Marketing in the ‘new abnormal’

Only 30% of brands consider themselves digital transformation ‘game changers’, according to GfK survey

Covid-19 has disrupted businesses globally and has shed light on the readiness of brands and marketers to drive growth. Yet only 30% of brands consider themselves to be a “game changer” or “champion” in employing data-driven decision-making, according to a survey by the multinational market research group GfK.

“The survey findings portray a clear gap between their business goals and the tools they use to achieve them,” said Karthik Venkatakrishnan, regional leader of marketing and consumer intelligence with GfK. “It is vital for brands to quickly realign objectives, measure effectiveness and lead through digital transformation.”

Inevitably, Covid-19 has presented marketers with challenges such as reduced budgets, an evolving marketing mix, changing priorities and greater difficulty measuring marketing return on investment (RoI).

Since the outbreak began early this year, 73% of respondents have reduced their marketing budgets, according to the survey of 144 marketers in 13 Asia-Pacific countries. And of the 61% indicating a shift in key performance indicators (KPI) and how they measure them:

56% said digital transformation is increasingly seen as an important KPI to achieve their goals; 53% agreed there is more focus on driving short-term sales;

37% said there is a shift towards maximising RoI.

In terms of new priorities among those surveyed, 56% identified maximising marketing RoI, followed by 50% saying the priority is driving sales, and 40% indicated it is brand positioning.

The title of the GfK report, “Branding and Marketing in the New Abnormal”, sums up the scope of the challenges marketers face, one of which is doing more with less.

Half of the brands across Asia-Pacific are driving short-term marketing activities to seize opportunities, while keeping long-term brandbuilding campaigns alive.

“This is largely because the pandemic has impacted consumer behaviour and their pathto-purchase, resulting in a massive shift to e-commerce and altering media consumption habits,” said Mr Venkatakrishnan. “Brands are trying to deliver the next level of omni-channel experiences that consumers are demanding.”

The GfK study indicated 4 in 5 consumers say their decision to purchase a brand in the future is largely dependent on how brands position themselves during this difficult period.

Therefore, to reach the target audience effectively, 60% of marketers across nearly all industries in the region have allocated budgets for social media marketing, while 58% are using their budgets for mobile advertising and paid search. Digital is definitely the way forward for brands in the new abnormal.

Across countries, 62% of marketers in Singapore have invested more in public relations, while more funds were allocated for influencer marketing in Thailand and Indonesia. In China, Hong Kong and Malaysia, there was a shift towards live activation because of the drop in Covid cases. In India, 78% of marketers have shifted budgets towards social media, which is much higher than in other countries in the region.

In the digital transformation era, half of the respondents are measuring 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 40% indicated brand positioning as a priority. Interestingly, 72% within this group do not track brand performance. Likewise, 28% said the allocation of marketing budgets is a key concern post-pandemic, yet a whopping 83% do not use any form of data-driven marketing measurement to drive business growth.

Despite the severe challenges, nearly half of those surveyed are optimistic about a recovery in the next 6-12 months. As brands and marketers seek to understand and engage their audiences effectively: 61% are looking to gain more knowledge about various consumer engagement channels; 59% aim to gain a better understanding of consumer behavioural changes and preferences; 43% are also planning to explore opportunities to reposition brand values.

The survey findings reveal that brands and marketers need to have an agile mindset and employ a data-driven approach.

‘‘The survey findings portray a clear gap between marketers’ business goals and the tools they use to achieve them. KARTHIK VENKATAKRISHNAN Regional leader of marketing and consumer intelligence, GfK