Does the Internet threaten brands?

Although the Internet offers small companies a global platform it also provides new challenges to Intellectual Property according to a recent report.

The report by patent and trademark attorneys Marks & Clerk highlights concerns by brand owners across a number of infringement opportunities that have become possible due to the Internet, are difficult to police and where law in the digital space has yet to catch up. IP issues that undermine legitimate brands operate at a number of levels.  

The Internet has provided new distribution channels for counterfeit goods with leading auction sites playing an important role. It is no longer the case of buying something that had 'fallen of the back of a lorry' or 'from a man in the pub', instead a degree of apparent legitimacy is bestowed thanks to the branding of the channel itself. At another level editorial content is freely stolen and images used outside of the company control. Of course getting widespread publication of attributed editorial is a good brand building thing, but being plagiarized to promote rival products or counterfeit goods is another matter entirely.

According to the report, "63 per cent believe that search-advertising such as Google AdWords is unacceptable when businesses bid on the name of a rival’s trade mark" and "Almost 7 in 10 (69 per cent) predict that social media will become the “next big threat” to brand owners in protecting their brands online". So the threat is not just from counterfeiters and forgers, but from otherwise legitimate competitors using the Internet to ride on the back of their rivals investment in marketing.

Then of course there are disgruntled customers and users who can exploit the Internet to not just air a grievance but conduct campaigns and rally support.  Social media has been extolled as a channel for companies to converse with their customers but for most b-2-b businesses it is very early days. Some - a few - have embraced sites like Facebook, while others won't even entertain the idea. Marks and Clerk's report notes, "With Facebook reportedly having the world’s ‘third largest population’ – more than 400 million users, compared to a population of just over 300 million in the US – it is little wonder we are seeing increasing protectionism and nervousness from brand owners.” 

From our experience in social media it is difficult to point to concrete benefits either, except getting picked on search and generating useful links. This will be the subject of a future blog.

Do offline channels drive online search?

Press Release authors love numbered lists - example "1o things you should know about marketing", or "8 marketing tools you must use".  By putting an exact figure to any subject there is an implication that if you follow that advice, then success is ensured. We advocate the use of an appropriate mix of marketing methods integrated into a coherent marketing plan, not a list to  simply be ticked off as done. This includes a mix of offline channels as well as online activity. Writing about market research is another fertile source for PR people too, so it was interesting that Marketing News Flash, an e-mail newsletter published by Industrial Technology, selected a statistic from some previous research to support the value of advertising in magazines. Print advertising  rather than being in terminal decline, according to the research is the stimulus that prompts 30% of all online searches. The magazine's own research found that "76% of readers prefer magazines to keep up to date with new products and information relevant to their job. 66% also find out more information from a supplier after seeing an advertisement in the magazine".

However looking at the market research conducted in America in June 2007 by iProspect and Jupiter Research, further interesting figures emerge demonstrating the importance of offline marketing channels in prompting further search online. Television advertising at 37% was in top spot, but hot on its heels at 36% was word of mouth recommendation by a friend or acquaintance, then indeed 30% due to print advertising in newspapers and magazines. Perhaps of equal interest was that the company name or brand at 68% was the most commonly used keyword.

Although clients typically report that most of their sales leads come from their web site, what is very important is that more than two thirds are searching for a company or brand rather than a generic product category and most of them will have discovered their awareness of the brand offline. So perhaps it is premature to move all marketing investment to the Internet. Customers are still strongly influenced by the offline world and turn to the Internet as a convenient tool to learn more. At Technical Marketing Ltd, we help businesses put together and implement marketing plans that develop the brand message, raise top of the mind awareness and develop compelling content that provides the information your prospects are searching for. Informed people then make enquiries. 

Image: iProspect.