The document provides an overview of marketing trends in Ireland for 2014 based on research among marketing professionals. Key findings include: - Marketers are optimistic about 2014 with most expecting to grow staff numbers and budgets. - Investment in digital marketing and social media is increasing significantly, with digital accounting for 24% of spend in 2013 and projected to be 28% in 2014. - Creating brand loyalty is seen as most effectively achieved through social media engagement, experiential activities, and PR rather than advertising. - While digital is growing, more traditional tactics like PR continue to be important for brand building.

1. MARKETING OUTLOOK 2014
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2. INTRODUCTION
Pictured (left to right): Tom Trainor, Chief Executive
Pictured (left to right): Tom
of The Marketing Institute of Ireland, Gráinne O’Brien,
of
Ireland, Gráinne O’Brien,
Director, MCsquared and Patrick Kennedy, Senior
Director, MCsquared and Patrick Kennedy, Senior
Research Executive, Amárach Research.
Research Executive, Amárach Research.
Irish marketers are approaching 2014
with confidence and positivity,
according to research commissioned by
(the consumer and brands division of
Murray Consultants) and carried out by
Amárach Research, in association with the
Marketing Institute of Ireland (MII).
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3. INTRODUCTION
Irish marketers are confident and positive about 2014 with the vast majority expecting to grow their staff numbers and budgets during
the year, according to research commissioned by MC2 (the consumer and brands division of Murray Consultants). The research was
conducted by Amárach Research in association with the Marketing Institute of Ireland (MII).
The research among MII members shows investment in brand communications through digital channels is continuing to grow strongly.
Almost 60% of those surveyed plan to increase their digital marketing budget in 2014. Digital currently accounts for almost one quarter
(24%) of marketing spend. While there is a sense of renewed optimism in the industry, many marketers surveyed, are still grappling
with how to get their businesses and their teams up to speed with the plethora of social media channels now available.
Commenting on the findings, Gráinne O’Brien, Director, MC2 said: “The 2014 marketing outlook is more positive than at any time over
the past six years. Marketing jobs and budgets are expected to increase over the next two years with Digital and Content Marketing set
to benefit most from any uplift.
“The dramatic evolution of marketing disciplines and skills presents challenges and opportunities in equal measure. Many marketers are
still struggling with the balance between their in-house resources and the agencies they partner with. At MC2 we have invested to
ensure our people are skilled and confident in the digital space. Our survey shows most marketers will increase their in-house digital
skills, but also that multi skilled agencies will be seen as more attractive to them,” Ms. O’Brien said.
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4. INTRODUCTION
It is clear from this research, that there is some positive momentum and 2014 promises to be a year of growth in marketing activity;
 39% expect staff levels across the business to increase
 27% expect staff levels across the marketing department to increase
Commenting on the findings, Tom Trainor, Chief Executive of the Marketing Institute of Ireland said: “There is no doubt that many Irish
marketing departments and agencies have had a torrid time over the past five years but this research and feedback from the wider
industry suggests that there is greater confidence amongst business leaders which should translate into real growth in 2014.”
It is clear that many marketing decision makers are now committing significant portions of their overall marketing spend to digital;
 8% of brands dedicate over 50% of spend to digital
 23% dedicate between 26% and 50% to digital
 22% dedicate between 11% and 25% of marketing spend to digital
 28% dedicate between 1% and 10%, while 4% of brands do not dedicate any spend to digital
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5. INTRODUCTION
While there is no doubt that digital marketing is the on-trend marketing discipline of the moment, it is also clear from the industry peers
surveyed that other more traditional tactics continue to deliver strongly when creating brand loyalty. Many marketers are still struggling
with how best to use and integrate digital marketing into their overall strategy, and how to accurately assess its contribution to the
bottom line.
Among senior marketers, 63% use social media engagement to create brand loyalty, while 59% opt for experiential activity, while PR is
the discipline valued by 58%. Advertising and sponsorship were rated as less impactful, in creating loyalty, selected by 54% and 42%
respectively.
“We are very encouraged by the positive soundings coming from the marketing profession and based on these findings and discussions
with our own clients there is early evidence that the Irish consumer is starting to spend again. Businesses and brands who are
equipped to re-engage with consumers in a compelling way will win out,” according to O’Brien.
January 31, 2014
FOR INFORMATION:
MC2
Gráinne O’Brien
01 498 0300
087 2610 862
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6. TABLE OF CONTENTS

EXECUTIVE SUMMARY

RESEARCH METHODOLOGY & SAMPLE

MAIN FINDINGS:

SECTION 1: Challenges and Future Expectations

SECTION 2: Social Media and Digital

SECTION 3: Sponsorship

SECTION 4: Agency Partners

INSIGHTS & IMPLICATIONS
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7. EXECUTIVE SUMMARY

After six years of declining consumer spending, Irish marketers are approaching
2014 in a much more optimistic mood, with the vast majority expecting both their
staff numbers and budgets to remain stable or grow in the year ahead.

Brand communications are undergoing a sea-change, however, with a significant
focus on content marketing to deliver marketing strategies in 2014-15, as well as on
social media engagement to build brand loyalty.

The share of total marketing budgets dedicated to digital marketing will rise from
24% in 2013 to 28% in 2014; while the share of sponsorship will remain broadly
stable at 10%.

The vast majority of marketers will manage their social media activities in house,
using analytics and click-through rates to measure their digital marketing ROI.
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8. RESEARCH METHODOLOGY & SAMPLE
Online survey of 142 client side senior marketers conducted in partnership with MC2 and the Marketing Institute of
Ireland.
POSITION
%
EMPLOYEES
%
CEO/Chairman/
MD
15
1,000+
13
CEO/Head of
Marketing
14
501-1,000
11
101-500
21
51-100
12
26-80
14
11-25
8
1-10
20
PRIMARY REGION
%
Marketing
Director/Manager
Brand Manager
Marketing
Consultant
47
10
14
Dublin
74
Rest of
Country
26
Our survey represents a unique sample of this specific and influential cohort, and
presents unique insight into the marketing world in Ireland for 2014.
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9. MAIN
FINDINGS
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10. SECTION 1
CHALLENGES AND FUTURE EXPECTATIONS
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11. BIGGEST CHANGE IN MARKETING OVER THE PAST 5 YEARS
%
%
Growth in social media
Shrinking marketing budget
Growth in content marketing
Growth in permission based
marketing
30
22
19
12
Growth in blogging forums
4
Global creative pitch process
3
European centralisation of
marketing team reviews
2
Other
7
Q.20 What has been the biggest change in marketing for your organisation in the past 5 years?
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12. BIGGEST EXPECTED CHANGE OVER THE NEXT 2 YEARS
%
%
34
Growth in content marketing
22
Growth in social media
Growth in permission based
marketing
12
9
Shrinking marketing budget
European centralisation of
marketing team reviews
5
Growth in blogging forums
4
Global creative pitch process
4
Other
6
Q.21 What do you think will be the biggest marketing
change for your organisation in the next 2 years?
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13. STAFF EXPECTATION FOR 2014
ACROSS THE BUSINESS
MARKETING DEPARTMENT
27%
39%
Stay the
Same
Stay the
Same
(43%)
9%
16%
1%
Don’t know:
Net Increase/Decrease:
(23%)
Q.2 Which of the following most closely
reflects your expectations for your staff numbers
for your business in 2014?
MARKETING OUTLOOK 2014
(61%)
Don’t know:
Net Increase/Decrease:
3%
(18%)
Q.3 Which of the following most closely
reflects your expectations for your staff numbers
for your marketing department in 2014?
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14. MARKETING BUDGET EXPECTATION FOR 2014
MARKETING BUDGET
DEMOGRAPHICS FOR THOSE
EXPECTING INCREASE
EMPLOYEES
28%
%
Male
Female
Stay the
Same
POSITION*
(54%)
CEO/MD
CMO
15%
Marketing Director
Board Director
3%
Don’t know:
Net Increase/Decrease:
(23%)
*Caution: Small base size
REGION
Dublin
Rest of country
Q.4 Which of the following do you expect
for your marketing budget in 2014?
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15. TOOLS AND MEASURES USED TO DEMONSTRATE ROI
FOR MARKETING
%
79
Sales Performance
40
Internal Financial Ratios
Market Share Data
38
Brand tracking research
37
34
Customer service measures
15
Other
Don’t measure
4
Q.6 What tools or measures do you use to demonstrate
Return on Investment for you marketing activity in general?
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16. TACTICS THAT WORK BEST FOR DEVELOPING
BRAND LOYALTY
TOP 3 SCORES
TOP 3 SCORES
%
%
Product/service quality
65
Delivering customer service
Direct customer
communications
Word of mouth
59
51
46
Brand communications
(advertising, PR,
sponsorship)
44
Discounts/promotions
Corporate Social
Responsibility
Other
16
5
1
Q.18 Which of the following tactics works best for creating brand loyalty?
Please rank the Top 3 methods for creating brand loyalty?
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17. BRAND COMMUNICATION TACTICS THAT WORK
BEST FOR DEVELOPING BRAND LOYALTY
TOP 3 SCORES
%
63
Social media engagement
Experiential activity
59
Traditional PR
58
54
Advertising
Sponsorship
42
Q.19 In terms of brand communications, which of the following tactics do you think works
best for creating brand loyalty? Please rank the top 3 methods for creating brand loyalty.
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18. SECTION 2
SOCIAL MEDIA AND DIGITAL
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19. COMMITMENT TO DIGITAL
PERCENT BANDS DEDICATED TO DIGITAL
%
51%+
On average, 24% of
the overall marketing
budget is dedicated
to digital
8
26-50%
23
11-25%
22
28
1-10%
0%
4
Q.7 What percentage of your marketing budget
do you currently commit to digital?
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20. DIGITAL BUDGET EXPECTATION FOR 2014
DIGITAL BUDGET
57%
Stay the
Same
(37%)
6%
Net Increase/Decrease:
Average % of budget dedicated
to digital 2013 = 24%
(51%)
Average % of budget dedicated to
digital 2014 = 28%
Net increase of 17% versus 2013
Q.8a Does your organisation plan to increase, decrease
or maintain the digital marketing budget in 2014?
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21. TOOLS AND MEASURES USED TO DEMONSTRATE ROI
FOR DIGITAL MARKETING
%
Analytics
75
Click through rates
64
Sales performance
59
Social media followers
57
Page views
Brand tracking research
54
23
Market share data
18
Internal financial ratios
18
Q.6 What tools or measures do you use to demonstrate Return
on Investment (ROI) for your marketing activity in general?
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22. PRESENCE ON SOCIAL MEDIA SITES
75%
67%
30%
66%
17%
56%
Other
6%
None of these = 5%
Q.10 Which, if any, of the following does
your organisation have a presence on?
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23. AVERAGE LENGTH OF PRESENCE ON SOCIAL MEDIA SITES
3.0 years
2.5
years
2.0
years
2.9
years
1.3
years
2.8
years
Other
1.6
years
Q.11 How long has your organisation had
a presence on each of these sites?
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24. SOCIAL MEDIA CONTENT MANAGEMENT
%
In-house
%
Mix External
In-house
Mix External
76
79
Other
19
17 0
63
37
5
0
Q.14 Who manages the content on each
of these sites on each of these sites?
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25. LEVEL OF RISK ASSOCIATED WITH EXTERNAL AGENT
MANAGING SOCIAL MEDIA CONTENT
LEVEL OF RISK
%
High
(7-10)
HIGH BY SOCIAL MEDIA PRESENCE*
%
16
15
17
Medium
(4-6)
18
54
21
9
Low
(1-3)
26
40
*Caution: Small base size
Q.15 To what extent do you feel there is a level of risk for your
brand by having an external agent manage your social media?
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26. SOCIAL MEDIA: WHAT IS IT MOST EFFECTIVE FOR VS.
WHAT IS IT USED FOR?
EFFECTIVE VS. USED FOR
EFFECTIVE VS. USED FOR
Brand
development
58%
56%
Customer
retention/loyalty
33%
33%
Reaching new
customers
48%
51%
Customer
services
22%
15%
Receiving
customer
feedback
38%
24%
Sales
9%
17%
Thought
Leadership
36%
27%
Other
2%
4%
Product/Service
Promotion
34%
43%
Don’t know
7%
10%
Q.16 What do you believe social media is most effective for?
Q.17 What does your organisation use social media for?
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27. IMPORTANCE AND PERFORMANCE OF SOCIAL MEDIA
IMPORTANCE
%
10
PERFORMANCE
%
10
9
8
17
9
36%
4
8
7
7
15
12
6
4
3
10
17%
16
11
63%
6
17
52%
5
4
29
13
10
5
3
2
1
Mean:
4
3
8
2
2
6.5
12%
2
1
Mean:
7
7
19%
6
5.4
Q.12 How important is social media for your company?
Q.13 How well does your organisation perform on social media?
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28. SECTION 3
SPONSORSHIP
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29. COMMITMENT TO SPONSORSHIP IN 2013
PERCENT BANDS DEDICATED
TO SPONSORSHIP
%
26%+
On average, 10% of
the overall marketing
budget is dedicated
to sponsorship
11-25%
6-10%
1-5%
0%
Q.22 What percentage of your marketing budget do you currently commit to sponsorship?
Please exclude percentage dedicated to activation of this sponsorship.
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30. SPONSORSHIP BUDGET EXPECTATION FOR 2014
SPONSORSHIP BUDGET
17%
Stay the
Same
(77%)
6%
Net Increase/Decrease:
Average % of budget dedicated to
sponsorship 2013 = 9.6%
(11%)
Average % of budget dedicated to
sponsorship 2014 = 10.3%
Net increase of 7% versus 2013
Q.23 Does your organisation plan to increase, decrease
or maintain the sponsorship budget in 2014?
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31. SPONSORSHIP: WHAT IS IT MOST EFFECTIVE FOR VS.
WHAT IS IT USED FOR?
EFFECTIVE VS. USED FOR
Brand
development
83%
EFFECTIVE VS. USED FOR
75%
Sales
23%
21%
4%
6%
Reaching new
customers
63%
58%
Receiving
customer
feedback
Customer
retention/loyalty
55%
45%
Customer
Service
0%
8%
Product/Service
Promotion
45%
41%
Other
5%
8%
Thought
Leadership
23%
21%
Q.25 What do you believe sponsorship is most effective for?
Q.26 What does your organisation use sponsorship for?
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32. TYPES OF SPONSORSHIP ENGAGED IN
SPORTS
EVENTS
55%
45%
b2b
34%
ARTS
CAUSE-RELATED
33%
18%
Q.24 What type of sponsorship
do you currently engage in?
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33. SECTION 4
AGENCY PARTNERS
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34. TOP 3 ATTITUDES SOUGHT IN AGENCY PARTNER
%
1st
2nd
%
3rd
Top 3
1st 2nd 3rd
Top 3
Creativity
64
Wide network of
industry contacts
16
Strategic council
and judgement
47
Global market
knowledge
14
Specialist skills
and capabilities
45
One stop shop
service
14
Local/international
market knowledge
37
Other
2
Specific sector
knowledge
33
Q.27 What are the top three attributes
you look for in an agency partner?
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35. PREFERENCE FOR SINGLE/MULTIPLE AGENCIES
DEMOGRAPHICS FOR
MULTIPLE PREFERENCE
EMPLOYEES
%
Male
Multiple
Single
Female
POSITION*
CEO/MD
CMO
Marketing Director
No Preference
Board Director
REGION
Dublin
*Caution: Small base size
Rest of country
Q.28 Would you prefer to work with a single agency that offers multiple services
(e.g. advertising, digital, PR etc.) or individual agencies who specialise in their own sectors?
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36. INSIGHTS & IMPLICATIONS

2014 will be the year that digital marketing makes the biggest impact so far on brand,
marketing and sales performance for Irish businesses.

There is still much room for improvement, however, with a perceived gap between the
importance of social media to the businesses we surveyed versus a usually lower level
of performance when it comes to using social media.

The focus on content marketing for 2014-15 will challenge the skill sets and resources of
many marketing teams, which in turn will drive a big demand for content specialists.

Higher digital budgets will demand greater proof of ROI which in turn will see marketers
more engaged with their IT/CRM colleagues and their agencies to measure the real
effectiveness of their additional spending in the year ahead.
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37. NOTE TO EDITORS
The research sample was comprised of senior client side marketers ranging from marketing consultants to
CEO’s and Heads of Marketing. Respondents came from a range of organisation sizes with 20% having 10
or less employees while 24% had over 500 employees.
142 senior marketers took part in the research, a significant proportion of senior client side marketers
operating in Ireland. Agency marketers and marketers in more junior roles were excluded from the research
to ensure an accurate and robust measure of the state of business in marketing in Ireland for 2014.
This research is the intellectual property of MC2.
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38. FURTHER INFORMATION
MC2, Latin Hall, Golden Lane, Dublin 8.
Tel: +353 1 498 0300
E-mail: grainne.obrien@mcsquared.ie
Website: www.mcsquared.ie
Twitter: @MCsquaredIRL
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