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BizReport : Trends & Ideas archives : February 04, 2016

Marketers value startups for their passion, drive, and technological prowess

Marketers are increasingly turning to startups to provide them with specific solutions to a business problem, according to a new study from the Association of National Advertisers in the U.S.

by Helen Leggatt

The Association of National Advertisers (ANA), in conjunction with the Consumer Technology Association, has released the findings of a survey of client-side marketers that reveals around one-third have used startups.

Of those who had used a startup, more than half (53%) had done so for social media. Almost half (49%) engaged startups for content management and development followed by research and analytics (45%), mobile advertising (43%) and marketing automation (39%).

For the most part, businesses that engage startups do so within existing marketing budgets (88%) and more than half (53%) work with their agencies to help them partner with startups. However, despite most startups being engaged for their ability to provide technological support, marketers say they are not buying technology but instead focusing on solving a business problem.

"Technology is influencing all aspects of our lives - and that's no different for startups and marketing in the digital age," said Steve Koenig, senior director of market research, Consumer Technology Association. "We saw the world of startups, marketing and technology converge at CES 2016, where we hosted C Space, the home for advertising, marketing and digital content communities, as well as the Eureka Park marketplace that featured more than 500 exhibiting startups. Based on the traffic we saw at these key Marketplaces at this year's CES and the findings of this study, it's clear the novel solutions that technology allows are of utmost importance to marketers."

However, while marketers were attracted to the use of startups by their passion, drive to meet clients' needs and their small, nimble size, downsides were also identified. As well as presenting marketers with potential legal and compliance issues as well as security risks when working with sensitive data, it was felt there was a risk they might not be able to deliver on their promises or, worse still, go out of business before a project was completed.

Furthermore, the survey revealed that startups need to better articulate what it is they actually do. According to the ANA, "the biggest barrier to engagement is the startup's inability to articulately describe its offering in a meaningful and relevant manner."

Image via Shutterstock

Tags: ANA, marketing, research, startups, technology

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