A new Forrester Research report advises marketers to evaluate interactive marketing trends by creating channel innovation teams before investing.
Forrester Research's recent report -- "Interactive Marketing Channels To Watch In 2006"-- identifies interactive marketing strategies marketers should adopt to succeed with customers in the emerging social marketing environment.
Forrester recommends creating channel innovation teams through the following strategies:
- Dedicate a team to identifying important new channels
- Select curious, strong internal motivators as team members
- Include team members skilled at test and measurement methodologies
- Link the team to an executive sponsor
- Identify the channels the team will tackle first
- Test the channels through small, focused programs
- Develop implementation plans for the channels that matter most
For greater success, Forrester offers the following advice:
- Start with online ad targeting
- Don't disregard advertising in games
- Business-To-Business (B2B) marketers should embrace rich media
- Let Really Simple Syndication (RSS), blogs, and podcasting simmer on the backburner
As the marketers we spoke with point out, "It's hard to innovate when we're heads down managing current operations," but we believe -- says Forrester -- that firms must experiment with new channels in order to stay relevant to their customers.
Which interactive channels capture the greatest priority in online budgets?
Forrester surveyed 259 interactive marketers representing a diverse range of industries (66 percent from companies with revenues in excess of $1 billion) to discover the answer to this question.
The results indicate a division between the companies depending on how aggressively they adopt technology. The findings are as follows:
- Email and search are marketing mainstays
- Marketers plan to beef up online targeting
- Interest in rich media remains high
- Marketers are curious about social marketing, but not mobile or games
Email and search marketing hold budgetary priority due to 79-94 percent usage rates by marketers who also view these channels as "proven/traditional."
Marketers believe online behavioral and contextual targeting for improved display ad performance works and are willing to allocate remaining budgets on this channel to implement the necessary technology on a larger scale.
According to Forrester, "Using customer data to target marketing messages is by no means new, but the availability of more comprehensive online data and new technical solutions -- from vendors like Revenue Science -- has piqued marketer interest."
During 2006, 65 percent plus of the surveyed firms use and intend to use rich media email and display ads. Although concerns are raised about email delivery, ad annoyance, and spam filters, Forrester emphasizes that rich media is no substitute for relevance -- "It is the message you send through this medium that creates value."
Blogs, social networks and RSS are -- according to the study -- currently the least adopted channels ranging 37-38 percent of participants who pilot or will pilot their use this year.
Of those marketers planning to use mobile, 57 percent do not, and 70 percent have no intention of using advergames and in-game advertising. Forrester offers insights from these marketers:
As one marketer explains, there is "no catalyst for us to try mobile or games when we know our customers use other channels."
Another agrees, "I like mobile, but I haven't found a good application for it."
Overall, the online spending patterns of these companies show an increase in 2005 by 25 percent in comparison to 2004. The majority of these firms intend to increase online spending in new channels -- "By 2010, firms will spend $26 billion on Internet marketing," reports Forrester.
What are the reasons companies aren't using or planning to use some of these newer channels?
Participant marketers indicate a reluctance to try social media channels, mobile, and games not only because of channel compatibility, but also because marketers:
1. Haven't yet mastered the basics
Marketers are working on establishing their current track record of success in the realms of site, display ads, and email program operations before shifting resources to forge ahead with new initiatives.
2. Don't think channel usage has reached critical mass among their customers
Marketers want to see proof that they can reach their specific target customer through an emerging channel before they will pilot it. Concerns are fueled by low consumer adoption rates of tools such as RSS and mobile, and the difficulty in tracking consumers via blog-use.
3. Are resource-constrained
Even though interactive budgets are increasing, they only represent a 5 percent portion of total advertising spending. Experimentation usually involves additional work with the same amount of staff to obtain hard proof that the channel will provide better results than an existing one.