Nielsen Wire » New Year

Ad Buyers Bulk Up Spending As Consumers Diet

admin — Tue, 13 Jan 2009 13:05:07 +0000

With 2009 underway, so, too, is the race for millions of Americans to meet their New Year’s resolutions. Whether it’s trimming love handles, lowering cholesterol, or stomping out cigarettes for good, consumers are more likely to sample new products and services that help them practice healthier habits. And advertisers are especially eager to help.

The first month of the year is not surprisingly the most popular advertising month for these “resolution” companies. Last January, they spent over $181 million on advertising for products and services related to weight loss and smoking deterrents. That month’s figure was 23% higher than any other month’s spend through the first three quarters of 2008.

Historically, monthly spending on ads for diet, fitness, and smoking deterrent products and services held the same pattern. Like 2008, spending was most heavy in the first quarter of both 2006 and 2007:

TOTAL AD SPENDING ON WEIGHT LOSS, FITNESS, AND SMOKING DETERRENT PRODUCTS AND SERVICES

A list of the top spenders in this category from 2007 (the last full year that data is available) shows that NutriSystem paid the most for advertising with $209.4 million. Next on the list was GlaxoSmithKline ($171.3 million), whose expenditures shot up over 100% in ‘07, thanks to the introduction of its new weight-reducing aid, Alli.

The list also includes several unfamiliar parent companies who promote some very familiar brands. Artal Luxembourg, owners of the Weight Watchers franchise, dropped almost $107 million on advertising in 2007. And Iovate, the company behind Hydroxycut, put $83 million toward advertising in 2007.

Other parent companies flexing their ad muscles in 2007 include Nestle (makers of PowerBar) and Harbinger Capital Partners (owners of Bally’s Fitness clubs), each with expenditures approaching $67 million. Unilever, parent company for the Slim-Fast brand, spent almost $40 million.

Surging its way into 2007’s top ten was Western Holdings LLC, whose Akavar weight loss pill infiltrated U.S. markets from Europe thanks to a $38.3 million ad spend.

Rank	Advertiser	2007 Ad Spend (millions)	% Change 2007 vs. 2006
1	NUTRI/SYSTEM INC	$209.4	21%
2	GLAXOSMITHKLINE PLC	$171.3	107%
3	ARTAL LUXEMBOURG SA	$106.7	47%
4	IOVATE HEALTH SCIENCES GROUP INC	$83.5	-14%
5	NESTLE SA	$66.6	16%
6	HARBINGER CAPITAL PARTNERS	$66.6	-13%
7	LA WEIGHT LOSS CTRS INC	$64.3	-18%
8	UNILEVER	$40.0	-23%
9	WESTERN HOLDINGS LLC	$38.3	1294%
10	NXLABS INC	$30.0	15%
Source: The Nielsen Company (2009).

In U.S., A Holiday Baking Divide: North Vs. South

admin — Mon, 22 Dec 2008 12:45:43 +0000

When it comes to holiday baking, consumers in the northern U.S. reach for baking supplies — like readymade frosting, cake decorations, chocolate chips, and food coloring, while southerners prefer to stick to the basics: flour and sugar.

Last November and December, supermarket shoppers in northern markets like Hartford and New Haven, Conn. and Buffalo and Rochester, N.Y. spent almost one-third more, percentage-wise, on baking supplies than average American consumers, Nielsen reports.

During the same period, shoppers in southern markets like Birmingham, Ala. and Memphis dominated sales of flour, spending 106% and 78% more, respectively, than average Americans.

Consumers in Memphis and Birmingham also dominated sales of sugar, spending 57% and 46% more, respectively, than average Americans on that most basic of holiday baking ingredients, according to Nielsen.

West Texas, Little Rock, Ark., Nashville, Tenn., and Atlanta were also among the top markets for flour and sugar sales. Shoppers in these markets spent 30% to 52% more on flour, and 19% to 28% more on sugar than average Americans.

Top 10 U.S. Markets: Baking Supplies

Rank (by highest index)	Market	Dollar Sales Index Vs. Total U.S. Sales
1	HARTFORD/NEW HAVEN	128
2	BUFFALO/ROCHESTER	127
3	GRAND RAPIDS	123
3	MINNEAPOLIS	123
3	CLEVELAND	123
4	SYRACUSE	122
5	MILWAUKEE	120
6	ST. LOUIS	115
7	SEATTLE	113
7	DETROIT	113
7	PHILADELPHIA	113
8	ALBANY	112
8	PORTLAND	112
9	BOSTON	110
9	SAN FRANCISCO	110
10	SACRAMENTO	109
Lowest Rank	SAN ANTONIO	68
Source: The Nielsen Company (November – December 2007).
*Note: “Dollar Sales Index” is based on each market’s category share of UPC-coded, total dry grocery sales vs. total U.S. sales.

Top 10 U.S. Markets: Flour

Rank (by highest index)	Market	Dollar Sales Index Vs. Total U.S. Sales
1	BIRMINGHAM	206
2	MEMPHIS	178
3	WEST TEXAS	152
3	LITTLE ROCK	152
4	HOUSTON	136
4	NASHVILLE	136
5	SAN ANTONIO	131
6	ATLANTA	130
7	DALLAS	120
8	PHOENIX	119
9	PORTLAND	105
10	NEW ORLEANS/MOBILE	103
10	KANSAS CITY	103
Lowest Rank	ORLANDO	67
Source: The Nielsen Company (November – December 2007).
*Note: “Dollar Sales Index” is based on each market’s category share of UPC-coded, total dry grocery sales vs. total U.S. sales.

Top 10 U.S. Markets: Sugar

Rank (by highest index)	Market	Dollar Sales Index Vs. Total U.S. Sales
1	MEMPHIS	157
2	BIRMINGHAM	146
3	LITTLE ROCK	128
4	NASHVILLE	127
5	RALEIGH/DURHAM	125
6	NEW ORLEANS/MOBILE	124
7	CHARLOTTE	123
7	ATLANTA	123
8	JACKSONVILLE	120
9	WEST TEXAS	119
9	OKLAHOMA CITY/TULSA	119
10	LOUISVILLE	114
Lowest Rank	OAHU	68
Source: The Nielsen Company (November – December 2007).
*Note: “Dollar Sales Index” is based on each market’s category share of UPC-coded, total dry grocery sales vs. total U.S. sales.

Nielsen’s Dollar Sales Index reflects a category’s share of total dry grocery sales for a Nielsen market versus the total U.S., using supermarket dollar sales over the most current 52-week period.

The Memphis market’s index of 157 for the Sugar product category, for example, reveals that supermarkets in that particular market sell 57% more sugar, relative to total dry grocery purchases, than the national average.

Golden Week Holiday Travel Surges In China

admin — Tue, 30 Sep 2008 16:26:41 +0000

Chinese are more likely to travel this week for the National Day Golden Week holiday than they were earlier this year during the Chinese New Year holiday, Nielsen reported Tuesday.

According to a survey conducted by Nielsen, six in 10 Chinese plan to travel between September 29 and October 5 for Golden Week, while just 42% of Chinese reported making plans to travel this past February for Chinese New Year celebrations.

More than half of those surveyed by Nielsen said they plan to travel within China, while about 10% were considering an overseas trip. One-third of the respondents, surveyed between September 22 and 23, had not yet decided how to spend the holiday week.

Among those planning to travel internationally, Hong Kong was the most popular destination — with half of those traveling abroad claimed to be visiting the city. Singapore (29%) and Macau (26%) were the second and third most popular destinations. France (16%) and Taiwan (14%) also made Nielsen’s list of top holiday travel destinations.

Within China, Dalian (20%) and Beijing were the most popular destinations, according to Nielsen.

Nielsen’s survey interviewed 2,000 Chinese Internet users nationwide.

View the full press release.