The ad market is back in a big way. This good news comes from the just-released Highlights and Insights report issued by CMO Survey in conjunction with Duke’s Fuqua School of Business and the American Marketing Association. The report contains keen insights about marketer plans for the next 12 months – by sector and by business type.
Between August 2010 and February 2011, the number of CMOs who grew more optimistic about the economy jumped from 38.9% to 68.8%. Part of this new optimism stems from the belief that customers will begin buying again. As they do so, customers are likely to show shifting priorities:
- Less focus on price (-15.1%)
- More focus on innovation (+21.9%)
- More focus on brand (+31.4%)
To attract these customers, business leaders indicate that growth spending will rise as they deploy their market penetration strategies. Overall, nearly half (49%) of survey respondents note that market penetration will be a top focus, as opposed to market development (17%), product/service development (22%) and diversification (12%).
By sector, businesses that sell services to consumers expect to have the heaviest focus on market penetration strategies. And the primary reason for this focus will be the increasing threat of domestic competitors, cited by 57.14% of responders. However, it is the business to consumer product sector that plans to increase the marketing spend most – an average of about 20.4% in the next year. B2B product companies will be the leaders in product/service development strategies at 27.3%. Perhaps these businesses plan to cater to the customers who will be focused on innovation.
Study participants say they plan to increase their marketing budgets by an average of 5.7% in the next 6 months. Overall, here’s how businesses will increase marketing expenditures in the next 12 months:
- Traditional ad spend 2.4%
- Internet marketing spend 12.1%
- New product introductions 8.2%
- New service introductions 5.1%
- Customer relationship management 9.1%
- Brand building 9.1%