Smart home device ownership, sports marketing trends and coffee shop growth are all subjects of new reports issued in the UK, which The Advertist recommends further reading of, to ensure that your agency has its finger firmly on the pulse when it comes to its new business prospecting.
Smart home device ownership is on the rise, with significant growth seen in the security area…..New digital channels and marketing opportunities have leveled the playing field for brands in the area of sports sponsorship….Brexit continues to screw up the economy, causing a significant slow-down in coffee shop brands opening new stores…..
SMART HOME DEVICE OWNERSHIP
Firstly, Futuresource Consulting has launches a new report into smart home product ownership, which states that almost half the population living in the UK, USA, France and Germany now owns a smart home device, up from one-in-three a year ago.
The research, conducted on nearly 4,000 consumers, explores ownership, satisfaction, motivations, barriers and perceptions.
The majority of growth is being driven by smart speaker ownership and smart security products. Whereas smart speakers are an entry point into the smart category, smart security is far more prevalent among advanced users, who tend to skew towards a male, younger, higher income and urban profile.
“Smart devices have captured consumers’ hearts,” commented Jack Wetherill, Principal Consultant at Futuresource Consulting. “With 47 per cent of the population now owning at least one smart device, the technology is moving swiftly through the adoption curve. Our research shows the number one motivator for purchase is to make life easier.
“Other high-ranking responses include making a home more comfortable, increasing security, improving efficiency and enabling control of devices while outside the home. What’s more, over 90 per cent of device owners are either extremely satisfied or very satisfied with their purchases.”
The USA, UK and France have all seen strong uptake over the last year, while the German market has remained relatively stable. Smart security ownership has nearly doubled, driven predominantly by the US market, with security cameras and video doorbells the most popular products. Smart speakers have witnessed similar growth, though this is focused mainly in the UK. Listening to music is still the main function of smart speakers, followed by weather reports and checking for traffic updates.
Smart appliances are also beginning to take hold, with 30 per cent of people surveyed saying they own one. Ownership is highest in the USA, driven by purchases of smart coffee machines, air conditioners, microwaves and toasters. For those who don’t already own a smart appliance, they are more likely to wait until their existing appliance breaks before they replace it.
“The future is smart,” continued Wetherill. “With two out of every five people surveyed saying they want to control their home more wirelessly within the next year, there are exhilarating times ahead for the industry.”
Futuresource Consulting’s 86-page smart home consumer research report is the fifth consumer survey providing an insight into smart home devices and appliances. Small and major domestic appliances are covered, alongside lighting, climate control, speakers, and security and monitoring, as well as a range of other devices.
The report is supplied with a detailed excel workbook that contains many thousands of datapoints enabling clients to interrogate the data according to their particular interests. For further information, head to www.futuresource-consulting.com
THE BIGGEST TRENDS AFFECTING MARKETING IN SPORTS
Once limited to a few big-name sponsorship deals, new channels have opened up opportunities for all sorts of sports marketing deals and there are now new and exciting opportunities for both brands and sports clubs to build deeper and more meaningful relationships with their audiences.
Women and Sports
This may surprise some, but a recent report from Nielsen Sports found that 84% of sports fans consider women’s sport to be more progressive and inspiring then men’s sports, which is driven by money. This means the public is incredibly receptive to women’s sports and this is a huge opportunity for marketing. Consumers want the brands that they go to, to represent equality, diversity, and inclusion as some of their top causes.
Brands are already aware of this trend. For example, Nike has included women’s sports front and centre in its ‘Dream Crazier’ campaign recently. This was narrated by Serena Williams and represents a call for women in sports to stand up to gender biases and stereotyping in sports. This was great for the conversation around creating a level playing field for women in sports.
Virtual and Augmented Reality
It’s still the early stages of virtual and augmented reality (VR and AR), but there are already instances of brands and clubs using platforms like Instagram or Snapchat to build an interactive or immersive experience for their global audiences, in and out of the stadium. There are benefits to this technology for advertisers and broadcasters as well as teams and brands.
Recently, there have been trials in technology to make the experience of TV viewers more personalised, specifically during football games. One notable example was in 2018 when the Football Association and ITV set up a test during a friendly between England and Costa Rica. As per Henry Dodds, a sports writer at WriteMyX and BritStudent, “some dynamic perimeter ads were set up around the pitch and streamed to different audiences depending on their location using something called Virtual Replacement Technology. It essentially allowed different viewers to see different advertisements.”
Social channels continue to be a major factor for fanbase building and boosting brand opportunities for individual athletes and sports teams. Social channels such as Instagram and Twitter are great platforms to build and engage fanbases and communities. It’s also a prime advertising space, that can help develop a more human side of athletes and give fans virtually 24/7 access to their favoured sport or athlete.
Thanks to Instagram stories and live streams, athletes and teams can give their audience some exclusive or access behind the scenes to training sessions and more. This is a great opportunity to make fans feel more connected to their heroes.
There is a move in the sports industry for cause marketing, which involves personalities using their reach and authority to bring key issues to light. This includes sports legends speaking up about mental health issues and promoting related charities, especially in terms of men’s mental health. By showing powerful male athletes openly discussing feelings and the importance of supporting each other, there is a strong message about the need to move past traditional masculine stereotypes.
Todd Egans, a marketer at 1Day2Write and Next Coursework, explains that “brands should be exploring narratives to involve their target audiences that can make supporters feel closely linked and connected to the successes of their teams and clubs.”
Esports has grown enormously in the last few years, which hasn’t escaped sports teams. Because football teams, in particular, have a huge fanbase that plays video-games, these clubs have seen the benefit of eSports. For example, the Spanish football team Real Madrid has unveiled plans for a high-tech stadium that will include an arena for eSports. In 2018, the Tottenham Hotspurs football club was one of 20 Premier League teams that set up a fan competition which offered winners the chance to compete and represent their team in the ePremier League.
There is a ton of investment in eSports right now and all indications are that this will continue to be a trend that dominates sports marketing in years to come.
AND NOW FOR COFFEE..
Brexit uncertainty and tough high street trading have taken their toll on branded coffee shop openings, according to a new study.
The UK branded coffee shop market grew by just 70 outlets in 2019 to 8,222, an increase of 0.9% year-on-year, according to Project Café UK 2020, Allegra World Coffee Portal’s report
on the UK café industry.
Twelve months ago, researchers reported that the market had grown 8.7% year-on-year.
The cost of property, labour and the impact of Brexit were cited as the top three challenges facing coffee shops, with 56% of industry leaders believing there was still plenty of growth potential for branded café chains in the UK.
Allegra expected reduced uncertainty on the UK’s future relationship with the European Union, alongside major merger & acquisition activity including Coca-Cola’s purchase of Costa Coffee and Causeway Capital’s rebuilding of the Patisserie Valerie brand, to bring increased investment and outlet growth in 2020.
“Following two years of tough trading, the UK coffee shop market has held up well against significant headwinds,” said Allegra Group CEO and founder Jeffrey Young.
“We expect outlet growth to regain momentum during the next two to three years and forecast better times ahead for those operators that can readily capitalise on the opportunities and adapt to the challenges in what will remain a highly competitive market.”
World Coffee Portal has forecast further transformation in the industry in 2020, with major brands launching new formats, including travel kiosks, drive-throughs and specialised sub-brands.
It expected the UK branded coffee shop market to top 9,400 outlets by the end of 2024, displaying a five-year CAGR of 2.7%.