Marketers missing the mark

There is a mismatch between marketers’ spend and the channels customers nominate as most effective, according to a new report by Australia Post and the Association for Data-driven Marketing and Advertising (ADMA).

The top five channels consumers consider to be most effective for advertising messages are: catalogues and flyers, TV advertising, press, radio advertising and personalised direct email. Consumers’ top channel preferences are consistent across demographics. 

Three of the top five most effective advertising channels (catalogues and flyers, personalised direct mail and press advertising) have seen a drop in spend in the past year, according to new research. The study measured how Australians view advertising and the ways in which they would like to receive brand messaging. The survey asked respondents about the role of advertising in the various stages of their engagement with a brand: product and service evaluation, purchase decision-making, customer retention and education, switching and loyalty communications.

“We undertook this research because we wanted to look at customer preferences when it comes to communications and advertising. These customers evaluated how effective current multichannel mixes are at creating connections with them. Our findings will help brands work out how to connect with the right customers, on the right platform, at the right time,” says Tracy Fellows, executive general manager of communication management services at Australia Post.

Jodie Sangster, CEO of ADMA, says not all communications channels are created equal. “The one-size-fits-all approach is the wrong way to tackle consumer-centric marketing. This survey shows marketing spend by channel in the utilities industry is out of sync with their customers’ preferred channel choice. This challenges Australian marketers to think differently about the channels they use and how they allocate their budgets.”

The report also indicates that consumers see websites as the best source of pre-purchase information gathering, giving paid media a clear opportunity to drive customers to this channel.

Importantly, this report does not argue that one channel is the answer; rather, that each channel constitutes a vital part of an organisation’s marketing mix. Both online and offline channels are able to complement each other, making a multichannel media plan far more effective