Only 30% of brands consider themselves as a ‘game-changer’ or ‘champion’ leading through digital transformation
India, October 20, 2020 – COVID-19 has not only disrupted businesses globally but also shed light on the future-readiness of brands and marketers to drive growth.
“The survey findings portray a clear gap between their business goals and the tools they leverage to achieve them. In a post-pandemic environment, it is vital for brands to quickly realign objectives, measure effectiveness, and lead through digital transformation,” said Karthik Venkatakrishnan, Regional Leader, Marketing and Consumer Intelligence, GfK.
Inevitably, COVID-19 has presented marketers with challenges such as reduced budgets, evolving marketing mix, changing priorities, and measuring marketing ROI. Since the pandemic outbreak, 73% have reduced their marketing budgets. Of the 61% indicating a shift in KPIs and how they measure it:
In terms of new priorities among those surveyed, 56% said it is maximizing marketing ROI, followed by 1 in 2 saying it is driving sales, and finally, 40% indicating that it is brand positioning.
Half of the brands across Asia-Pacific are driving short-term marketing activities to seize opportunities while keeping long-term brand-building campaigns live. “This is large because the pandemic has impacted consumer behavior and their path-to-purchase resulting in a massive shift to e-commerce and altering media consumption habits. With this dynamic situation, brands are trying to deliver the next level of omnichannel experience that consumers are demanding,” explains Karthik Venkatakrishnan.
As per the GfK study, 4 in 5 consumers said their decision to purchase a brand in the future is largely dependent on how brands position themselves during this difficult period.
Therefore, in order to reach the target audience effectively, 60% of marketers across nearly all industries in Asia-Pacific have allocated their budgets for social media marketing while 58% used their budgets for mobile advertising and paid search. In a post-pandemic environment, digital is definitely the way forward for brands in the new abnormal.
Across countries, 62% of marketers in Singapore invested more towards public relations, while more funds were allocated for influencer marketing in Thailand and Indonesia. In China, Hong Kong, and Malaysia, there was a shift toward live activation due to the drop in COVID cases. In India, 78% of marketers have shifted the budget towards social media, which is much higher than in other countries in the region.
In the digital transformation era, 1 in 2 measure all their marketing activities but are using basic metrics such as last-click attribution (58%), media reach and frequency (57%), shares (51%), likes (49%), and comments (47%).
Nearly 4 of 10 surveyed indicated brand positioning as one of their priorities. Interestingly, 72% of this group currently does not track brand performance. Likewise, 28% said the allocation of marketing budgets is a key concern post-pandemic, a whopping 83% do not use any form of data-driven marketing measurement to drive business growth.
Based on the survey, nearly half surveyed are optimistic about a recovery in the next 6 – 12 months. Brands and Marketers across countries intend to understand and engage their audiences effectively:
The survey findings reveal that brands and marketers need to have an agile mindset and employ a data-driven approach to evolve with fast-changing times.
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2014 The Global Indian New Network (TGINN)