In today’s world the marketing industry is constantly evolving and more companies are using technology and social media to make their new products known. According to a survey by the marketing agency Five by Five, 74% of brand marketers are using social media as their first choice when it comes to launching new products.
The research was conducted among more than 730 experienced marketers in the United States, Australia and the UK, including 62 brand marketers in the Fast-Moving Consumer Goods (FMCG) industry. In the FMCG sector, “traditional” advertising campaigns have less impact when it comes to promoting new products and services. Sales Promotions ranked second among the most important channels, with only two-thirds of the vendors using it. Public Relations ranked third with 44% and Advertising in Television and Written Press ranked fourth with 39%. The Digital Display completes the top five with 35%.
The three factors likely to threaten the successful launch of a product or service in the consumer goods industry are a lack of budget (52%), competitor activity (47%), ineffective marketing communications and slow processes (40%). “Social networking has become the most important way to generate buzz before new products and services appear on the market. Social content and engagement allow brands to create a wave of interest prior to launch, in a way that no other channel can match”, said Martin Flavin, creative director of Five by Five.
Michelle Mitchell, the company’s strategy director, said that while deadlines are tightening and costs have risen, marketers are now more informed than ever about their launches. “This increased awareness means that campaigns are stronger, more fluid, and more effective”, Mitchell said.
One factor that influences the growth of social media as the way-to-go when launching new products, may be the faster timeframes the marketers are facing. The average time between idea to product launch has shrunk significantly in the last five years.