C. Lee Smith President/CEO Ad-ology Research Westerville, Ohio

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C. Lee SmithPresident/CEO

Ad-ology ResearchWesterville, Ohio

Who is Ad-ology?

• Ad-ology provides research to more than 2,000 agencies, marketers and media properties.

• We study the impact of advertising+marketing on purchase, forecast future marketing, and study ways for clients to “connect with the customer.”

• Launched in 2005. Parent company founded in 1989 in Columbus, Ohio.

• One of five Research Partners for 2010 AAF National Student Ad Competition.

What You’ll Hear Today

1.What Chief Marketing Officers are Saying About Advertising Agencies

2.What Consumers are Saying About Advertisers and Non-Advertisers

3.What Local Advertisers are Saying About Marketing, Local Media Sales Reps

What They Say About Agencies

In January 2010, we asked 123 clients of agencies for their thoughts.

Respondents must meet four (4) criteria:

1. Title: CMO, VP/Director of Marketing, CEO

2. Companies over $2 million in sales

3. Must employ at least 1 outside agency

4. Must be primary decision maker or one of the primary decision makers

Here are a few of the highlights from this study...


Attitudes on Advertising Agencies, January 2010, Ad-ology Research


Top expected marketing budget gainers for 2010

(out of a list of 14 initiatives)...


Top expected marketing budget gainers for 2010

(out of a list of 14 initiatives)...

1. Digital Marketing (46% will increase)

2. Creative (34%)

3. Branding (33%)

4. Market Research (33%)

5. PR/Media Relations (32%)



Other than budget, what are your company's top five factors for selecting a new agency?(out of a list of 15 factors)


Other than budget, what are your company's top five factors for selecting a new agency?

(out of a list of 15 factors)

1. Quality of previous work (54%)

2. Creative capabilities (54%)

3. Industry experience (46%)

4. Responsiveness (44%)

5. Do they understand our customers? (43%)



What are your biggest sources of frustration or aggravation with your agency/agencies?(out of a list of 15 factors)


What are the biggest sources of frustration or aggravation with agency/agencies?(out of a list of 15 factors)

The top four by far are:

1. Poor communication (38%)

2. More reactive than proactive (37%)

3. Lack of understanding of our company's business or industry (37%)

4. Lack of strategic thinking (31%)



If you could offer one pieceof advice to advertising/marketing agencies, what would it be?

“Make the effort to learn our...

• business

• product

• market

• customers”




“LISTEN!”

• “each of us (clients) is different”

• “be EXTREMELY attentive to our needs”

• “show your interest in us”

• “listen closely before preaching theories.”




“COMMUNICATE!”

• “don’t leave us in the dark wondering”

• “follow up, follow up, follow up”

• “we are partners, not a parent/child relationship”

• “Always try and show ROI for any advertising program”

• “Speak honestly and with integrity”



Three sins of account service

No communication, No insight, No listening

Chief Marketer Forecast, January 2010, Ad-ology Research

Next...

What Consumersare Saying About

Advertisers and Non-Advertisers

What They Say About Advertisers

In May 2009 and again in December 2009, we asked U.S. consumers for their perceptions of advertising and advertisers.

•Sample size in May 2009 was: 1,225

•Sample size in December 2009 was 2,211

•Margin of error: +/- 2.2%



2010 Advertising+Media Perceptions Study, Ad-ology Research







Lastly...

What Local Advertisersare Saying

About Media

What They Say About Media

In November 2009, we asked 1,100 SMB owners in the United States for their thoughts.

Respondents must meet three (3) criteria:

• Title: CEO, Owner, VP of Marketing/Sales

• Companies less than 100 employees

• Must be primary decision maker or one of the primary decision makers



“Some 25% of small (and midsize)businesses surveyed by Ad-ology Research said they would spend more on social networking in 2009, beating the numbers who’ll spend more on e-mail, blogging or company websites.”USA TODAY7/24/2009What about 2010?


2010 Small Business Marketing Forecast, Ad-ology Research











Online and Direct Mail are expected to be the biggest gainers.


What are the biggest frustrations about the process of buying advertising?


What are the biggest frustrations about the process of buying advertising?

1. Rate increases without justification or audience increases (51%)

2. Getting ad proposals that are not relevant to your business (37%)

3. Being able to justify cost/measure success (35%)

4. Ratings/Research that is confusing, outdated or misleading (31%)


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Today’s Take-aways

• Most marketers, both big and small, say: they’ll have larger budgets in 2010

• Most businesses say: Digital and direct marketing, and social media are top of mind

• Agency clients say: they’re most frustrated by three common sins of account service

• Local advertisers say: they want media sales reps who are trusted advisors that know advertising and their business

• Consumers say: cutting back on advertising sends a message of uncertainty

Chief Marketer Forecast, January 2010, Ad-ology Research

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Ad-ology ResearchWesterville, Ohio

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C. Lee Smith President/CEO Ad-ology Research Westerville, Ohio