Online, Offline, Integrated: The State Of Marketing In 2021 PUBLISHED BY Latana.com Welcome to the State of Marketing report. Here you can expect insights to help you structure your marketing strategy in today’s omnichannel world. If you are reading this guide, you are probably wondering which channels will be most effective for your brand. Online? Offline? Both? It has never been a more exciting time to be a marketer. From podcasts to print advertising, the options are endless. But which channels are suited to your budget and goals? And what do consumers pay attention to these days anyway? Your marketing mix is like a cake. As a marketer, you are the chef who brings the ideal blend of the right ingredients together. The goal of this report is to help you figure that out. Enjoy! Latana © 2021 Latana www.latana.com Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com Foreword Join Latana on Social Media P. 4 P. 5 P. 6 P. 10 P. 16 P. 21 P. 23 P. 24 Introduction Methodology Online vs. Offline Marketing How Online And Offline Channels Influence Different Audiences Best Practices For Leveraging Traditional Channels How to Measure Online & Offline Campaigns Final Thoughts Why Latana? CHAPTER I CHAPTER II CHAPTER III BONUS CHAPTER Content Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com Digital marketing has grown exponentially in recent years. Social media, search, and display advertising, just to name a few, play an essential role in almost every brand’s marketing mix today. Brands love how digital marketing makes it easy to reach customers at scale, precisely target different customer groups, and measure results like views, clicks, conversions, and revenue. However, the boom of online advertising has made it harder for brands to stand out. In today’s saturated digital space, consumers are flooded with marketing messages on a daily basis. Online marketing still has its merits, but it’s no silver bullet. With social media sites and ad platforms becoming more crowded — and therefore expensive — the costs of advertising online have increased dramatically in recent years. Not to mention, privacy laws are becoming more restrictive, limiting marketers’ ability to gain full insight into the effectiveness of their campaigns. With digital fatigue taking its toll, traditional methods like television, print, and billboards are becoming more popular again. The world is changing so fast, and in recent months traditional marketing methods have made somewhat of a comeback. But does that mean social media is out, print is in, and we can all head back to the 1980s? Simply put, no. The most successful campaigns leverage the right channels, in the right way, at the right time, to positively influence consumer perception and behavior. This is why we say the future of marketing is integrated. The best brands know how to leverage online and offline marketing together to build awareness and drive sales. In this report, we will use exclusive data from Latana to dive into how Coca-Cola, McCoy’s and the Co-op use different channels to achieve their brand goals and reach different audiences. In recent years, online advertising has fallen victim to increased competition and stricter privacy laws, leading to higher prices and lower measurability. At the same time, TV and out-of-home advertising channels have made attempts to diversify formats, adopt new technology, and increase measurability. Television advertising became more affordable than ever during the Corona pandemic outbreak in 2020. The Future of Marketing is Integrated – Here’s Why 4 Introduction Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com 2015 Measurable Online Online Offline Offline Cost-effective Innovative 2021 We researched the impact of three integrated marketing campaigns from the brands Coca-Cola, the Co-Op, and McCoys. Each campaign is unique and addresses a different target audience. The Coca-Cola campaign is aimed more towards younger people; McCoy’s has a predominantly male audience. The Co-Op’s campaign is centered around sustainability and aimed at more mature people in their 30s and above. The purpose of this report is to identify which channels are most effective in 2021 and how marketers can get the most out of them. Our research is based on 548 consumers living in the UK, segmented by differing characteristics. Research was conducted in April 2021. 5 Methodology Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com Online vs. Offline Marketing chapter I vs. What worked even a few years ago won’t necessarily work anymore, as consumer habits have changed beyond recognition. Consumer behavior has evolved significantly over the past few years, and long-term trends like ordering online and video streaming have been accelerated by the pandemic. For marketers to reach their target audience effectively, it’s key to understand how consumers today interact with media and approach purchase decisions. In 2020, there was a huge shift to digital with people working from home and home-schooling. However, fatigue quickly set in after a few months of lockdown. It remains to be seen how consumer behavior will continue to evolve as the world enters the next chapter, post-pandemic. 7 Consumer Behavior Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com 81% of consumers watched TV or a movie in the past week 81% browsed the Internet in the past week 69% browsed social media in the past week Traditional TV advertising is still going strong. Television was the most effective channel in this campaign, even outperforming social media. key INSIGHT The marketing landscape today is competitive and fragmented. You need to be where your audience is, at times when they are receptive to your marketing messaging. Whether they are laughing at memes on TikTok or watching a live sports game on cable, these are key moments for your brand to connect with customers. Nonetheless, most of us don’t have an infinite marketing budget, and some channels resonate more than others — depending on your brand and the preferences of your target audience. Iconic brands Coca-Cola, Co-op, and McCoy’s have all run large, multi-channel campaigns in 2021. Using insights from the Latana brand platform, we explored how different customer groups reacted to the campaigns and explored which channels drove the best results. Coca-Cola's dancing ad campaign “Open that Coca Cola” ran across TV, digital, radio, and outdoor advertising, and even encouraged fans to recreate the dance on social platforms. The ad portrays a group of teenagers walking around a shop, while catchy music from Tyler, the Creator can be heard in the background. Suddenly, a guy opens a bottle of Coca-Cola, triggering a series of crazy dance moves. 0 25 50 75 100% 61% 38% 35% 10% TV Social Media Billboards Podcast 8 The Channels Driving Brand Awareness For Top Brands Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com Coca-Cola Ad Exposure Coca-Cola % of customers exposed to advertising from Coca-Cola via different channels Radio was the least effective channel in this campaign. However, this may change in the future as people return to work and start commuting more. Your brand doesn’t need to be on every fancy new marketing channel. In this campaign, TV and social media were more effective than podcasting. key INSIGHT key INSIGHT McCoy’s campaign “The Beast” positions McCoy’s KP Snacks as a super tasty snack that blows boring crisps out of the water. The series of ads depicts people in everyday situations eating disappointing plain crisps, until a furry beast is unleashed who seeks out the nearest pack of McCoy’s. Co-op’s “Honest value” campaign ran on out-of-home, radio, and video-on-demand. Designed to raise awareness for their new ethical values range launched in November 2020, the campaign advocates fair prices for products that have been fairly and sustainably sourced. The campaign tagline reads, “A value range with values.” 9 Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com 0 25 50 75 100% 54% 29% 20% 5% TV Social Media Online Articles Podcast 0 25 50 75 100% 50% 27% 16% 5% TV Social Media Billboards Radio Co-op Ad Exposure Co-op M cCoy’s Ad Exposure M cCoy’s % of customers e x posed to advertising from Co- O p via different channels % of customers e x posed to advertising from McCoy’s via different channels Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com How Online and Offline Channels Influence Different Audiences chapter II Millennial Males Early Adopters Household Decision Makers Baby Boomers 11 Millennial Males Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com Millennials, also known as Gen Y, are people born between 1981 and 1994/6. Millennials are an important consumer demographic for brands, as they are tech-savvy, health-conscious, have more disposable income than their younger Generation Z counterparts, and enjoy keeping up with the latest fashions and trends. Millennial males are more aware of McCoy’s brand than any other demographic. Latana data based on McCoy’s campaign shows that just under half of millennial males saw a McCoys’s TV ad. TV was the most effective medium to reach this demographic, particularly among millennial males based in rural areas, with 69% of them saying they had seen McCoy’s TV ad, compared to 42% of millennial males in urban areas. Social media and out-of-home advertising were still effective, reaching a third and a quarter of the audience respectively, but these channels had less of an impact than TV. Audience How to Reach Them From McCoy’s Campaign “the Beast” RURAL 69% of millennial males in rural areas had seen McCoy’s ad URBAN 42% of millennial males in urban areas had seen McCoy’s ad TV Advertising Social Media Out-of-Home Advertising 12 Baby Boomers Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com Often underestimated, Baby Boomers are one of the most important customer groups for almost all marketers. Why? Even if your brand doesn’t immediately seem like a fit for this age group, remember that they are also parents and grandparents, thus making the purchasing decisions for your target audience. Baby Boomers value education, loyalty, and authenticity. They can be very outspoken regarding things they don’t like and are not afraid to criticize brands who do not uphold their values, such as around sustainability. Traditional channels seem to be the best way to target Baby Boomers, who are an attractive audience to marketers due to their authority and spending power. Tapping into this group means gaining access to the consumers who really make the decisions. Coca-Cola and McCoy’s both had the highest impact with their TV advertising, and almost half said outdoor advertising was most memorable. Audience How to Reach Them TV Advertising From Coca-Cola’s ad “Open that Coca Cola” Outdoor Advertising 13 Early Adopters Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com Early adopters aged 18-35 are keen to stay up-to-date with the latest trends and newest technology. Always in pursuit of “the best”, they are usually passionate about emerging technologies and trying new things. That friend who always has the newest smartphone and who knows the best new rooftop cocktail bar in town? That’s an early adopter. This audience is very lucrative for brands since they are regularly replacing their old items with new ones and are prepared to splurge on quality. Latana data based on Coca-Cola’s campaign shows that the early adopters saw Coca-Cola’s TV ad, but over half still said online advertising was more memorable. This group does a lot of research before making a purchasing decision, which might explain why almost half read online articles from the brand. As technology lovers, they usually conduct research online — which is why the print ads had less impact. Television combined with online articles and social media worked well to win over this target audience. Audience How to Reach Them Online Advertising Online Articles Social Media TV Advertising 14 Household Decision Makers Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com The household decision-maker is essentially the person in the family responsible for grocery shopping. Traditionally, this would be a woman aged 25-49. Even today, in around two-thirds of families, the household decision-maker is still the mom. Latana data based on Coca-Cola’s TV ad shows that the majority of household decision-makers are highly influenced by television advertising. That said, over half found online advertising to be more memorable. Coca-Cola was able to reach around a third of household decision-makers with social media advertising. Out-of-home was less effective than the other channels, as the billboard ad reached only a quarter of household decision-makers. Audience How to Reach Them Social Media Online Advertising Out-of-Home Advertising Out-of-Home Advertising TV Advertising 15 Eco-Friendly Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com Environmental sustainability is one of the most important issues of our time. Brands know almost all consumers are becoming more concerned with sustainability, yet some audiences are more conscious than others in their efforts to purchase from sustainable brands. Latana has identified three core groups that are especially concerned with sustainability. These are: Latana data from the Co-op campaign shows that TV was the most impactful medium to reach all three sustainability-conscious audiences. Social media reached around half of consumers in all three key groups, whereas advertising on public transport was seen by around a quarter of people in one of the three audiences. Outdoor billboards were the least impactful. Audience How to Reach Them TV Advertising Social Media Out-of-Home Advertising Enthusiastic Experts Inspired Innovators Considerate Conventionalists aged 35-45, typically living in a rural area with a medium to high level of education aged 17 -35, usually based in urban areas and highly educated aged 45- 6 5, usually living in a rural area with a medium level of educatio n 1 2 3 Enthusiastic Experts Inspired Innovators Considerate Conventionalists 16 47% 43% 69% Co-Op TV Ads Exposure % of eco-friendly audience exposed to Co-Op’s TV campaigns 41% 43% Co-Op Social Media Ads Exposure % of eco-friendly audience exposed to Co-Op’s social media campaigns 24% of Enthusiastic Experts saw Co-op’s ads on public transport of Inspired Innovators saw Co-op’s ads on public transport of Considerate Conventionalists saw Co-op’s ads on outdoor billboards 26% 15% Co-Op Outdoor Ads Exposure % of eco-friendly audience exposed to Co-Op’s outdoor advertising 46% 73% Co-Op Online Ads Exposure % of eco-friendly audience exposed to Co-Op’s online advertising Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com Best Practices For Leveraging Traditional Channels chapter III In today’s competitive marketing landscape, brands need to be smart about leveraging the right channels, in the right way, at the right time. Here are our best tips and tricks for getting the best out of online and offline advertising to formulate a powerful marketing mix. 18 Target the Right Audience Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com The first and most important part of the puzzle is figuring out which audience, or audiences, to go after. Who stands to gain the most value from your product or service? Whose priorities align with your brand values? Does your brand personality attract older or younger generations, men or women? Knowing which audience you want to target is important for online and offline advertising. With social media and online ad platforms, you can easily specify the age, gender, and interests of the people you want to target. With offline advertising, you have to be cleverer about it and rely more on context, such as putting up billboards in a women’s gym or running TV ads during a football match. Age Gender Interests Understanding your audience is key to ensuring your marketing messaging hits the right note, that your creatives are appealing, and that you are targeting people likely to be interested in what you are offering. Online or offline, it is all too easy to end up blowing your budget on broad campaigns targeting “everybody” and really impacting nobody. Understanding your audience is key 19 Use Audience Insights to Prioritize the Right Channels Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com Let your audience guide your channel strategy. Once you know which audiences are the right fit for your brand and how they tick, you can double down on where they spend time and what kind of content they consume. Are you targeting IT managers on LinkedIn or Gen Z on TikTok? Does your audience watch TV — if so, are they streaming on Hulu or watching cable? Does your audience read newspapers and industry magazines, and if so, which ones are popular with them right now? Few, if any, brands have enough resources to be everywhere, which means marketers need to prioritize the channels most likely to have an impact. There is no point trying out 20 different channels without really understanding how to leverage them properly or being able to maintain your presence there. Focus on, say, three or four channels that your audience uses regularly and cultivate a strong presence there with quality content tailored to your audience. Prioritize the most impactful channels 20 Assess Your Brand Health and Set the Right Goals Online, Offline, Integrated: The State Of Marketing In 2021 Latana.com You wouldn’t ignore your own physical or mental health, so why ignore the brand health of your company? The best way to understand how your brand is really performing is to track KPIs across the entire brand funnel. like brand awareness, brand consideration, brand associations, and web traffic provide an accurate picture of how well your brand is performing overall and helps you set the right goals for your campaigns. Awareness Consideration Advocacy Preference Usage BRAND For example, even though someone knows your brand, that’s no guarantee that they would actually buy something from you. If lots of people in your target audience have heard of your brand but wouldn’t consider using you, then it’s a sure sign you need to work on your brand consideration. In this case, an awareness campaign would not be the best choice and could be a complete waste of money. Instead, you should develop a strategy to increase your brand consideration. Understanding how well your brand is performing across different points on the brand funnel will enable you to set appropriate goals and select the right channels for your marketing campaigns. Measure your brand health, set goals accordingly, and then run campaigns on the channels most likely to help you achieve them. Tracking key brand metrics