• by Tanya Gazdik , October 12, 2011

Marketers expect location-based applications such as Foursquare and SCVNGR to grow in the coming year, according to the latest study of newer media by the Association of National Advertisers (ANA).

Currently, 27% of marketers surveyed are using location-based applications to reach their customers.  However, 32% say they plan to use this platform next year.

Marketers’ use of newer media platforms to engage with customers has reached high levels over the past four years. Platforms include online ads, social media, search engine marketing, search engine optimization, mobile and viral videos.  However, the same marketers don’t necessarily perceive those platforms as effective.  But they aren’t backing away from them, according to the ANA study.

Seventy-eight percent of respondents anticipate an increase in spending on newer media platforms in 2012. The respondents’ average 2011 U.S. media budgets were $34 million, with 10% dedicated to newer media platforms ($3.4 million). Of those expecting an increase in newer media spending, the average is anticipated to be 14% ($500,000). The top platforms in terms of spending in 2012 will be social networks/social media (according to 20% of respondents), online ads (19%), mobile ads (18%) and search engine marketing (17%).

The survey was conducted online by the ANA during June and July of 2011. This is the third edition, with past studies conducted in 2007 and 2009. The survey was geared towards business-to-business, business-to-consumer, and hybrid marketers to explore the use of newer media platforms. The study addressed marketers’ usage and effectiveness of newer media, spending and integration with other elements of the communications mix. In all, 92 client-side marketers participated.

In some cases, however, B-to-B marketers are using certain platforms more extensively than B-to-C marketers.

More B-to-C companies use mobile, viral video/YouTube, gaming, location-based apps (e.g., foursquare, SCVNGR), and interactive/addressable TV than B-to-B companies. These platforms’ capabilities are more geared toward providing entertaining content that can be used more easily for brand building purposes, according to the ANA.

Social networks, mobile and viral video media platforms saw the biggest jump from 2007 to 2011, with social network marketing rocketing from 20% usage to 89%, mobile shooting up from 28% to 75% usage and viral videos rising from 25% to 64%.

As for effectiveness ratings, search engine marketing rose from 48% to 65% from 2007 to 2009, but then dove back to 48% in 2011. Social networks fell from 19% to 17% between 2007 and 2009 but then rose to 28% in 2011, perhaps as more consumers joined the bandwagon in the past two years. Mobile has risen steadily in its perceived effectiveness, from 14% to 22% in 2007 vs. 2009 and 25% in 2011.