Study Finds Consumers Feel Ignored By Advertisers

RADIO ONLINE | Tuesday, September 10, 2024

iHeartMedia and Pushkin Industries

iHeartMedia, in collaboration with Malcolm Gladwell's Pushkin Industries, has released its second annual study, "The New American Consumer 2.0," shedding light on a growing disconnect between American consumers and the marketers trying to reach them. The study found that nearly half of Americans (44 percent) feel overlooked by advertisers, a gap that has significant implications for brands looking to connect with diverse audiences.

The research, conducted by Morning Consult, Advertiser Perceptions and Critical Mass Media, highlights how the personal beliefs and values of marketers often diverge from those of average consumers. This misalignment, according to iHeartMedia CMO Gayle Troberman, can impede marketers' ability to effectively resonate with key audience segments. "We have more data than ever, yet nearly half of American consumers feel ignored," said Troberman. "We need to ensure our marketing decisions are driven by consumer realities, not our personal perceptions."

The study emphasized that consumers are willing to reward brands that share their values. Seventy-two percent said they avoid purchasing from brands that ignore them, and 75 percent stated they would pay more to support brands that align with their beliefs. The report found significant disparities in lifestyle preferences between marketers and consumers. For instance, while consumers enjoy activities such as hunting, fishing, and playing the lottery, marketers favor trends like pickleball and tennis.

A striking insight from the study is consumers' growing discomfort with hyper-targeted advertising. Sixty-seven percent expressed frustration with being "trailed" by targeted ads, and 7 in 10 consumers claimed these ads are often irrelevant. Despite these concerns, marketers plan to spend $9.5 billion on hypertargeting campaigns in 2024.

"Today's consumers are more aware of the social and economic landscape and hold brands to higher standards," said Gladwell, stressing the importance of understanding the biases shaping marketing strategies.

Other key findings from the report include:

• Disconnect in Purchasing Decisions: Consumers take a longer path to purchase, consulting family and friends and saving for weeks or months for items costing $100, while marketers make faster, more independent buying decisions, even for items over $1,000.

• Marketing Misalignment on Lifestyle Trends: While consumers find religious values and law and order important, marketers place less emphasis on these areas, focusing instead on luxury items and wellness trends that may not resonate with the average consumer.

Conal Byrne, CEO of iHeartMedia's Digital Audio Group, pointed out another gap in media consumption. He noted that although consumers spend about a third of their media time on audio, including broadcast radio, marketers often underestimate its role in daily life, particularly in commuting contexts.

The findings were presented at iHeartMedia's AudioCon 2024 in New York City, with Byrne and Gladwell delivering the keynote at iHeartMedia's headquarters.