Apr 1, 2006 12:00 PM, Andrew Scott

SMS, MMS, SEO…it's an interactive alphabet soup that can spell big business — and loyalty — for brands.

In fact, 49.9% of marketers allotted up to 15% of their overall marketing budgets for interactive campaigns last year, about flat with 2004, according to PROMO's 2006 Industry Trends Report.

Take podcasts for example, a tool being tested and tweaked that may have found its niche as a customer loyalty builder rather than a vehicle for ads, says Matt MacQueen, experience planning director for Arc Worldwide, Chicago.

Arc used podcasting for its client Purina, who began experimenting in the MP3 space last June. Purina offered audio podcasts of its Animal Advice radio program topics including animal training, pet care, pet insurance and behavioral theories. The audiocasts were followed up with video podcasts in January, of Purina's Incredible Dog Challenge (think Olympics for canines). Purina divided the program into free five-minute downloadable segments on iTunes and Purina.com. The company declined to release numbers, but said that early indicators looked good.

“Make sure podcasting supports business objectives, strategy and message, and that it builds your consumer relationship,” MacQueen says.

According to the report, marketers used interactive channels to build brand loyalty (51.4%), prompt a sale (48%), drive consumers to Web sites (45.9%), collect personal data (45.3%) and offer incentives (39.9%).

“I think last year there was an interactive revolution when a lot of new avenues to interact with consumers emerged at once,” says Dawn Baskin, executive VP at Zipatoni, Chicago. “Now we're at a point where people can decipher…what's right for their brand and understand what application fits their target audience.”

Just this month, McDonald's kicked off its first-ever global online casting call, offering customers a chance to find a starring role on its packaging. Consumers submit a story of 100 words or less describing what they love most about life, plus a digital photo that captures their story, to Mcdglobalcasting.com, through May 31.

“These [promotions] are all part of giving new experiences to consumers while enhancing our brand,” Dean Barrett, senior VP-global marketing at McDonald's, said during the PMA's conference in Chicago last month.

Spending on Internet-related marketing will most likely to increase this year, according to 44% of survey respondents. Some 28% expect spending to stay the same, 2% expect a decrease and 13% are not sure. Of those who expect an increase, an average 22% increase is expected. E-mail marketing led the pack as the interactive channel used most often to support brand campaigns at 63.5%. The runners-up were banner ads (47.3%), online promotions — games, contests, sweeps and webisodes — (34.5%), blogs (14.9%), podcasts (10.1%), SEO (10.1%) and cell phone text and multimedia messaging via mobile phones with 7.4% and 8.1% respectively, the report found.

“Marketers realize that B-to-C e-commerce is not a dirty word anymore,” says Gartner analyst Adam Sarner. “It's just beginning to dawn on companies that the channel represents a growth model for their overall business instead of side stepping it as a fleeting thing that will go away next year.”

SNAPSHOT 2005

49.9% of marketers allotted up to 15% of budgets for internet-related activities

63.4% used e-mail marketing campaigns

The majority (51.4%) of marketers used interactivity to build brand loyalty

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