Marketers in Ireland Q1 2014 report

0 MARKETING OUTLOOK 2014


INTRODUCTION

Irish marketers are approaching 2014

with confidence and positivity,

according to research commissioned by

1

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.

(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


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.



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


0 MARKETING OUTLOOK 2014 4 MARKETING OUTLOOK 2014

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 01 498 0300

Gráinne O’Brien 087 2610 862


TABLE OF CONTENTS

5

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


EXECUTIVE SUMMARY

6

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.


RESEARCH METHODOLOGY & SAMPLE

15

14

47

14

10

Our survey represents a unique sample of this specific and influential cohort, and

presents unique insight into the marketing world in Ireland for 2014.

CEO/Chairman/

MD

CEO/Head of

Marketing

Marketing

Director/Manager

Brand Manager

Marketing

Consultant

13

11

21

14

8

20

12

1,000+

74

26

Dublin

Rest of

Country

501-1,000

101-500

51-100

26-80

11-25

1-10

Online survey of 142 client side senior marketers conducted in partnership with MC2 and the Marketing Institute

of Ireland.

POSITION

%

EMPLOYEES

%

PRIMARY REGION

%

7


MAIN FINDINGS


SECTION 1 CHALLENGES AND FUTURE EXPECTATIONS


BIGGEST CHANGE IN MARKETING OVER THE PAST 5 YEARS

10

4

3

2

7

Growth in social media

Shrinking marketing budget

Growth in content marketing

Growth in permission based marketing

30

22

19

12

%

Growth in blogging forums

Global creative pitch process

European centralisation of marketing team reviews

Other

%

Q.20 What has been the biggest change in marketing for your organisation in the past 5 years?


BIGGEST EXPECTED CHANGE OVER THE NEXT 2 YEARS

11

Q.21 What do you think will be the biggest marketing

change for your organisation in the next 2 years?

5

4

4

6

Growth in content marketing

Growth in social media

Growth in permission based

marketing

Shrinking marketing budget

34

22

12

9

European centralisation of

marketing team reviews

Growth in blogging forums

Global creative pitch process

Other

% %


STAFF EXPECTATION FOR 2014

12

Q.2 Which of the following most closely

reflects your expectations for your staff numbers

for your business in 2014?

ACROSS THE BUSINESS MARKETING DEPARTMENT

39%

16%

(43%)

27%

9%

(61%) Stay the

Same

Stay the

Same

Net Increase/Decrease: (23%) Net Increase/Decrease: (18%)

Don’t know: 1% Don’t know: 3%

Q.3 Which of the following most closely

reflects your expectations for your staff numbers

for your marketing department in 2014?


MARKETING BUDGET EXPECTATION FOR 2014

13

MARKETING BUDGET DEMOGRAPHICS FOR THOSE

EXPECTING INCREASE

28%

15%

(54%) Stay the

Same

Net Increase/Decrease: (23%)

Don’t know: 3%

Q.4 Which of the following do you expect

for your marketing budget in 2014?

*Caution: Small base size

EMPLOYEES

Male

Female

POSITION*

CEO/MD

CMO

Marketing Director

Board Director

REGION

Dublin

Rest of country

%


TOOLS AND MEASURES USED TO DEMONSTRATE ROI

FOR MARKETING

14

Sales Performance

Internal Financial Ratios

Market Share Data

Brand tracking research

Customer service measures

Other

Don’t measure

79

40

38

37

34

15

4

%

Q.6 What tools or measures do you use to demonstrate

Return on Investment for you marketing activity in general?


TACTICS THAT WORK BEST FOR DEVELOPING

BRAND LOYALTY

15

TOP 3 SCORES TOP 3 SCORES

Q.18 Which of the following tactics works best for creating brand loyalty?

Please rank the Top 3 methods for creating brand loyalty?

44

16

5

1

Product/service quality

Delivering customer service

Direct customer communications

Word of mouth

65

59

51

46

%

Brand communications (advertising, PR, sponsorship)

Discounts/promotions

Corporate Social Responsibility

Other

%


BRAND COMMUNICATION TACTICS THAT WORK

BEST FOR DEVELOPING BRAND LOYALTY

16

TOP 3 SCORES

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.

Social media engagement

Experiential activity

Traditional PR

Advertising

Sponsorship

63

59

58

54

42

%


SECTION 2 SOCIAL MEDIA AND DIGITAL


COMMITMENT TO DIGITAL

18

PERCENT BANDS DEDICATED TO DIGITAL

Q.7 What percentage of your marketing budget

do you currently commit to digital?

On average, 24% of

the overall marketing

budget is dedicated

to digital

8

23

22

28

4

51%+

26-50%

11-25%

1-10%

0%

%


DIGITAL BUDGET EXPECTATION FOR 2014

19

DIGITAL BUDGET

57%

6%

(37%) Stay the

Same


Q.8a Does your organisation plan to increase, decrease

or maintain the digital marketing budget in 2014?

Average % of budget dedicated

to digital 2013 = 24%

Average % of budget dedicated to

digital 2014 = 28%

Net increase of 17% versus 2013


TOOLS AND MEASURES USED TO DEMONSTRATE ROI

FOR DIGITAL MARKETING

20

Analytics

Click through rates

Sales performance

Social media followers

Page views

Brand tracking research

Market share data

Internal financial ratios

75

64

59

57

54

23

18

18

%

Q.6 What tools or measures do you use to demonstrate Return

on Investment (ROI) for your marketing activity in general?


PRESENCE ON SOCIAL MEDIA SITES

21

Q.10 Which, if any, of the following does

your organisation have a presence on?

67% 30%

66% 17%

56% 6%

None of these = 5%

75%

Other


AVERAGE LENGTH OF PRESENCE ON SOCIAL MEDIA SITES

22

Q.11 How long has your organisation had

a presence on each of these sites?

2.5

years

2.0

years

2.9

years

1.3

years

2.8

years

1.6

years

3.0 years

Other


SOCIAL MEDIA CONTENT MANAGEMENT

23

Q.14 Who manages the content on each

of these sites on each of these sites?

In-house Mix External

76

79

63

19

17

37

5

0

0

In-house Mix External

Other

% %


LEVEL OF RISK ASSOCIATED WITH EXTERNAL AGENT

MANAGING SOCIAL MEDIA CONTENT

24

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?

LEVEL OF RISK HIGH BY SOCIAL MEDIA PRESENCE*

16

17

18

21

9

40

54

15

26

High (7-10)

Medium (4-6)

Low (1-3)


% %


SOCIAL MEDIA: WHAT IS IT MOST EFFECTIVE FOR VS.

WHAT IS IT USED FOR?

25

Q.16 What do you believe social media is most effective for?

Q.17 What does your organisation use social media for?

EFFECTIVE VS. USED FOR

Brand

development

Reaching new

customers

Receiving

customer

feedback

Thought

Leadership

Product/Service

Promotion

58%

48%

38%

36%

34%

56%

51%

24%

27%

43%

Customer

retention/loyalty

Customer

services

Sales

Other

Don’t know

33%

22%

9%

2%

7%

33%

15%

17%

4%

10%

EFFECTIVE VS. USED FOR


IMPORTANCE AND PERFORMANCE OF SOCIAL MEDIA

26

Q.12 How important is social media for your company?

Q.13 How well does your organisation perform on social media?

IMPORTANCE PERFORMANCE

17

4

15

17

13

10

12

82 2

%

10

9

8

7

6

5

4

3 2 1

Mean: 6.5

36%

52%

12%

43

10

11

29

16

7

76

% 10

9 8

7

6

5

4

3

2

1

Mean: 5.4

17%

63%

19%


SECTION 3 SPONSORSHIP


COMMITMENT TO SPONSORSHIP IN 2013

28

PERCENT BANDS DEDICATED

TO SPONSORSHIP

Q.22 What percentage of your marketing budget do you currently commit to sponsorship?

Please exclude percentage dedicated to activation of this sponsorship.

On average, 10% of

the overall marketing

budget is dedicated

to sponsorship

26%+

11-25%

6-10%

1-5%

0%

%


SPONSORSHIP BUDGET EXPECTATION FOR 2014

29

SPONSORSHIP BUDGET

17%

6%

(77%) Stay the

Same


Q.23 Does your organisation plan to increase, decrease

or maintain the sponsorship budget in 2014?


sponsorship 2013 = 9.6%


sponsorship 2014 = 10.3%

Net increase of 7% versus 2013


SPONSORSHIP: WHAT IS IT MOST EFFECTIVE FOR VS.

WHAT IS IT USED FOR?

30

Q.25 What do you believe sponsorship is most effective for?

Q.26 What does your organisation use sponsorship for?

EFFECTIVE VS. USED FOR EFFECTIVE VS. USED FOR

Brand

development

Reaching new

customers

Customer

retention/loyalty

Product/Service

Promotion

Thought

Leadership

83%

63%

55%

45%

23%

75%

58%

45%

41%

21%

Sales

Receiving

customer

feedback

Customer

Service

Other

23%

4%

0%

5%

21%

6%

8%

8%


TYPES OF SPONSORSHIP ENGAGED IN

31

Q.24 What type of sponsorship

do you currently engage in?

55%

33%

45%

18%

34%

SPORTS EVENTS

b2b

CAUSE-RELATED ARTS


SECTION 4 AGENCY PARTNERS


TOP 3 ATTITUDES SOUGHT IN AGENCY PARTNER

Q.27 What are the top three attributes

you look for in an agency partner?

33

Creativity

Strategic council and judgement

Specialist skills and capabilities

Local/international market knowledge

Specific sector knowledge

Wide network of industry contacts

Global market knowledge

One stop shop service

Other

%

1st 2nd 3rd Top 3

64

47

45

37

33

%

1st 2nd 3rd Top 3

16

14

14

2


PREFERENCE FOR SINGLE/MULTIPLE AGENCIES

34

DEMOGRAPHICS FOR

MULTIPLE PREFERENCE

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?


EMPLOYEES

Male

Female

POSITION*

CEO/MD

CMO

Marketing Director

Board Director

REGION

Dublin

Rest of country

%

Single Multiple

No Preference


INSIGHTS & IMPLICATIONS

35

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.


NOTE TO EDITORS

36

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.


FURTHER INFORMATION

MC2, Latin Hall, Golden Lane, Dublin 8.

Tel: +353 1 498 0300

E-mail: [email protected]

Website: www.mcsquared.ie

Twitter: @MCsquaredIRL

Marketers in Ireland Q1 2014 report

Business

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