Faced with layoffs, budget cuts, and a focus on
near-term results, marketers are shifting budgets away from traditional to more social and interactive channels, according to a new report from Forrester Research. "With marketing budgets expected to
decrease by 3% in the recession, marketers have to do more with less," said Forrester analyst and report author Lisa Bradner.
Nearly half of marketing leaders report plans to tap
into consumer communities to help guide new product development and design. Also, while only 23% of marketers involve consumers before an idea exists, 41% report plans to involve consumers earlier in
the innovation process.
"This shift in media consumption demands a fresh approach to activities like media planning, ad creation, and measurement," Bradner added.
Compared with expensive
focus groups or surveys, social technologies are viewed as cheaper and able to give almost instant consumer feedback, while they embrace consumers as participants in the innovation process.
Across the board, 25% of marketers report reining in "innovation spending" as a result of the current recession. Yet this kneejerk response could not be more misguided, according to Bradner. "Consumer
needs change rapidly in response to economic uncertainty," Bradner said. "Companies that track those shifts and respond to them quickly can find new avenues for growth."
During this downturn,
for instance, consumers have indicated a shift toward comfort and community, and away from uniqueness and variety.
Fielded from October to December of last year, Forrester surveyed 102
"marketing leadership professionals" from its ongoing marketing and strategy research panel. Historically, the report notes, companies that focus on innovation emerge from a recession stronger.
When the technology bubble burst earlier this decade, for example, Apple continued to invest in innovation to keep new products in the forefront of consumers' minds. Apple's "continued focus on
branded innovation paved the way for the launch of products such as the iPod and new business models such as the Apple stores and iTunes," said Bradner. "The world knows the rest of the story."