Brands Working With Startups

February 3, 2016

By Marni Gordon, SVP of committees and conferences, ANA

The ANA just released the white paper, “Brands Working With Startups,” which was conducted in conjunction with the CTA (Consumer Technology Association). The purpose of the study was to explore marketers’ perceptions, attitudes, and behaviors toward engaging the startup community in the marketing and advertising space. The study included both quantitative and qualitative research.

Key findings in the study, which included responses from both business-to-business and business-to-consumer marketers, revealed:

  • Overall, marketers engage with startups to leverage up-and-coming technology, stay ahead of trends, drive innovation, and gain competitive advantage at a reasonable cost.
  • Advertisers hire startups for a wide range of activities related to marketing and advertising, but the most prevalent activities were for social media (53 percent) and content development and management (49 percent). Other leading projects included research and analytics (45 percent), mobile advertising (43 percent), and marketing automation (39 percent).
  • Although startups are used almost exclusively for technology solutions, respondents indicated they are not buying technology — they’re buying solutions to business problems.
  • Marketers that hire startups measure the success of engagement in relation to business outcomes.
  • Companies that engage startups largely do so within existing marketing budgets (88 percent) and a majority (53 percent) work with their agencies to help them partner with startups.
  • The biggest barrier to engagement is the startup’s inability to articulately describe their offering in a meaningful and relevant manner.

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