A well-defined creative strategy, combined with an aggressive media plan, is the key to standing out in the increasingly crowded back-to-school ad market, according to a new study by IPG Mediabrands’ Initiative network.
The online study of 500 people – 400 respondents with children 3-17 and 100 full-time students 18-24 – found parents will spend an average of $480 on back-to-school this year, more than double the average of $208 spent by adults 18-24.
The back-to-school period continues to grow in importance, with Canadians set to spend a reported $552 million on clothing and accessories in Q3, according to Statistics Canada.
“It has almost become its own season,” said Nish Shah, vice-president of strategy for Initiative in Toronto. According to Shah, the “majority” of survey respondents indicated they had already began their back-to-school shopping.
Shah said there is an increased risk that marketers could get lost in the noise of back-to-school advertising, which has grown from traditional categories such as school supplies and clothing to include the likes of cellphones, computers and CPG companies.
“There’s always that fight for share of voice, given that it’s such a key spending period,” he said. “It seems that everyone is playing in this space and its becomes increasingly difficult to reach consumers. It’s a much wider array of products that people are shopping for today.”
According to Shah, back-to-school season is now second only to the key December shopping period in terms of consumer expenditure, with the most popular back-to-school purchases including:
- Clothes (53% of parents, 47% of students)
- Shoes (48% of parents, 34% of students)
- Lunch supplies (38% of parents)
- Computer (15% of parents, 34% of students)
- School supplies (50% of parents, 60% of students)
- Cell phone (9% of parents, 29% of students)
Just over one third of parents indicated they would spend between $101 and $250 on back-to-school this year, while one quarter will spend up to $500. Approximately 20% of people surveyed plan to spend less than $100, while 11% will spend more than $1,000.
More than three-quarters of parents (77%) indicated they would spend as much or more as they did last year in preparing their children for the upcoming school year.
More than three quarters (79%) of respondents said they planned to conduct advance research on back-to-school items, with two-thirds of parents beginning their research within five weeks the school year starting and 48% within three weeks.
Shah said the findings underscored the importance of adopting an early back-to-school marketing strategy. “Looking at how many people are thinking about back-to-school even though we’re only in the first week of August, it’s critical for all brands to have a go-to-market strategy beyond just offers and promotions,” he said.
When asked what most influences their back-to-school purchase decisions, 54% of respondents said their own preferences, while 12% said social media and 10% said friends and family. Other key influences were newspaper ads/flyers (9%), store websites (8%) and online ads/search (6%).
“Being relevant across channels and making sure you’re in the places where parents and students are [frequenting] makes it more challenging, but also presents an opportunity to find a unique way to reach them,” he said.
Shah said the data also suggested untapped marketing opportunities for specific categories. Nearly 30% of parent respondents said they were unfamiliar with registered education savings plans (RESPs), for example, with 8% indicating they intended to find more. In addition, 16% of respondents indicated that they have heard of RESPs and intend to start one.
“There’s probably an opportunity for some education around what RESPs are, and showing how they can help fund [post-secondary education],” he said. “That’s a heavy burden for most students and parents.”
Shah said the research also suggested opportunities for categories including credit cards and furniture. “Parents didn’t really look at furniture, but for older kids as they get their own space or move away in some cases, it becomes more top of mind.”
He said the season provided an opportunity for brands to provide value to parents and students. “We know they’re looking to make a number of different purchases, so the question really is around what can they do to connect with them in a way that’s going to help them through what can be a stressful time,” he said.
