Study finds C-level execs across the globe believe in the value of advertising.
A recent Forbes.com survey has found that C-level executives view spending for advertising nearly as important as spending for product development, stating that advertising is an important driver of corporate success.
Advertising impacts company image and sales
The close to 9,000 global respondents polled by Forbes.com and Euro RSCG Worldwide -- a marketing communications agency -- indicated they are closely involved in their companies' advertising and marketing programs. What's more, over 70 percent agree completely/somewhat that advertising and marketing can have a substantial influence over the way the market perceives their company, and 62 percent agree completely/somewhat that their advertising and marketing programs have a substantial impact on sales.
However, a high percentage of respondents are concerned about advertising accountability. Almost half (49 percent) agree completely/somewhat that they are frustrated with the lack of accountability for their advertising and marketing expenditures.
Jim Spanfeller, president and CEO of Forbes.com, cites a greater focus now on ROI as part of the problem. "At times, some agencies focus more on intangible metrics rather than specific sales figures," he says. "To be fair though, the final sales results are a combination not only of great marketing, but also great products, appropriate placement in retail locations, and competitive pricing."
A troublingly high percentage of C-levels also feel the advertising industry has a poor grasp of the business issues confronting organizations such as theirs -- indicating both a lack of faith and a lack of understanding between senior management and creative experts.
"There are several issues here," says Spanfeller. "Some think their agencies don't understand their business; I think more are probably saying they don't understand the success criteria that the folks the agencies are serving are dealing with -- which should be based on results (selling things). As I've said before, creativity for creativity's sake doesn't cut it -- creativity for sales results is key."
The execs are split over whether decisions about advertising and marketing are best left up to the creative experts within external agencies or internal marketing staff. They do agree, however, that external marketing and advertising services bring valuable perspectives to their marketing and advertising issues.
About the execs
The survey participants see themselves as early adopters, free thinkers and experimentalist. They tend to be friendly both professionally and personally with others of the same stature, and to a lesser degree, see the lines between their personal and professional lives blurring.
C-levels around the world feel they are not spending enough time with family and friends, yet believe that the quality of life their work enables them balances out work’s intrusion on their personal lives.
The executives polled are committed to their work and feel it is meaningful in their lives. However, they are split on whether their future holds further work in the corporate world.
C-level executives place more concern on being a leader within their company than on being a player on either the national or world stage. However, they place significantly more concern on family and friends than on work.
Of particular note to marketers is the fact that these executives around the globe are reliant on the Web for their business information -- confirming what Forbes.com has found in four previous studies. And although the Web is chosen across the board as the most important source of information about business, a higher percentage of respondents from the UK, Germany, China, Japan and Mexico chose the Web as their most important source of information on business than the U.S. respondents.
"This is the fifth study around C-level executives we've done, and each continues to underscore that the Web is attracting more and more people; that a large percentage of those people are senior executives/senior business decision makers, and that this medium (the Web) is the most important for them to get their business news," concludes Spanfeller.
The full study, titled “A Day in the Life of C-Level Executives -- Part V, is available online.