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Recently in Industry News Category

Consumer Views on Restaurant Advertising

The National Restaurant Association and LivingSocial recently conducted a study regarding consumers' impressions of restaurants' marketing methods. The full results report on 12 different communication practices broken out by age, gender and location in the United States. Overall, consumers seem receptive to restaurant marketing efforts, with more traditional printed methods ranking the highest for most questions. Key findings include:


Marketing communications that consumers are receptive to receiving from restaurants:

  • The most popular method of marketing is coupon booklets, with 80% of consumers saying they welcome marketing communications that way. However, it is higher for women than men (86% vs. 73%) and ages 35 to 64 are also more receptive.
  • Women are more receptive in general to each marketing method than men.
  • Ads in the local paper and brochures/menus in the mail are tied for the second-most welcome marketing method, with 73% of consumers each.
  • Restaurant marketing is a tougher sell in the West region. For most categories, they had the fewest respondents receptive to the various marketing methods.

Marketing communications deemed most effective by consumers in getting them to *learn more*:

  • Coupon books are the most popular, with 86% of adults (and 91% of women) saying they make them want to learn more about a restaurant.
  • Emails (84%) and brochures/menus sent via the mail (82%) come in at number 2 and 3 respectively.
  • The top six are all deemed effective in encouraging consumers to learn more by at least 75% of adults [brochures left on the doorstep (77%), ads on TV (77%) and ads in the local paper (75%)].

Marketing communications deemed most effective by consumers in getting them to *consider* going to or ordering from a restaurant:

  • Again, coupon books are the most popular, with 85% of adults (and 90% of women) saying they make them consider choosing a restaurant.
  • Tied for the next most popular methods encouraging consumers to consider going to a restaurant are emails from the restaurant and brochures/menus in the mail, both at 80% of all adults and both more popular with women than men. Both are also most popular with the 55 to 64 age group.

Marketing communications deemed most effective by consumers in getting them to *actually* go to or order from a restaurant:

  • Again, coupon books are the most popular, with 84% of adults (and 89% of women) saying they make them consider choosing a restaurant.
  • Everything is very similar between considering and actually going to the restaurant except that the percentages are slightly lower across the board on actually going to the restaurant.

Frequency of meals purchased at a restaurant (or fast food place, coffee shop or other food service location):

  • Lunch is the most common meal eaten out (average of 1.74 times per week), followed by dinner (1.65 times), breakfast (1.13 times) and snack (1.02 times).
  • Across all meals, men are more likely to eat out than women.
  • Across all meals, the likelihood of eating out decreases with each older age group.

How to Keep Your Ads Legal

While most small businesses don't set out to be deceptive or break the law with their advertising, it can happen. Here are a few common pitfalls to watch out for.

  • Bait and switch--It is illegal to advertise a product to get people in the door with the plan to sell them a different (often higher-priced) item. Most ethical business owners don't do this, but if you know going into the ad that you have limited stock, it's best to make that clear upfront. If you do run out of the advertised special, offer rain checks or at least a comparable item and pricing instead.
  • Misleading claims--Any claims made in your advertising must be factual and something you can prove if questioned about it. An example of a challenged claim is Papa John's "Better Ingredients. Better Pizza." tagline. Ultimately Papa John's was able to keep the tagline, but it's a great example of what to watch out for.
  • Deceptive pricing--It's unlawful to state an item is on sale if it's actually the regular price. Nor can you advertise something is free when in fact there are hidden or additional fees. Another false "deal" is when the stated regular price isn't ever used or adhered to. You shouldn't mark up a price with the sole intention of making it appear to be a good "sale."
  • Unfair comparisons--If you are comparing products or services you offer against your competition's, make sure you're truly comparing apples to apples.
  • Sweepstakes and contests--These can be very appealing but also are highly restricted by law to make sure they aren't actually a lottery. Be sure to review the contest rules in depth before using it in your advertising. Then make sure you don't forget to use the very important statement "NO PURCHASE NECESSARY." 

Vibrant Orange: Color in Marketing

Moving down the rainbow spectrum to another warm color, this week's focus is orange. It is a joyful color for most, yet carries some more negative connotations. This recent post explains the effectiveness and importance of paying attention to color theory.

Common associations with the color orange:
  • Energy
  • Warmth
  • Fun, playfulness
  • Radiance, vibrance
  • Summer or fall depending on the shade
  • Sun, solar
  • Inviting
  • Happiness, joy, cheer
  • Aggressiveness, brassiness, boldness
  • Healthiness, fruitiness, vitamin C
  • Halloween
  • Caution, safety
  • Prison uniforms (U.S.)
  • Flamboyance
Interesting facts about the color orange:
  • Orange avoids many of the color red's negative associations while sharing many of the more positive ones.
  • Adults often either love or hate the color.
  • Orange is a favorite color of children.
  • Nothing rhymes with the word orange.
  • Tangerine Tango is the 2012 color of the year according to PANTONE.
  • Orange is the most sacred color of Hinduism.
  • In Ireland, orange is associated with Northern Ireland Protestants.
Physiological effects of the color orange:
  • Stimulates the appetite.
  • Stimulates emotions.
  • Encourages people to linger.
  • Increases oxygen's flow to the brain.
  • Improves mental clarity.
Common uses of the color orange:
  • Low-priced items
  • Fast food
  • Bargains
  • Candy
  • Impulse buys
  • Outlet stores
  • Clearance sales
  • Calls to action
  • Toys
Designing with the color orange:
  • Like red, orange appears bigger and closer, especially compared to cool colors.
  • Orange works well with blue or in a triad with green and purple.

Too Busy to Advertise?

If sales were evenly distributed throughout the year, each month would account for 8.3% of annual revenue. That's not what most businesses experience, however. Instead there are usually cycles of busier and slower times. For example, restaurants often see an influx on certain holidays like Mother's Day, sports stores sell more at the start of each sport's season and accountants are swamped leading up to tax day. If you don't plan ahead, you may feel like you are too busy running the business and helping customers to worry about marketing and advertising. If you think you don't need to waste money on marketing because the customers are already streaming in, think again.

Just because customers are in the mood to buy what you're selling doesn't mean they are choosing your business. With a solid marketing plan, hopefully you are "top of mind" with your prospects, but that's not a guarantee. Something as simple as your competition's ad may have caught their attention instead. Of course, there are a thousand and one other things that can impact consumers' purchase decisions. The most successful businesses know the importance of ramping up their marketing and advertising efforts just before and during their busiest time. It helps remind shoppers of all the benefits, offerings and reasons to choose their business.

Let's face it. Unless you have zero appointment times left or completely empty shelves in your store, you can benefit from more customers. There's always market share to be captured. What better time to pursue it than when customers already want what you've got without advertising? Now, you're sealing the deal more than selling them on the purchase.  That's a smart business strategy.

Red Hot: Color in Marketing

Beyond the obvious facts that red is both a primary color and a warm color, there are many things to consider when using red in your marketing. It is an emotionally intense color on both sides of the spectrum from love to hate. Red is also an attention getter, but that doesn't make it right for every situation. This recent post explains the effectiveness and importance of paying attention to color theory.

Common associations with the color red:
  • Action, excitement, energy
  • Aggressiveness, dominance, power, strength
  • Heart, blood
  • Bravery
  • Stop, danger
  • Love, desire, passion, romance, sexuality
  • Devil
  • Drama
  • Fire, heat, warmth
  • Hate, violence, anger
  • Negative cash flow (accounting)
  • Spontaneous
  • Vibrant, vigor, vitality
Interesting facts about the color red:
  • It's the first color babies can see.
  • It's the number five most popular car color in the United States and globally for 2011 (according to DuPont Automotive).
  • Up to 10% of the population is classified as color blind, mostly men and Caucasians, and that can impact their ability to notice the color red.
  • People tend to gamble more in rooms painted red.
  • Red is used in the majority of flags.
  • Red symbolizes good luck in Asia.
  • Athletes/teams wearing red have been found statistically to win more often.
  • Red clothes make people look heavier.
Physiological effects of the color red:
  • Increases breathing
  • Increases pulse rate
  • Stimulates appetite
Common uses of the color red:
  • Motor industry
  • Beauty products
  • Food industry
  • Impulse buys
  • Red tag/dot or clearance sales
Designing with the color red:
  • Red works best when used sparingly as an attention grabber.
  • Red can visually appear to be bigger in size or closer/more forward in relation to the viewer, especially when compared to cooler colors like blue or black.

Do Newspaper Consumers Read Ads?

Yes, according to the Newspaper Association of America (NAA), which recently released the findings of their Newspaper Multiplatform Usage study. In the report, the NAA states that, "[multiplatform newspaper users] are highly engaged with newspapers in print, online, smartphones and/or tablets because they value the news, advertising and feature coverage (especially local)." One of the key takeaway points is that newspaper readers are using more than one version (print, computer, tablet and smartphone) throughout the week, and even multiple platforms in the same day. Specific advertising-related findings from the report include:
  • 44% of those reading the printed newspaper say it has useful advertising and 41% say they usually notice the ads.
  • Circulars and coupons are regularly read on weekdays by 76% of print readers, 19% of computer users, 13% of tablet users and 11% for smartphone users.
  • On Sundays, circulars and coupons are read by more print readers at 87% and slightly more for digital readers in each category.
  • Daily deals are regularly read on weekdays by 28% of print readers, 44% of computer users, 40% of tablet users and 42% of smartphone users.
  • On Sundays, daily deals are read by more print readers and fewer computer users, but both are minimal changes.
  • Classified ads are regularly read on weekdays by 38% of print readers, 21% of computer users, 22% of tablet users and 16% of smartphone users.
  • On Sundays, classified ads are ready slightly less in all categories except smartphones, which goes up 1%.
  • In general, print newspaper advertising circulars are popular, with 82% of the people who've read a newspaper in the last seven days saying they have read or looked into them. 
  • For those who've seen both online and print circulars, 48% overall prefer the print, 25% prefer the online version and 28% say there's no difference. 
  • When it comes to making comparisons using circulars, 45% find the online circulars easier to use vs. only 27% who prefer print for this usage.  This is the area that got the largest online preference and the only category where online was preferred by more people than print.
  • 66% of digital newspaper users (computer, tablet and smartphone) acted on an ad they saw at least once in the past 30 days. 
As for target audiences, the report found:
  • Males are more likely than females to use the computer (64% vs. 56%) and smartphones (29% vs. 23%).
  • The 18 to 34 age group is more likely (41%) to access newspaper content on a smartphone than the 35 to 44 age group (28%) and the 45 to 64 age group (13%).
  • The 65+ age group, on the other hand, is more likely to use the print edition (93%) than the general average (80%).

Does Color Impact Your Marketing Success?

Color theory is followed by many of the most successful companies because they realize that color use can have powerful effects on the body and mind. Sometimes personal and cultural associations influence reactions. Other times, it is pure science, as evidenced by the findings recently released by the Surrey Sleep Research Center that confirmed that the actual color of light can affect sleep. For your business, the importance is the effect color can have on your bottom line.

To help alleviate any skepticism, an article on ColorMatters.com, citing multiple sources, outlines a number of marketing and advertising related benefits:
  • Visual appearance and color far outweigh other factors in consumer influence, with 85% saying color is a primary reason why they buy a particular product and 93% citing visual appearance as an important factor.
  • Color increases brand recognition by 80%.
  • Color improves memory compared to black and white images.
  • Ads with color are read 42% more than the same ads in black and white.
  • Color improves learning and comprehension.
  • Color images hold attention for two or more seconds on average, compared to black and white images that only capture attention for less than two-thirds of a second.
  • Color use on an insurance company's invoices resulted in payments coming in on average 14 days earlier.
Color often plays such an important role in daily life that most don't even notice its impact directly. For example, one of the first things people do each day is decide what to wear, which is basically selecting, matching and accessorizing colors.  

Watch for upcoming articles in this series focusing on the meaning and effects of specific colors to help you market and advertise more effectively. But, keep in mind it's important to research cultural associations if you're planning to advertise in an area you're not familiar with. For example, black is associated with mourning and death in the United States, but in Asia, white is related to death. People living in tropical locations seem to prefer warm colors, while people near the poles prefer cool colors.

Design Defined: Clip Art

When the term "clip art" or "clipart" is used, several definitions may come to mind:
  • Many people think it's specifically cartoon style illustrations.
  • Some people think along these lines: "Clipart tends to look a bit tacky on websites. We recommend photos."
  • Others think it's just what comes with word processing programs such as Microsoft Word and that it got the name because "Clipart may be moved between programs and documents using the clipboard functions."
  • They also commonly expect it to be part of a collection on a CD.
  • Most agree that it involves "drawings" or illustrations.
Surprisingly, Merriam-Webster Dictionary says clip art is defined as "ready-made usually copyright-free illustrations sold in books or as part of a software package from which they may be cut and pasted or inserted as artwork." Several of the above thoughts seem to relate to this definition. Of course, not everyone agrees on several aspects of that definition. 

Wikipedia states, "Since its inception, clip art has evolved to include a wide variety of content, file formats, illustration styles, and licensing restrictions. Clip art is generally composed exclusively of illustrations (created by hand or by computer software), and does not include stock photography." The article goes on to describe the ways people can purchase clip art, along with the types of copyrights commonly used, both of which are far more diverse than the Merriam-Webster definition indicates. 

Depending on the sources used, people may define the term differently which may explain why many graphics oriented people and businesses shy away from using the term. 

As for the origination of the term, it stems from the pre-digital era of design when companies like MultiAd produced large books of illustrations.  To use the artwork in an ad or on the page, users such as newspapers would cut or "clip" the artwork out of the book and paste it onto the page. Later this evolved to scanning the images for digital use and then distribution via CDs and now for download via websites like CreativeOutlet.com.

Marketing Ad Budgets: 6 Month Outlook

The Association of National Advertisers just released a report detailing anticipated changes to client-side marketers' ad budgets. Findings include:
  • Overall 34% surveyed expected a budget decrease (was 29% last year), while 17% expect an increase (was 22% last year).
  • 84% feel pressure to find ways to save or reduce costs (was 77% last year).
  • B2B companies are more likely than average to expect a budget decrease at 40%.
  • 42% of B2B companies expect their budget to remain unchanged.
  • B2C companies are less likely than average to expect a decrease at 32%.
  • On par with the average, 17% of B2C companies expect a budget increase.
  • Reductions are expected to be 10% or less for most (84%) of the respondents facing a decrease.
  • Most common reductions include: travel and expense restrictions (68%), challenging their agency to reduce costs (52%), ad campaign media budget (49%) and switching to lower cost channels (40%).
  • Using freelancers to fill open positions (21%) and reducing professional development (28%) are two other ways of reducing budgets that are more popular this year than last.
Thoughts and Takeaway Notes:
  • While at first glance, the report can seem gloomy with an increasing number of companies expecting a budget decrease, it's only the minority, with about half expecting no budget change.
  • Companies should remember that these statistics are meant for benchmarking purposes only and each business should evaluate many facets of what is happening inside and outside their business in determining their ad budget. 
  • It's been proven time and time again that the companies that continue to fund effective advertising and marketing campaigns, especially when others are cutting back, end up with a strategic advantage and a more successful company than their competition.

Email Marketing: When to Send

One of the most common questions small businesses (and really most businesses) have is "When should I send my marketing emails?" The most common answer is always, "It depends," which sounds like a cop-out, but honestly it really does. There's no one perfect time to send marketing email. If there was and everyone sent emails then, the results would probably be ruined due to overload and a new time would become better. All that said, this new report by Informz does address this important question. Just keep in mind that it's always best to do your own testing using these insights. Findings include:
  • Emails sent in the morning have a slightly higher average open rate of 39.2% than other time slots including midday at 33.9%, late afternoon at 32.1% and night at 32%.
  • Morning emails, on the other hand, don't generate many clicks; in fact, they have the lowest average click rate of 16.5%. 
  • Late afternoon emails have the highest average click rate at 21%, followed by midday emails at 19.7% and night time emails at 18.6%.
  • As for day of the week, the range is minimal with Tuesdays having the lowest average open rate of 32.77% and Fridays having the highest average of 35.19%.
  • Click rates by day of the week range from an average of 18.5% on Mondays, the lowest, to 19.85% on Wednesdays, the highest.
  • Overall average metrics include a 34.33% open rate and a click rate of 19.49%.
  • Survey-related emails had the highest click rate at 33.39%, and appeal-focused emails had the lowest open rate at 14.63%.
  • Open and click rates are also influenced by how the recipients read the emails, with those using desktop computers having higher open rates (51% vs. 46%) and click rates (15% vs. 5%) compared to those reading email on a mobile device.
These findings are based on the entire Informz client base and may include a mix of B2B and B2C. If you are new to email metrics, it's worth noting that open rates require the reader to view images in their email or have clicked on a link to trigger the tracking information. It is possible for emails to be read without being counted in your statistics. It is also possible that the same emails may be counted as being read because the images were shown, when, in reality consumers didn't actually read them. The metric isn't perfect but usually balances out. 
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