[August 13, 2015] |
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Netsertive and Borrell Associates Announce "The Changing Face of Co-Op Programs" Report
Netsertive,
a digital marketing intelligence company that brings brands and local
businesses together to win local customers, today released "The Changing
Face of Co-Op Marketing Programs" report. Created in partnership with
marketing research firm Borrell
Associates, the report includes insights gathered from over 150
brands and local businesses, while exploring how digital marketing
trends are altering the co-op landscape and the persistent barriers to
adoption that brands and local businesses face. A copy of the full
report is available for download here.
"Our research with Borrell Associates found that brands are leaving
billions in annual revenue untapped as a result of inefficient and
outdated co-op marketing programs," said Brendan Morrissey, CEO and
co-founder, Netsertive. "Up to 40 percent of co-op marketing funds
earmarked by brand managers for local advertising remain unused each
year. It's time to revitalize co-op marketing programs with a focus on
digital marketing channels, and to reinvent the broken relationship
between brands and their local business partners."
Key survey findings include:
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"Co-op" is a Dirty Word among Brands and Local Businesses. While
53 percent of brands and 65 percent of local businesses participated
in co-op marketing programs last year, both report dissatisfaction and
persistent challenges. Half of brands cite a lack of digital marketing
knowledge among local businesses as the biggest barrier to co-op
marketing success, while local businesses cite "too much paperwork"
(38 percent), "too many rules" (38 percent) and a lack of information
(31 percent) as their biggest challenges.
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Local Businesses are Leading Digital Marketing Spend Locally. When
it comes to local marketing spend, a majority of local businesses (61
percent) prioritize digital advertising over newspaper (56 percent),
direct mail (53 percent), radio (45 percent) and cable TV (35
percent). Brands, meanwhile, still favor traditional mediums -
newspaper (85 percent), radio (71 percent) and direct mail (71
percent) - over digital advertising (69 percent).
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Search & Display, Email Marketing are Still the Most Impactful
Local Marketing Mediums. Despite the recent landslide of digital
marketing innovation, brands and local businesses still depend on
search & display (62 ercent and 67 percent, respectively) and email
marketing (46 percent) to drive leads and sales locally.
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Brands and Local Businesses Aren't Prioritizing Mobile Marketing. Despite
growing device dependency among consumers, 73 percent of brands and
local businesses aren't leveraging co-op funds for their mobile
marketing efforts. Those that are remain focused primarily on mobile
search and mobile-optimized websites. In fact, 61 percent of local
businesses report having mobile-optimized websites.
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Adoption of Digital Video Advertising is Lagging Locally. A
full 83 percent of brands do not provide co-op funds to support
partner use of digital video advertising. In fact, 46 percent report
that less than 20 percent of their local partners currently use
digital video advertising and 68 percent rate partner knowledge of the
medium as "novice" or "poor." Additionally, 22 percent of local
businesses report never having used digital video advertising.
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Millennials are Driving Local Sales Opportunity - and Brands are
Missing Out. While 43 percent of local businesses reported an
increase in sales to Millennials in 2014, the majority of brands (68
percent) do not yet offer co-op support for Millennial targeting at
the local level.
"We were stunned to discover that advertisers are leaving $14 billion in
'free advertising' on the table - about twice as much as three years
ago," said Gordon Borrell, CEO, Borrell Associates. "This is because
co-op programs are out of sync with local advertisers' changing needs,
particularly in the digital realm. With a few adjustments and the help
of new technologies to grease the skids, brands have a big opportunity
to tweak these co-op programs in a way that transforms local business
partners into an incredibly sophisticated and powerful sales force."
For more information regarding this report or Netsertive's digital
marketing intelligence solutions, please visit: http://www.netsertive.com/
About "The Changing Face of Co-Op Marketing
Programs" Report Borrell Associates administered a
project focusing on cooperative advertising. There were two sectors of
the project; one geared toward automotive groups and one geared toward
non-automotive cooperative advertising. Both sectors contained two parts
focusing on the "givers," those that provide it, and "getters," those
that receive it. Three surveys (40-50 respondents each) were conducted
and two sections of telephone interviews. The series began in May of
2015 through August 2015. Borrell partnered with various groups focused
on cooperative advertising. Respondents entering their contact
information at the end of the survey were entered in a drawing for a
chance to win one of two iWatches.
About Netsertive Netsertive's
digital marketing intelligence platform empowers brands and local
businesses to work together to win local customers. The company's two
complementary solutions, MarketWise™ for Brands and StreetWise™ for
Local Businesses, enable cooperative marketing and resource sharing
between brands and their local business partners. Both are powered by
Netsertive's proprietary learning engine, which combines the company's
deep industry experience with the collective intelligence of its
extensive network of automotive, IT technology, major appliance,
furniture, consumer electronics, dental and eye care clients to deliver
unprecedented campaign speed, performance and value. An award-winning
marketing technology company and Google (News - Alert) Premier SMB Partner, Netsertive
drives local marketing success from campaign enablement through scaled,
local execution. Additionally, Netsertive helps brands with their co-op
marketing to ensure localized brand compliance, seamless campaign
execution and reimbursement tracking for local partners.
Founded in 2009 and based in Research Triangle Park, North Carolina, the
company has a history of rapid growth, a world-class team and the
strength of venture capital funding from top firms RRE Ventures, Harbert
Venture Partners and Greycroft Partners. Netsertive was named 2014
Software Company of the Year by North Carolina Technology Association
and was named among Inc. Magazine's 500 fastest-growing private
companies two years in a row. Additional information about Netsertive is
available at www.netsertive.com.
About Borrell Associates As a
data-driven company, Borrell Associates is the expert in local
advertising. Borrell Associates is the leader in tracking and
forecasting local ad spending across any market in the U.S., Canada or
the U.K., down to the county or province level. Borrell helps clients
gauge the levels of advertising and marketing expenditures in their
markets by any type of business. Through detailed ad-spending data,
fact-based consultation and training, Borrell Associates helps media
companies increase their market share and matters adjust budgets.
Additional information about Borrell is available at www.borrellassociates.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150813005139/en/
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