Get Listed in PROMO Sourcebook

Dec 1, 2006 12:00 PM, By Andrew Scott

Wake Up Call

Don't get so smug the next time you have a good promotional idea. Chances are consumers won't get it.

A new survey by research firm IMI International reveals that 60% of all promotions result in “insufficient awareness or comprehension,” and that they fail to change attitudes or behavior — a sobering figure for an industry that shelled out $342.2 billion last year to do just that.

Worse yet, consumers indicated that 41% of all marketing campaigns “should never have been launched.”

It's not all bad news. Of the people surveyed, 69% actively participate in promotions, and 88% are searching for them more than they did last year.

These folks not only want added value, “they expect it,” says Dan Dodson, president of Mastermind Marketing, Atlanta.

But are they getting it? That's not as clear.

Of the consumers surveyed in the U.S., 51% purchased an item due to a promotion in the three months prior to the survey.

That may sound pretty good, but the figure is 89% for France, 84% for Ireland, 82% for the U.K. and 70% for Germany.

The problem? U.S. consumers need flashier, more attention-grabbing campaigns to engage them than they did before, experts say.

Some brands have reacted by super-sizing prize offerings, such as McDonald's biggest Monopoly game purse featuring a $5 million grand prize. And others are “creating giveaways and promotions that don't relate to the brand and consumers don't understand why they're doing it,” Dodson says.

And who comes up with these dumb ideas? If you believe IMI, it's certainly not the agencies. Of 7,000 consumer offers studied by the firm, the five worst came from senior executives of the clients.

“Sometimes people in the client organization believe they're the expert,” Dodson explains. “They base their expertise on what they personally like or don't like, rather than what the target audience likes or doesn't like.”

It may be that firms lack “a means to objectively evaluate the potential of marketing and brand activation ideas before they come to market,” Don Mayo, managing partner, IMI, adds.

How do consumers like to get promotional messages? A whopping 89% like to get them online. This was followed by in-store (47%), direct mail (33%), phone (25%) and text/SMS (6%). Respondents could choose more than one medium.

Does that mean you should pick one over the other? Hardly.

“If 89% of all people prefer to go sailing in a boat more than riding in a car, does that mean you should run out and trade in your car for a sailboat?” asks Alex Campbell, CEO of Vibes Media. “No. They're both means of transportation but they do fundamentally different things.”

Meanwhile, consumer participation in SMS- and text-based promotions has risen by 7% this year when the area is broken out, according to the survey.

“Not only are consumers preferring to start a dialogue by texting, but they have shown their desire to continue and interact via text for an extended period of time,” says Campbell.

And what prompts consumers to respond? The combined event/sampling category scores highest, at 52%. It is trailed by TV ads (24%), instant win promotions (20%) and national sponsorships (4%).


:: Renew / Subscribe to PROMO Magazine::
DON'T MISS AN ISSUE!

PROMO Magazine provides insights into using promotion marketing as strategic, measurable component of an overall marketing mix. DON'T MISS OUT on "how-to" information on strategies and tactics successful marketers use to improve product sales and brand image.

 
A panel of professionals answers your questions. Submit your questions.
 
  Michael McKelvie
Gift Cards and Reward Cards


 
  Bob Bell
Tie-in Partnerships


 
  Dave Hunt
Rebates


 
  Bruce Hollander
Sweepstakes


 
  Joel Parent
Interactive


 
  Become an Expert
More Info

Promo Newsletters

PROMO Premium & Incentives

PROMO's P&I E-newsletter is the bi-weekly source providing insights on the latest products, innovations, company news, launches, and more. As the premiums and incentives industry continues to grow, the P&I E-newsletter keeps you informed about developments that affect your business and gives you a better perspective on this multi-billion dollar industry.

View Sample Subscribe

PROMO Xtra

To stay ahead in today's fast paced promotion industry, marketers and agency execs turn to PROMO Xtra, the must-read e-newsletter from the editors of PROMO. Sent out three times each week, PROMO Xtra keeps them up-to-date on the latest news, ideas, mergers, campaigns, launches, and more.

View Sample Subscribe

Special Report on Email

Get the E-mail Credit You Deserve


Executive summary:
How important is it that your e-mail campaigns get white listed? Well, look at it this way: How important is it that your messages get delivered?
Download the full report

Sponsored By:

Featured Webinar

Know your Customer - Grow your Business with Targeted Email Marketing


In an industry littered with competition and product variation, promotional suppliers, event marketers, agencies, and other promotional vendors need to re-evaluate the ways in which they collect data and communicate with potential customers. No longer are recipients tolerating irrelevant marketing materials, via email or any other medium. Sending relevant, targeted offers that they WANT to receive is essential in order to acquire new customers and grow your business.
Learn more now...

RESOURCES: Helping You Find Solutions

Find me... an AGENCY


GET LISTED IN PROMO'S SOURCEBOOK


Find me... a SUPPLIER

  • PROMO SOURCEBOOK
    Suppliers by Name Category

I need to find/post... a JOB OPENING


2007 Sampling Program Planner

Sponsored by IDR

Find me... new PRODUCTS


Ask the EXPERTS


I need... a GOOD READ


Browse Back Issues
Back to Top

Browse Back Issues

Browse Back Issues