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.

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

Market research firms Packaged Facts and The Hartman Group have joined forces in a collaborative partnership that will result in a series of four reports each deciphering the attitudes and behaviors of sustainable goods consumers in relation to specific consumer products.  “Consumers and Sustainability: Food and Beverage” is the first market study published in the four-part series.

The food and beverage market is central to consumer perceptions of sustainability. When the consumption of sustainable foods is motivated by personal benefits, adoption mirrors a health and wellness progression in which consumers first consider the impacts of things in the body, followed by on the body, and finally around the body. Therefore, as consumers become more educated about the environmental, social, and economic implications of foods and beverages, their health and wellness motivations dovetail with societal concerns, such that food shopping choices become salient to the four zones of sustainability:

• The Personal Benefit Zone
• The Environmental Zone
• The Social Zone
• The Economic Zone

“Consumers view the food and beverage category as key to sustainability, perceiving organic and locally grown foods, fair trade products and the ethical treatment of animals as ways to positively impact their community and the world,” says Tatjana Meerman, Publisher of Packaged Facts.  “In addition, ‘freshness,’ although not technically contributing to sustainability, is considered important because foods and beverages that are closest to their natural state appear to have a direct connection to the earth.”

Sustainability consumers have modified their behavior in response to economic hardship; however, tradeoffs and cutbacks are less likely to be curtailed for products these consumers view as essential to their quality of life, most notably in food.  So marketers are responding by upping the sustainability credentials of their private-label lines, opening up another pathway to sustainable-at-a-discount shopping. At the current intersection of sustainability awareness and financial downturn, the market is ripe for food and beverage products that allow consumers to shop more sustainably, but also spend less money.

Source: “Consumers and Sustainability: Food and Beverage,” conducted by Packaged Facts in conjunction with The Hartman Group, August 17, 2009.  Website: www.packagedfacts.com.