A new study reveals insights into the local marketing strategies of national brands.
Local marketing automation technology and services provider Balihoo conducted a study of 270 national brands regarding the role of local marketing and ROI metrics within their overall marketing strategy. The findings reveal that 66 percent of national brands invest some portion of their budgets into local marketing.
Further statistics show that 21 percent of national brands claim to invest a quarter or more of their total marketing budget into local marketing, while 29 percent only allocate 1 to 5 percent, followed by 14 percent who claim that 6 to 10 percent of their budgets go towards local marketing initiatives.
The study also shows a lack of ROI measurement by national brands for both national and local marketing campaigns. Fifty-eight percent of brands claim that they don’t use ROI as a marketing metric for local campaigns, while 44 percent report the same lack of ROI measurement for national marketing initiatives.
However, companies that use ROI metrics to measure national campaigns are also 35 percent more likely to invest in local marketing than companies that don’t use ROI as a marketing metric.
“It’s impressive that twenty-one percent of national brands are allocating a quarter or more of their total marketing budgets to local marketing, demonstrating the growing need for brands to engage with consumers closer to the point of purchase,” says Pete Gombert, CEO of Balihoo. “The survey also shows growing awareness of the important role local marketing plays in driving sales for national brands, especially for companies that use ROI to track marketing success.”