Despite increased spending on marketing activities and more frequent attempts at brand revitalization, many companies perceive that their brand marketing efforts aren't fully connecting with consumers, according to the “State of the Brand Survey,” released last month. The survey was conducted by MiresBall, a leading brand design firm, in conjunction with Luth Research and AMA. It gathered insights from marketing executives at companies such as UPS, Visa, and Intel. The survey polled more than 100 marketers, with 73% at the director-level or higher.

In 2006, companies’ spending on marketing activities reached 11% of their annual revenue, compared to 9% in 2004 (as reported in a Blackfriars Communications study). In addition, 83% of companies surveyed had revitalized their brand within the past five years and 57% had done so in the past two years. According to the study, a strong correlation exists between brand revitalization and brand success. Brands revitalized within the past five years are most likely to succeed.

Overall, companies are highly committed to their brands, says Rachel Thomas, marketing director/brand strategist for MiresBall. However, in many cases, although “brand commitment and activity are high, brand creativity appears to be lagging behind,” she says. Specifically, brands would benefit from more out-of-the-box thinking in two critical areas: brand positioning and marketing outreach.

Although marketers can identify the potential in channels such as word of mouth and customer interaction, they have been slow to break away from traditional marketing channels, the study found. According to the study, niche forms of brand advertising, such as word of mouth, Web and interactive, and customer service interaction, are the most effective vehicles for communicating brands. However, companies devoted much of their marketing dollars to mainstays such as broadcast advertising (24%), print advertising (15%), and direct mail (12%). Meanwhile, they devoted 14% of their marketing budgets to Web and interactive efforts.

This may be partially due to a reluctance to move away from proven communication channels, particularly in a period of rapid change, Thomas says. In addition, marketers may find it difficult to implement more progressive strategies from a practical standpoint. For example, it is difficult to apply a budget line item to word-of-mouth outreach.

Some leading brands have managed to capture the best of both worlds, suggests Thomas. “They are still relying on traditional advertising methods, but doing so in a way that creates buzz and enables customer interaction,” she explains. For instance, Dove's “Campaign for Real Beauty” combined traditional TV and print advertising with a highly interactive Web feature and a touring photo exhibit. The final result was a more exciting, authentic experience with the Dove brand.

The complete “State of the Brand Report,” is available at: http://www.miresball.com/Think/Survey.