US Internet Users More Likely to Buy

Social Fans More Likely to Purchase

If a business doesn’t have a presence on social media platforms such as Twitter and Facebook they risk being seen as “out of touch” while missing out on valuable word of mouth and even sales.  Ina recent study by market research firm Chadwick Martin Bailey and iModerate not only are Facebook fans and Twitter followers apt to recommend brands they follow to others, they are also more likely to make a purchase from those brands.

While 60% of Facebook users and 79% of Twitter users are more likely to recommend a brand after becoming a friend or fan, over half of Facebook users and 67% of Twitterers are more likely to purchase from brands they latch on to.

“Companies not actively engaging are missing a huge opportunity and are saying something to consumers – intentionally or unintentionally – about how willing they are to engage on consumers’ terms,” according to Josh Mendelsohn, VP at Chadwick Martin Bailey.  Today’s consumers expect that a business will have a digital presence and the perception is that those that don’t are out of touch or are not interested in the demographic that frequents Facebook and Twitter.

Major Portions of Marketing Budgets Are Shifting to Interactive Mediums in 2010

Alterian Annual Survey 2009

One of the key trends underscored by the 1,068 respondents polled by Alterian for its 7th Annual Industry Survey is the shift in marketing budgets away from traditional media.  “40% of respondents anticipate a shift of over a fifth of their budget towards digital channels, with 21% of respondents predicting more than a third of their budget will shift.”  The shift in budgeting is a result of the industry’s increasing awareness of the fact that traditional media channels just don’t deliver the results they used to.  “Empowered consumers today expect a customized, interactive brand experience that goes way beyond a 30-second television spot or two-dimensional print ad,” exclaims Forrester.

The benefit of interactive and social media to both the consumer and the campaigning brand is clear, but what is the benefit to agencies who embrace this trend?

“Success in digital, interactive and social channels would seem to come at a lower cost than success in traditional direct marketing,” says Alterian.  According to Forrester, “interactive tools are less expensive, more measurable, and better for direct response than traditional media.”

As demanding consumers expect customized, interactive brand experiences marketers are opting for the more attractive, less expensive interactive tools that are efficiently monitored and the return on investment can be accurately measured.  Forrester’s latest Interactive Marketing Forecast calls for spending on interactive marketing/advertising channels to grow to nearly $55 billion and represent approximately 21% of all marketing budgets by 2014.

Integrated Communication Strategies Are More Important Than Ever!

Consumers Demand Engagement

According to Alterian’s 7th Annual Industry Survey, marketers must move from a focus on siloed campaigns to an emphasis on listening and communicating with consumers across channels.  More than one-half of marketers worldwide reported directing at least “a fair amount” of effort toward integrating their communication strategies to emphasize multichannel consumer engagement.

“The only communication tolerated by consumers are those that are appropriate, timely and relevant – regardless of channel.  Engaging with customers is becoming paramount and the yardstick by which we measure those brands that survive and those that don’t.  Marketers now need to appeal to the individual and engage with customers on a one-to-one basis,” said David Eldridge, Alterian CEO.