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the State of
Local Marketing
A Roadmap for Local Marketing in 2015 and Beyond
©2014 BrandMuscle, Inc.
,
what s working
(and not) in local
marketing
Marketing has probably changed more in the past two years than the previous fifty, and the variety of ways to communicate with
buyers continues to grow year after year. From local newspapers, yellow pages and events to Facebook, Twitter and geo-targeted
local search, brand marketers and small business owners alike have more decisions to make today about advertising than ever
before. Brands that sell through a distributed network of local affiliates (agents, dealers, franchisees and sales reps) face an even
greater challenge. When corporate marketers take into account the wide range of communication channels available in each of their
local markets while also trying to satisfy the needs of dozens, hundreds, or even thousands of local affiliates, marketing becomes an
indescribably complicated puzzle to solve.
To gain insight on the current state of local marketing and to better equip the brand marketers we work with to plan for the future,
Brandmuscle surveyed hundreds of local dealers, agents and franchisees across a wide range of industries. We asked these local
affiliates about their marketing habits and had them identify what’s working — or not — and compared the results to trends we
identified by tracking over $2 billion in co-op and channel investments made by our clients over the last three years.
The results that follow paint a picture of a rapidly changing local marketing landscape that is challenging (and frustrating) for both
affiliates and the brands they represent. We found instances of tried-and-true marketing tactics that are still very effective — and
many that are not. In addition, we discovered that newer marketing channels in the social and digital spaces have the potential to
deliver excellent results, but require more time, effort and education than brands may have anticipated and need to explore further.
©2014 BrandMuscle, Inc.
1
Traditional Media Remains
an Important Part of the
Local Marketing Landscape
©2014 BrandMuscle, Inc.
2
Traditional media
Traditional media (newspapers, magazines, radio, television, yellow pages, coupons and billboards)
continues to play a significant role in local marketing, but the landscape is unquestionably changing. In
our survey, satisfaction rates varied widely, and concerns about price were cited for all.
Billboards and coupons received high marks for effectiveness, while radio and television generated
somewhat positive reviews. The same can’t be said for print, with newspapers, magazines and yellow
pages trailing in satisfaction when compared to all other channels.
% using
Satisfaction
INDEX
Primary
Reason
Not USED
%Total
Spend $
2013
% increase
in Spend
2011-2013
Billboards
45%
111
Cost (78%)
5%
1%
Coupons
83%
118
Cost (36%)
4%
3%
Daily Deals
29%
86
Cost (39%)
0%
0%
Magazine
45%
67
Cost (67%)
4%
1%
Newspaper
63%
71
Cost (76%)
15%
-4%
Non-Traditional
47%
82
Cost (49%)
1%
0%
Radio
65%
104
Cost (85%)
12%
-3%
Television
50%
100
Cost (93%)
6%
-1%
Yellow Pages
61%
73
Cost (67%)
1%
-1%
Tactic
Satisfaction Index Methodology: The Satisfaction Index compares the satisfaction with each individual media tactic with the average
satisfaction for all media tactics. Overall, 65% of respondents were somewhat or very satisfied with the media tactics they use so the
index benchmarks each tactic against the 65% level of satisfaction.
Radio & TV
Radio & TV are a mixed bag when it comes to overall
performance, and cost is partially to blame. 65% of
respondents using television and 68% using radio were
somewhat or very satisfied with the results. For the vast
majority who do not use either, cost was the primary reason
for avoiding them.
Coupons
Coupons performed well in terms of overall satisfaction and
were the most widely used tactic on our list with 83% of
respondents using them and 77% of those saying they were
either somewhat or very satisfied with the results.
The news wasn’t quite as good for daily deals like Groupon,
with just 29% of respondents using them and nearly one in
four stating they were “least satisfied” with the results. Daily
deals also topped the list of tactics that affiliates felt were
“too risky” (14%).
“People are
drawn to
discounts.”
Depicts remarks that were provided by local affiliates.
©2014 BrandMuscle, Inc.
3
Billboards
Billboards ranked well for overall satisfaction with 72% of affiliates stating that they were either somewhat or highly satisfied
with the results. However, just 45% of the affiliates we surveyed use billboards. Expense is what prohibits wider adoption
according to the majority (78%) of respondents.
“Print ads aren’t as effective
now in the digital age.”
print
The news wasn’t positive for traditional print media – newspapers, magazines and yellow pages – which ranked the
lowest for satisfaction across all tactics our respondents considered. Unique to print media is that the majority of
respondents were either very or somewhat dissatisfied with the results. However, all was not lost in this category;
respondents cited investments in ethnic newspaper ads, community newsletters and out-of-the-box strategies like
sticky notes on newspapers as working well.
NON-TRADITIONAL
Non-traditional advertising methods – such as cinema ads, gas pump toppers, pizza box toppers and vehicle wraps – had
fairly decent adoption (47%) but lower than average results, with just 54% of respondents saying they were somewhat or
highly satisfied with the outcome. That’s not to say that non-traditional methods shouldn’t be attempted, but due to their
somewhat experimental nature, results may be more hit-and-miss than average.
©2014 BrandMuscle, Inc.
4
How Brands
Can Help
Local
Affiliates
with
Traditional
Media:
©2014 BrandMuscle, Inc.
Since traditional media often comes with a higher price tag for local affiliates,
tactics should be carefully evaluated in the media mix by looking at the overall
goals of your local marketing campaigns. Considering traditional media options
within the context of your desired reach will help to determine if costs can be
reduced. For example, many local businesses cited cost-effective examples of
success using ethnic and community-focused media.
Educate affiliates on overall media placement strategies and when to use
certain media tactics.
Encourage affiliates to look for ways to use traditional media in nontraditional ways such as sticky notes on newspapers, ethnic newspapers or
radio remotes.
Make sure affiliates understand your national or regional media plans
so they can maximize the overall message by running complementary
local placements.
Remember that creative plays a critical role in the success of traditional media.
Since many affiliates may only be able to afford smaller ad units, develop creative
with strong offers to cut through the clutter and meet their needs.
Offer tips and tools for measuring media placements (e.g., call tracking
numbers) so affiliates can track the effectiveness of their ad spend.
Billboards are typically used for awareness because production costs often
dictate that affiliates cannot afford to swap out creative on a regular basis;
billboard creative should be reflective of a more general message.
Local radio and TV have a shorter time frame to be retained by customers;
repetition of local business names and a strong call to action can help
boost retention of your marketing message.
5
Local Affiliates
Are TARGETING CONSUMERS
with Direct Mail & Email
©2014 BrandMuscle, Inc.
6
Direct Mail & Email
Local affiliates are enjoying the targeting and personalization benefits of email and direct mail. Both tactics rate within the top third for overall satisfaction, but
complexity was cited as a barrier to entry for email.
% USING
Satisfaction
INDEX
Primary Reason
Not USED
%Total Spend $
2013
% INCREASE in Spend
2011-2013
Direct Mail
81%
115
Cost (70%)
7%
-1%
Email
72%
117
Too Complicated (56%)
1%
0%
Tactic
Direct Mail
Direct mail is popular among local affiliates, with 81% using it and three out of four of those (75%) saying they are somewhat or very pleased with the results. Respondents overwhelmingly
stated that direct mail is more effective at retaining existing customers than at attracting new ones. The primary reason some affiliates avoid using direct mail is cost (70%).
“Direct mailers tend to be brought inTO MY
STORE more than any other item.”
Email
Email is widely used by local affiliates (72%) and our survey found that the majority of respondents using it (76%) are either somewhat or very satisfied with the results. Many
cited personalization and the ability to measure performance as important ingredients to success. What’s stopping 28% of affiliates from using email? The majority of those who
avoid email (56%) feel it’s too complicated or time consuming.
“Our most effective marketing activity was
an email blast offering a discount.”
©2014 BrandMuscle, Inc.
7
How Brands
Can Help
Local
Affiliates
with
Direct Mail
& Email:
©2014 BrandMuscle, Inc.
By targeting advertising messages to specific individuals, homes, or geographic
areas, local affiliates can reduce the waste often associated with mass media.
Direct mail can be used for both prospecting and retention, while email is better
served for retention and referral marketing.
Door-to-door campaigns offer an effective way to canvass an area and are
productive for local businesses to use after service calls or installations, grand
openings or expansion into new areas.
Provide opt-in programs to help reduce costs for local affiliates, and take
advantage of bulk printing or negotiated discounts on shared mail programs.
These types of programs also provide brands with the ability to control the
message and delivery timing.
Help affiliates to better understand their key target demographics and the
importance of updating customer lists and data.
Provide training and guidance on CAN-SPAM and email marketing best
practices to ensure affiliates are following the necessary rules and regulations.
Supply door-to-door kits and guidelines to ensure that affiliates are
conducting campaigns in a way that complements your brand messaging.
Provide recommendations for things like uniforms, identification tags, what
types of marketing materials to distribute, and the types of neighborhoods
or areas to canvass in.
8
Local Events &
Sponsorships Are
Connecting Brands
to Communities
©2014 BrandMuscle, Inc.
9
Local Events & Sponsorships
Despite living in an increasingly virtual world with online shopping growing at astounding rates, our findings suggest that local affiliates appreciate face-to-face interaction with
buyers more than ever. In fact, local events captured the highest rank for overall satisfaction across all the tactics considered, with 80% of respondents stating they were somewhat
or highly satisfied with the results, and 71% saying the same about community sponsorships. Overall, 79% of respondents said they participate in local events. The primary reason
others avoid events is because they are “too complicated or time consuming” (46%).
% USING
Satisfaction
INDEX
Primary Reason
Not USED
%Total Spend $
2013
% increase in Spend
2011-2013
Local Events
79%
122
Too Complicated (46%)
4%
2%
Community Sponsorships
71%
108
Cost (42%)
11%
4%
Tactic
“Community events and
sponsorships put us in
the community and let
People know we care.”
©2014 BrandMuscle, Inc.
“Local events give me
the opportunity to talk
to the local community
about our services and
products.”
10
How Brands
Can Help Local
Affiliates
Execute
Successful
Events &
Sponsorships:
©2014 BrandMuscle, Inc.
Leverage events and sponsorships to develop a consistent presence in
local communities and to help local affiliates establish a reputation as
a trusted local provider. Local events and sponsorships can be relatively
inexpensive when compared to other traditional tactics, and can serve
as an effective tool for local affiliates who want to close sales on-site
or gather leads. Sponsorships should be used to build awareness and
to promote the business name within the community, but they require a
longer time to nurture compared to more direct tactics.
Provide guidance on the types of events or sponsorships that will
align best with your local affiliates and corporate brand (e.g., home
and garden shows or women-focused events).
Consider corporate-level partnerships that your local affiliates
can help execute; for example, local charity events, minor league
sports or community festivals.
Provide affiliates with access to timely and relevant marketing
materials such as pre-packaged Point of Sale (POS) kits to drive
awareness and draw customers to booths.
Create pre-packaged event kits to make participation easy for affiliates. Provide access to logos, ad and email templates, radio
scripts and other branding elements that can be easily customized
to generate awareness pre-show and to capture and convert leads.
Encourage affiliates to use social media to promote their
participation in local events and sponsorships.
Provide training materials and event best practices.
11
Local Affiliates
Need Help With
Digital Marketing
& Social Media
©2014 BrandMuscle, Inc.
12
Digital Marketing & Social Media
Despite all of the hype surrounding digital marketing and social media, adoption rates among local affiliates are still relatively low. Overwhelmingly, affiliates feel these tactics are just “too
complicated or time consuming.” However, those who use these channels are quite pleased with the results and cite the low cost to execute and ability to measure results as positives.
Somewhat surprisingly, our study revealed that nearly one in four respondents still do not have a local website. With websites playing a foundational role in supporting other digital tactics like paid
search, online display and mobile marketing, it’s clear that there is a digital divide between local affiliates who have embraced digital marketing and those who don’t have the knowledge or time to
invest in making them work. Brands that fail to invest in helping local affiliates build a digital foundation will face even greater challenges in the future as digital media takes center stage.
% USING
Satisfaction
INDEX
Primary Reason
Not USED
%Total Spend $
2013
% increase in Spend
2011-2013
Online Display
52%
107
Too Complicated (43%)
3%
1%
Paid Search
60%
111
Too Complicated (46%)
10%
6%
Website
72%
111
Too Complicated (55%)
3%
3%
Facebook
63%
109
Too Complicated (61%)
0%
0%
Twitter
43%
93
Too Complicated (59%)
0%
0%
Tactic
“Online advertising, particularly Facebook and other
social media venues is where people are most available/
exposed Due to the amount of time they spend
on their screens.”
©2014 BrandMuscle, Inc.
13
Social Media
Unlike traditional forms of media, social media requires more time and attention. Affiliates need to
create and post regular updates with engaging content to be effective. They also need to monitor
these channels and be prepared to engage in online conversations. Based on our survey, many local
affiliates just don’t have the bandwidth or resources required to do it themselves. With 63% using
Facebook and 43% using Twitter, adoption rates are lower than we would expect. Affiliates pointed to
the complexity and time required to maintain these channels as the primary reason they avoid them
(61% and 59% respectively).
The good news is that affiliates who use social media are quite satisfied with the results, particularly
those with annual marketing budgets under $10K. Of those using social media, 71% of the local
affiliates using Facebook and 61% using Twitter said they are either somewhat or highly satisfied.
Earlier we revealed the strong performance of highly targeted and localized, one-to-one traditional
marketing tactics like local events, direct mail and email. Social media, particularly Facebook,
would seem like a logical next step for building one-to-one connections with local consumers
online, particularly in support of retention and referral programs.
“Facebook is the
most effective thing
we’ve done but we
are not able to
invest the time that
we would like.”
©2014 BrandMuscle, Inc.
14
“I want to do
more with online
searches. It bugs
me when we Are low
on the list and I see
our competitorS in
banner ads.”
“Online search
coupled with our
website generates
the most leads; SEO
has been effective
to aid this.”
©2014 BrandMuscle, Inc.
PAID SEARCH & ONLINE DISPLAY
Similar to social media, adoption rates are lower than we would
anticipate, especially when compared to the relatively high
satisfaction rating affiliates gave these tactics. Overall, 60% of
our respondents are using paid search and 73% of that group are
somewhat or highly satisfied with the results. Likewise, 52% are
using online display and 70% are somewhat or highly satisfied.
Again, complexity was the primary complaint from affiliates who
aren’t using these tactics: 46% deemed paid search too complex,
while 43% said the same about online display advertising.
Websites
Websites had the highest adoption rate of any digital tactics
considered (72%), but it’s important to point out that while adoption
is high in comparison to other tactics, it reveals that one out of four
respondents still do not have a website. More than half (55%) said
complexity is the reason they don’t have a website. However, those
who do have websites are finding value in them with 73% stating
they were satisfied.
15
MOBILE
As part of our survey, we asked local affiliates to briefly describe their most effective marketing activity and
why they felt it succeeded. While mobile adoption rates are very low, a handful of respondents cited examples
of success with mobile campaigns. Affiliates view mobile primarily as a fast and inexpensive way to connect
with existing customers rather than as a method of generating new business.
“A TEXT BLAST TO MY
CUSTOMERS WORKED WELL
AS A REFERRAL PROGRAM;
BROUGHT CUSTOMERS
THROUGH THE DOOR.”
“textING IS CHEAP AND
GETS THE MESSAGE OUT
BUT CAN ONLY REACH
PREVIOUS CLIENTS.”
©2014 BrandMuscle, Inc.
16
How Brands
Can Help
Local
Affiliates
BUILD AN
ONLINE
PRESENCE:
©2014 BrandMuscle, Inc.
Consumers are shifting the way they make purchases with some reports
estimating that as many as 80% begin their search for products and services
online. In addition to being found, an online presence can also provide customers
with a heightened level of confidence in local businesses.
According to our study, the primary reason local affiliates avoid online marketing
is because it is “too complicated or time consuming.” Marketers are in a unique
position to help local affiliates make the journey to online marketing, which
is often more cost effective and measurable; two key considerations when
attempting to maximize the ROI of smaller budgets.
Provide training and best practices to prepare local affiliates to use new
media and coach them on how to properly engage with customers online.
Online display ads can extend the value of and build upon traditional
media placements. Encourage affiliates to take advantage of existing media
relationships and supply matching online creative pieces.
Encourage local affiliates to negotiate for value adds or complementary
display ads on newspaper websites or streaming radio sites.
Content is critical to the success of local websites and social media.
Provide your affiliates with access to suggested content, promotional
materials, and relevant messaging they can tailor to meet the needs
of local audiences at different stages of the sales cycle.
Does your co-op program provide incentives for online media? Consider
reviewing your program and make adjustments if necessary.
17
planning YOUr
ROADMAP FOR 2015
EDUCATE affiliates about new media & BEST PRACTICES
Teach local affiliates the basics of new media and provide tools and guidelines to help them manage social media and
online marketing programs.
Reinforce the importance of having an effective media mix and testing to reduce risk.
Explain why reach and frequency are important and how consistency and strong calls to action will improve performance.
Activate loCal MARKETING PROGRAMS
Offer affiliates an easy way to opt into pre-packaged programs for things like direct mail, email and paid search to help
lower the cost and effort required.
Create tools like event kits to help affiliates capture and convert leads before, during and after the show.
Provide access to templates in a variety of sizes and formats. Include strong creative options in smaller ad sizes to break
through the noise without breaking budgets.
analyze LOCAL MARKETING EFFORTS
Provide access to tools like call tracking or promo codes to help affiliates measure effectiveness.
Track co-op and MDF disbursements by requiring proof of performance to close the loop on ROI.
incentivize & reinforce LOCAL success
Closely monitor and reevaluate your co-op and MDF programs to ensure funding reinforces the use of tactics and behaviors
that deliver the best results.
Capture and share your local affiliates’ success stories to encourage repeatable wins.
©2014 BrandMuscle, Inc.
18
survey results
©2014 BrandMuscle, Inc.
19
MEDIA USAGE
MEDIA SATISFACTION
Use
Don’t Use
Satisfied
83%
Coupons
79%
Local Events
Coupons
77%
Email
76%
75%
Email
72%
Direct Mail
Website
72%
Paid Search
73%
Website
73%
Billboards
72%
71%
Community Sponsorships
65%
Radio
Facebook
63%
Facebook
71%
Newspaper
63%
Community Sponsorships
71%
Online Display
70%
61%
Yellow Pages
60%
Paid Search
50%
Television
47%
Non-Traditional
Door-to-Door
62%
Twitter
61%
45%
Non-Traditional
Magazine
45%
Yellow Pages
43%
29%
Daily Deals
0%
20%
40%
56%
Daily Deals
Billboards
Twitter
65%
Television
52%
Online Display
68%
Radio
58%
Door-to-Door
©2014 BrandMuscle, Inc.
80%
Local Events
81%
Direct Mail
Dissatisfied
60%
80%
100%
54%
48%
Newspaper
46%
Magazine
44%
0%
20%
40%
60%
80%
100%
20
CO-OP SPEND & % increase 2011 - 2013
-4%
20%
-3%
15%
2011
2012
4%
6%
10%
-1%
-1%
1%
5%
2013
1%
1%
-1%
2%
0%
0%
3%
3%
0%
er
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media usage & 2013 co-op spend
80%
83%
81%
79%
72%
72%
71%
65%
60%
% Usage
63%
63%
61%
60%
52%
50%
47%
40%
45%
45%
5%
4%
43%
% Spend
20%
11%
7%
4%
4%
1%
15%
12%
10%
3%
6%
3%
1%
0%
1%
0%
0%
s
pon
Cou
©2014 BrandMuscle, Inc.
ail
ts
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21
MARKETING BUDGETS
20%
10%
17%
Under $500
$5,001 - $10,000
$501 - $1,000
$10,001 - $20,000
$1,001 - $5,000
$20,000+
budgets compared to prior year
22%
52%
8%
7%
Increased more than 10%
Decreased more than 10%
Increased more than 20%
Decreased more than 20%
©2014 BrandMuscle, Inc.
% DON’T
use
PRIMARY
REASON
NOT USED
% SATISFIED
Billboards
45
55
Too Expensive
72
28
111
4
4
5
Community Sponsorships
71
29
Too Expensive
71
29
108
7
9
11
Coupons
83
17
Too Expensive
77
23
118
1
1
4
Daily Deals
29
71
Too Expensive
56
44
86
0
0
0
Direct Mail
81
19
Too Expensive
75
25
115
8
8
7
Door-to-Door
58
42
Too Complicated
62
38
95
0
0
0
Email
72
28
Too Complicated
76
24
117
1
1
1
Facebook
63
37
Too Complicated
71
29
109
0
0
0
Local Events
79
21
Too Complicated
80
20
122
2
3
4
Magazine
45
55
Too Expensive
44
56
67
3
3
4
Newspaper
63
37
Too Expensive
46
54
71
19
19
15
Non-Traditional
47
53
Too Expensive
54
46
82
1
1
1
Online Display
52
48
Too Complicated
70
30
107
2
2
3
Paid Search
60
40
Too Complicated
73
27
111
4
4
10
Radio
65
35
Too Expensive
68
32
104
15
14
12
Television
50
50
Too Expensive
65
35
100
15
14
12
Twitter
43
57
Too Complicated
61
39
93
0
0
0
Website
72
28
Too Complicated
73
27
111
0
0
3
Yellow Pages
61
39
Too Expensive
48
52
73
2
1
1
TACTIC
28%
Stayed about the same
% use
10%
15%
11%
data SUMMARY
% NOT SATISFACTION % CO-OP SPEND
2011 2012 2013
SATISFIED
INDEX
22
About Brandmuscle
Offering a comprehensive local marketing automation platform backed by 24/7 on-demand support, Brandmuscle helps national brands capitalize on opportunities and local market
conditions with brand-compliant, customized marketing across all mediums and formats. Headquartered in Chicago with offices in Cleveland, Austin and New Jersey, Brandmuscle
employs over 650 talented professionals, serves nearly 200 of the world’s leading brands and manages over $2 billion in channel marketing investments each year.
Brandmuscle has appeared on Inc. Magazine’s 500 | 5000 Fastest-Growing Companies in America List multiple years, and is the only software provider ranked “Best” in all categories of
Gleanster’s 2014 Local Marketing Automation Vendor Benchmark report. For more information about Brandmuscle, call (866) 464-4342 or visit www.brandmuscle.com.
©2014 BrandMuscle, Inc.