2011 marketing trends report singapore - executive summary

2011 MARKETING TRENDS REPORT- SINGAPORE

Executive Summary

IMPORTANT NOTE: The information, data and commentary contained in this Report is under strict copyright to Boardroom Research. No part of this

report may be reproduced in any form without written permission from Boardroom Research Pte Ltd. No part of this report may be sold, given, shared or released to any third party without written permission from Boardroom Research.

2011 MARKETING TRENDS REPORT – SINGAPORE – EXECUTIVE SUMMARY

2011 Marketing Trends Report – Singapore – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released

by any means to any third party without the written permission of Boardroom Research.

Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.

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Methodology & Respondents Methodology

Boardroom Research invited client-side marketers in Singapore from its proprietary database to participate in an online survey which would explore the decisions made by marketers looking at a variety of areas such as:

• Marketing budget and allocations

• Digital and social media

• Agency selection criteria

• Departmental involvement on agency appointments

• Agency involvement on digital strategy and social media executions

• Challenges marketers face connecting with target audience

• Aggregate satisfaction level for agencies appointed

• Challenges marketers see agencies facing

• Likelihood of marketing service categories where pitches will be called

• Agency Rankings and criteria for rankings in the following categories: o Creative Advertising Services o Media Planning and Buying Services o Public Relations o Event Marketing Services o Direct Marketing o Digital Marketing Services o Brand Consulting o Market Research

The Executive Summary takes a brief look at some of the key issues that emerged from the research. While not exhaustive of the entire results of the study, several key themes and trends emerged which are briefly covered herein.

Respondents

A total of 1,613 marketers in Singapore took part in the survey to share their industry knowledge, providing an accurate picture of trends to come from marketers and their behaviours, as well as the most preferred agencies in various marketing disciplines. The large sample size achieved is a testament to the interest marketers have expressed in the study and the veracity of the data. All questions were made voluntary throughout the survey; therefore base sizes will vary for each question and chart. Some of the charts you see in this executive summary contain only partial data; the full data, charts and results can be obtained through purchasing the 2011 Singapore Marketing Trends Report.


2011 Marketing Trends Report – Singapore – Executive Summary

IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research.

Boardroom Research

785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.


32%

50%

18% VP/Director Level

Managerial Level

Executive Level

Job Function

Marketing Trends 2011

A range of industries were represented by the marketers who took part in the study. Large groups of respondents worked in the Media industry, Business Products & Services, Travel Tourism & Retail, Consumer Products and IT & Telecommunications sectors.

Both large and small businesses made up a healthy portion of the sample. Over a third of respondents hailed from small companies with less than 50 employees, whilst about a quarter worked in large

businesses with over 500 members of staff.

High-level marketing decision makers were well represented, with half coming from a Managerial position (50%) and close to a third being VP or Director level marketers (32%). The remaining 18% were Executive level influencers.

Arts & Entertainment, 2%

Business Products & Services, 13%

Consumer Products, 11%

Education & Training, 6%

Engineering/Manufacturing, 6%

Financial Services, 6% Government &

Personal Services, 5% IT & Telecomms, 9%

Media, 17%

Medical & Healthcare, 3%

Motor Vehicles, 2%

Property & Construction, 3%

Transportation, 4% Travel Tourism &

Retail, 12%

Others, 2%


Industry

37%

12% 12%

15%

7% 17%

Less than 50

50-100

101-250

251-500

501-1,000

Over 1,000 Marketing Trends 2011

Company Staff Size in Singapore






56% 44% Regional/ International markets

Singapore market only

Area of Responsibility


The majority of respondents (56%) had regional & international responsibilities in their profession, which is not surprising given that Singapore is a preferred headquarters for MNCs operating in the region. The remaining 44% of respondents had responsibilities within the local market only.

Of those who indicated they had international responsibilities, the main markets that these included (with the exception of Singapore which 93% of these Marketers covered) were those in close proximity to the city state; with Malaysia, Indonesia, and Thailand the three most covered markets from Singapore.

1%

15%

18%

21%

27%

31%

36%

39%

41%

44%

52%

55%

57%

58%

67%

72%

81%

None of the markets listed

Pakistan

Bangladesh

Sri Lanka

New Zealand

Japan

South Korea

Taiwan

Australia

India

China (PRC)

Hong Kong

Philippines

Vietnam

Thailand

Indonesia

Malaysia

Market Coverage of Marketers with Intl. Responsibilties





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12%

26%

10%

7%

5%

5%

11%

16%

4%

5%

No Marketing Budget

S$1-S$100,000

S$100,001-S$200,000

S$200,001-S$300,000

S$300,001-S$400,000

S$400,001-S$500,000

S$500,001-S$1,000,000

S$1,000,001-S$5,000,000

S$5,000,001-S$10,000,000

More than S$10,000,000

Marketing Budget for 2011


42%

10%

48%

Increase

Decrease

No change at all

Change in Total Marketing Budget: 2010 to 2011


AverageChange = 13%

Increase

Marketing Budgets Current budgets (2011)

Marketers were asked what the total marketing budget was for their department or area of responsibility for 2011. Two extremes can be observed here: Firstly, about a quarter of respondents (26%) indicated that their budget was under S$100,000, and a further 12% said that they did not have a marketing budget at all. Secondly, a good proportion of respondents were on the higher end of the scale, indicating that their budgets were between one and five million SGD (16%), and a further 11% with budgets between S$500,001 and S$1,000,000.

Budget increases/decreases from last year Few respondents expressed that their marketing bugets had fallen from 2010. Close to half of marketers indicated that budgets had not changed from the previous year (48%), whilst 42% saw their budgets increase. Overall, the average change of total marketing budgets from 2010 to 2011 was a 13% increase.






Allocation of Budgets

Marketers were asked to indicate their budget allocations for 2011 and predict how their allocation would look in 2012 and 2016 (2012 and 2016 breakdowns are included in the full report). Respondents first allocated their budgets across various marketing channels, and then followed by allocating their advertising budgets between Traditional and Non-Traditional media. The final step was asking respondents to break down their advertising budget allocation for Non-Traditional media even further by segregating it into Non-Traditional media platforms.

Looking only at budget allocations for 2011, most expenditure goes to Advertising and Events; accounting for 60% of marketers’ budgets when combined. The overall breakdown of a business’ marketing budget starts with about a third going to Advertising (34%), about a quarter going to Events (26%), a further 14% going to Public Relations, 9% to Market Research and another 18% accounting for other areas.

Advertising budgets in 2011 are split almost evenly between traditional and non-traditional media, with the former just holding on to the majority of the share (52%). Interestingly enough, there is a significant shift in how marketers allocate their advertising budgets between traditional and non-traditional media in 2012 and 2016.

18%

9%

14%

26%

34%

2011

Chart Title

Advertising

Events

Public Relations

Market Research

Other areas

Allocation of Marketing Budgets in 2011


48%

52%

2011

Chart Title

Traditional Media (Print, TV, Radio, Out-of-Home)

Non-Traditional Media (Digital, Online, Email, Mobile, Social Media, etc.)

Allocation of Advertising Budgets in 2011





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Currently, Online Display and Search are the top two digital platforms with Social Media not far behind. Spending and allocation on Mobile is quite low at the moment but is seen to grow slightly in 2012 and 2016.

18%

22%

9%

26%

25%

2011

Chart Title

Search Marketing/SEO

Online display

Mobile

Social Media

Other areas of non-traditional media

Allocation of Advertising Budgets for Non-Traditional Media in 2011







Agency Selection Criteria used for selecting an agency

This section looks at what marketers value most in an agency and what it is that will lure them to one agency over another when pitches and proposals have been made. Agencies may be interested to take the following findings into account before formulating their pitches.

The most important thing an agency needs to convey to a potential client is that they understand the client’s business needs & objectives above anything else. This is followed by creativity – clients want to stand out in a way that grabs their audience and gives them a nice return on their investment – undoubtedly, regarded as an important factor to be delivered by an agency. Then of course there is the issue of cost, which ranked as the third most considered criteria by marketers. It could be inferred that marketers will pay a premium to agencies that understand their needs and come up with grand ideas.

14%

17%

19%

Cost & remuneration

Creativity & ideas

Agency understanding my business needs and objectives

Top 3 Criteria taken into Consideration when Selecting an Agency

Marketing Trends 2011. Nb.: Score is a weighted calculation: Items ranked first are valued higher than the following ranks, the score is the sum of all weighred rank counts.




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6%

10%

14%

22%

69%

83%

Other

Procurement/ Purchasing

Finance

Sales

CEO/MD

Marketing

Departments/People Directly Involved in Appointment of Agency



Person Making Final Decision on Appointment of Agency

The decision making process When it comes to appointing an agency for a marketing campaign, several agencies will normally be called upon for a pitch and at the end of the day, only one agency will make the cut. So who is directly involved in making this all important decision on the client side? Simple: The marketing department and CEO or MD.

The vast majority (83%) indicated that their marketing team has the most influence in the decision making process of choosing an agency. They are followed by the head of the company as the second most influential player, with over two thirds of marketers saying so (69%). Surprisingly, Procurement departments have little say in this process.

Drilling down even further, respondents were then asked who makes that ultimate final decision. Marketing departments may be more involved in the decision making process, but when it comes down to it, the CEO or MD makes the final call. Just over half of marketers (55%) agreed that the head of their company signs off on the appointment of agencies. Not far behind, decision making power also lies in the hands of the Head of Marketing, with the majority of the remaining half indicating this (39%).

55% 39% Head of Sales, 1%

Head of Finance, 1% Head of Procurement, 1%

CEO/MD Head of

Marketing

Other, 3%






41% 59% Yes

No

Incidence of Having Agency Appointed to Handle Digital Strategy & Executions


The Digital Dilemma Digital strategy & execution

Overall, most businesses in Singapore do not have an agency appointed to handle their digital strategy and executions (59%). Since this question was only answered by respondents who have marketing budgets, when recalculating the budgets reported on earlier to reflect only those with funds, 29% of these marketers have budgets under S$100,000. Considering that on average, only 16% of a total marketing budget will go to non-

traditional advertising, as well as the fact that a budget below this figure can be anywhere between S$1and S$100,000, it is almost safe to assume that this bracket of marketers cannot afford the services of an agency or will be looking to “squeeze a dollar out of a dime”. Assuming that budgets above $100k can afford agency services, we are left with 30% of marketers with generous budgets (subjective of course) who do not have an agency appointed to handle their digital activities. There definitely still are opportunities for agencies to convert marketers who do not have any digital strategies in place or are formulating them in-house.

For those who have engaged an agency for digital marketing, half (50%) are using Creative agencies and not far behind, 44% are using agencies that specialise in Digital. This does not mean that only a remaining 6% have appointed other types of agencies: Since this question was a multiple-response type, percentages do not add up to 100%. The third most commonly used agency type for Digital marketing services, with a third of marketers with budgets indicating so (32%), are Media Planning & Buying agencies.

Another thing that can be learnt from these multiple-response answers is that on average, two agency types are appointed per marketer.

4%

11%

15%

17%

32%

44%

50%

Other

Brand Consultancy

Public Relations

Direct Marketing/Loyalty Marketing CRM

Media Planning and Buying

Digital Agency

Creative/Full-Service

Currently Appointed

Appointed Agencies Handling Marketers' Digital Strategy & Executions





Boardroom Research



56% 44% Digital is something that creative/full-service agencies should be offering in their spectrum of services

Digital is something that requires a specialist agency that's solely focused on digital strategy and executions

How Marketers think Digital is best offered by Agencies


62% 38% Yes

No

Marketers Currently Engaging Social Media


76%

24% Develop and execute strategy in-house

Agency develops and executes strategy

Approach towards Social Media Marketing


Attitudes toward Digital service offerings Respondents were given two statements regarding how they thought Digital services should be offered by agencies and were asked which they agreed with most. Overall, the slight majority of marketers (56%) are of the opinion that Digital services are best offered by creative/full- service agencies in their spectrum of services versus a specialist agency that is solely focused on Digital strategy and executions.

Engagement and execution of Social Media marketing

Social Media, one of the driving forces behind the growth of Digital Marketing, of course did not escape this study. With the majority of marketers engaging in it (62%), it is a worthy topic for exploration.

The vast majority of marketers with marketing budgets develop and execute their Social strategies in-house (76%), whilst only about a quarter have an agency appointed to do it on their behalf.






“Anti-Socialists”

As identified earlier, over a third of marketers who have a marketing budget do not engage in any Social Media marketing (38%). The main reasons for this, as expressed by those marketers, foremost are that they do not have the capacity to do this in-house and that they do not believe Social Media can reach their target audience. There is also a significant lack of understanding of how Social Media works and where to begin with working it into a marketing strategy. Agencies can use these reasons to their advantage, approaching marketers and explaining that if they do not have the capacity in-house then why not outsource them? And if they do not believe they can reach their target audience with Social Media, agencies are in the best position to explain how they can.

Social Media marketing

When asking marketers what type of agency they have appointed to handle their Social activities, interestingly, PR agencies were not among the top two. With Social Media being a very ‘wordy’ platform, it may come as a surprise that PR agencies were only the third most appointed agency type by client marketers.

20%

30%

32%

Lack an understanding as to what social media marketing is and what it entails

Believe social media marketing doesn't hit my target audience

Don't have the capacity to do it in-house

Top 3 Reasons for Not Engaging in Social Media Marketing





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The (Dis)Connection Challenges marketers face

Respondents were asked what the top three challenges were in connecting with their target audience. The vast majority expressed that engaging with their audience and getting them to respond was the biggest challenge (85%). This very concern is probably a reason why so many marketers have turned to Social Media, as it is one of the most effective channels in creating a conversation with customers. Not only are customers able to respond directly to brands, but they are also able to interact with each other as customers about the brand and the campaigns that get fed to them. Other concerns included limited budgets, a lack of consumer insights and understanding the target audience.

54%

59%

85%

Lack of consumer insights and reliable research data

Limited budget

Engaging my target audience; getting them to respond

Top 3 Challenges Marketers Face Connecting with Target Audience







For more information and report sales, please contact Curtis Bergh at the following: P: +65-6294-1933 E: [email protected] Report Pricing: 2011 Marketing Trends Report - Singapore: S$7,500 *price excludes GST applicable upon billing

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