Consumer Goods Companies Plan to Increase Spending on Interactive Marketing by 25%
BRISBANE, CA - Leading consumer goods companies are steadily growing their investment in interactive marketing, and plan to continue increasing their interactive budgets in the foreseeable future, according to a Coogan & Partners / SoftCoin 2007 Interactive Marketing Landscape Survey. The survey was designed to assess the growth of interactive marketing in the industry and shed light on the strategic and organizational approach of senior management in the consumer goods industry as they integrate interactive solutions into their overall marketing plans. The study polled 42 major consumer goods companies representing a wide range of categories and products.
According to the survey, consumer goods companies currently invest an average of 6.4% of their total marketing budget towards interactive marketing. However, 45% of the companies surveyed plan to increase their total investment in interactive marketing budgets by a minimum of 25% over the next two years. This represents a profound shift in the traditional marketing mix.
“In order to win in the future, new ways of engaging consumers will need to be part of the core marketing approach,” said Ken Coogan, principal, Coogan & Partners. “By embracing interactive marketing, companies recast their basic approaches to media and consumers, thus enhancing traditional offline marketing and promotion approaches.”
The study also found there were distinct differences in terms of willingness to embrace and implement interactive marketing programs. These differences are directly correlated to the progress reported by survey participants. For example, 82% of companies engaging fully in interactive marketing reported high satisfaction with marketing program results, while only 60% of companies not as deeply engaged reported the same level of progress. For those fully engaged, key factors that emerged were:
-- A commitment to campaigns that engage consumers and dovetail with
-- The presence of a dedicated internal interactive marketing department
-- The integration of online components with traditional marketing
-- The willingness to embrace emerging media vehicles
-- A means to measure results and demonstrate improved ROI
-- Senior management support for interactive marketing
For companies that have already implemented interactive marketing programs, the findings showed some surprising results. Organizations are far more concerned about the quality of program execution and the measurable results than about working with partners who promise low cost or an extensive client list. Study results revealed that a comprehensive, quality program with measurable ROI is what matters most.
Furthermore, the study showed that successful programs tended to have a company-appointed internal specialist work with an external expert in the field. This way, companies can enforce brand standards and preserve organizational practices while leveraging the expertise of an external business partner.
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