Study: Only 7% of Brands Say Marketing Is “Fully Aligned” with Local Retailers
November 7, 2016 | Contributed by: Joe Morsello
Multi-location brands have a number of strategies when it comes to reaching local consumers. Outside of managing location data to improve local search rankings, brands are increasingly engaging local retailers to aid in these national-to-local efforts.
Some look to co-op advertising to boost local awareness while others offer marketing services for social media, email, search and more at the national level. Despite these efforts, a new study from Netsertive and the CMO Council, found that only 7% of brands say, “our local partners are completely aligned with our brand.”
The report, “Omnichannel’s Missing Link” features data from a survey of over 180 senior marketing leaders with organizations that currently sell products through a physical location. The report identifies the key challenges these marketers face in delivering seamless customer experiences, online and offline.
One of these challenges is the struggle for brand and messaging consistency at the local level. Digital media and the rise of the cross-platform, cross device consumer continues to exacerbate this long time problem, but the study found that investment in these strategies is on the rise.
Currently, as the chart above shows, about 82% of brands are spending 0-40% of marketing budgets on local campaigns. The majority (23.1%) dedicate less than 20% of marketing budgets on local campaigns through retailer networks, compared to the 11.5% that dedicate over 50% of budgets on local.
While most spend less than 40% with local retailers, investment in these campaigns are projected to increase. According to the study, 30% are planning to moderately increase investments in these local campaigns. An additional 30% plan to increase budgets, only if outcomes from this year’s investments warrant additional spend.
It is interesting to see the 30% plan to increase investment based on ROI data. It suggests a large group of brand advertisers don’t know if these efforts are effective and haven’t built out a strategy, or are just beginning to experiment with these tactics that engage local consumers via retailer networks.
What would also be interesting and important to understand, but what’s not clear from the exposed data, is whether the 11.5% spending half their budgets on local marketing are experiencing greater success or ROI. That would be powerful validation of the thesis behind the report.