Major Brands Renew Focus on Local Marketing Efforts

Big brands spend plenty of money focusing  on their national campaigns. They know they need to make an impression at the local market level, too. At least 80% are spending more or the same level of local marketing dollars in 2014 as they did last year. But, Balihoo, in its Local Digital CPGshopperMarketing study, notes that only 7% are satisfied with their local campaigns and measurement abilities.

Big brands are engaging in the following local digital marketing efforts:

  • Email 73%
  • Local websites 60%
  • PPC 62%
  • Mobile 63%
  • Social 73%

The only local marketing tools that score high as a priority for big brands are email (38%) and websites (22%). The news is grim for traditional media with only 5% of brands saying they see radio, TV and print as  ‘essential’ local marketing tools. The idea behind the local focus is to connect with consumers where they live, work and shop and encourage them to purchase their brands or shop at the stores in their market.

Large enterprises bemoan their efforts, especially when it comes to measuring their local marketing results. Only 24% say they are able to measure and report ROI on most or all of their local campaigns and another 39% are able to get at the results of some of these campaigns.

The organizations in this study have more than $500 million in annual revenue and marketers may be working in large departments focused on top level data.  It's possible that many of the marketers are out of touch with what's happening in any specific geographic region as they are  relying on the following organizations to carry out local marketing:

  • Channel Partners/​Local Marketers 27%
  • Single Agency/​Vendor 22%
  • Multiple Agencies/​Vendors 28%
  • National Corporate Effort 23%

Nearly 60% of marketers in this study claim that local demand will fuel their future business growth. Given this attitude, analysts believe that these businesses will begin to shift more resources to marketing and measuring at the local level this year and beyond. This shift will open opportunities for local companies who understand the audiences and business climate to pitch the best features of their media format and measurement technologies to brands.

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.