The ANA (Association of National Advertisers) recently released a study showing the future shifts in different marketing initiatives with reduction in:

• Media budgets (56 percent)
• Production budgets (50 percent)
• Sponsorship/events activities (41 percent)

The activities most likely to be maintained throughout the recession include:

• Research and development (47 percent)
• Public relations (42 percent)
• Innovation/test/learn budgets (33 percent)
• Promotion activities (33 percent)

The activities most likely to be increased in the current economic environment are:

• Pricing deals (47 percent)
• Social networking and word of mouth activities (26 percent)
• Public relations efforts (23 percent)

These increased activities reflect the real need and understanding from marketers that brand equity comes from emphasis on consumer relationship building. Of course the actual product is the main item for brand equity (89 percent) but customer service (86 percent) and employee advocacy (81 percent) are just as critical. Customer service is where consumers turn to get straight away answers and know that there is always a tangible representative available on hand when questions and problems arise. Give them the assurance that they will get a response, coupled with strong employee advocacy, and will have a brand that will last even through the rough times.

With this realization, customer-related metrics is also being deemed more important with increased attention on:

• Customer conversion/repeat rates (78 percent, as compared to 70 percent in February 2007)
• The percentage of customers who rate a brand as "excellent" (77 percent, as compared to 68 percent in February 2007)
• Net Promoter Scores (73 percent as compared to 67 percent in February 2007)

Sure, this recession has got us thinking of happier times but there’s a light at the end of the tunnel and it’s looking good for us word of mouth marketers. Feel free to share your thoughts in the comments or tweet me about happy thoughts @Su_Lee.

I definitely don’t underestimate the older demographics. I’m getting used to commenting on my cousin’s status on Facebook, then seeing my uncle’s comment under mine a few hours later. I’m getting used to seeing my best friend and her mom’s conversation on my homepage. I’m getting to the shrug-off point.

I know and I certainly see the older demographics not only adopting and adjusting, but integrating all this technology and weaving it into their daily lives... so what does surprise me is a recently released study conducted by The Barna Group that explored how technology is shaping different experiences and expectations among generations. Although the study does point out that "many of the bloggers, music downloaders and users of social networking websites are from the Boomer and Buster cohorts" because "Boomers and Busters represent about two-thirds of the adult population", the study seems to undermine their technical savvy. AdAge.com also recently pointed out this generation’s dominance on the big two, "As of January, more than 50% of Facebook users and 44% of MySpace users in the U.S. were over 35 years old, according to ComScore estimates."

The study breaks users down into four generations – Mosaics (18 - 24), Busters (25 - 43), Boomers (44 - 62) and Elders (63+) then categorizes each generation’s use of technology into Mainstream (technologies used by at least one out of every two computers users (50%+)), Emerging (Those used by at least one out of five but less than hald computer users (20%-49%)) and Limited (Technologies used by fewer than one-fifth of computer users (19% or less)).
So, what sticks out from this chart that doesn’t fit right with my personal observations as well as other recently released research surveys? These are the points that I question:

• Busters, Boomers and Elders fall into the "Limited" category for both having "posted a comment on another blog" and "maintain personal blog".
• Busters are only in the "Emerging" category for "watched a video online".

These are surprising to me because Forrester Research just released a report that show more than 60% of those in the Baby Boomers generational group actively consume socially created content like blogs, videos, podcasts and forums. It's true that they might not be heavily involved with content creation but as far as commenting and watching videos go, Baby Boomers are there and on the rise, "In 2007, the percentage of Boomers consuming social media was 46% for younger Boomers (ages 43 to 52) and 39% for older Boomers (ages 53 to 63). By 2008, those number increased to 67% and 62%, respectively."
In short, there is no doubt that the 35+ demographics makes up for many of the profiles and accounts created on social media sites but credit must be also given to them on their ability and usage of the functionalities of the sites.

Tapping into blogger "influencers" is a very sensitive initiative. They can’t be treated as paid employees sitting behind desks receiving mass amounts of PR blasts nor do they want to be treated this way. Because they have the liberty to write at their own free will, there is no hindrance to what they can and will write. Typos included. It is this raw thinking process in which marketers crave and should be paying attention to.

Cision Media Research recently conducted research on the mention of blogs in 20 major print media publications clearly indicating the growing influence of bloggers. Cision discovered that the top 20 national magazines and newspapers mentioned blogs and bloggers 13,066 times in the one-year period ending June 30, 2008. That compares to only 795 times in 2004 and 2,179 times in 2005.

“This stunning growth in blogger influence magnifies the importance of employing common sense when contacting bloggers,” said Peter Granat, Cision Executive Vice President. “Knowing the blogger and his/her focus is the critical element in a successful blog relations campaign. While many blogs are highly visible in their own right, the growing influence with the mainstream media elevates their importance.”

How can we as marketers connect with bloggers? You may not have the status of P&G to offer all-expense-paid trips but the simple gesture of being sincere and getting to know the blogger whom you are trying to form a relation with is just as good. Notice I said blogger and not bloggers because generic PR blasts to a list without any customization will not do. It takes time to get to know someone so make the effort to do so and your initiatives will more likely yield positive results.