct more conversations (31%).

And engagement is influential in the buying process. Of the 39 percent of consumers who consider a friend’s recommendation for a product on a social networking site when making a purchase decision, three out of four will often/sometimes purchase the products based on the review.

During the session, Brad Smallwood, Global Head of Measurement & Insights at Facebook, shared four key insights into what makes a good social media campaign.
He said to start with the concept of social. “Social should be baked into everything.” Smallwood said to speak with an authentic brand voice and not try to be something you are not. “Nurture relationships and focus on understanding where they are in the lifecycle,” he said. “And continue learning – listen to the community and evolve the campaign accordingly.”

Mobile is Changing the Game
In India, mobile is going beyond voice and short-message-texting capabilities as the number of active mobile Internet users continues to climb. By the end of next year, while more than 40 million users will access social media sites via personal computers, over 60 million users will access the sites via their mobile phones. And as smartphone prices continue to fall, penetration levels will climb.

Indian consumers are willing to spend more on mobile handsets. A Nielsen mobile insights survey finds that non-smartphone users are willing to pay 7200 INR on their next handset, which is below the current average smartphone pricing of 5,500 INR, suggesting that a smartphone will likely enter the consideration set for consumers in 2012.

In fact, Internet and 3G rank highly among Indian consumers on features most sought after in their next phone. After camera and FM radio, Internet ranks third with almost one-in-four (23%) consumers indicating a desire for this capability. Today, social networking is already prevalent on the mobile screen. Among smartphone users, three-of-four use social networking and spend more than two hours browsing and downloading applications and entertainment.

“The Indian consumer’s quest for a new phone is almost entirely feature driven and while the camera and FM radio remain favorites, consumers are now also looking for Internet connectivity via their mobile phone, hoping to finally connect to the growing online community,” said Farshad Family, Managing Director of Media, Nielsen India. “It is evident that going forward, the Indian consumer’s aspiration to upgrade will also be a strong driver.”

The Future is Promising
A confluence of factors—a growing social media user base, an increasing smartphone penetration and a mounting consumer desire to connect—is creating a perfect storm of opportunity for brands to make social media an integral part of the marketing strategy with engaging programs that elevate and differentiate their brand from all the rest.

During the session, Family moderated a cross-industry panel of marketers to discuss how brands are using digital platforms to successfully drive better engagement for brands. Vikram Sakhuja, CEO, Group M, Anupama Ahluwalia, CMO, Coca-Cola India, Arpita Menon, Head of Media Planning & Buying, Star TV and Sahana Sarma, Partner, McKinsey & Company agreed that you need to make the interaction special for the consumer. “This is a long journey and there are no short-term solutions,” said Ahluwalia. “You need to take the consumer on board and continue on the journey with them.”

Innovation provided a strong underlying thread of discussion at Nielsen’s Consumer 360 event in India. Mitchell Habib, Nielsen’s operations and innovation chief, told attendees that disruptive innovation was critical to lasting business success and outlined ways it could open new markets in emerging economies. Deepak Gulati, CEO of Tata Docomo, and Banoja Acharya, Nielsen India’s VP, Client Services, shared specific examples and innovation strategies for India.

Launching New Products in India is a Long-Term Play
To succeed in India’s dynamic market, fast-moving consumer goods companies (FMCG) are investing in innovation to take advantage of the rapidly evolving retail landscape and the changing purchasing behavior of consumers.

While new consumer product launches and innovations have proliferated in India over the past decade, FMCG companies can better ensure successful launches with three-to-five year launch plans. “The truly innovative products, have a longer gestation period, need significantly higher investment and usually guarantee slower, but higher returns in the long run,” said Acharya.

Logistical Challenges
Distribution logistics in India hamper first-year sales, as availability levels to Indian consumers are between 75–200 percent lower than in fully developed markets. And, significant marketing support is required, as product launches in India generally require sustained high levels of advertising spending to reach the necessary threshold number of consumers for ROI targets.

After year one, and into years two, three, four, and beyond, however, successful new products and categories reach an inflection point when sales and volume start to rise exponentially. While it takes time to achieve inflection points, the benefits of waiting are certainly sweet—especially once new launches reach their maxima.

However, not all categories are alike. A Nielsen analysis of 100 new product launches shows that the growth curve is different across categories. New launches in the impulse food category have a shorter purchase cycle and typically generate higher interest among consumers. As such, they reach their point of maxima fastest—in as little as three–to–four months. Loyalty plays a big part in personal care products as consumers are less willing to switch brands. These products take the longest to develop—anywhere from seven to 24 months depending on the category. And household care products reach their maxima somewhere in between as these products are driven largely by benefit rather than emotion.

A Different Kind of Competitive Advantage
A unique phenomenon exists in a consumer-driven market like India where competition is not necessarily bad for new brands within the same category. “If multiple brands are introducing similar products with proper marketing support, the new category experiences a larger share-of-voice in the minds of Indian consumers,” said Acharya. “When this occurs, the category—and all the brands within it—can reach the inflection point much quicker on the product launch timeline.”

For example, as several brands entered the anti-aging category, ad spends combined to create a multiplier effect in share-of-voice, significantly boosting sales volume for the category and all the brands in it.

Serendipitous competition will not always be the case, and even when it exists, the product innovation timeline in India takes longer than in developed countries. To compete in India, FMCG companies must plan their launches and marketing budgets accordingly, availing themselves of all available tools to ensure their products—whether food/beverage, household, or personal care products—resonate for the long term.

Play to Strengths – Don’t Ignore Weaknesses
Whether launching a new product in India—or anywhere else in the world—you are only as strong as your weakest link. Based on Nielsen research and development over a five-year period of new product launches, there are 12 things that every new product must do to succeed. And while a product does not need to exceed expectations across all factors, it must do well enough on all to ensure success.

1. Offer true innovation
2. Get noticed
3. Land your message
4. Communicate with focus
5. Be relevant
6. Be better
7. Be credible
8. Limit the battles
9. Be in the right places
10. Win the value equation
11. Deliver on product promises
12. Be strong in the long run

Given the opportunity that India’s burgeoning middle class represents for both local and multinational FMCG operations, the strategic planning, marketing commitment, and patience required for new product success are surely worth the efforts and expenditures.

Consumers in India are feeling the inflationary heat. Expenses are rising faster than income and wallets are being squeezed. At the Nielsen India Consumer 360 Conference in New Delhi, Raj Hosahalli, Executive Director of Advanced Analytic Consulting and Surekha Poddar, Executive Director of Client Service, discussed how consumers are adapting to inflationary pressures and outlined the strategies manufacturers and retailers can deploy to continue growing.

Consumers are Adapting
Increasing fuel prices and a slow economy are weighing heavily on consumers. More than half say their expenses have increased by 40 percent or more and six-in-10 strongly agree that they are saving less than they did last year.

As expected, lower income consumers are feeling the inflationary pressure the most. To survive, they are cutting non-essentials and some are even curbing on the essentials too. Surprisingly, upper income households are impacted more strongly than the middle class. They are feeling the pinch on their lifestyle as they try to sustain a status they’ve become accustomed to. As middle income consumers have always needed to balance budgets, they are adapting better than other income segments. They carefully consider essentials versus luxuries, which is a practice typical for these households.

Hidden Positives
As consumers cut back on spending, reducing food expenditures is not the first imperative. Rather, spending on clothing, utility expenses, eating out and out-of-home entertainment and vacations/holidays are the areas that get slashed first when budgets are impacted. In fact, fast-moving consumer goods (FMCG) sales may actually benefit in inflationary times. As budgets get reallocated, consumption on day-to-day grocery products actually increases.

Downsize or Price Increase, Which Strategy is Right?

There are revenue drivers and there are volume drivers, but deciding with tactic works best is dependent on the price sensitivity of the category. Three strategies should be considered:

• “Passing the Buck” – consistently cut costs by either down-sizing or taking a price increase to drive revenue.
• “Making Money” – introduce premium packs or small packs with a higher cost per serving to drive revenue.
• “Share Play” – offer appealing value packs and promotions to drive volume.

To decide which strategy is the best fit for the category, manufacturers need to take a portfolio approach across brands by identifying where the brands fall in the sensitivity grid. Brands that have a high sensitivity to price and low sensitivity to deals, benefit from a low shelf price without promotions. Products like butter and cheese fall in this quadrant. Products like juices, carbonated soft drinks and salty snacks, however, while sensitive to price, also respond well to deals. These brands will benefit most when low prices are coupled with promotions.

For pure profit-play categories like shampoos, fragrances, chocolates and skin care, manufacturers can retain or even increase the shelf price and offer no promotions. And the products that do not benefit from a low shelf price, but gain the most from promotions include detergents, confectionary products and soap/body wash.

Five Tips for Success Pricing:

1. Down-sizing (grammage reduction) minimizes the volume loss for impulse and non-essential products versus increasing price.
2. The premium segment is the strongest revenue growth driver.
3. Small packs are less sensitive to pricing changes and can gain higher revenue during price increases.
4. Larger packs tend to be highly sensitive to pricing changes. Price increase will result in both volume and value losses.
5. Distribution is critical in mitigating inflation risks and direct distribution channels are significantly better in driving volume share for your brands.

During tough economic times, manufacturers and retailers need to continue to focus on penetration and consumption strategies. Deciding the best approach, however, takes careful consideration to protect revenues. Taking a portfolio approach to pricing will mitigate future inflation impact.

Four key areas of consumption will help drive tens of billions of dollars in sales across rural India in the coming years.

Nielsen estimates that by 2025, the fast-moving consumer goods (FMCG) market in rural India will hit $100 billion and that inflation and pricing will be outstripped by consumption. Prashant Singh, vice president, Nielsen Delhi, identified premiumization, commoditization, indulgence and brand acceptance levels as the components of sales growth that would most matter.

Speaking at Nielsen’s India Consumer 360 Conference in New Delhi, Singh said it was critical that FMCG manufacturers and retailers focused on the unique needs of the rural Indian consumer shopping basket.

Four Key Trends Driving Increased Consumption

1. Premiumization – Indian consumers are upgrading their shopping baskets with indulgent items that cost more. In fact, premium products are contributing the most (+21%) to FMCG growth than other price tiers.
2. Commodity to Brands – As rural consumers experiment and adopt, they are switching out everyday commodity products like loose oil for the refined variety, which increased 44 percent every year in two years.
3. Indulgence to Regular – What once may have been considered an occasional treat is now becoming routine. The salty snack category is a good example, which grew at a compound annual growth rate of 55 percent from 2009 to 2011 in rural India.

4. Acceptability – Increased exposure to the benefits of new products is leading to acceptance and a higher rate of return purchasing patterns.

Rural Shopping Baskets are Changing
Rural Indian consumers are changing their shopping habits and value-for-money purchasing is growing in importance. While small-sized packages are vital for entry into the market, as purchasing power increases, rural consumers are increasingly buying larger packs at a lower cost per serving. Retailers who cater to these changing needs by offering a portfolio of products that provide a value proposition will be poised for growth.

Sustainable Ongoing and Future Growth
Rural India, home to seven-of-10 Indian consumers, will be the driving force for continued and sustained growth in the future. A stable consumer base with high aspirations leads to higher affordability and consumption. Six-of-10 rural Indian consumers intend to stay living where they are today, which contrasts sharply with 43 percent of urban consumers that feel the same. However, when it comes to aspirations for higher education, fully 79 percent of both urban and rural consumers plan to pursue a professional degree.

And reaching rural Indian consumers today is becoming easier. Increasingly, rural consumers are upgrading technology—84 percent have a television and 80 percent own a mobile phone. And as smartphone affordability and accessibility continues to grow, Indian consumers may skip the third screen altogether. Today, only one percent of rural consumers and five percent of urban consumers have an Internet-enabled computer.

Future Spending Habits

What happens to the rural shopping basket when spending power goes up? Nielsen followed the spending habits of two rural Indian families over a three-week time period whereby income increased each week. The research showed that when spending increased three-fold, the housewife took on a greater role in the process, the number of products purchased increased and the type of products purchased was upgraded to premium varieties.

Three Tips When Marketing to the Rural Consumer:

• Value for money is important. Large packs used for sharing with family and friends are on the rise. Offer SKU’s that meet rural consumer needs.
• One-fourth of rural shopping takes place in the Haat (open-area farmers markets). Ensure your brand and message is reaching this channel.
• Rural consumers believe copycat “fake” products offer the same benefit at half the price. Create clear product benefits that set your product apart.

In the continuously changing rural retail landscape, the “average” consumer no longer exists. Marketers who understand the evolving needs and aspirations of the various segments of rural consumer will be poised for success in this growing and dynamic marketplace.

The story of India’s economic growth is well publicized. The normalization of economic reforms, booming technology and services industries, and increased foreign investment have all contributed to significant gains in the size of India’s economy. As the Indian consumer’s purchasing power has evolved, so too has the Indian retail landscape, which must now cater to an increasingly savvy and connected shopper.

Rapid Expansion of Modern Trade
While modern trade in India today represents just five percent of the total retail landscape, it is poised for expansive growth. Following the established trend of other Asian markets where modern trade retailing has grown an average of 300 percent over the past decade, Nielsen estimates that the Indian consumer will double their fast-moving consumer goods (FMCG) spend through modern trade channels from $1.8 billion today to $5 billion in 2015.

“The Indian consumer is clearly enjoying the modern trade shopping experience and is increasingly shopping there, as is evident from the increased spending at modern stores,” says Roosevelt D’Souza, Executive Director, Nielsen India at the Consumer 360 event in New Delhi. This is also a strong indicator of the growth potential of this trade format.”

Already, modern trade is growing at very high rates, up 31 percent since last year among shoppers across the socio-economic spectrum. For certain food and household good categories, modern trade outlets account for a significant portion of total category sales. Over half (54%) of packaged rice, for example, is purchased at modern stores, as are 42 percent of breakfast cereal purchases. And, for certain types of cleaning products and other household goods, a similar percentage of sales occur in modern outlets.

Exploration Leads to Infidelity
The power of choice is opening Indian consumers to experiment more with new formats, stores and banners within stores. Indeed, 36 percent of shoppers recently reported shopping at more than two stores during the month—compared to 20 percent just one year earlier.

High inflation is also encouraging Indian shoppers to be more discerning—actively seeking value through promotions and sales and through private label brand purchases. In fact, some of the categories that thrive in modern trade are also among the highest contributors to private label growth, such as packaged rice and household cleaners. India’s modern trade shoppers now spend over $100 million on private label goods per year. The challenge for retailers and brand manufacturers will be keeping a loyal shopper base.

“Indian consumers have always been value conscious, but now even more so given inflationary pressures on the household budget,” says D’Souza. “The access to both modern and traditional trade formats coupled with an awareness of various deals being offered in the market, allows the consumer to make a more informed value-for-money shopping decision.”

Tomorrow’s Retail Environment
During a panel session at the Consumer 360 event, Nielsen retailer and manufacturer clients discussed the likely resilience of Indian traditional trade channel in the future despite the imminent growth in modern trade. The panel, which was moderated by ET Now’s Sonali Krishna, included Thomas Varghese, CEO of ABRL; Bijou Kurien, President & CE, Lifestyle Reliance Retail; and Tarun Arora, EVP-Head of Marketing, Godrej Consumer Products. Given the convenience and importance traditional kirana retail outlets offer, many panelists expect the Indian consumer to be even more demanding of modern retail than in other developing markets. But, most agree that modern retail stores stand to gain the most from the increasing spending power of India’s growing middle class. While India is unique, it is not so unique that consumers don’t appreciate the advantages and choices offered by new the new retail market.

As the landscape evolves, expect more retail and shopping experimentation—both in number of stores shopped and in the types of specialty retailers visited. And connected and tech-savvy Indians will increasingly engage with social media and networks as a way to discuss products/brands and to seek deals through group promotional websites. Marketers who understand the future of the Indian retail environment and how consumers’ shopping practices are changing will thrive in this dynamic and expanding market.

Feature: Consumer 360 India 2011

A bold outlook of ongoing growth around the consumer was delivered by a trio of Nielsen executives to Indian business leaders in New Delhi today.

“Emerging markets will grow 50 percent faster than the developed world in the next five years,” said Piyush Mathur, President, Nielsen India.

“A third revolution is taking place right now—the Demand Revolution. It is all about people and they have the power to make changes in a big way,” Mathur said.

Speaking at the opening of Nielsen’s Consumer 360 conference, Mathur said consumer change would have ramifications for branding. He said in the past, brands were like teachers—people aspired to be like them. Today, he said, the opposite was true as brands were forced to find new ways of engaging with the consumer.

And, finding that “first-time” consumer may never be more important than it is today. “India is one of the most exciting markets and it will continue to be for at least another decade,” said David Calhoun, Chief Executive Officer, Nielsen. “India is at the center of controlling its own destiny.”

Understanding shopper dynamics and how the retail trade environment is different in each country is at the heart of tapping unmet consumer demand. “Shopping decisions are being formed in social neighborhoods and they are happening in virtually every country in the world”, Calhoun said. “It is big and it is important. E-commerce is built around a connected life.”

“Growth aspirations in India are great—double that of the developed world,” said Justin Sargent, Managing Director, Nielsen India. “As affluence increases, shopping habits change—especially among rural and middle-India consumers.”

Sargent pointed to a series of key questions: How is modern trade changing and what does that mean for private label development? What is “Indovation” and how can I develop products that are both relevant and sustainable? And how do I better engage with consumers in the digital space?

Sargent said positioning products aligned with the needs and desires of consumers was the way to long-term growth.

The bi-annual report shows that while 69 percent of global online consumers say they are concerned about climate change/global warming (up from 66 percent in 2009, but down from 72 percent in 2007), concern for other environmental issues are increasingly taking a higher priority in the minds of consumers. Three out of four global consumers rated air pollution (77%) and water pollution (75%) as top concerns, both increasing six percentage points compared to 2009. The most rapidly growing area of concern among 73 percent of global online consumers surrounds the issues of pesticides, packaging waste and water shortages, with reported concern increasing 16, 14 and 13 percentage points, respectively over the last two years.

“There are many possible reasons for declines in concern about climate change/global warming,” said Dr. Maxwell T. Boykoff, Senior Visiting Research Associate, Environmental Change Institute, University of Oxford. “Focus on immediate worries such as job security, local school quality, crime and economic well-being have all diminished media attention for climate stories in the past two years. In the face of other pressing concerns, a public “caring capacity” for climate change has been tested. Without continued attention paid to global warming/climate change in the media, such concerns may have faded from the collective public conscience.”

Top environmental concerns among Asia Pacific consumers include water shortages and air pollution, while water pollution was the main concern for Latin Americans, Middle Eastern/Africans, Europeans and North Americans.

Shifting Concerns Among the Big 3

With their large populations and high CO2 emissions, many consider the United States, China and India instrumental to any potential international climate change agreements. Yet, concern is falling in the U.S., which recorded one of the steepest declines (14%) in concern about climate change/global warming from 2007 to 2011.

Today, less than half of Americans (48%) say they are concerned about climate change, which contrasts sharply with reported concern in Latin America (90%), Middle East/Africa (80%), Asia Pacific (72%), and Europe (68%). Among the 21 percent of Americans who are decidedly not concerned, 63 percent indicated they believe natural variation—and not people—causes climate change/global warming.

“During this period, Nielsen’s Global Online Consumer Confidence Survey found heightened American consumer concern around the economy, rising gas prices, and debt,” said Todd Hale, SVP Consumer & Shopper Insights, Nielsen U.S. “With financial concerns still on the minds of many Americans, they’re indicating less and less concern about climate change and other environmental issues.”

In China, concern about climate change/global warming is higher than in the U.S., but dropped 17 percent in the last two years from 77 percent in 2009 to 64 percent in 2011. Meanwhile, concern in India has gradually risen in the past four years, and with 86 percent of Indians currently worried, it remains one of the markets most concerned about climate change in the world.

For more detail and regional insights, download: 2011 Sustainable Efforts & Environmental Concerns.

Nielsen recently did a comparative study across the key countries participating in the CWC using econometric modeling techniques to measure advertising’s impact on sales in select impulse categories (return-on-investment, or ROI). In the analysis, which was conducted in South Africa, India (which co-hosted this year’s tournament), New Zealand, Australia and the U.K., Nielsen found that there was an average sales boost of 3.5 percent, with Indians being the most reactive.

Carbonated soft drinks and potato chips were the biggest gainers overall, although some categories were more popular than others based on locale. India and New Zealand were the two markets with the most reaction to the CWC 2011: in India, there was an average uplift of 25 percent and in New Zealand, 12 percent, in the categories under consideration during the tournament. A large portion of these sales can be attributed to increased media investment and improved efficiency (ROI).

• Soft drinks: Thanks to a 66 percent increase in media spend during the CWC quarter compared to the same period a year prior, sales of sodas grew 10 percent in India, with media contributing 5 percent of total sales. In South Africa, sales rose 6 percent during the CWC.
• Potato chips and salty snacks: New Zealand saw the biggest growth in this category with sales up 11 percent; ROI increased by 8 percent. Indians also ate more crisps, with the category posting a 3 percent sales increase and an ROI rise of 3 points. Indians gobbled up other salty snacks, with the category posting a 38 percent sales increase and the ROI was up 4 points versus the previous year.
• Beer: Denizens down under quaffed more beer during the tournament. In New Zealand, sales rose 8 percent, driven by a 43 percent increase in media spend. Media contributed about 3 percent to sales during this period. Australians bought roughly 6 percent more beer, with ad spending rising 13 percent. In South Africa, media spending rose 65 percent while sales grew 2 percent.
• Chocolate: Sales grew most in New Zealand and India, 24 percent and 22 percent, respectively. In the former, much of this growth can be linked to a surge in ad spending, with some chocolate brands relating themselves to cricket. In India, media had less of an impact, contributing to just 1 percent to sales.

“This research provides clear evidence of the power of advertising during the CWC. With such a huge audience, advertisers can not only reach millions of people around the world and boost brand awareness, but also drive real sales growth. Media proved twice as effective during the event compared to normal advertising. The brands that did the best were those that linked themselves to the game and the event,” said Tom Hall, Marketing ROI Solutions Leader, APMEA & India, Nielsen. “These lessons can help companies determine budgets and identify which categories might see the greatest sales uplift during future global sporting events such as the upcoming Rugby World Cup and the 2012 Olympics.”