Marketing and Media Budgets Will Be Up Again in 2005, According to Millward Brown Marketing & Media Snapshot: 2004

Marketing and Media Budgets Will Be Up Again in 2005, According to Millward Brown Marketing & Media Snapshot: 2004


Online Expected to Grow the Most as a Share of Total Budgets
September 2004 (Newstream) -- Millward Brown, a global research leader, today will announce the results of Marketing & Media Snapshot: 2004, its industry study about marketing and media decision-making. The research, which was conducted among senior-level marketing executives across a wide range of industries, covers trends in marketing and media decision-making, perceptions about media and marketing channel performance, media and marketing spending patterns, and the integration of digital and online media into the marketing mix. The findings from the Millward Brown study, which was sponsored by Advertising.com, will be presented by Mary Ann Packo, chief client and marketing officer, Millward Brown North America, this afternoon at the iMedia Brand Summit in Deer Valley, Utah.

Key Findings:

56% of top marketers say their total marketing and media budgets increased in 2004 over 2003. Sixty percent expect an increase in 2005.
Marketers with the largest budgets ($400 million+) are most optimistic about budget increases in 2005 over 2004.
Online marketing is growing the most as a share of total budgets and marketers expect this trend to continue.
All channels of online marketing (Web advertising, search, email, promotion) are expected to increase at a higher rate than other major media. (See accompanying chart)
Marketers rated TV and magazines as most effective for building brand equity.
Direct mail was rated as most effective for reaching a target audience and providing measurable ROI.
Online is seen as the most effective medium for acquiring and retaining customers and in offering efficiency.
89% of marketers say their companies run integrated marketing campaigns, but we learned that they define integrated marketing in many different ways.
"It's good to see that marketers across different industries are prepared to increase their online marketing budgets and view the Internet as an attractive part of the media and marketing mix," said Edward Kim, interactive media manager of Unilever. "In order to escalate the process, we must work with our research and media partners to truly demonstrate the proof and value of Internet marketing and the role it plays in the multi-channel mix," added Kim.
Ian Beavis, senior vice president - marketing at Mitsubishi said, "When planning and allocating marketing budgets, it's important to recognize and make the most of each medium, and effectiveness is more important than efficiency. The Internet is an enabler for integrated campaigns and marketers must find a strategy and rigorously use it across all media platforms."

Study Methodology - Marketing & Media Snapshot: 2004

Millward Brown surveyed 300 senior-level marketing executives responsible for the marketing and media budgets for their company, business unit, or brand. Millward Brown also conducted one-on-one in-depth qualitative interviews with client side marketing and media decision-makers from key vertical markets. The final phase of the study, which will include one-on-one in-depth qualitative interviews with advertising/media agencies, will be conducted in October.

About Millward Brown:

Millward Brown (www.millwardbrown.com) is one of the world's top 10 marketing research organizations. It is an acknowledged leader in understanding and evaluating brand equity and the contribution of the total communications mix to that understanding. Through the use of an integrated suite of validated research techniques - both qualitative and quantitative - Millward Brown helps clients build strong brands and services. Millward Brown has more than 60 offices in 40 countries and also has several specialized practices in the U.S., including Greenfield Consulting Group (a full-service qualitative research company), Millward Brown IntelliQuest (a technology practice), and Millward Brown Multicultural. Additional practices include Millward Brown Global Media Evaluation (a global media effectiveness unit), Millward Brown Precis (a global PR measurement firm), and Kantar Media Research (provider of global Target Group Index [TGI] the world's leading media and market profiling tool). Millward Brown is part of Kantar, WPP's insight, information and consultancy arm.

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Produced for Millward Brown

CONTACT:
Lisa Parente, Director, Marketing Communications
Millward Brown North America
Tel: 203-429-0111
Cell: 203-219-6976
lisa.parente@us.millwardbrown.com