Website Social Network Opportunity: Social Media Helps Consumers Cope with Economic Downturn

Comment from Daniel Anstandig:

This represents an outstanding opportunity for coupons and retail offers on your station website. Consider creating a local “smart shopper” social network on your radio station website to help your listeners through tough times. Share coupons and special offers from local retailers. Offer cost-savings tips, and allow your audience to connect with each other on the topic.

US consumers are going online to discuss their growing frustrations about the economic downturn as well as share money-saving tips and strategies for deferring purchases. Gas and driving strategies and grocery-shopping considerations are two of the more popular areas of social-media discussion, according to Nielsen Online.

Gas and Driving Costs
As gas prices increase, so does online discussion of driving. Consumers are using social media to share gas-saving tips, analyze the costs and benefits of hybrid vehicles, and research alternative modes of transportation such as motorcycles, scooters and public transit.

Consumers are changing their driving habits and vehicle purchase consideration sets due to rising gas prices. There is a perfect storm in the sense that consumers are actively trying to purchase smaller, more fuel-efficient vehicles, but unable to sell or trade-in their current, less fuel-efficient vehicles.

Grocery Prices and Shopping Behavior

Concern about buying groceries costs also continues to climb. Although it has not yet reached the volume of conversation that surrounds fuel costs, online buzz is intensifying as grocery prices strain budgets.

* Consumers are describing specific changes to the way they shop, such as using coupons and buying sale-priced items.

* Overall discussion about buying private-label goods has not changed dramatically in recent months. However, buzz trends for milk, cheese and eggs show consumers claim they’re shifting some purchases to store brands.

* As consumers venture online to hunt for the best deals, traffic to weekly circulars ads on retail banner websites was up 155% in May 2008 compared with May 2007.

Shoppers are enthusiastically sharing deals online in discussion forums and on blogs, and marketers who reach these customers with relevant savings will likely engender the support of consumers looking to stretch their dollars.

THIS FANTASTIC BLOG ENTRY IS REPRINTED FROM KEN RUTKOWSKI’S IQ.