National Marketers Refining Localization Strategies A Leading in Local Conversation
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1 National Marketers Refining Localization Strategies A Leading in Local Conversation Feb. 21, 2013
2 Welcome Webinar Goals Focus on the increasingly critical need of national brands to improve their localization efforts Highlight selected key findings from a new report from the CMO Council and Balihoo, Brand Automation for Local Activation. The report is based on a survey of national brands about their localization strategies, challenges and opportunities Examine the best practices of leading brands This webinar is a part of our 2013 conference series, LEADING IN LOCAL. All webinar attendees will be offered a special promotion to attend our upcoming conference: LEADING IN LOCAL: The National Impact taking place in Boston, March
3 Webinar Speakers Susan Tormollen Marketing Director, Balihoo Jed Williams Senior Analyst, BIA/Kelsey Rick Ducey Managing Director, BIA/Kelsey 3
4 4
5 National vs. Local Ad Spend Comparison BIA/Kelsey s estimates the following ad spend percentages for national and local: % of Local Ad Spending by Local Advertisers % National Ad Direct Mail 55% 45% Television 60% 40% Online 60% 40% Cable 40% 60% 5
6 Rapid Share Shifts in Local Media Local media has become a key channel, not only for local small businesses, but for regional businesses, national franchises and national brands targeting locally. This is clearly seen in our tracking of market shifts in mobile, social, search, promotions, coupons and deals, native ads and sales transformation. The new survey from the CMO Council and Balihoo reinforces this finding. It provides insight into what is really going on within the marketing departments of national brands. 6
7 Research Background Conducted follow-on research to Nov Localize to Optimize Report 2011 Localize to Optimize highlights: Nearly 25% of marketers spending more than 50% of budget in local marketing 69% of marketers not tracking local marketing efforts 30% of marketers claimed to be using local marketing automation, and another 27% investigating Objective for new study: Understand requirements for effective execution of national campaigns at local level Identify marketing improvements and process improvements needed to increase ROI Capture local marketing mandates, challenges, outlook and intentions 7
8 The Survey Results AND The News Only 7% of brands have highly evolved campaigns and measurements in place to activate customers at the local level 8
9 Key Observation #1: Resource Constraints Affect Local Success Resource and budget constraints adversely affecting the ability to successfully plan, execute, measure and control local marketing efforts. Majority of brands must rely on in-house teams to manage efforts and aggregate local results Only 6% of respondents measure impact and success of local marketing campaigns based on revenue at the store/agent level 9
10 Key Observation #1: Resource Constraints Affect Local Success Perspective from Brand Leaders A majority of interviewed brand leaders: Didn t emphasize resource or budget constraints. Seemed positive about their ability to work with partners, provide needed localization and control brand integrity and compliance. Split in their use of automated, aggregated reporting. 10
11 Perspectives From Brand Leaders Compliance is really driven by tools and the sophistication of the end user, we have invested a great deal into upgrading the tools we provide our local-level partners and retailers, as well as working to make them simpler to understand and use. Carhartt, Anthony Ambroza, VP Marketing We are getting much better at integrating our communications, launching them, measuring them and seeing the performance of those channels and how they support each other in sales conversions. But when we have digital programs that drive in-store traffic we are still working to create a measurement model to measure ROI from those. FedEx, Dennis Shirokov, Marketing Director 11
12 Key Observation #2: Invest in Automation, Not Just Technology 12
13 What is a Comprehensive Local Marketing Automation Solution? Typically a SaaS platform enabling national brands to bring enterprise-class marketing strategy, CRM/customer data and demand gen tools to their distributed network. Includes multiple mediums (print, , radio, social, mobile, POP, coupons, direct mail, SEO, websites, etc) Financial management (ex: co-op management) Analytics and reporting Automated campaign (subscriptions) Benefits Ensures brand control and compliance Reaches prospects closer to the point of purchase Increases channel engagement and success Availability of aggregated metrics and reporting Increases revenue, decreases complexity 13
14 Brands With Automation Are Leading The Pack 88% of marketers who use local marketing automation and deploy national and local campaign simultaneously believe this provide competitive differentiation 14
15 Key Observation #2: Invest in Automation, Not Just Technology When you get all the marketing engine working together and saying the same thing across all platforms, that s when local marketing really makes a big difference. It should be seamless for the customer. Local marketing sits on top of national efforts; it doesn t replace them. Michelle Bowman, Director of Marketing Promotions, FedEx Office 15
16 Key Observation #3: Wait & See Approach to Mobile While 26% of respondents believe mobile is critically important or are increasing investment, 41% are still investigating the opportunity or developing their mobile strategy. 16
17 Key Observation #3: Wait & See Approach to Mobile Perspective from Brand Leaders Of interviewed brand leaders: A majority mirrored the findings Some are still investigations Only a handful are actively using mobile tactics most actively engaging in social over mobile 17
18 Perspectives From Brand Leaders Mobile is important and we need to be able to deliver mobile from both a consumer and agent perspective, but it s still expensive for a local play Farmer s Insurance, Debra Lechner, Assoc VP Marketing Everything that is available online can be accessed through the mobile app Sears was actually named Mobile Retailer of the Year is Sears Hometown Stores, David Buckley, CMO Social media is an important part of what we re looking at for 2013, we re still testing and learning Currently the channel is used more from a corporate perspective. The same is true for mobile we know it will completely change our marketing mix, but we re still learning more about it and how to best include it - Anonymous International Insurance Company, Chief Marketing & Strategy Officer 18
19 Good Reminder When it comes to localization through mobile, social, digital or any other platform, there is no onesize fits all approach. For a long time, business was done on the local level, and then we tried to do everything on a national basis. The winners are those who worked to connect with their local markets and figured out how to do both. Denny Post, Red Robin, CMO 19
20 Download the Executive Summary Executive summary of the report can be downloaded at 20
21 What s Next 58% of marketing executives say local marketing is essential to business growth and profitability. - CMO Council Brand Automation However, as the research reveals, for real local activation marketers must continue to advance their local marketing strategies as many national brands are relying on outdated methodologies More attention will be paid to optimize technologies and points of automation so brands can create an efficient dialogue with customers and improve connectivity and engagement with local sales, partners and channel networks 21
22 JOIN US AT March 18-20, 2013 Boston, MA Westin Copley Place LEADING IN LOCAL: The National Impact will look closely at how national's local play is having an impact on all organizations with a vested interest in the interactive local media space. Conference opens with the Superforum: National Brands, Local Channels to offer a comprehensive view of the national-local ecosystem with some of the industry's most innovative players. SPOTLIGHT SPEAKER Cindy Stockwell, EVP and Chief Media Officer, Hill Holliday Industry Leaders on Cross-Channel Localization Opportunities The CMO Survey on National/Local SPEAKERS HIGHLIGHTS CINDY STOCKWELL Hill Holliday COURT CUNNINGHAM Yodle MICHAEL PAGE Cars.com MITCH SPOLAN LivingSocial Defining and Seizing National/Local Opportunities BIA/Kelsey Analyst Roundtable SHANE VAUGHAN Balihoo Special Code: CMOSTUDY (Save $200 on registration) 22
23 Questions? 23
24 Questions and Comments: Jed Williams, Senior Analyst, BIA/Kelsey Susan Tormollen, Marketing Director, Balihoo This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under federal law. BIA/Kelsey disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.
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