IPA Bellwether: Industry reaction

It is encouraging that overall marketing spend is increasing. However, I am disappointed to see that investment in market research, a more established marketing tool, has decreased.

I question whether this has something to do with a rise in digital investment, and a reduced focus on the marketer’s traditional toolkit.

Lidl’s recent success with the consumer ‘taste tests’ that form its #Lidlsurprises campaign, in many ways, suggests to marketers that using traditional sampling techniques can have a hugely quantifiable impact on a business. It also highlights how getting your product into a consumer’s hand will not only drive their individual awareness of it, it will inspire their fellow consumer to give it a try as well.

Therefore despite the importance of digital spend, we cannot underestimate the power of traditional engagement methods.

It’s no surprise that we are seeing sales promotion and discounting practices increasing. In a recent Jaywing and YouGov survey, price came out as the number one influential factor in purchase decisions across seven products surveyed and second only to poor customer service as a reason not to buy.

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However, different segments demand considerably more than this, such as joined up and appealing brand and customer experiences.

With an 11th consecutive quarter of growth in budgets recorded, it’s most certainly not time to start looking glum, but instead remember that confidence will come from those who are most able to meet the demands of today’s somewhat fickle consumers in a world that is increasingly complex and fragmented.

That means bringing together all of the key specialisms needed for successful marketing now with innovative use of data science at its heart to drive powerful experience programmes.

The latest Bellwether report shows that Eurozone instability and any knock on effect on economic confidence has not washed through to sentiment around marketing investment as spend levels look set to increase.

With economic uncertainty becoming the new norm, clients are still looking to marketing’s ability to drive and support their business when the wider picture is that growth is tough to find and has to be fought for very aggressively.

Increased investment into digital reflects a continued trend to invest in channels that deliver direct accountability and outcomes in a convergent media landscape.

While marketing executives’ business confidence has declined to a nine-quarter low of 25.3 per cent; a reduction of 12.5 per cent compared to the previous quarter, consumer confidence is at an all time high.

GfK’s consumer confidence index found that in June, its index increased by six points, a high not seen since the late Nineties or early days of the Noughties.

So what’s got marketers working up a sweat?

Though they are likely to be influenced by the situation in Greece, the threat of evolving technology will be at the forefront.

We have seen in the past three months a number of launches that will challenge marketers, including Apple Pay, a host of ad-blockers (bringing the number of consumers using the tech to 40 per cent according to Reuters), and social media tech such as Meerkat and Periscope.

Marketers must understand and adapt to utilise this technology to engage consumers, or risk losing out.