Franchisee’s Turning More And More To Digital

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That’s according to a new report from Borrell & Associates called “How Franchisees Are Changing Marketing Expenditures.” Borrell surveyed 500 local franchise operators and the new report says these franchisees spend 67% more than the typical local business, and are heavy buyers of digital, which recently overtook direct mail as their number one media choice. Many also favor broadcast media – a reflection of their corporate office’s marketing preferences.

The report also states that change is in the air. Franchisees plan to trim peripheral media (particularly print) and spend more on the favorites – digital, broadcast, and direct mail. And of course, there’s also high interest in mobile marketing, with 26% of franchisees saying they plan to start buying mobile advertising. Franchisees told Borrell that the way local media companies should respond is to help them more with their digital media needs. And they want to see creative advertising plans that can ensure their locally-spent marketing dollars will benefit their store, not another competing franchise operator.

Here’s a chart from the Borrell report which also shows that radio remains a steady form of advertising for franchisees. There are nearly 800,000 franchise business in the United States that employ over 9 million people. Together they generate about $1 trillion in sales with 26% coming from fast-food restaurants.

Borrell Chart

This information is from the free Executive Summary of the Borrell Report. If you are interested in purchasing the entire report, go to the Borrell website.

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