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Just 12% of Senior Marketers Say that Social Networking, Blogging, Text Messaging and Consumer Generated Advertising is Very Important to their Marketing Platforms
Despite its rapidly growing popularity with consumers, only 12 percent of senior marketers say that consumer generated media (CGM) – a genre that includes activities like online social networking, YouTube, text messaging and consumer generated advertising – is very important to their marketing platforms, according to the results of the fifth annual PRWeek/Manning Selvage & Lee (MS&L) Marketing Management Survey. The survey, which polled 279 U.S. chief marketing officers, VPs of marketing and marketing directors and managers, focused on consumer generated media and new media, integrated marketing and industry ethics.
When asked to rate the importance of adding CGM to their marketing platform, 12 percent rated it as very important (a “9” or “10” on a scale of 1 to 10). It was rated somewhat important by 44.5 percent of respondents (those who gave it a “6” to “8”). On the other hand, 14 percent of all respondents said it was not important at all, rating it a “1” or “2”.
The survey also indicated that while marketers may be highly aware of the power consumers wield, most are still wary to give consumers more control. Just 22 percent said they were “very willing” to let consumers play a significant role in shaping their marketing programs.
“Despite the increased awareness of the power of consumers in a digital age on brands and sales, marketing executives are reluctant to loosen their grip on marketing content, unwilling to give too much control to these empowered consumers,” said Mark Hass, global chief executive officer of MS&L.
When asked which marketing disciplines they are currently using, or would consider using in the next year, the most popular response was traditional online activities (82%), such as building web sites. Targeting influentials and media relations, both considered traditional public relations activities, came in second and third (70% and 65%). But CGM ranked almost last (43%), a surprising statistic given the rapid increase in consumer participation, particularly with the very populations marketers try to reach, on sites such as FaceBook and YouTube. A subsequent question asked marketers which new media/CGM techniques their company had used. Website production (71%) and consumer feedback for marketing/product strategies (50%) were the top responses, with much smaller numbers for video blogs (8%), text messaging (10%), and consumer generated advertising (14%).
“These marketers basically address the consumer empowerment trend by using Web sites to get consumer feedback,” said Hass. “This raises the issue of whether or not marketers really understand the concept of new media and CGM. Marketers who think that using a Web site, or asking for consumer feedback on a web site, represent cutting-edge new media tactics are missing tremendous opportunities to build their brands.”
Despite this, marketers demonstrated an understanding of the importance of new media and CGM. The main reason marketers use new media/CGM was to be innovative and ahead of the competition in executing the latest marketing trend (36%). Other popular reasons include the belief in the cost-efficiency of CGM versus traditional marketing and advertising (32%), and the declining credibility of traditional advertising and marketing (31%).
What is keeping marketers from letting consumers take more control? When asked why their companies were not engaging in CGM, 32 percent said there is no clear ROI, and 6 percent said they don’t want consumers that close to their businesses. One-third (33%) gave various other reasons, such as “management doesn’t embrace it yet,” “we simply haven’t given it enough priority to consider it at this point,” and “we’ve had difficulty in getting the establishment to understand it.” But when coupled with their other responses about CGM, a possible interpretation of these results is that there is an underlying lack of understanding of what CGM and new media techniques are available, and how they can be used to build brands.
Budgets for new media and CGM are another issue. For those companies that have not yet explored new media and CGM, part of the reason appears to be funding. The survey results show that 31 percent of those polled say they have no budget for such programs, while 44 percent say there was no change to the amount of funding for new media and CGM efforts over the past year. Additionally, the survey shows that nearly 50 percent of respondents spend 10 percent or less of their company’s marketing budget on new media and CGM efforts. Industrywide, the technology sector spent the most, coming in ahead of consumer, healthcare and b-to-b.
The 2007 PRWeek/MS&L Marketing Management survey was conducted by PRWeek and Millward Brown. Survey results were collected between April 26 and May 9, 2007. Results are not weighted. Based on the sample size, the results are statistically tested at a confidence level of 90%.
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Launched in November 1998, PRWeek was Haymarket's first weekly title in the US. Over the years, PRWeek
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About Manning Selvage & Lee
MS&L
is one of the world's leading global public relations firms.
Headquartered in New York, MS&L has 46 offices throughout North
America, Latin America, EMEA and Asia-Pacific, as well as an extensive
global affiliate network. The agency meets the needs of global and
local clients by providing best-in-class services in consumer marketing
PR, healthcare PR, corporate communications and technology
communications, as well as industry-leading work in digital
communications. MS&L won PRWeek's Best Use of Internet/New Media Award in both 2006 and 2007.
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