Marketers in Ireland Q1 2014 report
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Marketers in Ireland Q1 2014 report

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The outlook of Irish marketers for 2014. A joint study by Amárach, the Marketing Institute and MCSquared.

The outlook of Irish marketers for 2014. A joint study by Amárach, the Marketing Institute and MCSquared.

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Marketers in Ireland Q1 2014 report Marketers in Ireland Q1 2014 report Presentation Transcript

  • MARKETING OUTLOOK 2014 0
  • INTRODUCTION Pictured (left to right): Tom Trainor, Chief Executive of The Marketing Institute of Ireland, Gráinne O’Brien, Director, MCsquared and Patrick Kennedy, Senior Research Executive, Amárach Research. Irish marketers are approaching 2014 with confidence and positivity, according to research commissioned by (the consumer and brands division of Murray Consultants) and carried out by Amárach Research, in association with the Marketing Institute of Ireland (MII). MARKETING OUTLOOK 2014 1 0
  • INTRODUCTION Irish marketers are confident and positive about 2014 with the vast majority expecting to grow their staff numbers and budgets during the year, according to research commissioned by MC2 (the consumer and brands division of Murray Consultants). The research was conducted by Amárach Research in association with the Marketing Institute of Ireland (MII). The research among MII members shows investment in brand communications through digital channels is continuing to grow strongly. Almost 60% of those surveyed plan to increase their digital marketing budget in 2014. Digital currently accounts for almost one quarter (24%) of marketing spend. While there is a sense of renewed optimism in the industry, many marketers surveyed, are still grappling with how to get their businesses and their teams up to speed with the plethora of social media channels now available. Commenting on the findings, Gráinne O’Brien, Director, MC2 said: “The 2014 marketing outlook is more positive than at any time over the past six years. Marketing jobs and budgets are expected to increase over the next two years with Digital and Content Marketing set to benefit most from any uplift. “The dramatic evolution of marketing disciplines and skills presents challenges and opportunities in equal measure. Many marketers are still struggling with the balance between their in-house resources and the agencies they partner with. At MC2 we have invested to ensure our people are skilled and confident in the digital space. Our survey shows most marketers will increase their in-house digital skills, but also that multi skilled agencies will be seen as more attractive to them,” Ms. O’Brien said. MARKETING OUTLOOK 2014 2 0
  • INTRODUCTION It is clear from this research, that there is some positive momentum and 2014 promises to be a year of growth in marketing activity;  39% expect staff levels across the business to increase  27% expect staff levels across the marketing department to increase Commenting on the findings, Tom Trainor, Chief Executive of the Marketing Institute of Ireland said: “There is no doubt that many Irish marketing departments and agencies have had a torrid time over the past five years but this research and feedback from the wider industry suggests that there is greater confidence amongst business leaders which should translate into real growth in 2014.” It is clear that many marketing decision makers are now committing significant portions of their overall marketing spend to digital;  8% of brands dedicate over 50% of spend to digital  23% dedicate between 26% and 50% to digital  22% dedicate between 11% and 25% of marketing spend to digital  28% dedicate between 1% and 10%, while 4% of brands do not dedicate any spend to digital MARKETING OUTLOOK 2014 3 0
  • INTRODUCTION While there is no doubt that digital marketing is the on-trend marketing discipline of the moment, it is also clear from the industry peers surveyed that other more traditional tactics continue to deliver strongly when creating brand loyalty. Many marketers are still struggling with how best to use and integrate digital marketing into their overall strategy, and how to accurately assess its contribution to the bottom line. Among senior marketers, 63% use social media engagement to create brand loyalty, while 59% opt for experiential activity, while PR is the discipline valued by 58%. Advertising and sponsorship were rated as less impactful, in creating loyalty, selected by 54% and 42% respectively. “We are very encouraged by the positive soundings coming from the marketing profession and based on these findings and discussions with our own clients there is early evidence that the Irish consumer is starting to spend again. Businesses and brands who are equipped to re-engage with consumers in a compelling way will win out,” according to O’Brien. January 31, 2014 FOR INFORMATION: MC2 Gráinne O’Brien 01 498 0300 087 2610 862 MARKETING OUTLOOK 2014 4 0
  • TABLE OF CONTENTS  EXECUTIVE SUMMARY  RESEARCH METHODOLOGY & SAMPLE  MAIN FINDINGS:  SECTION 1: Challenges and Future Expectations  SECTION 2: Social Media and Digital  SECTION 3: Sponsorship  SECTION 4: Agency Partners  INSIGHTS & IMPLICATIONS MARKETING OUTLOOK 2014 5 0
  • EXECUTIVE SUMMARY  After six years of declining consumer spending, Irish marketers are approaching 2014 in a much more optimistic mood, with the vast majority expecting both their staff numbers and budgets to remain stable or grow in the year ahead.  Brand communications are undergoing a sea-change, however, with a significant focus on content marketing to deliver marketing strategies in 2014-15, as well as on social media engagement to build brand loyalty.  The share of total marketing budgets dedicated to digital marketing will rise from 24% in 2013 to 28% in 2014; while the share of sponsorship will remain broadly stable at 10%.  The vast majority of marketers will manage their social media activities in house, using analytics and click-through rates to measure their digital marketing ROI. MARKETING OUTLOOK 2014 6 0
  • RESEARCH METHODOLOGY & SAMPLE Online survey of 142 client side senior marketers conducted in partnership with MC2 and the Marketing Institute of Ireland. POSITION % EMPLOYEES % CEO/Chairman/ MD 15 1,000+ 13 CEO/Head of Marketing 14 501-1,000 11 101-500 21 51-100 12 26-80 14 11-25 8 1-10 20 PRIMARY REGION % Marketing Director/Manager Brand Manager Marketing Consultant 47 10 14 Dublin 74 Rest of Country 26 Our survey represents a unique sample of this specific and influential cohort, and presents unique insight into the marketing world in Ireland for 2014. MARKETING OUTLOOK 2014 7 0
  • MAIN FINDINGS MARKETING OUTLOOK 2014 0
  • SECTION 1 CHALLENGES AND FUTURE EXPECTATIONS MARKETING OUTLOOK 2014 0
  • BIGGEST CHANGE IN MARKETING OVER THE PAST 5 YEARS % % Growth in social media Shrinking marketing budget Growth in content marketing Growth in permission based marketing 30 22 19 12 Growth in blogging forums 4 Global creative pitch process 3 European centralisation of marketing team reviews 2 Other 7 Q.20 What has been the biggest change in marketing for your organisation in the past 5 years? MARKETING OUTLOOK 2014 10 0
  • BIGGEST EXPECTED CHANGE OVER THE NEXT 2 YEARS % % 34 Growth in content marketing 22 Growth in social media Growth in permission based marketing 12 9 Shrinking marketing budget European centralisation of marketing team reviews 5 Growth in blogging forums 4 Global creative pitch process Other 4 6 Q.21 What do you think will be the biggest marketing change for your organisation in the next 2 years? MARKETING OUTLOOK 2014 11 0
  • STAFF EXPECTATION FOR 2014 ACROSS THE BUSINESS MARKETING DEPARTMENT 27% 39% Stay the Same Stay the Same (43%) 9% 16% Don’t know: Net Increase/Decrease: 1% (23%) Q.2 Which of the following most closely reflects your expectations for your staff numbers for your business in 2014? MARKETING OUTLOOK 2014 (61%) Don’t know: Net Increase/Decrease: 3% (18%) Q.3 Which of the following most closely reflects your expectations for your staff numbers for your marketing department in 2014? 12 0
  • MARKETING BUDGET EXPECTATION FOR 2014 MARKETING BUDGET DEMOGRAPHICS FOR THOSE EXPECTING INCREASE EMPLOYEES % Male 28% Female Stay the Same POSITION* (54%) CEO/MD CMO 15% Marketing Director Board Director Don’t know: Net Increase/Decrease: 3% (23%) *Caution: Small base size REGION Dublin Rest of country Q.4 Which of the following do you expect for your marketing budget in 2014? MARKETING OUTLOOK 2014 13 0
  • TOOLS AND MEASURES USED TO DEMONSTRATE ROI FOR MARKETING % 79 Sales Performance 40 Internal Financial Ratios Market Share Data 38 Brand tracking research 37 34 Customer service measures 15 Other Don’t measure 4 Q.6 What tools or measures do you use to demonstrate Return on Investment for you marketing activity in general? MARKETING OUTLOOK 2014 14 0
  • TACTICS THAT WORK BEST FOR DEVELOPING BRAND LOYALTY TOP 3 SCORES TOP 3 SCORES % % Product/service quality 65 Delivering customer service Direct customer communications Word of mouth 59 51 46 Brand communications (advertising, PR, sponsorship) 44 Discounts/promotions Corporate Social Responsibility Other 16 5 1 Q.18 Which of the following tactics works best for creating brand loyalty? Please rank the Top 3 methods for creating brand loyalty? MARKETING OUTLOOK 2014 15 0
  • BRAND COMMUNICATION TACTICS THAT WORK BEST FOR DEVELOPING BRAND LOYALTY TOP 3 SCORES % Social media engagement 63 Experiential activity 59 Traditional PR 58 54 Advertising Sponsorship 42 Q.19 In terms of brand communications, which of the following tactics do you think works best for creating brand loyalty? Please rank the top 3 methods for creating brand loyalty. MARKETING OUTLOOK 2014 16 0
  • SECTION 2 SOCIAL MEDIA AND DIGITAL MARKETING OUTLOOK 2014 0
  • COMMITMENT TO DIGITAL PERCENT BANDS DEDICATED TO DIGITAL % 51%+ On average, 24% of the overall marketing budget is dedicated to digital 8 26-50% 23 11-25% 22 28 1-10% 0% 4 Q.7 What percentage of your marketing budget do you currently commit to digital? MARKETING OUTLOOK 2014 18 0
  • DIGITAL BUDGET EXPECTATION FOR 2014 DIGITAL BUDGET 57% Stay the Same (37%) 6% Net Increase/Decrease: Average % of budget dedicated to digital 2013 = 24% (51%) Average % of budget dedicated to digital 2014 = 28% Net increase of 17% versus 2013 Q.8a Does your organisation plan to increase, decrease or maintain the digital marketing budget in 2014? MARKETING OUTLOOK 2014 19 0
  • TOOLS AND MEASURES USED TO DEMONSTRATE ROI FOR DIGITAL MARKETING % Analytics 75 Click through rates 64 Sales performance 59 Social media followers 57 Page views Brand tracking research 54 23 Market share data 18 Internal financial ratios 18 Q.6 What tools or measures do you use to demonstrate Return on Investment (ROI) for your marketing activity in general? MARKETING OUTLOOK 2014 20 0
  • PRESENCE ON SOCIAL MEDIA SITES 75% 67% 30% 66% 17% 56% Other 6% None of these = 5% Q.10 Which, if any, of the following does your organisation have a presence on? MARKETING OUTLOOK 2014 21 0
  • AVERAGE LENGTH OF PRESENCE ON SOCIAL MEDIA SITES 3.0 years 2.5 years 2.0 years 2.9 years 1.3 years 2.8 years Other 1.6 years Q.11 How long has your organisation had a presence on each of these sites? MARKETING OUTLOOK 2014 22 0
  • SOCIAL MEDIA CONTENT MANAGEMENT % In-house % Mix External In-house Mix External 76 79 Other 19 17 0 63 37 5 0 Q.14 Who manages the content on each of these sites on each of these sites? MARKETING OUTLOOK 2014 23 0
  • LEVEL OF RISK ASSOCIATED WITH EXTERNAL AGENT MANAGING SOCIAL MEDIA CONTENT LEVEL OF RISK % High (7-10) HIGH BY SOCIAL MEDIA PRESENCE* % 16 15 17 Medium (4-6) 18 54 21 9 Low (1-3) 26 40 *Caution: Small base size Q.15 To what extent do you feel there is a level of risk for your brand by having an external agent manage your social media? MARKETING OUTLOOK 2014 24 0
  • SOCIAL MEDIA: WHAT IS IT MOST EFFECTIVE FOR VS. WHAT IS IT USED FOR? EFFECTIVE VS. USED FOR EFFECTIVE VS. USED FOR Brand development 58% 56% Customer retention/loyalty 33% 33% Reaching new customers 48% 51% Customer services 22% 15% Receiving customer feedback 38% 24% Sales 9% 17% Thought Leadership 36% 27% Other 2% 4% Product/Service Promotion 34% 43% Don’t know 7% 10% Q.16 What do you believe social media is most effective for? Q.17 What does your organisation use social media for? MARKETING OUTLOOK 2014 25 0
  • IMPORTANCE AND PERFORMANCE OF SOCIAL MEDIA IMPORTANCE % 10 PERFORMANCE % 10 9 8 17 9 7 15 7 3 10 17% 36% 4 8 4 12 16 6 11 63% 6 17 52% 5 4 3 2 1 Mean: 8 29 13 10 5 2 4 3 2 6.5 12% 2 1 Mean: 7 7 19% 6 5.4 Q.12 How important is social media for your company? Q.13 How well does your organisation perform on social media? MARKETING OUTLOOK 2014 26 0
  • SECTION 3 SPONSORSHIP MARKETING OUTLOOK 2014 0
  • COMMITMENT TO SPONSORSHIP IN 2013 PERCENT BANDS DEDICATED TO SPONSORSHIP % 26%+ On average, 10% of the overall marketing budget is dedicated to sponsorship 11-25% 6-10% 1-5% 0% Q.22 What percentage of your marketing budget do you currently commit to sponsorship? Please exclude percentage dedicated to activation of this sponsorship. MARKETING OUTLOOK 2014 28 0
  • SPONSORSHIP BUDGET EXPECTATION FOR 2014 SPONSORSHIP BUDGET 17% Stay the Same (77%) 6% Net Increase/Decrease: Average % of budget dedicated to sponsorship 2013 = 9.6% (11%) Average % of budget dedicated to sponsorship 2014 = 10.3% Net increase of 7% versus 2013 Q.23 Does your organisation plan to increase, decrease or maintain the sponsorship budget in 2014? MARKETING OUTLOOK 2014 29 0
  • SPONSORSHIP: WHAT IS IT MOST EFFECTIVE FOR VS. WHAT IS IT USED FOR? EFFECTIVE VS. USED FOR Brand development 83% EFFECTIVE VS. USED FOR 75% Sales 23% 21% 4% 6% Reaching new customers 63% 58% Receiving customer feedback Customer retention/loyalty 55% 45% Customer Service 0% 8% Product/Service Promotion 45% 41% Other 5% 8% Thought Leadership 23% 21% Q.25 What do you believe sponsorship is most effective for? Q.26 What does your organisation use sponsorship for? MARKETING OUTLOOK 2014 30 0
  • TYPES OF SPONSORSHIP ENGAGED IN SPORTS EVENTS 55% 45% b2b 34% ARTS CAUSE-RELATED 33% 18% Q.24 What type of sponsorship do you currently engage in? MARKETING OUTLOOK 2014 31 0
  • SECTION 4 AGENCY PARTNERS MARKETING OUTLOOK 2014 0
  • TOP 3 ATTITUDES SOUGHT IN AGENCY PARTNER % 1st 2nd % 3rd 1st 2nd 3rd Top 3 Top 3 Creativity 64 Wide network of industry contacts 16 Strategic council and judgement 47 Global market knowledge 14 Specialist skills and capabilities 45 One stop shop service 14 Local/international market knowledge 37 Other 2 Specific sector knowledge 33 Q.27 What are the top three attributes you look for in an agency partner? MARKETING OUTLOOK 2014 33 0
  • PREFERENCE FOR SINGLE/MULTIPLE AGENCIES DEMOGRAPHICS FOR MULTIPLE PREFERENCE EMPLOYEES % Male Multiple Single Female POSITION* CEO/MD CMO Marketing Director No Preference Board Director REGION Dublin *Caution: Small base size Rest of country Q.28 Would you prefer to work with a single agency that offers multiple services (e.g. advertising, digital, PR etc.) or individual agencies who specialise in their own sectors? MARKETING OUTLOOK 2014 34 0
  • INSIGHTS & IMPLICATIONS  2014 will be the year that digital marketing makes the biggest impact so far on brand, marketing and sales performance for Irish businesses.  There is still much room for improvement, however, with a perceived gap between the importance of social media to the businesses we surveyed versus a usually lower level of performance when it comes to using social media.  The focus on content marketing for 2014-15 will challenge the skill sets and resources of many marketing teams, which in turn will drive a big demand for content specialists.  Higher digital budgets will demand greater proof of ROI which in turn will see marketers more engaged with their IT/CRM colleagues and their agencies to measure the real effectiveness of their additional spending in the year ahead. MARKETING OUTLOOK 2014 35 0
  • NOTE TO EDITORS The research sample was comprised of senior client side marketers ranging from marketing consultants to CEO’s and Heads of Marketing. Respondents came from a range of organisation sizes with 20% having 10 or less employees while 24% had over 500 employees. 142 senior marketers took part in the research, a significant proportion of senior client side marketers operating in Ireland. Agency marketers and marketers in more junior roles were excluded from the research to ensure an accurate and robust measure of the state of business in marketing in Ireland for 2014. This research is the intellectual property of MC2. MARKETING OUTLOOK 2014 36 0
  • FURTHER INFORMATION MC2, Latin Hall, Golden Lane, Dublin 8. Tel: +353 1 498 0300 E-mail: gobrien@mcsquared.ie Website: www.mcsquared.ie Twitter: @MCsquaredIRL MARKETING OUTLOOK 2014 0
  • MARKETING OUTLOOK 2014 0