• by Jack Loechner , Staff Writer @mp_research, June 11, 2009

A new study by the Association of National Advertisers reports that 47% of marketers studied are planning "pricing deals" as the initiative most likely to be increased in the current economic environment. 26% say social networking and word of mouth activities are currently most important, while 23% say public relations efforts.

Though this emphasis on more short-term strategies is a clear response to current economic conditions, marketers also report plans for renewed activities when the recession ends and the recovery begins. 

• 68% say media budgets will be increased
• 41% will increase social networking/word-of-mouth
• 40% will increase budgets for innovation and testing/learning
• Seventy-three percent of respondents said they would ideally implement these increased marketing activities three to six months before the recession ends, and an additional 16% as soon as it ends.

Bob Liodice, President and CEO of the ANA, says "...  building brands was jolted by the severity of the economic downturn... (but) marketers are preparing for the rebound with plans for increased media spending... strategically sound brand building... expansive use of social media."

Few marketing initiatives have been shelved or delayed, but many are being reduced, including:

• Media budgets (56%)
• Production budgets (50%)
• Sponsorship/events activities (41%)

The activities reported as most likely to be maintained throughout the recession period include:

• Research and development (47%)
• Public relations (42%)
• Innovation/test/learn budgets (33%)
• Promotion activities (33%)

Marketers response to long-term branding decisions and measurements frequently trended against identical questions asked during previous surveys. The most effective measure of brand health (the measure to which brand equity is increasing or declining) is customer experience/satisfaction, according to the respondents, which increased to 48% in April 2009 from 37% in February 2007.  There is less focus on traditional metrics such as brand image and awareness, which tend to be lagging indicators of brand health.

Signs of brand deterioration have also shifted, with increased importance being placed on customer-related metrics.  According to the survey, marketers are more focused on brand health metrics with increased attention on:

• Customer conversion/repeat rates (78%, as compared to 70% in February 2007)
• The percentage of customers who rate a brand as "excellent" (77%, as compared to 68% in February 2007)
• Net promoter scores (73% as compared to 67% in February 2007)

Brand equity is of key importance, say marketers, with metrics focused on the consumer.  Products are the most important item to building brand equity (89%) with customer service ranked second (86%).   Employees as advocates for a brand are also of critical importance (81%).

Roger Adams, Chair of the ANA Brand Management Committee, notes that "Marketers have increased their emphasis on gauging consumer sentiment and brand health trends... with the proliferation of instant feedback... marketers can... quickly gauge brand equity, health and signs of deterioration."

Media channel effectiveness for building brand equity has also shifted materially, says the report, with some growing to be almost on par with television:

• Television ranks highest in importance (64%)
• Online (61%)
• Guerilla / word of mouth / buzz marketing (57%)
• Social media being ranked as the next highest effective media channel at 40%

Social media, however, ranks highest as the media channel that marketers would like to use but have not yet been able to implement.

Finally, in the report summation, it is noted that traditional media channels have declined in importance since the first survey was conducted in February 2007:

• Television (down to 64% from 80%)
• Magazines (down to 51% from 67%)
• Radio (down to 30% from 36%)
• Outdoor  (down to 26% from 35%)
• Newspapers (down to 19% from 36%)

For more information about the study from the ANA, please visit here.