2011 Marketing Trends Report Singapore - Executive Summary

2011
MARKETING TRENDS REPORT-
SINGAPORE
Executive Summary

IMPORTANT NOTE: The information, data and commentary contained in this Report is under strict copyright to Boardroom Research. No part of this
report may be reproduced in any form without written permission from Boardroom Research Pte Ltd. No part of this report may
be sold, given, shared or released to any third party without written permission from Boardroom Research.

2011 MARKETING TRENDS REPORT – SINGAPORE – EXECUTIVE SUMMARY

Methodology & Respondents
Methodology
Boardroom Research invited client-side marketers in Singapore from its proprietary database to participate in
an online survey which would explore the decisions made by marketers looking at a variety of areas such as:
• Marketing budget and allocations
• Digital and social media
• Agency selection criteria
• Departmental involvement on agency appointments
• Agency involvement on digital strategy and social media executions
• Challenges marketers face connecting with target audience
• Aggregate satisfaction level for agencies appointed
• Challenges marketers see agencies facing
• Likelihood of marketing service categories where pitches will be called
• Agency Rankings and criteria for rankings in the following categories:
o Creative Advertising Services
o Media Planning and Buying Services
o Public Relations
o Event Marketing Services
o Direct Marketing
o Digital Marketing Services
o Brand Consulting
o Market Research

The Executive Summary takes a brief look at some of the key issues that emerged from the research. While not
exhaustive of the entire results of the study, several key themes and trends emerged which are briefly covered
herein.

Respondents
A total of 1,613 marketers in Singapore took part in the survey to share their industry knowledge, providing an
accurate picture of trends to come from marketers and their behaviours, as well as the most preferred agencies
in various marketing disciplines. The large sample size achieved is a testament to the interest marketers have
expressed in the study and the veracity of the data.

All questions were made voluntary throughout the survey; therefore base sizes will vary for each question and
chart.

Some of the charts you see in this executive summary contain only partial data; the full data, charts and results
can be obtained through purchasing the 2011 Singapore Marketing Trends Report.

2011 Marketing Trends Report – Singapore – Executive Summary

IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released
by any means to any third party without the written permission of Boardroom Research.

Boardroom Research
785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com
2


Industry
Arts & Entertainment,
2%

Travel Tourism & Others, Business Products &
Transportation, 4% Retail, 12% 2% Services, 13%
Property &
Construction, 3% Consumer Products,
11%
Motor Vehicles, 2%
Education & Training,
Medical & 6%
Healthcare, 3%
Engineering/Manufac
Media, 17% turing, 6%
Financial Services, 6%
Government &
IT & Telecomms, 9% Personal Services, 5%

Marketing Trends 2011

Company Staff Size in Singapore A range of industries were represented by the
marketers who took part in the study. Large
groups of respondents worked in the Media
Less than 50 industry, Business Products & Services, Travel
17%
7% 37% 50-100 Tourism & Retail, Consumer Products and IT &
101-250 Telecommunications sectors.
15%
12% 12% 251-500 Both large and small businesses made up a healthy
501-1,000 portion of the sample. Over a third of respondents
hailed from small companies with less than 50
Over 1,000
employees, whilst about a quarter worked in large
businesses with over 500 members of staff.
Job Function
High-level marketing decision makers were well
represented, with half coming from a Managerial
position (50%) and close to a third being VP or
18% 32% VP/Director Level Director level marketers (32%). The remaining
18% were Executive level influencers.
Managerial Level
50%
Executive Level



IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or
released by any means to any third party without the written permission of Boardroom Research.

Boardroom Research
3


Area of Responsibility The majority of respondents
(56%) had regional & international
responsibilities in their profession,
which is not surprising given that
Regional/ International Singapore is a preferred
44% 56% markets headquarters for MNCs operating
in the region. The remaining 44%
Singapore market only
of respondents had
responsibilities within the local
market only.


Market Coverage of Marketers with Intl. Responsibilties Of those who indicated they had
international responsibilities, the
main markets that these included
Malaysia 81% (with the exception of Singapore
Indonesia 72% which 93% of these Marketers
Thailand 67% covered) were those in close
Vietnam 58% proximity to the city state; with
Malaysia, Indonesia, and Thailand
Philippines 57%
the three most covered markets
Hong Kong 55% from Singapore.
China (PRC) 52%
India 44%
Australia 41%
Taiwan 39%
South Korea 36%
Japan 31%
New Zealand 27%
Sri Lanka 21%
Bangladesh 18%
Pakistan 15%
None of the markets listed 1%




Boardroom Research
4


Marketing Budgets
Current budgets (2011)

Marketing Budget for 2011 Marketers were asked what the
total marketing budget was for
their department or area of
More than S$10,000,000 5% responsibility for 2011. Two
S$5,000,001-S$10,000,000 4% extremes can be observed here:
Firstly, about a quarter of
S$1,000,001-S$5,000,000 16% respondents (26%) indicated that
S$500,001-S$1,000,000 11% their budget was under
S$100,000, and a further 12% said
S$400,001-S$500,000 5% that they did not have a marketing
S$300,001-S$400,000 5% budget at all. Secondly, a good
proportion of respondents were on
S$200,001-S$300,000 7% the higher end of the scale,
indicating that their budgets were
S$100,001-S$200,000 10%
between one and five million SGD
S$1-S$100,000 26% (16%), and a further 11% with
budgets between S$500,001 and
No Marketing Budget 12%
S$1,000,000.

Budget increases/decreases from last year
Few respondents expressed that
Change in Total Marketing Budget: 2010 to 2011 their marketing bugets had fallen
from 2010. Close to half of
marketers indicated that budgets
had not changed from the previous
year (48%), whilst 42% saw their
Increase budgets increase. Overall, the
average change of total marketing
Average 42% budgets from 2010 to 2011 was a
48% Change Decrease 13% increase.
= 13%
Increase No change at all

10%




Boardroom Research
5


Allocation of Budgets
Marketers were asked to indicate their budget
Allocation of Marketing Budgets in 2011
Chart Title allocations for 2011 and predict how their
allocation would look in 2012 and 2016 (2012
and 2016 breakdowns are included in the full
report). Respondents first allocated their
budgets across various marketing channels,
34% Advertising and then followed by allocating their
advertising budgets between Traditional and
Non-Traditional media. The final step was
Events asking respondents to break down their
advertising budget allocation for Non-
26% Traditional media even further by segregating
Public Relations
it into Non-Traditional media platforms.
14% Looking only at budget allocations for 2011,
Market Research most expenditure goes to Advertising and
9% Events; accounting for 60% of marketers’
Other areas budgets when combined. The overall
18% breakdown of a business’ marketing budget
starts with about a third going to Advertising
2011 (34%), about a quarter going to Events (26%), a
further 14% going to Public Relations, 9% to
Marketing Trends 2011 Market Research and another 18% accounting
for other areas.

Allocation of Advertising Budgets in 2011 Advertising budgets in 2011 are split almost
Chart Title evenly between traditional and non-traditional
media, with the former just holding on to the
majority of the share (52%). Interestingly
enough, there is a significant shift in how
52% Traditional Media (Print, marketers allocate their advertising budgets
TV, Radio, Out-of-Home) between traditional and non-traditional media
in 2012 and 2016.

Non-Traditional Media
48% (Digital, Online, Email,
Mobile, Social Media,
etc.)

2011




Boardroom Research
6


Allocation of Advertising Budgets for Non- Currently, Online Display and Search are the top
Chart Title
Traditional Media in 2011 two digital platforms with Social Media not far
behind. Spending and allocation on Mobile is
quite low at the moment but is seen to grow
slightly in 2012 and 2016.

25% Search Marketing/SEO

Online display
26%
Mobile
9%

Social Media
22%

Other areas of non-
18% traditional media

2011




Boardroom Research
7


Agency Selection
Criteria used for selecting an agency
This section looks at what marketers value most in an agency and what it is that will lure them to one agency
over another when pitches and proposals have been made. Agencies may be interested to take the following
findings into account before formulating their pitches.
The most important thing an agency needs to convey to a potential client is that they understand the client’s
business needs & objectives above anything else. This is followed by creativity – clients want to stand out in a
way that grabs their audience and gives them a nice return on their investment – undoubtedly, regarded as an
important factor to be delivered by an agency. Then of course there is the issue of cost, which ranked as the
third most considered criteria by marketers. It could be inferred that marketers will pay a premium to agencies
that understand their needs and come up with grand ideas.

Top 3 Criteria taken into Consideration when Selecting an Agency

Agency understanding my business needs and
19%
objectives

Creativity & ideas 17%

Cost & remuneration 14%

Marketing Trends 2011. Nb.: Score is a weighted calculation:
Items ranked first are valued higher than the following ranks, the score is the sum of all weighred rank counts.



Boardroom Research
8


The decision making process
When it comes to appointing an agency for a marketing campaign, several agencies will normally be called
upon for a pitch and at the end of the day, only one agency will make the cut. So who is directly involved in
making this all important decision on the client side? Simple: The marketing department and CEO or MD.
The vast majority (83%)
Departments/People Directly Involved in Appointment of indicated that their marketing
Agency team has the most influence in
the decision making process of
Marketing 83%
choosing an agency. They are
followed by the head of the
CEO/MD 69% company as the second most
influential player, with over two
Sales 22%
thirds of marketers saying so
Finance 14% (69%). Surprisingly,
Procurement departments have
Procurement/ Purchasing 10% little say in this process.
Other 6%


Drilling down even further,
Person Making Final Decision on Appointment of Agency respondents were then asked
who makes that ultimate final
decision. Marketing
departments may be more
CEO/MD involved in the decision making
Head of
Marketing process, but when it comes
down to it, the CEO or MD
makes the final call. Just over
Other, 3% half of marketers (55%) agreed
55% Head of Sales, 1% that the head of their company
39%
Head of Finance, 1% signs off on the appointment of
Head of Procurement, 1% agencies. Not far behind,
decision making power also lies
in the hands of the Head of
Marketing, with the majority of
Marketing Trends 2011 the remaining half indicating
this (39%).



Boardroom Research
9


The Digital Dilemma
Digital strategy & execution
Overall, most businesses in Singapore do not have an agency appointed to handle their digital strategy and
executions (59%). Since this question was only answered by respondents who have marketing budgets, when
recalculating the budgets reported on earlier to reflect only those with funds, 29% of these marketers have
budgets under S$100,000. Considering that on average, only 16% of a total marketing budget will go to non-
traditional advertising, as well as the fact
Incidence of Having Agency Appointed to Handle that a budget below this figure can be
Digital Strategy & Executions anywhere between S$1and S$100,000, it
is almost safe to assume that this bracket
of marketers cannot afford the services of
an agency or will be looking to “squeeze a
dollar out of a dime”. Assuming that
41% budgets above $100k can afford agency
59% Yes services, we are left with 30% of marketers
with generous budgets (subjective of
No course) who do not have an agency
appointed to handle their digital activities.
There definitely still are opportunities for
agencies to convert marketers who do not
Marketing Trends 2011 have any digital strategies in place or are
formulating them in-house.
For those who have engaged an agency
Appointed Agencies Handling Marketers' Digital for digital marketing, half (50%) are using
Strategy & Executions Creative agencies and not far behind, 44%
are using agencies that specialise in
Digital. This does not mean that only a
Creative/Full-Service 50%
remaining 6% have appointed other types
of agencies: Since this question was a
Digital Agency 44% multiple-response type, percentages do
not add up to 100%. The third most
Media Planning and Buying 32% commonly used agency type for Digital
marketing services, with a third of
Direct Marketing/Loyalty marketers with budgets indicating so
17%
Marketing CRM (32%), are Media Planning & Buying
agencies.
Public Relations 15%
Another thing that can be learnt from
Brand Consultancy 11% these multiple-response answers is that
Currently on average, two agency types are
Appointed appointed per marketer.
Other 4%




Boardroom Research
10


Attitudes toward Digital service offerings
Respondents were given two
How Marketers think Digital is best offered by Agencies statements regarding how they
thought Digital services should
be offered by agencies and were
asked which they agreed with
44% most. Overall, the slight majority
56% Digital is something that creative/full-
service agencies should be offering in
of marketers (56%) are of the
their spectrum of services opinion that Digital services are
best offered by creative/full-
service agencies in their
spectrum of services versus a
Digital is something that requires a specialist agency that is solely
specialist agency that's solely focused on focused on Digital strategy and
digital strategy and executions executions.


Engagement and execution of Social Media marketing

Marketers Currently Engaging Social Media Social Media, one of the driving forces behind
the growth of Digital Marketing, of course did
not escape this study. With the majority of
marketers engaging in it (62%), it is a worthy
38% Yes
topic for exploration.
62%
No


Approach towards Social Media Marketing
The vast majority of marketers with marketing
budgets develop and execute their Social
strategies in-house (76%), whilst only about a
quarter have an agency appointed to do it on
24% Develop and execute their behalf.
strategy in-house
76%
Agency develops and
executes strategy




Boardroom Research
11


“Anti-Socialists”
As identified earlier, over a third of marketers who have a marketing budget do not engage in any Social Media
marketing (38%). The main reasons for this, as expressed by those marketers, foremost are that they do not
have the capacity to do this in-house and that they do not believe Social Media can reach their target
audience. There is also a significant lack of understanding of how Social Media works and where to begin with
working it into a marketing strategy. Agencies can use these reasons to their advantage, approaching
marketers and explaining that if they do not have the capacity in-house then why not outsource them? And if
they do not believe they can reach their target audience with Social Media, agencies are in the best position to
explain how they can.

Top 3 Reasons for Not Engaging in Social Media Marketing

Don't have the capacity to do it in-house 32%

Believe social media marketing doesn't hit my target
30%
audience
Lack an understanding as to what social media
20%
marketing is and what it entails

Social Media marketing
When asking marketers what type of agency they have appointed to handle their Social activities,
interestingly, PR agencies were not among the top two. With Social Media being a very ‘wordy’ platform, it
may come as a surprise that PR agencies were only the third most appointed agency type by client marketers.



Boardroom Research
12


The (Dis)Connection
Challenges marketers face
Respondents were asked what the top three challenges were in connecting with their target audience. The
vast majority expressed that engaging with their audience and getting them to respond was the biggest
challenge (85%). This very concern is probably a reason why so many marketers have turned to Social Media,
as it is one of the most effective channels in creating a conversation with customers. Not only are customers
able to respond directly to brands, but they are also able to interact with each other as customers about the
brand and the campaigns that get fed to them. Other concerns included limited budgets, a lack of consumer
insights and understanding the target audience.
Top 3 Challenges Marketers Face Connecting with Target Audience

Engaging my target audience; getting them to
85%
respond

Limited budget 59%

Lack of consumer insights and reliable research data 54%



Boardroom Research
13


For more information and report sales, please contact Curtis Bergh at the following:

P: +65-6294-1933
E: curtisb@boardroomresearch.com

Report Pricing:
2011 Marketing Trends Report - Singapore: S$7,500
*price excludes GST applicable upon billing



Boardroom Research
14

2011 Marketing Trends Report Singapore - Executive Summary

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Empfohlen

Empfohlen (20)

2011 Marketing Trends Report Singapore - Executive Summary