More Than 9 in 10 Brands Expect to Maintain or Increase Spend on Local Marketing in 2013

Balihoo, a provider of local-marketing automation technology, recently released the findings from its “National Brand Use of Digital in Local Marketing” micro-study.

Among the interesting findings is that more than 9 in 10 brands are projecting steady or increased spending on local marketing in 2013 compared to spending in 2012.

According to the study, 91.3 percent of brands expect to spend the same or more on local marketing in 2013 as they did in 2012. More specifically:

• Local:
  • More: 47.3 percent
  • Same: 44.0 percent
  • Less: 8.6 percent
• National:
  • More: 47.4 percent
  • Same: 41.2 percent
  • Less: 11.1 percent

Balihoo also found that 67.5 percent of national brands deem digital marketing to be very or extremely important to their success. The study notes that 45 percent of companies with revenue of $500 million+ rank it extremely important, while 34 percent of companies with revenue of $100 million-$250 million rank it extremely important.

The top three digital tactics used by marketers in 2012 were:

1) Other (i.e., non-Facebook) social media
2) Facebook
3) SEO

The top three digital tactics marketers would like to add in 2013 are:

1) Mobile
2) Local blogs
3) Online customer reviews

According to Balihoo, 51.3 percent of national brands say they rely on local affiliates to promote or sell products or services, while 48.7 percent say they don’t. Additionally, 58.7 percent of companies with more than $500 million in revenue rely on local affiliates.

More than half, or 53.4 percent, of national brands say local affiliates lack expertise and the ability to effectively execute in mobile marketing, while 49.4 percent say the same about SEO and 46.6 percent say the same about PPC.

Meanwhile, 87 percent of national brands say they aren’t represented well on their affiliates’ sites. Also, just 4 percent of national brands rank their local affiliates as excellent in marketing. Clearly, national brands have a less-than-stellar opinion of their local affiliates.

Balihoo also found that 22.6 percent of national brands are using local-search registration, and just 19.5 percent noted it as a priority next year.

“Looking at use of digital tactics for local marketing, we found that local websites and local search registration are not top priorities for national brands, yet they form the foundation for a strong local marketing infrastructure.,” said Pete Gombert, CEO of Balihoo. “We also see there is a lot of opportunity for national brands to better lead and support their local channel partners.