ReseaRch MicRo study: NatioNal BRaNd use of local MaRketiNg & Roi MetRics

NATIONAL BRANDS INVESTING IN LOCAL MARKETING

COMPANIES THAT TRACK ROI FOR NATIONAL MARKETING CAMPAIGNS EXPECT LOCAL MARKETING CAMPAIGN ROI TO BE

% OF OVERALL MARKETING BUDGET USED FOR LOCAL MARKETING

% OF COMPANIES WHO USE ROI AS A MARKETING METRIC

Not Investing in Local Marketing

Investing in Local Marketing

% of Respondents

3530

2520

1510

50 % of Overall

Marketing Budget Used for Local

marketing

NOTE: Over 20% of national brands are spending 25+% of their budget on local marketing

Use ROIUse ROI

For National Marketing Campaigns

For Local Marketing Campaigns

Don’t Use ROI

Don’t Use ROI

Same as National

Campaign ROI

Lower than National

Campaign ROI

44%

56%

42%44%

58%

19%37%Higher than

National Campaign ROI

1-5 %

0 % 6-10

%

11-15

%

16-2

0 %

21-25

%

25+ %

THERE WAS NO CLEAR CONSENSUS FOR HOW ROI VARIES BETWEEN NATIONAL MARKETING CAMPAIGNS & LOCAL MARKETING CAMPAIGNS; HOWEVER OF COMPANIES THAT USE ROI METRICS:

EXPECTED ROI FROM NATIONAL MARKETING CAMPAIGNS20 %18 %16 %14 %12 % 10 %8 %6 %4 %2 %0 %

1.5:1 2:01 2.5:1 3:01 3.5:1 4:01 4.5:1 5:01 Greater than 5:1 ROI

24% 36%

31.4%38.6%39.7%

WHEN ASKED ABOUT LOCAL MARKETING ROI, 25% OF COMPANIES ARE “NOT ABLE TO TRACK ROI AT THE LOCAL LEVEL”

RELATED TO THE % OF COMPANIES INVESTING IN LOCAL MARKETING, • Larger national brands ($1 billion+ revenue) are 49% more likely to invest in local marketing than smaller national brands ($100-250 million revenue)• Companies that use ROI metrics to measure national campaigns are 35% more likely to invest in local marketing

than companies who do not use ROI as a marketing metric

Lack of Budget Tracking & Metrics Lead Generation

TOP 3 MARKETING CHALLENGES OF 2012 (RESPONDENTS COULD SELECT UP TO 3)

37.9%48.2%57.7%

TOP 3 SOURCES OF MARKETING KNOWLEDGEIndustry ResearchMarketing & Advertising PublicationsNational Industry Organization

Expect National Marketing Campaigns to generate an ROI of 4:1 or higher, while

Expect Local Marketing Campaigns to generate an ROI of 4:1 of higher

Research Scope: This study was fielded via email surveys distributed March /April 2012 . Results are based on 273 completed responses from individual companies. Respondents met the criteria of marketing professional, companies based in North America , companies with $100 Million or greater annual revenue

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