Customer Response to Ads Down 19%, Poor Offers/Benefits Partly to Blame
The Fournaise Marketing Group, one of the global leaders in Customer Acquisition through Marketing ROI, measured that the cross-channel advertising campaigns it tracked for its Large, SME and Agency clients across all media (including traditional and online) in 20 countries worldwide generated 19 percent less customer response and engagement in the first half of 2011 compared to the first half of 2010.
Fournaise used its cloud-based Next Gen Demand Generation Tracking solutions Fournaise CustomerGenerator™ and Fournaise Campaigns Performance SoftScore (F-CPSS™) to track the real-time ability of its clients’ cross-channel advertising campaigns to generate direct and indirect engagement with their target audience, and therefore their ability to generate incremental customer demand for its clients’ products/services.
Fournaise tracked that:
- Advertising response fell the most in mature markets (US, Europe and Australia) at 23 percent. Developing markets like China and Southeast Asia were not spared and faced a 16 percent decrease in customer engagement with advertising
- B-to-C and B-to-B ad campaigns were both affected: B-to-C struggled to generate incremental customer demand with a 20 percent fall in customer response and engagement rates, while B-to-B campaigns experienced an 18 percent decrease
- Online ads continued their downward spiral and were 25 percent less effective than traditional ads for incremental customer demand generation—online display ads and sponsorships were particularly hit, with a 26 percent and 35 percent decrease in customer engagement respectively
Based on the critical campaign performance tracking data and target audience analyses Fournaise fed its clients to help them take corrective actions, Fournaise identified 3 key reasons for this fall in customer response and engagement:
- Given the global economic situation, consumers and businesses have been very prudent, conservative and pragmatic with their spending in the first half of 2011, and have been much less receptive to advertising messages
- The advertising campaigns themselves were less effective: their appeal, value propositions and message relevance scored too low on their target audience in majority of the cases, and failed to drive more customers towards the products/services advertised
- Marketers and their agencies continued spending too much of their time and money on building awareness through “creativity” and new media, instead of taking the pragmatic approach of focusing on the customer benefits and competitive strengths their products/services bring to their target audience