Key Findings: November 2012
Business to Business Marketing Shifts and Trends on the Radar
- A picture’s worth a thousand words. Video, images, illustrations and graphics are becoming critical components for many marketing programs. Cisco predicts that video will make up 90% of all Internet traffic in the next three years.
- It’s a sound bite world. With so much information available online these days, everyone is becoming mega-scanners. We increasingly want our data in small chunks.
- New tools allow B2B marketers to better track and understand what online customers and prospects want, giving them the experience they are looking for.
- Mobile matters more. Adults in the U.S. spend more time on mobile devices each day than they do with print media. Make sure your website and online content is mobile friendly.
- Expand content marketing and inspire customers and prospects. Case studies are still important, but e-books, webinars and blogs have become permanent parts of the mix. Galvanize your message with anecdotal and testimonial stories using these channels. (ragan.com)
The Death of Ownership
The concept of shopping is shifting from “owning stuff” to “buying into new ideas.” Researchers first identified this behavior in Millennials and then in the Gen Ys, noticing the general lack of interest in owning things such as cars. And the trend may be extending to other generations as well.
Citing an evolution in consciousness, some experts are saying U.S. consumers are starting to think differently about what it means to ‘own’ something. Ambivalence toward ownership is emerging in many areas, from music to entertainment consumption. Our reason for buying stuff is becoming more about what we get from the acquisition.
Trend watchers also have spotted a surge in renting expensive clothing, cars by-the-hour and even furniture, citing that younger consumers especially are “scared of commitment, want to be light on their feet, and need to adjust to whatever happens.”
The recession, as well as stricter lending practices and higher down payment requirements has played a key role in more singles and families deciding to rent housing rather than purchase. First-time homebuyers in 2011 accounted for the smallest percentage of the total since 2006. Yet, the vacancy rate of U.S. rental properties is at its lowest since 2002. (Fastcompany.com; businessweek.com)
Oilfield Services Companies Reap Benefits as Crude Gets Tougher to Find and Extract
Oilfield services (OFS) companies are often called “the unsung workhorses of the industry.” Yet, many are getting a last laugh as their revenues continue to rival or surpass those of the major oil companies who hire them. According to McKinsey, OFS companies grossed around $750 billion last year.
OFS firms find and extract oil using cutting-edge technology, while others make and sell high-tech equipment for use on drilling rigs or the seabed, or own/lease drill-rigs. The big services companies, which invest heavily in technology, have been growing by around 10% a year.
One top OFS firm, Schlumberger, earned profits of $5 billion on revenues of $40 billion in 2011. Its market capitalization increased fourfold in the past decade, to $91 billion. That is bigger than several international oil companies, including ENI ($82 billion), Statoil ($75 billion) and Conoco-Philips ($71 billion). Other large OFS companies include FMC, Cameron, Halliburton, Baker Hughes, Transocean and Weatherford International. (The Economist)
Older Fathers More Likely to Pass on Genetic Mutations
According to a new genetic study, older men are more likely than younger ones to have children with autism and schizophrenia because older fathers pass on significantly more random genetic mutations, increasing the risk for these conditions. The findings may partly explain the rise in autism diagnoses in recent decades, now 1 in 88 children in the U.S. Between 1980 and 2011, the average age of fathers rose from 28 to 33. The study also counters the common assumption that it is the mother’s advanced age that contributes to these problems.
The study found that a 20-year-old dad passes on an average of 25 new genetic mutations to his child, while a 40-year-old dad passes 65. A mother transmits about 15 new mutations, regardless of age.
Bullets
Business to Business
- Regular email usage among U.S. adults will increase 2.7% this year, 3% in 2013 and 2.3% in 2014. (eMarketer.com: “Email Marketing Benchmarks: Key Data, Trends and Metrics.”)
- According to a recent Yankee Group survey, e-mail, database, corporate instant messaging and Web conferencing are the most common types of apps used on tablets by businesses of 50 people or fewer. (USA TODAY)
- In 15 years, more than 90% of news will be written by computers. (WIRED.com)
- 36% of emails today are opened using a mobile device. (eMarketer.com)
- The U.S. manicure-pedicure business is now a $7 billion industry employing a quarter million people. (Bloomberg Businessweek)
Brand Strategy
- 81% of consumers age 50 through 64 buy American because they believe it helps the economy. (Perception Research Services International, AARP magazine)
- About 120,000 beekeepers are practicing their craft in the U.S. (beeculture.com, AARP magazine)
- Shorter subject lines ensure your email is read: more than 50 characters and you’re wasting your time. (MailerMailer.com)
- Now at record highs, the average age of U.S. brides today is 26.5; the average age of grooms is 28.5. (NYTimes.com)
- About 626,000 men in the U.S. have left the workforce entirely to raise children, or maintain freelance or part-time jobs, but serve as primary caretakers of children under age 15 while their wives work. (U.S. Census Bureau, nytimes.com)
- 40% of American women now make more than their husbands. (U.S. Bureau of Labor Statistics, nytimes.com)
- 1 in 10 American households rent a storage unit. (Self Storage Association; NY Times)
Energy
- Price (61%), customer service (47%) and keeping the lights on (39%) are the top factors in determining whether consumers are satisfied with their electric utility. (DEFG and Navigant Consulting, Energybiz.com)
- Global demand for oil is growing by 1-2% a year, while global production from mature oilfields is falling 2%-6% a year. (The Economist)
- Using existing technology, U.S. energy consumption could be reduced by 23% in 2020 from current levels. (McKinsey)
- The U.S. oil reserves grew by 23% from 2007 to 2011, mostly due to efforts of independent operating companies, not integrated oil companies or national oil companies. (Ernst & Young; Offshore-mag.com)
Healthcare
- Based on 2007-2009 data, 36% of U.S. teens are sexually active, with rates varying from 28% in Colorado and Vermont, to more than 45% in Georgia and Mississippi. (U.S. Census Bureau)
- The number of farmers’ markets in the U.S. has nearly doubled since 2004 to more than 7,000. (U.S. Dept. of Agriculture, Bloomberg Businessweek)
- Employer-sponsored health coverage declined from 56.1%, covering 170.8 million people in 2009, to 55.3%, covering 169.3 million people in 2010. (U.S. Census Bureau)
- Each year in the U.S., 40,500 critically ill patients die with an unknown (misdiagnosed) medical condition that may have caused or contributed to their deaths in intensive care units. (hopkinsmedicine.org)