June 15, 2024

Marketing Byte: AFMR Highlights How Franchises Support Advertising Programs

Franchise advertising is bigger and more sophisticated than ever. In a very competitive landscape, it requires a creative and innovative approach to effectively reach your target audiences. Franchises must create consistent brand messaging with their advertising, make it appealing, and stand out from their competitors.

Advertising is also a costly, but necessary, part of operating a business or franchise. Whether it is a major national brand promoting a new campaign or a local franchise working to raise brand awareness in a new market, having a proper advertising strategy is essential. Developing and implementing these strategies is a major part of a franchise’s operations and requires many different individuals and groups to handle the workload.

Data in the 2023 Annual Franchise Marketing Report (AFMR) shows that franchises use a mix of resources to support their advertising plans, whether it is with an internal team or outsourcing it to another party. Fifty-three percent of the franchisors surveyed said they handled advertising buying in house. Forty-two percent used an advertising agency and 25 percent said they worked with a third party. Some respondents used more than one group for advertising buying.  

“Does your organization have marketing team members dedicated to specific areas?”

  • Broadcast advertising (TV and radio) 9%
  • Franchise development marketing 66%
  • Social media strategy 71%
  • Digital advertising 70%

The in-house marketing team

Fifty-eight percent of the respondents said their marketing department was three people or less. The marketing staff members may be able to handle social media strategies or aspects of the digital advertising programs. However, when it comes to more detailed and specialized programs, many franchisors outsource this work to outside companies.

Working with digital companies

The majority of franchises responded that they worked with 2-3 digital companies (55 percent). Thirty-four percent said they worked with a single digital company. Eight percent worked with 4-5 companies, while only three percent worked with five or more. It is likely the franchises that work with the most digital companies are the largest ones that have the most resources and advertising needs.

Services that are outsourced

Franchisors were asked which services they outsource their marketing resources, and they responded with a wide variety of programs. The three most outsourced services were web design (71 percent), digital ad buying (56 percent), and digital ad creative (41 percent). Other popular services also included content creation (35 percent), media buying (35 percent), and social media (30 percent), among others.

The number of marketing services that are being handled by outside groups showcases the many different avenues of modern franchise advertising and the need for companies who specialize in these areas to handle the work.


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