New analysis of chief marketers’ Attitudes on Agencies released at 4A’s Transformation 2010 Conference

Marketing decision makers say they are most frustrated by advertising and Web design agencies that are not proactive, don’t communicate well, and fail to understand their clients’ businesses and their customers.

According to the 2010 Ad-ology Research Attitudes on Agencies report released today at the American Association of Advertising Agencies (AAAA) Transformation 2010 conference, after cost, marketers tend to choose agencies based on creative capability and quality of previous work.

“There are three deadly account service sins for advertising agencies: Inadequate communication, relying on the clients for industry insights and not listening,” said C. Lee Smith, president and CEO of Ad-ology Research. “Committing or being perceived as committing any one of these three sins can quickly put an agency at risk for losing a client,” Smith said.

Fifty percent of those surveyed plan increased marketing budgets in 2010 versus 2009, with social media, online advertising and online video expected to see the greatest spending increases.

Other key findings from the study:

• 19% of companies with marketing budgets less than $1 million say they do not use social media, 34% say the same for online video.
• Companies with marketing budgets more than $1 million are more likely to have mandates to improve customer insight and retention.
• B2B companies are much more likely to increase budget on public relations than B2C and hybrid companies.

The study was conducted in January 2010 by Ad-ology Research to analyze marketers’ 2010 plans and attitudes. The Attitudes on Agencies Report is available for purchase for $195 through the Research Store at Ad-ology.com.

As we kick off the new year, we’re going to take a look back at the most read Consumer Spending Forecast posts of 2009. We’ll be back live next week!

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Nearly one in 5 U.S consumers aged 18 to 24 cited online video as an influence on their choice of banks.  More than one-third was influenced by social media such as positive and negative product reviews, blogs, and social networks according to a recent Ad-ology Research study.

The younger demographic was also the most influenced by support of a charity or cause (17%), recommendation by family and friends (15.4%), and sports sponsorship (12.6%).

Overall, online media was slightly more influential than traditional media across all demographics, with bank and financial service Web sites having the most influence.  Of traditional media, direct mail and television were the most influential.

“Most financial services providers frequently ask themselves “What’s the value of a new customer over their lifetime?” said C. Lee Smith, president and CEO of Ad-ology Research.  “Reaching young consumers early and getting them to establish that first account can make them customers for life.  Social media is the way to reach that younger demographic and develop those lifelong relationships,” Smith said.

Other key findings:

• Across all demographics, of traditional media, newspaper, television and direct mail were nearly equally influential on bank choice
• For financial services other than banks, 21.5% of higher-income users rate quality of service higher than fees
• Online banking is most important to 25 to 34 (45.3%)and 35 to 44 year olds (39.7%)

“Media Influence on Consumer Choice: Banking and Media Influence on Consumer Choice,” conducted by Ad-ology Research, September 30, 2009.  Website: www.ad-ology.com.  Each report includes 24 data charts, consumer-spending estimates by market, and additional marketing insights.

Small business owners are hoping to engage customers in new ways in 2010. According to Ad-ology Research, 28% of small business owners say they plan to spend more on online video in 2010, up 75% over last year’s plans. Twenty five percent say the same about social networking, while 21% plan to commit more resources to mobile advertising.

Facebook was ranked the most beneficial social network for small business, followed by LinkedIn and Twitter.  These owners say the top business benefits of social networking are lead generation, keeping up with the industry, and monitoring the online conversation about their business.

E-mail marketing continues to be the most popular online marketing method for small businesses, but these numbers show increased acceptance for emerging media since last year’s study.

“Small business owners understand that the marketing landscape is changing, and they need to connect with consumers in new ways,” said C. Lee Smith, president and CEO of Ad-ology Research. “They’re still using traditional media, but they’re embracing these emerging media types as a way to take their business to the next level,” Smith said.

Twenty-nine percent plan increased advertising spending overall, targeting increased resources to online, direct mail, and newspaper advertising.

The Ad-ology Small Business Marketing Forecast reveals small business owners are generally hopeful, with more predicting increased sales in 2010 versus 2009, and one in five expressing optimism about the economy.

Other key findings from the study:

• 31% say they don’t use social media because their customers don’t use social media.
• More than one-third of these business owners plan to spend more time writing white papers and e-articles.
• 52% of small business owners surveyed plan to devote more resources to cause marketing in 2010.
• 42% plan to participate in trade shows or conferences, and the percentage of these planning to spend on trade publications increased 18% from last year.

The study was conducted in November 2009 by Ad-ology Research to analyze the attitudes and marketing plans of small business owners. The Small Business Marketing Forecast report is available for purchase through the Research Store at Ad-ology.com.

ABOUT AD-OLOGY RESEARCH

Ad-ology Research analyzes key marketing and advertising trends in over 440 industries and what motivates end-customers. The company’s research is used by over 2,000 advertising agencies, media properties, local governments, and product marketing departments across the United States. Ad-ology Research is a division of Sales Development Services (SDS), Inc. – a Westerville, Ohio firm founded in 1989.
METHODOLOGY

Ad-ology Research surveyed an online panel of 1100 owners of U.S. businesses with less than 100 employees in November 2009. The margin of error for this survey is +/- 2.95 percentage points.

EDITOR’S NOTE: The Ad-ology trade name should be hyphenated in all printed references.

PRESS CONTACT:
Michelle O’Brien
(614) 794-0500 ext. 100
pressrelations@ad-ology.net

Nearly one in eight higher income consumers said social media influenced their choice of real estate services, the highest of all media types, according to the Summer 2009 Ad-ology Media Influence on Consumer Choice survey.

Of online, social, and traditional media, online media had the most influence across all demographics.  Real estate agency Web sites were the most influential online media. The lucrative 25-to-34 age group was noticeably more influenced by video than other age groups.

Fees are the most important factor for consumers selecting real estate services, followed by real estate office and real estate agent reputation.

“Relationships and reputations – both online and offline – are so crucial in real estate,” said C. Lee Smith, president and CEO of Ad-ology Research.  “Agents who may be ignoring social media need to realize it’s a great way to establish their name and build relationships in the marketplace, and especially with these higher income consumers,” Smith said.

Other key findings:

• Newspapers and television were the most influential traditional media
• Convenience was important for 18-to-24 year olds: online listings and office location were the top factors
• Positive comments influenced 12.2% of 25 to 34 year olds

The Media Influence on Consumer Choice survey is conducted throughout the year by Ad-ology Research to study online, traditional, and social media influence on buying decisions.

Media Influence on Consumer Choice: Real Estate is available for purchase and immediate download through Ad-ology.com.  The report includes 24 data charts, consumer-spending estimates by market, and additional marketing insights.

About Ad-ology Research

Ad-ology Research analyzes key marketing and advertising trends in over 440 industries and what motivates end-customers.  The company’s research is used by over 2,000 advertising agencies, media properties and product marketing departments across the United States.  Ad-ology Research is a division of Sales Development Services (SDS), Inc. – a Westerville, Ohio firm founded in 1989.
Methodology

Ad-ology Research surveyed an online consumer panel of 1,154 adults in a manner that is 98% representative of the adult population of the United States from July 17-18, 2009. The margin of error for this survey is +/- 2.9 percentage points.

Editor’s Note: The Ad-ology trade name should be hyphenated in all printed references.

PRESS CONTACT:
Michelle O’Brien
(614) 794-0500 ext. 100
pressrelations@ad-ology.com