Scarborough Digs Deeper to Help Media Buyers Buy Smarter

Cable World, August 25, 2003

Byline: ANDREA FIGLER

Malt alternatives, flavored vodka, berry wine coolers, DVD movies, men's cologne and Viagra. Sounds like a party list for a retirement home in the redneck Riviera, no?

Sorry grandpa. Actually, it's a group of products that account executives, both local and national, should pay attention to because they are in demand. So much so that media buyers - the ones that plop down the hard cash for advertising spots on television - have repeatedly asked research companies, particularly Scarborough Research, to add to their demographic surveys new categories and questions addressing these products.

So, starting next year, Scarborough is going to make some changes. They're the kinds of changes that account execs should be aware of because understanding the trends behind them can help even the smallest cable systems sell ads - even if the products in question are national in scope.

"Being able to spot industry trends and incorporate them will have a huge impact on your advertising sales and your own perceived value," said Tim Harris, an account executive for Nielsen Median Research. Harris helped present some of these changes and trends at a Scarborough conference this month in Santa Monica, Calif. Here are the ones most appropriate for cable advertising:

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Malt alternative drinks, such as Mike's Hard Lemonade: "Malternatives" will grab 43% of beer sales at supermarkets and drug stores by 2007, according to Scarborough. On top of that, this year Anheuser-Busch has devoted $350 million - $130 million more than last year - to primetime television for advertising and marketing its products, especially new alternative drinks, the panelists explained. To accommodate this trend, Scarborough plans to add a malternatives research category next year.

Here, account executives for cable operators might reap some benefits. Beer is sold on relationships, not just advertising, said Chris Ilovar, an account manager for Nielsen Media Research and another Scarborough panelist. "So, building relationships with your clients, knowing what they want and what they need in order to grow their business; any time you do just that, you'll always be the next big thing."

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Flavored liquor and wines: Next year, Scarborough will track which type of wine, such as merlot or cabernet, people are drinking. This new data could help when trying to lure a local wine shop to cable advertising.

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Pharmacies and medications: With the aging of baby boomers, pharmacies are popping up on every corner, essentially taking the place of convenience stores in some markets - again, more potential advertisers for local cable. Scarborough will look at the reasons why consumers bought their medications to help media buyers understand why consumers in certain markets are buying drugs. For instance, were those little blue pills for allergies or weight loss?

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Home-based entertainment, such as DVD movies and video games: For the first time, revenue from video games, at $10.3 billion, bested film output, according to Scarborough. Advertisers are looking for promotional tie-in opportunities to take advantage of this consumer trend, the panelists noted.

In reaction, Scarborough will go even deeper into researching home entertainment next year. It plans to add new categories listing what consumers want to buy, such as television subscriptions and digital video recorders. Scarborough also will monitor interest in television genres, such as comedy, drama and reality.

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Men's colognes: According to Scarborough, 36% of U.S. men say they wear fragrances at least four days a week. Men 18 to 34 are the most prevalent fragrance users and spend an average of $50 on each purchase.

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Automobiles targeting young, multicultural, urban demographics: "Well aware of the waning reach of network television, automakers have said they will shift dollars to more targeted efforts, pursuing multicultural, urban and regional gains," Ilovar said. This gives cable a leg up on the competition since it can target different regions and demographics well. Many automakers are making crossover vehicles to target this younger, hipper market. And since auto dealers are typically the top advertisers for local cable systems, local account executives should watch the moves of these automakers closely. "So, when those new brands hit the market, be sure to be on top of it and develop a promotion around the new model," Ilovar said.

Andrea Figler's column on local ad sales appears monthly. Send ideas and comments to afigler@primediabusiness.com or call (323) 644-0445.