Marketing To Women – The Women Economy
Women dominate the largest social networks, not only through their presence but also in the level of communication. From a grass root level they are changing the economy. They now control more spend than men and are successfully developing businesses on their terms rather than entering the corporate world.
Yet women feel that brands haven’t caught up and do not understand them. Brands though still play to stereotypes of women and are playing catch-up to understand, engage and influence women online. The following is a review of why organisations need to take marketing to women more seriously.
In pulling together this blog I wanted to illustrate the power of the women economy which is often ignored by many, both in terms of the scale and the breadth of its impact in marketing.
Women control the majority of household spending decisions, their influence is growing and they are increasingly exercising this new-found power in a variety of ways.
1. Marketing to women – the economic power of Women:
- 65% of global spending and 80% of US spending – (everything from autos to health care) TWEET this
- $5 trillion in US consumer spending power (half of the GDP) and $20 trillion in global consumer spending power.
- By 2020 command $22 trillion in global spending power.
2. Senior women age 50 and older control net worth of $19 trillion and own more than three-fourths of the nation’s financial wealth – Source: MassMutual Financial Group–2007.
Women are empowering themselves and each other. The internet has given many women the freedom to do things their way: create their own businesses, be connected and define their work life balance. Women are using tech to not only maintain and develop relationships but to make choices about the brands they purchase, often using technology to seek and find the best deals and recommendations. These stats on women will give you some insights for marketing communications and strategy.
Marketing To Women – Women In Business
Here are some figures that illustrate the state of play for women in business:
3. Women represent in the UK 51.4% of the labor force. Yet, make up only 15.7% of board members, and just 3% of chief executive positions of Fortune 500 companies – (Seabright, 2012).
4. In the US the average inequality in the wage gap is 18% whilst in the UK it is estimated as being 15%. Either way you look at it after 100 years of women fighting for equality and in 2012 it still isn’t there.
6. Despite owning nearly 30% of U.S. businesses, women attract only 5% of the nation’s equity capital.
7. Women-owned firms are now estimated to number just over 8.1 million (M), generating nearly $1.3 trillion in revenues and employing 7.7 million workers (that is 40% more people than McDonald’s, IBM, and Wal-Mart combined) – Source American Express Open
8. Women will create over half of the 9.72 million new small business jobs expected to be created by 2018 -Source National Federation of Small Business.
9. According to the National Women’s Business Council women-owned firms grew 44% from 1997 to 2007, twice as fast as male-owned firms. TWEET This
10. Women In Tech – companies with 3 or more female board directors outperformed companies with 0 female board directors – Source MBA Online
11. Yet, reviewing the Global Entrepreneurship Monitor, 47.7% of women vs. 62.1% of men believe they are capable of starting and running a business.
12. Also, women tend to be charged higher rates of interest when taking out loans – an average of 2.9%, substantially more than the 1.9% average charged to men – Source: Startups.
Marketing to Women – The Mom Economy
13. 71% of mothers with older children (6 to 17 years of age, none younger) participate in the workforce. Source: Bureau of Census for the Bureau of Labor Statistics.
14. 34% of American households are home to kids under 18. Source: Nielsen
15. Moms are 44% of the women’s market, but they account for:
- 55% of spending on consumer electronics
- 51% of spending on food
- 49% of spending on health & beauty aids
- 48% of spending on home furnishings
- 47% of spending on clothing
Marketing To Women and The Perception Gap
16. 91% of women say that advertisers don’t understand them – Source: She Economy
17. 66% feel misunderstood by health care marketers
18. 74% feel misunderstood by automotive marketers
19. 84% feel misunderstood by investment marketers
Marketing To Women and The Internet
Women use the internet to research, buy brands online, communicate and do business.
20. The large majority (85%) use the Internet daily, with most going online more than once a day. The 25 – 34 age group are the most frequent users – Source: IAB
21. 74% of women have purchased a product online – Source: Pew Internet Digital Differences.
22. 22% shop online at least once a day and 92% pass along information about deals or finds to others. Source Ogilvy Mindshare. TWEET this
23. 84% of women use the internet to compare prices online
24. The highest category of purchases online for women are Films, Books and Music
Women and Social Media
Here are a few interesting facts about how women use the major social networks and their influence.
66% of online adults use social networking sites
25. Women dominate the largest social networks 58% of Facebooks users are women and 62% of Twitter – Source Information is Beautiful
26. Half of Women Owned Businesses (WOBs) owners now use social media – and of those 56% say social media is very important – Source: NFIB
27. Women are more active in on social networks with 54% of women internet users using social networking sites on a typical day (54%), compared with 42% of men – Source: Pew (Social Networks Account for 20% of Time Spent Online)
28. A report from Rebtel, found that 68% of women who use the web to stay in touch with friends, family, and acquaintances do so using social media, while only 54% of men do the same.
29. Facebook chief operating officer Sheryl Sandberg says female Facebookers have 8% more friends and participate in 62% of sharing on the network.
30. Women have an average of 268 friends – Source: Women at NBCU, 2011
31. 18% of women compared to 11% of men, update their Facebook status daily – Source: Huffington Post Infographic
32. 80% of women share photos, videos and links online. Source: CrowdScience
33. The average female user made 21 updates to their Facebook status in the month of observation, while the average male made six Source – Pew.
35. Women sway more men to their Facebook recommendations than they do members of their own gender – Source: Businessweek
36. A recent ICM survey of 10,000 adults in the UK uncovered that 2 in 3 Facebook gamers are women.
37. Women are 18% more likely than the baseline American to follow a brand on Facebook or other social media sites – Source: Nielsen.
38. Women are more expensive to advertise to on Facebook – the average CPM for men is $0.16, compared to $0.20 to for women. Source – Kenshoo.
39. Men have an average of 643 followers on Twitter whereas women have 1717 – Source: Hubspot.
40. Women follow an average of 381 users on Twitter – Men 287 . Source: Hubspot.
41. Women have Tweeted an average of 1542 times – Men 698 – Source: Hubspot
42. Women are 8% more likely than the average online adult to build or update a personal blog.
43. 87% of women surveyed by BlogHer said blogs were the most trusted source for recommendations.
The Mom Perspective
44. Moms represent a $2.4 trillion market. 34% of American households are home to kids under 18.
45. 55% of active (daily) social media moms said they made their purchase because of a recommendation from a personal review blog
46. In 2014, 63% of all online moms will read blogs
47. Moms mention brands an average of 73 times per week compared with just 57 times per week among males.
48. 65% visit social video sites like YouTube versus 56% of adults
49. Moms account for one-fourth of all video streams occuring on social networks, and are also more likely to post their own content – Source: Nielsen Study, May 2011.
50. Moms make up more than one-fifth of online video viewers and spent an average of 258 minutes viewing online video in March 2011. Source: Nielsen Study, May 2011
51. 1 in 3 bloggers are moms – Source: Nielsen
52. 77% of mom bloggers will only write about products or brands whose reputations they approve of.
53. Another 14% will write about brands or products they boycott.
54. 90% of moms are online vs. just 76% of women in general (representation is higher than just age difference of this moms).
55. 64% of moms ask other mothers for advice before they purchase a new product and 63% of all mothers surveyed consider other moms the most credible experts when they have questions
For some great insights also see the BlogHer Report eMoms On Slideshare
Women and Mobile (Smartphones & Tablets)
56. 53% of smartphone owners are women – Source: Compete
57. 77% of all Internet users accessed the Internet through a mobile device. 78% of women used mobile Internet. Source: Accenture.
58. On average, women access their mobile device more than men. For example, 84 percent of women access a mobile device while in bed compared with 70 percent of men and 40 percent of women also access their mobile device while shopping compared with 26 percent of men. Source: Inmobi
59. According to GfK MRI (Spring 2011), millennial women used picture messaging 75% more than the general population, while Gen X women used the feature 30% more than the average.
60. Purchasing on the smartphone is dominated by apps, music and games. Source: JWT & IAB Study
61. One third of Moms e.g. iPad own a connected device and spend 6.1 hours per day on average on their smartphones – that’s more than magazines, TV or radio, to put it in perspective. Source: Mojiva
62. In surveying 1,500 tablet-owning moms, 97% made a purchase using their tablet in the last month.
63. 80.6% of US smartphone users (85.9 million in total) accessed retail content on their devices in July (Source: Ngage Data from comScore indicates that women accounted for 49% of unique smartphone visitors to online retail but they accounted for a much higher 56.1% of total minutes spent with content.
64. 50% of all moms access social media via their smartphone: Source Nielsen
The App Factor
65. women are significantly more likely than men to regularly use mobile apps in sectors such as health, entertainment, lifestyle, social networking.
- Health – 9% of women use health apps a lot vs 4% of men
- Entertainment – 28% of women use entertainment mobile apps a lot vs 15% of men
- Lifestyle – 17% of women use lifestyle apps frequently vs 8% of men
- Social networking – 48% of women use social apps a lot vs 26% of men
- Games – 37% of women use gaming apps regularly vs 26% of men
Some Useful Resources
I hope you found some of these facts and figures interesting and useful. Clearly there is a lot of opportunity for brands to better connect with women. I suspect that many brands are not using their social listening tools to effectively dig deep and use these tools to understand the conversations, problems and opportunities for their product/service.
One thing that these figures illustrate is that women are changing and fast. They are adopting technology to help make their lives easier, to create and define their own opportunities and to connect with those that matter to them. I would appreciate any women stepping in here and adding their thoughts about this and their own experiences.
What are your thoughts on how companies are marketing to women?