Average Valentine's Day Spending Up 11%

Average Valentine’s Day Spending Up 11%

The average US consumer will shell out $116.21 on traditional Valentine’s Day merchandise this year, up 11% from last year’s $103, according to the National Retail Federation’s (NRF) 2011 Valentine’s Day Consumer Intentions and Actions Survey, conducted by BIGresearch. Total holiday spending is expected to reach $15.7 billion, also up 11% from $14.1 billion last year.

Spouses, Pets Do Better
Having cut back on spending in recent years, the survey predicts couples this year will spend an average of $68.98 on their significant other or spouse, up about 9% from $63.34 last year. In addition, the average person will spend $5.04 on Valentine’s gifts for their pets, up a significant 54% from $3.27 last year.

Consumers will also spend an average of $6.30 on friends (up 17% from $5.37), $4.97 (up 16% from $4.29) on classmates and teachers, and $3.41 (up 20% from $2.84) on co-workers.

Men, Young Adults Spend More
As usual, men will spend the most on Valentine’s Day gifts. The average man plans to spend more than twice as much ($158.71, up 17% from $135.35) as the average woman ($75.79, up 5% from $72.28).

Looking at age-related trends, adults 25-34 will spend an average of $189.97, about three times the $60.22 adults 65 and older will spend.

Spending on Wide Variety of Items Will Rise
The survey also found spending across the board is expected to be up this year. Consumers will shell out $3.5 billion on jewelry this Valentine’s Day, up almost 17% from an estimated $3 billion last year. Clothing ($1.6 billion, 7% higher than $1.5 billion in 2010) and dining out ($3.4 billion, up 3% from $3.3 billion in 2010) will also be popular gift options.

While greeting cards will be the most popular gift option (52.1%, up 10% from 47.2%), jewelry is expected to be a big hit as well, with 17.3% planning on buying jewelry, up 6% from 15.5% last year.

Discounters Capture Consumer Hearts
Discount stores (36.6%) will be the most popular shopping destination, but department stores (30.5%), specialty stores (19.4%) and online (18.1%) will share much of the holiday traffic as well. Others will shop their local florist (16.8%) and jewelry store (9.5%).

Super Bowl Spending Also Looks Solid
February could be a lucrative month for retailers, as the average US consumer is expected to spend $59.33 on game-related Super Bowl (Feb. 6, 2011) merchandise, apparel and snacks in 2011, up almost 13% from $52.63 last year, according to another recent survey by the Retail Advertising and Marketing Association, conducted by BIGresearch. Total Super Bowl spending is expected to reach $10.1 billion.

About the Data: The NRF 2011 Valentine’s Day Consumer Intentions and Actions Survey, conducted for NRF by BIGresearch, was designed to gauge consumer behavior and shopping trends related to Valentine’s Day. The poll of 8,913 consumers was conducted from January 4-11, 2011.

Agency Survey Shows 'Rebirth' of Buyers' Interest in Radio

Agency Survey Shows 'Rebirth' of Buyers' Interest in Radio

A survey of advertising agency buying teams finds fewer are cutting radio budgets, and client interest in the medium is growing. STRATA executives say the top three media -- television, Internet and radio -- also appear to be the breakout hits of the advertising recovery.

"It's looking very bright for radio," STRATA marketing chief J.D. Miller told Inside Radio. The firm's quarterly survey of buyers found 24% of agencies' clients are more focused on radio, up from 17% in the prior quarter. The number of agencies reporting they are spending less on radio is off by half -- 17% say they're trimming radio budgets compared to 34% who said that three months ago.

When it came to classifying the advertising avenue that agency clients are most focused on, the STRATA survey found TV remains at the top with 44%, followed by digital at 21%. But even the survey takers were surprised with #3: radio. The results show 16% of clients rate radio as their top pick, compared to 9% who said that in the prior quarter's survey. Miller says, "Something good is happening for radio."

Beyond the top three, there's a "considerable drop off" of interest in other media. Print ranks fourth, with 7% of clients making it their top pick. Miller says that could be considered good news for newspaper publishers. "Print has a pulse -- it was almost nonexistent, now it has a pulse," he says.

Agencies Grow More Confident in Recovery -- and Old Media Friends

By their nature, media buyers are a tough crowd not known for gushing optimism. So when a survey shows a steady uptick in client activity, it's worth taking note.

More than half (51%) of buyers surveyed by STRATA say their agency is seeing improving business, up from a low of 23% during the 2008 economic meltdown. STRATA president/CEO John Shelton says, "Advertisers are finally feeling more confident about the economy."

That confidence is manifesting itself in a surprising way. As budgets come back, buyers appear to be more interested in traditional advertising like television and radio -- with demand for digital advertising going in the other direction.

"We see that the focus on digital has fallen off a bit," Shelton says. "While still hot, it is used more in a solid media mix than more dollars heading its way."

The most popular digital menu items are website display ads, social media and search. Mobile may have buzz, but just 29% of buyers say they're buying mobile ads. Among those who are, mobile display is the preferred format with SMS text ads fading fast. Just 15% of agency buyers say they're on their radar in 2011.

(Source: Inside Radio, 01/21/11)