Report: Marketers are turning to startups for marketing innovation

New US report shows how brand leaders are increasingly turning to startup organisations to leverage up-and-coming technologies and gain a competitive advantage

Marketers are increasingly turning to startups to leverage up-and-coming technology, drive innovation and gain competitive advantage at a reasonable price point, a new report has found.

The Brands Working with Startups study, which was conducted by the US Association of National Advertisers (ANA) in conjunction with the Consumer Technology Association (formerly Consumer Electronics Association), showed more than one-third of B2B and B2C marketers surveyed are working with startup organisations.

The primary activities for engagement were social media (53 per cent) and content development and management (49 per cent), followed by research and analytics (45 per cent), mobile advertising (43 per cent) and marketing automation (39 per cent).

The report also found that while startups were almost exclusively providing technology solutions, marketers and advertisers using them indicated they’re not buying technology, but rather, buying a solution to a business problem.

The majority of these relationships are being funded through existing budgets. In addition, 53 per cent said they’re working with their agencies to help partner with startups.

Marketers who strike up partnerships with startups are basing the success of the engagement on business outcomes, and highlight nimbleness, passion and client-oriented focus, as valuable startup attributes.

With client-side organisations, it’s most often the current media management or digital management team that’s working with the startups, followed by current brand management teams.

The biggest barrier to engagement, meanwhile, is a startup’s inability to articulate their offering in a meaningful and relevant manner. Other issues impeding relationships are potential security risks, particularly around sensitive data, lack of execution, legal and compliance challenges, and a startup going out of business before a project is completed.

The study was based on an initial survey of 171 ANA members, followed by in-depth interviews with 12 marketing executives recruited from the survey.

ANA and CEA said startups were defined as an “entrepreneurial venture or new business in the form of a company, a partnership or temporary organisation designed to search for a repeatable and scalable business model”.

A number of well-known brands have partnered with startups recently to improve their digital marketing capabilities.

Snacking giant, Mondelez International, has rolled out its Mobile Futures Program in multiple countries over the past three years aimed at helping the brand extend its mobile marketing investments through startup partnerships. The program was run in Australia in 2014 and saw five brands partnered with five local startups in the mobile space.

FMCG giant, Unilever, is also running the Unilever Foundry global initiative aimed at supporting technology entrepreneurs through pilot projects, mentorship and partnerships with its marketing teams. Again, the initiative is aimed at driving digital change and modern marketing opportunities.

Closer to home, insurance provider, NRMA, has run two rounds of its startup funding program, Jumpstart, a program aimed at helping startups with ideas that could benefit NRMA members to get off the ground.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

Great content and well explained. Everything you need to know about Digital Design, this article has got you covered. You may also check ...

Ryota Miyagi

Why the art of human-centred design has become a vital CX tool

Read more

Interested in virtual events? If you are looking for an amazing virtual booth, this is definitely worth checking https://virtualbooth.ad...

Cecille Pabon

Report: Covid effect sees digital events on the rise long-term

Read more

Thank you so much for sharing such an informative article. It’s really impressive.Click Here & Create Status and share with family

Sanwataram

Predictions: 14 digital marketing predictions for 2021

Read more

Nice!https://www.live-radio-onli...

OmiljeniRadio RadioStanice Uzi

Google+ and Blogger cozy up with new comment system

Read more

Awesome and well written article. The examples and elements are good and valuable for all brand identity designs. Speaking of awesome, ch...

Ryota Miyagi

Why customer trust is more vital to brand survival than it's ever been

Read more

Blog Posts

A Brand for social justice

In 2020, brands did something they’d never done before: They spoke up about race.

Dipanjan Chatterjee and Xiaofeng Wang

VP and principal analyst and senior analyst, Forrester

Determining our Humanity

‘Business as unusual’ is a term my organisation has adopted to describe the professional aftermath of COVID-19 and the rest of the tragic events this year. Social distancing, perspex screens at counters and masks in all manner of situations have introduced us to a world we were never familiar with. But, as we keep being reminded, this is the new normal. This is the world we created. Yet we also have the opportunity to create something else.

Katja Forbes

Managing director of Designit, Australia and New Zealand

Should your business go back to the future?

In times of uncertainty, people gravitate towards the familiar. How can businesses capitalise on this to overcome the recessionary conditions brought on by COVID? Craig Flanders explains.

Craig Flanders

CEO, Spinach

Sign in