Marketers Give WOM Lip Service, Spend Money Elsewhere
Even though marketers claim that word of mouth, customer service, web and interactive marketing, and public relations are the most effective ways to communicate their brands, 60% of their budgets still go to traditional marketing endeavors, such as broadcast, print, and direct mail, according to the State of the Brand Survey conducted by MiresBall in conjunction with Luth Research and the American Marketing Association. Part of the problem, the report's authors contend, is that marketers are stuck in a rut, and are throwing money at problems that require creativity to solve. Spending on marketing activities is up (from 9% in 2004 to 11% in 2006), but brand positioning and brand marketing are still lagging.
Other findings:
* Brands that spend upwards of 25% on creative services partnerships enjoy greater success.
* Revitalizing a brand is extremely important, and is most effective if done every three to five years.
* Eight out of 10 brands surveyed were revitalized in the last five years.
* Of those surveyed, 33% indicated that building awareness was their highest priority brand management goal; 33% indicated creating preference, 24% creating loyalty, and 11% creating understanding.
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