June 4, 2012
Emerging Trend In Big-Brand Marketing — Keep It Small: New Study Shows Majority of National Brands Investing in Local Marketing Initiatives — However, Tracking Local Marketing ROI Remains a Top Challenge
Balihoo, a provider of Local Marketing Automation (LMA) technology and services to national brands with local marketing needs, recently announced the findings of a study of 270 national brand companies to better understand the role of local marketing and ROI metrics in their overall marketing strategy. Sixty-six percent of national brands surveyed said they are investing some portion of their budget in local marketing, but levels of local marketing investment vary widely. The survey also revealed that many national brands lack insight into local marketing ROI. When asked what percentage of their overall marketing budget is allocated to local marketing, 21% of national brands said they invest a quarter or more of their total marketing budget into local. The largest number surveyed (29%) said they allocated only 1-5% in local marketing, followed by 14% who said they allocate 6-10% in local marketing initiatives. "It's impressive that twenty-one percent of national brands are allocating a quarter or more of their total marketing budgets to local marketing, demonstrating the growing need for brands to engage with consumers closer to the point of purchase," said Pete Gombert, CEO of Balihoo, in a news release. "The survey also shows growing awareness of the important role local marketing plays in driving sales for national brands, especially for companies that use ROI to track marketing success."
The survey revealed a lack of ROI measurement by national brands for both national and local marketing campaigns. Fifty-eight percent surveyed said they don't use ROI as a marketing metric for local campaigns compared with 44% who reported the same lack of ROI measurement for national marketing initiatives. Conversely, companies that said they use ROI metrics to measure national campaigns are 35% more likely to invest in local marketing than companies that don't use ROI as a marketing metric.
"National brands that use ROI metrics are gaining insights that enable them to invest more in local marketing, and we expect that trend to continue as ROI metrics are more widely used for both national and local marketing initiatives," said Gombert. "Local marketing automation platforms can help national brands scale across multiple markets while also measuring local marketing ROI with built in metrics tools."