News article:
The Alternative Nation has Arrived

12-12-2006

According to a just-released survey by global public relations firm Weber Shandwick and KRC Research, reaching key audiences through customized and personalized means is increasingly critical in the Creativity Economy1 — the innovation-based economy that is changing the way the world does business. 

The survey, "The Changing Face of Marketing and Communications in Today's Creativity Economy," reveals that the Alternative Nation has arrived in full force. Nearly half (49 percent) of senior executives surveyed recognize that reaching audiences only through traditional mass media is no longer effective and are actively developing ways to reach consumers through more customized means. Furthermore, a whopping 76 percent of senior executives are already experimenting with "alternative" media — defined as any advertising or marketing besides television, radio and print media. "Companies are just beginning to realize how many new marketing channels are emerging as a direct result of the Creativity Economy," says Jennifer Risi, Executive Vice President in the Global Strategic Media Group at Weber Shandwick, who commissioned the survey. "Recognizing and seizing these opportunities will mean the difference between success and failure in this new age of communications." 

Social Networking and Niche Marketing on the Rise
After leading non-traditional marketing strategies such as Web sites, customized events, community outreach and direct mail, companies are turning to social networking as a way of communicating with customers. Nearly seven out of 10 (69 percent) executives use this strategy today. Notably, this figure is on par with company use of traditional magazine advertising (68%).

The power of niche marketing — a technique that first gained steam with consumer goods companies — is also taking hold across a wide array of industries. Presently, 61 percent of respondents use niche marketing to advertise and market to customers. As the Creativity Economy gains traction, companies are realizing that customers are demanding customization and personalization in every facet of their lives — and companies at the forefront of innovation are answering that call in growing numbers. Some of the other non-traditional tactics being employed at higher levels than anticipated include culturally driven marketing (47%) and online video (33%). "Reaching consumers in new and innovative ways is the linchpin of the Creativity Economy," says Billee Howard, Executive Vice President and Managing Director in the Global Strategic Media Group at Weber Shandwick. "The Creativity Economy has completely redrawn the parameters of the communications landscape. To succeed, companies need to devote considerable time and resources to creating more personal relationships with customers." 

Usage and Planned Spending of Alternative and Traditional Media  

Source: Weber Shandwick/KRC Research, 2006

Over the next five years, the leading areas for increased marketing expenditures are Web sites (66 percent), customized events for demographic targets (54 percent), Internet banner ads (46 percent), niche marketing (43 percent), and local community outreach (40 percent). Social networking and culturally driven marketing are also expected to grow, according to over two-thirds of senior executives surveyed (37 and 36 percent, respectively).

Increased spending is not expected to be as high over the next five years in the areas of network TV ads (13%), newspaper ads (13%) and outdoor ads (15%). Avatar-based marketing received the lowest anticipated increased spending estimate (2%), although we can expect that percentage to change as more companies learn how to use this new medium effectively.

As traditional media gradually gives way to alternative media, the opportunity to unearth new and innovative methods for reaching key constituencies is greater than at any other time in recent memory. "We're in the early days of a totally new media era," says Howard. "Those companies that do not combine the new media paradigm with the best of traditional media will most certainly do so at their peril."

[1] Creativity Economy is a term coined by BusinessWeek used to describe the new economic environment. You can obtain additional information at www.businessweek.com

The Changing Face of Marketing and Communications in Today's Creativity Economy
A total sample of 104 senior executives (CEOs, presidents, chief marketing officers and other top executives) were interviewed by telephone from June to August 2006. KRC Research conducted the survey for Weber Shandwick.

About KRC Research
KRC Research is a full service market and attitudinal research firm. Research partner to Weber Shandwick and other Interpublic Group agencies, KRC specializes in strategic communications research, including research to support product communications, corporate communications, public affairs, and social marketing. KRC provides a full range of primary research services, including surveys, focus groups, and executive interviewing. Find out more at www.krcresearch.com.

About Weber Shandwick
Weber Shandwick is one of the world's leading global public relations firms with offices in major media, business and government capitals around the world. The firm specializes in strategic marketing communications, media relations, public affairs, reputation and issues management, and offers corporate communications counseling services. Weber Shandwick also provides specialized integrated services including Web relations, advocacy advertising, market research and visual communications. In 2006, Weber Shandwick was named Large PR Firm of the Year (PR News U.S.), European Consultancy of the Year (The Holmes Report) and Network of the Year (Asia Pacific PR Awards). The firm also won the United Nations Grand Award for outstanding achievement in public relations. To learn more, please visit www.webershandwick.com.

Weber Shandwick is a unit of The Interpublic Group (NYSE: IPG), which is one of the world's leading organizations of advertising agencies and marketing services companies.