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Digital Doubts and Disconnects: Survey of 500 Communications Professionals Finds Companies Unsure if their Web Marketing Works

Many Firms Fear Falling Behind Competitors, Yet Increasing Budgets Only Slightly Over Next Year

NEW YORK · March 11, 2008 /PRNewswire/ — The digital divide has taken on a whole new meaning as companies grapple with how best to use the Web to drive marketing and sales efforts and outperform the competition, according to a new survey by Peppercom and PRNews.

Almost 500 marketing and PR professionals nationwide weighed in on best practices of digital marketing and other pressing issues in the survey which was conducted from February 1, 2008 through February 22, 2008.The results will be discussed today, March 11th, 2008, at 1:30 ET during a Webinar entitled "Building and Managing Your Company's Online Reputation." To register, please visit www.prnewsonline.com.

The results reveal that, while many companies have adopted and deployed a multitude of digital marketing programs, many firms feel they have yet to hit a home run with their digital strategy and, worse, are lagging behind competitors. Companies surveyed say they will expand their Web efforts, yet their spending on such initiatives will likely only increase in the short-term. The internal conflicts and uncertainty about digital is further illustrated by the fact that only about half of the companies surveyed felt they were even somewhat prepared to handle a crisis involving digital media.

Key results from the survey include:

  • Over one-third of companies (36%) say it's too soon to tell if their digital marketing programs are successful, and an equal percentage rate their programs as either only "somewhat" or "moderately" successful.
  • Over 60% feel they are at best parallel or even behind their competitors on digital initiatives.
  • Most feel the Web will play a bigger role ahead, even if we move into a recession, yet over half of those surveyed expect their digital spend to increase only "slightly" or "somewhat" over the next 12 months.
  • Almost one-third see the Web as a vehicle for building or enhancing reputations—but only 19% say the Web can drive sales.
  • Over 30% of respondents feel the C-suite is apathetic to digital marketing.
  • Few companies (less than 25%) feel fully prepared to handle a crisis on the Web.

"There is a huge disconnect inside organizations when it comes to digital marketing. These internal conflicts can be attributed to the fact that the Web is not yet a fully appreciated sales tool or simply companies just don't know where to begin. What executives agree upon is that Web 2.0 has clearly disrupted traditional marketing - and I think for the better," said Steve Cody, co-founder, Peppercom. "As an industry, we now need to step up and boldly demonstrate to the C-suite how effective digital programs can drive substantive results, address customer pain points, generate real revenue and, ultimately, grow businesses."

Peppercom conducted this survey in an effort to provide insights and build best practices on which to base the counsel it provides companies seeking to build and manage their corporate reputation online. To assist clients in understanding the new digital landscape and to leverage new technologies, Peppercom developed PepperDigital to marry the agency's expertise in knowing the business of a client's business with its deep understanding of emerging media and online marketing services. Services offered under the PepperDigital umbrella range from consumer sentiment monitoring within blogs and online forums to the development of corporate blogs, podcasts, microsites, search optimization and online communities. To learn more about PepperDigital or to join its blog community, please visit: http://pepperdigital.typepad.com.

About Peppercom

Peppercom, Inc. is a strategic communications firm headquartered in New York, with offices in San Francisco, Chicago and London. Its business approach to strategic communications drives new opportunities for clients. In 2005, the agency created GreenPepper to help traditional and renewable energy companies engage with the environmental community and develop communication strategies. In addition to providing innovative public relations, Peppercom offers PepperDigital, which helps clients integrate emerging media tools with traditional communications programs. Peppercom is also known for its crisis management program Crisis Rx and Pain-Based Selling program, and PepperCommotions, which helps clients create, manage and execute live events and sponsorships. Peppercom is the recipient of the "Small Agency of the Year - 2006" award from PR Week and was named "Innovative Agency of the Year - 2006" from The Holmes Report. Information about the agency and its unique service offerings may be found at www.peppercom.com.