Modernizing The Mix: Transforming Marketing Through Technology And Analytics
July 2016
dataxu.com
TABLE OF CONTENTS 1. Introduction And Key Findings
1
2. Report Methodology
3
3. The Rise Of The Marketing Technologist
4
4. The Positives (And Pitfalls) Of Martech And Adtech
10
5. Solving The Marketing ROI Measurement Challenge
16
6. Planned 2017 Marketing Technology Investments
22
7. Trends In Martech And Adtech Management
24
8. Conclusion
33
ii
© DataXu, Inc.
1. Introduction And Key Findings Marketing roles and functions evolve over time
Martech tools include: CRM platforms, marketing
as consumer trends, new digital media formats
automation solutions, social media management
and cutting-edge technologies force change upon
and e-commerce technologies.
organizations. Today, marketers around the world at all levels are expected to select and manage a wide array of marketing technologies in addition to their “traditional” marketing responsibilities. In an era of technology-driven marketing, senior marketers must have the skill set necessary to understand these technologies and implement them within the marketing department. What remains to be seen is if marketers are ready for the accelerating technological shift that is happening around them.
• In 2016, understanding marketing technology Adtech tools include: data management platforms, and ad servers.
Growing Importance of Technology Skills Marketing technology skills have become mission-
than one full-stack solution, but acknowledge
The United States leads all other countries surveyed in terms of senior marketers’ authority over technology
Spain and Italy to uncover the role and impact of
of marketing technology prowess at the senior level.
adopted at a variety of organizations around the globe to cover an ever-expanding array of functions.
Differences Between Martech and Adtech Two categories of technologies are frequently utilized by marketers: martech solutions and adtech solutions. Martech typically refers to marketing tools that are used to target known customers, while adtech
• Marketers tend to use a variety of marketing
succeed within their organizations.
within the marketing department, and expected levels
reveals that marketing technologies have been widely
utilization of both martech and adtech solutions.
technology point solutions and vendors rather
marketers across the U.S., the UK, Germany, France,
of marketing technologies varies by region, our survey
• U.S. marketers lead the rest of the world in
critical prerequisites for senior marketers looking to
decisions, control over marketing technology budgets
of marketing teams around the world. Although use
has become table stakes for senior marketers.
demand-side platforms, tag management solutions
To help answer this question, DataXu surveyed 532
technology on the strategy and day-to-day operations
Key Findings
that they are stretched too thin across too many platforms as a result.
• Customer insight analytics and programmatic marketing are two areas in which marketers expect to increase investments in 2017.
However, marketers from all countries are leveraging martech and adtech solutions in greater numbers
• The perceived benefits of bringing martech or
than ever before. Many marketers anticipate adding
adtech in-house vary by region: cost efficiency is
additional solutions to their marketing technology
the primary driver behind bringing technologies
stacks over the next 12 months.
in-house for U.S., UK and Italian marketers, while
Marketing technologies have the potential to bring
increased transparency and improved campaign
significant cost-savings to the table if leveraged
performance are the key benefits German, French
correctly, but they also bring along additional
and Spanish marketers attribute to in-house tech.
complexity and challenges. The following pages detail key insights derived from DataXu's survey of 532 global marketers.
• Marketers' number-one marketing challenge is understanding how to create an effective marketing mix across channels.
typically refers to tools that allow marketers to target anonymous audiences. © DataXu, Inc.
1
2
© DataXu, Inc.
2. Report Methodology The research for this report was carried out in May 2016 by market research specialist Morar and Withpr on behalf of DataXu. An online survey of 29 questions was administered to and completed by a total of 532 global marketers (Figure 1). The results from the survey are analyzed within this report.
Company Size • 76% of marketers surveyed are part of companies with 500 or more total employees.
• 21% of marketers surveyed are part of companies with 250 to 499 total employees.
Seniority of Survey Respondents • 16% of survey respondents hold a Chief Marketing Officer title.
• 9% of survey respondents hold a Chief Marketing Technologist title.
• 3% of survey respondents hold a Vice President of Marketing title.
• 23% of survey respondents hold a Director
• • • •
174 marketer respondents are based in the U.S. 156 marketer respondents are based in the UK. 52 marketer respondents are based in France. 150 marketer respondents are based in Germany (50), Spain (50) and Italy (50).
• 24% of marketers hold annual marketing budgets of over USD $1.45 million.
• 33% of marketers hold marketing budgets of between USD $750,000 and USD $1.45 million.
• 33% of marketers hold marketing budgets of between USD $150,000 and USD $749,999.
• 10% of marketers surveyed hold marketing budgets of USD $149,999 or less.
Marketing role.
• 17% of European marketers hold a Marketing Manager title.
• 11% of European marketers hold a different title.
of Marketing title.
• 19% of survey respondents hold a
Profile of U.S. Respondents • 174 U.S. marketers' responses are included in this report.
• 38% of U.S. marketers surveyed hold an Executive title, Head of Marketing title or
• 18% of U.S. marketers surveyed hold a Director of Marketing title.
• 24% of U.S. marketers surveyed hold a Marketing Manager title.
Profile of European Respondents
Location of Survey Respondents
Country
# of Marketers Surveyed
United States
174
United Kingdom
156
France
52
Germany
50
Spain
50
Italy
50
• 358 European marketer responses are included in this report.
• 19% of European marketers surveyed hold a CMO or Vice President of Marketing title.
© DataXu, Inc.
• 17% of European marketers hold a Head of
• 15% of survey respondents hold a Head
Vice President of Marketing title.
Annual Marketing Budget
of Marketing title.
of Marketing title.
Marketing Manager title.
Geographic Location
• 11% of European marketers hold a CMT title. • 25% of European marketers hold a Director
Figure 1. 532 marketers were surveyed for this report. 174 respondents are based in the United States. 358 respondents are based in Europe. 3
3. The Rise Of The Marketing Technologist More marketers than ever before are responsible for purchasing and managing marketing technologies
What skills are becoming increasingly important for successful senior marketers?
within their organizations. To succeed as a senior marketer today requires a deep understanding of marketing technologies as well as hands-on experience in implementing technologies across the team.
Europe
USA 79%
Global
78% 69%
72%
68%
72% 64%
63%
• 78% of U.S. marketers and 63% of European marketers surveyed identify understanding
59%
65% 58%
60%
52%
54%
58%
marketing technology as an increasingly important skill for senior marketers looking to be successful in their role (Figure 2).
• 72% of all global marketers identify creativity as the most important skill necessary for marketing success.
• 72% of U.S. marketers surveyed identify understanding digital media as an increasingly important skill, compared with just 52% of European marketers surveyed.
Creativity
Understanding marketing technology
Understanding digital media
Managing people
Being data literate
• 64% of U.S. marketers feel people management skills are increasingly important, compared with 58% of European marketers surveyed.
4
Figure 2. 78% of U.S. marketers feel that understanding marketing technology is a critically important skill for successful senior marketers, compared to 63% of European marketers surveyed. Understanding marketing technology is identified by U.S. marketers as second only to "creativity" (79%) as an increasingly important skill for senior marketers.
© DataXu, Inc.
Digital Expertise Within Marketing
• 72% of European marketers categorize their business as much more digitally advanced or
Organizations and Leadership Teams
more digitally advanced than average or than their competitors, compared to 69% of U.S. marketers.
When it comes to comfort levels and experience with
• 15% of U.S. marketers categorized their
digital, marketer responses vary by region. European
marketing leadership team as more traditional
marketers are slightly more confident in their marketing
Figure 3. When it comes to assessing the digital expertise of their business, Europeans feel more confident in their organization's digital skills than U.S. marketers do. 72% of European marketers categorize their organizations as much more digitally advanced or more digitally advanced than average/than their competitors, compared to 69% of U.S. marketers.
than digital, compared with just 9% of European
leadership teams' digital skills than U.S. marketers
marketers who categorized their marketing
are. When it comes to their overall business, European
leadership team as more traditional than digital.
marketers feel marginally more confident in their organization's digital skills than U.S. marketers do (Figure 3).
How digitally advanced would you say your overall business is? Much less than average/competitors
0%
Less advanced than average/ competitors Much more advanced than average/ competitors About the same as the average
© DataXu, Inc.
Much less than average/competitors More advanced than average/ competitors
6% 48%
23%
Global 23%
0%
Less advanced than average/ competitors About the same as the average
Much more advanced than average/ competitors
Much less than average/competitors
8% 43%
23%
USA
26%
More advanced than average/ competitors
1%
Less advanced than average/ competitors Much more advanced than average/ competitors
About the same as the average
5% 50% 22%
More advanced than average/ competitors
Europe 23%
5
Presence of Dedicated Technology Staff
Do you have a person on your marketing team who is mainly responsible for marketing technology usage?
The U.S. leads the world in terms of the level of senior marketers' responsibility for marketing technology, control of technology budgets within the marketing department, and expected levels of marketing technology prowess at the senior level. However, compared to their global peer set, Spain and Italy have the highest percentage of teams with a staff
No, but our IT department will get more involved in martech decisions No, and I don’t think it’s necessary to have a dedicated person to own this in the next 12 months No, but our marketing department will become more technology focused
member mainly responsible for marketing technology.
• 94% of Spanish marketers, 76% of Italian
3% 5% 8%
Global
70%
Yes
USA
76%
Yes
Europe
66%
Yes
15%
No, but we are looking to recruit someone in the next 12 months
marketers, and 76% of U.S. marketers are part of a team that includes a staff member mainly responsible for marketing technology.
No, but our IT department will get more involved in martech decisions
• 66% of European marketers are part of a team that includes a staff member mainly responsible for marketing technology (Figure 4). Many organizations who do not yet have a dedicated team member to manage marketing technology plan on creating this position in the coming year (Figure 4).
4% No, and I don’t think it’s necessary to have a dedicated person to own this in the next 12 months No, but our marketing department will become more technology focused
3%
4% 13%
No, but we are looking to recruit someone in the next 12 months
• 13% of U.S. marketers, 15% of European marketers overall and 19% of UK marketers state that they plan to hire someone to manage marketing technologies in the next 12 months.
No, but our IT department will get more involved in martech decisions
3% 6%
No, and I don’t think it’s necessary to have a dedicated person to own this in the next 12 months
10%
No, but our marketing department will become more technology focused
Figure 4. 76% of U.S. marketers and 66% of European marketers state that their department includes a team member mainly responsible for marketing tech usage. 6
No, but we are looking to recruit someone in the next 12 months
15%
© DataXu, Inc.
Who is responsible for marketing technology purchases at your company? IT Manager Other
2%
Digital Director Brand Manager Digital Manager IT Director Head of Digital Marketing Manager Chief Information Officer (CIO) Head of IT
4%
1%
Other Chief Marketing Officer (CMO)
3% 22%
4% 4% 5%
Global
8%
14%
Chief Marketing Technologist (CMT)
Digital Director Brand Manager Digital Manager
5%
1%
3%
Chief Marketing Officer (CMO)
31%
5%
IT Director
5%
Head of Digital
5%
USA
Marketing Manager
6%
Chief Information Officer (CIO)
7%
9%
VP Marketing Chief Technology Officer (CTO)
Ownership of Marketing Technology Budgets
9%
Chief Digital Officer (CDO) Head of Marketing Marketing Director
pockets remain in which non-marketers retain
Brand Manager
control of marketing technology budgets. However,
Digital Manager
• 49% of European marketers state that in cases where their organization has a designated role or team outside of marketing to manage marketing technologies, that team controls a separate budget (Figure 5).
• 33% of U.S. marketers state that in cases where their organization has a designated team outside of marketing to manage marketing technologies, that team controls a separate budget (Figure 5).
6%
Chief Digital Officer (CDO) Head of Marketing Marketing Director
IT Manager Digital Director
tend to also control marketing technology budgets.
8%
Chief Technology Officer (CTO)
budgets, ownership varies by region. In Europe,
companies in the U.S. in which marketing departments
3% 4%
VP Marketing
Other
these companies are laggards when compared to
Chief Marketing Technologist (CMT)
8%
11%
Head of IT
When it comes to controlling marketing technology
© DataXu, Inc.
2%
IT Director Head of Digital Marketing Manager Chief Information Officer (CIO) Head of IT VP Marketing Chief Technology Officer (CTO)
1%
3%
3%
Chief Marketing Officer (CMO)
18%
4% 4% 6%
Europe
6%
16%
Chief Marketing Technologist (CMT)
7% 8%
9%
11%
Chief Digital Officer (CDO) Head of Marketing Marketing Director
Figure 5. According to the responses of U.S. marketers, marketing departments in the U.S. typically seem to maintain responsibility over marketing technologies and all associated budgets. In Europe, marketers tend to give up control of marketing technology budgets once a separate technology team has been established. 7
Does your company currently have a Chief Marketing Technologist (CMT) in place?
The Rise of the Chief Marketing Technologist A new addition to the traditional suite of marketing roles has steadily been gaining traction in recent years. The role of Chief Marketing Technologist (CMT) is currently staffed at two-thirds (66%) of survey
No
respondents' companies (Figure 6).
34%
Global 66%
Yes
USA
47%
No
53%
U.S. organizations in 2017. Of U.S. marketers surveyed who do not currently have a CMT role in place, 26% indicate that their organization is looking to fill a CMT role in the next 12 months.
• Expect to see even more European companies
• The CMT role is especially prevalent in the UK
hiring CMTs in the coming year. Of the European
and in Europe. 73% of European marketers
marketers surveyed who do not currently have a
state that their company currently has a Chief
CMT role in place, 24% indicate that their org is
Marketing Technologist (CMT) in place.
looking to fill a CMT role in the next 12 months.
• U.S. organizations lag behind their Europen
No
• The CMT role may become more prevalent in
• Globally, 42% of marketers whose organizations
counterparts in adding the CMT role to marketing
do not currently have a CMT role in place plan
department staffing plans. Only 53% of U.S.
to make their marketing departments more
marketers state that their company currently
technology-focused over the next 12 months,
has a CMT in place.
rather than hiring for a dedicated CMT position.
Yes
27%
Europe 73%
8
Yes
Figure 6. The role of Chief Marketing Technologist has become increasingly prevalent in Europe. 73% of European survey respondents state that their organization currently has a CMT role in place. Only 53% of U.S. respondents state that their company currently has a CMT role in place. © DataXu, Inc.
© DataXu, Inc.
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4. The Positives (And Pitfalls) Of Martech And Adtech Advertising to and interacting with consumers is
For which aspects of your marketing strategy or execution do you currently use specialized marketing technology software?
becoming increasingly fragmented and complex. Consumers around the world are using multiple devices simultaneously. The rapid proliferation of paid, owned and earned content available on the Internet
71% Social media management
56% 70%
is also contributing to an environment in which it is difficult to attract and retain consumer attention. Today, a wide variety of marketing technologies exist to help brand marketers and their agencies understand consumer behavior and regain control over specific marketing channels, campaigns and programs.
71% Email marketing
55% 60%
Digital advertising (including display, mobile, social media and video)
65% 52% 56% 41%
Content marketing
34% 37%
Global Marketing Technology Utilization The majority of global marketers surveyed currently
36% 35% 35%
Customer insights/analysis
leverage point solutions for at least three categories of marketing activities: social media management, email marketing and digital advertising (Figure 7). U.S. marketers lead the globe in terms of the scale of their marketing technology utilization. Some marketers
34% PR
30% 31% 31% 29% 30%
CRM
juggle ten or more specialized technology solutions, while only 3% of U.S. marketers surveyed do not use
24% 25% 25%
Programmatic marketing
any specialized marketing technologies. 20% 21% 21%
SEO
Figure 7. Specialized marketing technologies are utilized worldwide for a variety of marketing functions. Adoption and usage rates vary according to size of company, annual budget and geographic location. 10
We do not use any marketing technologies
Other
3% 2% 2% 1% 1% 0%
USA
Europe
Global
© DataXu, Inc.
Marketing Technology Definitions
Customer Relationship
Public Relations (PR) Software
While hundreds of marketing technology solutions and
Management (CRM) Software
PR software can be used to locate company press
providers are available, the following nine categories of marketing technology are typically leveraged by brand marketers and their agencies.
CRM software is a category that covers a broad set of applications designed to help businesses manage customer data and track customer interactions. These programs are typically used by Sales and Marketing and allow teams to access business information, track leads
Social Media Management Software (SMMS) SMMS is software that facilitates an organization’s ability to successfully engage in social media activities
customer intelligence software, helps marketers analyze
customer support.
available customer data and past behaviors in order to inform future marketing strategies. This category of
Digital advertising software is a broad category that
outbound conversations, document social marketing
covers data management platforms (DMPs), ad
initiatives and evaluate the effectiveness of a
exchanges, supply-side platforms (SSPs) and, less
company's social media presence.
commonly, demand-side platforms (DSPs). These four technologies form the broader digital advertising
campaigns, including: templates, design tools and contact-management solutions. Email software sends emails out via its own server and provides analytics on the success of each campaign.
ecosystem. Within this ecosystem, large amounts of data are collected, integrated and managed by the DMP.
Content marketing software helps marketers define and manage a user’s end-to-end content process. Content software is typically used to create, store and manage
software is typically used to segment customers into sub-groups, track customers as they move across segments over time, predict future behaviors of customers, determine customer lifetime value and access machine-based learning recommendations to improve future marketing efforts.
Programmatic Marketing Software
Publishers connect their inventory to ad exchanges and
Programmatic media buying, marketing and advertising
DSPs and buyers purchase advertising inventory directly
software enables marketers or their designated agents to
from an ad exchange, ad network, or via a DSP.
make algorithmic purchases of advertising space in realtime using computers. The term programmatic software
Search Engine Optimization Software (SEO) SEO software offers keyword suggestions and quality
Content Marketing/Management Software
Customer Insights/Analysis Software
employee, vendor and partner relationships and provide
typically used by marketers to monitor inbound and
the tools needed to create and execute email marketing
pitches to journalists.
Customer insights/analysis software, also known as
Digital Advertising Software
Email marketing software provides businesses with all of
press releases, collect press analytics and push out
and opportunities, manage business contracts, manage
across different communication channels. SMMS is
Email Marketing Software
mentions, assess competitors' share of voice, publish
ratings to help marketers' businesses and content rank better in search results. SEO software can help organizations perform better than competitors in search, and drive highly qualified website traffic from search.
is commonly used to refer to demand-side platforms (DSPs). Programmatic software is used to automate the buying, placement and optimization of media inventory via a bidding system. Programmatic software typically helps marketers achieve cost and time efficiencies, while simultaneously enabling better targeting of and personalized messaging to advertising recipients.
content; track content by date; assign workflows; assign user permissions; distribute content and/or analyze content effectiveness. © DataXu, Inc.
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Marketing Technology Utilization According to Location and Budget Size
Marketers who currently utilize specialized customer relationship management (CRM) marketing technologies
The utilization of certain marketing technologies varies by geographic location and/or annual budget size.
Marketers with USD $1.45M+ annual budget
Customer relationship management technologies and
Marketers with USD $750,000 to $1.45M+ annual budget
content marketing technologies display a significant amount of variation by location and by annual budget. 40% 37%
CRM Technology Utilization The use of customer relationship management (CRM) marketing technologies varies widely by geographic
35%
31%
34% 31% 28%
26%
25%
location and budget size.
• 40% of German marketers with budgets over USD $1.45 million use CRM technologies,
10%
compared with only 28% of German marketers who manage budgets of less than USD $1.45 million (Figure 8).
• Only 10% of Southern European marketers with
Global
UK
USA
Germany
Southern Europe
budgets over USD $1.45 million use specialized CRM technologies, while 25% of their peers with budgets of between USD $750,000 to USD $1.45 million use CRM technologies (Figure 8).
• Globally, more marketers with annual budgets of
Figure 8. The UK and the U.S. lead the rest of the world in utilization of CRM marketing technologies. Southern Europe lags behind both the U.S. and the rest of Europe in terms of CRM marketing technology usage.
between USD $750,000 and USD $1.45 million use CRM marketing technologies (31%) than marketers with annual budgets greater than USD $1.45 million (26%).
12
© DataXu, Inc.
Content Marketing Technology Utilization
Marketers who currently use specialized content marketing technologies
According to Location and Budget Size The use of content marketing technologies varies widely
Marketers with USD $1.45M+ annual budget
according to size of annual marketing budget (Figure 9).
Marketers with USD $750,000 to $1.45M+ annual budget
• Of all global marketers (except for those based in the UK), marketers with annual budgets of less than USD $1.45 million are more likely to utilize specialized content marketing technologies than
44% 45% 40% 34%
37%
40%
39% 35%
marketers with budgets over USD $1.45 million.
• Budget size does not seem to have a noticeable
30%
impact on content marketing technology 22%
utilization in either the U.S. or the UK.
• United States marketers surveyed lead the rest of the world in terms of specialized content marketing technology utilization (~45%).
Global
UK
USA
Germany
Southern Europe
• Marketers based in Southern Europe with large budgets are the least likely of all respondents to have content marketing technologies in place.
Figure 9. Marketers who control marketing budgets of less than USD $1.45 million are more likely to utilize specialized content marketing technologies than marketers who control larger budgets. UK marketers are the one exception to this trend.
© DataXu, Inc.
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When Marketing Solutions Also Become
Marketing departments are being tasked with more responsibilities than ever by leadership teams—while
Marketing Challenges
facing unprecedented scrutiny from Finance and
Although marketing technologies have been enginered
Procurement. Best-of-breed point solutions offer
to streamline workflows for everything from ad
value to busy marketers with the promise of increased
buying to content creation and customer relationship
performance and workflow efficiencies.
management, there are also unique challenges
Unfortunately, technologies originally created to
associated with adopting a variety of technology point
save marketers time and money have proliferated and
solutions within the marketing department.
gained complexity in recent years to the point where
When asked what the current biggest threat is to
they are now identified as the largest current source of
their marketing team's success, 23% of global
anxiety and fear for marketers around the globe.
marketers say "being stretched too thin due to working with and managing too many vendors." (Figure 10)
What is the largest current threat to your marketing team's success? Skepticism from the C-Suite around the validity of our current marketing strategy
8%
Proving that one channel works better than another channel
Poor staff retention and difficulties finding the right talent for our team Poor visibility into metrics on whether or not our marketing is working
23%
12%
15%
Being stretched too thin due to working with and managing too many vendors
Global 21%
Rumors from Finance that our marketing budget is being reduced
21%
Figure 10. 23% of global marketers surveyed identify "being stretched too thin due to working with and managing too many vendors" as the largest current threat to their team's success. 14
© DataXu, Inc.
Current Threats Perceived By U.S. and
What is the largest current threat to your marketing team's success?
European Marketing Departments Although 23% of all global marketers surveyed identify being stretched too thin across marketing technology vendors and platforms as their greatest current threat, U.S. marketer and European marketer responses vary when it comes to identifying other significant threats.
• 24% of U.S. marketers, 22% of European marketers overall, and 24% of UK marketers identify being stretched too thin due to working with too many marketing technology platforms
Skepticism from the C-Suite around the validity of our current marketing strategy
7% Rumors from Finance that our marketing budget is being reduced Proving that one channel works better than another channel
24%
11%
USA
16%
22%
and/or vendors as the largest current threat to their team's success (Figure 11).
• 25% of European marketers identify “rumors
Being stretched too thin due to working with and managing too many vendors
Poor staff retention and difficulties finding the right talent for our team
Poor visibility into metrics on whether or not our marketing is working
20%
from Finance that our marketing budget is being reduced” as their greatest current threat.
• 11% of U.S. marketers identify “rumors from
Skepticism from the C-Suite around the validity of our current marketing strategy
1% Other 9%
Finance that our marketing budget is being reduced” as their greatest current threat.
25%
9%
Proving that one channel works better than another channel
Rumors from Finance that our marketing budget is being reduced
• 22% of U.S. marketers, 21% of European marketers overall, and 22% of UK marketers identify "poor visibility into metrics on whether
Poor staff retention and difficulties finding the right talent for our team
13%
Europe
or not our marketing is working" as their greatest current threat.
• 20% of U.S. marketers identify poor staff
Poor visibility into metrics on whether or not our marketing is working
22%
Being stretched too thin due to working with and managing too many vendors
21%
retention and difficulties sourcing marketing talent as their largest current threat, compared to just 14% of UK marketers and 13% of European marketers overall.
© DataXu, Inc.
Figure 11. “Rumors from Finance that our marketing budget is being reduced” is the number one threat selected by European marketers. “Being stretched too thin due to working with too many marketing technology vendors” is the number one threat selected by U.S. marketers. 15
5. Solving The Marketing ROI Measurement Challenge Number One Challenge for Marketers Is Generating Marketing ROI Across Channels
What is the biggest marketing challenge you face today?
While marketing technologies can be valuable assets for the majority of global marketing departments, they also contribute an additional layer of challenges to both strategic and day-to-day marketing operations. Perhaps this is why 41% of all marketers surveyed state that the biggest marketing challenge they face today is figuring out how to create the most efficient marketing mix across channels to drive results (Figure 12).
Unifying one brand across different international programs
5% 3%
Preserving/defending my marketing budget in the face of Finance cuts Finding competent marketing staff
8% 41%
10%
Creating the most efficient marketing mix across channels to drive results
Global
Successfully mastering all the new technologies needed to stay ahead
When marketers' second and third biggest challenges are also considered, it becomes clear that marketers across the globe struggle with quantifying the impact their marketing efforts have on sales outcomes.
Finding the right attribution model to show the impact of each channel in the path to purchase
15%
18%
• 74% of global marketers state that their biggest
Quantifying the effect my marketing efforts have on new sales revenue
marketing challenge is quantifying the effect that marketing efforts have on new sales revenue, or creating/quantifying the most efficient
Figure 12. The number one marketing challenge identified by marketer respondents from the U.S., Europe and the UK is creating the most efficient marketing mix possible across channels to drive results.
cross-channel mix possible to drive results.
• 75% of European marketers overall, 70% of UK marketers and 70% of U.S. marketers state that
Top Three Resolution Roadblocks
their biggest marketing challenge is quantifying
When Figures 11, 12 and 13 are considered together, it is clear that creating the most efficient marketing mix and quantifying the effect of that mix on sales has become the holy grail of modern marketing. Yet the following three challenges prevent many marketers from moving forward to measure their marketing's ROI.
the effect that marketing efforts have on new sales revenue, or creating/quantifying the most efficient cross-channel mix possible to drive results (Figure 13, page 17).
16
1. Few partners or platforms offer marketing technology solutions today which reliably address cross-channel analysis and optimization. Real-time cross-channel marketing mix analysis and optimization can be tricky. Technology is needed to identify the most efficient mix possible to drive ROI. © DataXu, Inc.
2. Marketers are busier than ever juggling technologies, reporting and vendor management.
What is the biggest marketing challenge you face today? Unifying one brand across different international programs
Preserving/defending my marketing budget in the face of Finance cuts Finding competent marketing staff
7%
3%
8% 37%
USA
12%
Successfully mastering all the new technologies needed to stay ahead
Creating the most efficient marketing mix across channels to drive results
13%
In the previous section of this report, “being stretched too thin due to working with and managing too many marketing technologies” is identified as the single greatest threat to the success of marketing teams by 23% of global marketer respondents (Figure 10). Traditional econometrics studies or bottom-up attribution methods leading to cross-channel optimization take significant amounts of both time and resources. Few marketers today find themselves with an excess of either.
20%
Finding the right attribution model to show the impact of each channel in the path to purchase
Quantifying the effect my marketing efforts have on new sales revenue
3. Platform-specific success metrics or measurement standards unique to individual “walled gardens” such as Facebook or Google cause headaches later when attempting to analyze marketing return on investment
Unifying one brand across different international programs
(ROI) and/or channel performance. Aggregating and normalizing channel-specific campaign
4% 3% Preserving/defending my marketing budget in the face of Finance cuts
10%
Finding the right attribution model to show the impact of each channel in the path to purchase
43%
Europe
Finding competent marketing staff Successfully mastering all the new technologies needed to stay ahead
data for which “apples-to-apples” equivalents may not
8% Creating the most efficient marketing mix across channels to drive results
exist to create a single holistic performance report can be time-intensive and challenging. As illustrated in Figure 11 on page 15, the second greatest self-identified threat to the success of
16%
marketing teams around the world is poor visibility into metrics on whether or not marketing efforts 16%
are working. Quantifying the effect my marketing efforts have on new sales revenue
Inability to prove the effectiveness of each marketing channel is also identified as a significant threat.
Figure 13. 12% of U.S. marketers, 10% of European marketers overall and 8% of UK marketers identify mastering all of the new marketing technologies needed to stay ahead as their biggest marketing challenge. © DataXu, Inc.
17
The Future of Data and Analytics Within Global Marketing Departments Data and analytics have become more important than
• Many French and Spanish marketers feel that leveraging data and analytics will help ensure
increased use of data and analytics will help their
that future marketing efforts make a significant
department with marketing strategy, help to
business impact.
achieve more visible wins within the company, or will assist in making their day-to-day tasks easier.
ever in marketers' quest to create the most efficient and effective marketing mix possible across channels. The United States leads all other countries surveyed when it comes to seeing the business value in data and analytics and leveraging data to assess the performance of current marketing strategies.
• The majority of UK marketers state that the
• A few French and Spanish marketers express concern that they lack the knowledge required
• A few UK marketers indicate that they do not feel
to use data correctly, while a small number of
data and analytics are relevant to their business,
French marketers express resistance to the idea
or that they do not wish to dive deeper into data
of incorporating data and analytics into future
and analytics within their department.
marketing efforts.
• 100% of U.S. marketers surveyed feel that data and analytics will play a crucial role within their
• A few Spanish marketers express concern that
team as well as within other marketing teams
increased use of data may result in staffing cuts
more broadly in the future (Figure 14).
within the marketing department.
“Many marketing technologies used to measure and target advertising have failed to keep up with changing consumer behaviors. As a result, media budgets and consumer media consumption have fallen increasingly out of alignment.” - Aaron Kechley, SVP of Product, DataXu
18
© DataXu, Inc.
What role/impact do you see data and analytics having on your marketing team (or on marketing teams in general) in the future?
Being able to track and monitor data and analytics is a major day-to-day task. Enables me to see what does and doesn't work.
Data and analytics help us advertise more efficiently.
Data and analytics provide important information that allows the best utilization of resources in order to assure the highest ROI.
Data and analytics are very important. They measure how well what you've instituted is working, and what changes you should make depending on the results.
Data and analytics plays a large role for the marketing team. We run reports on a daily and monthly basis to see how our strategies are working and how each medium is performing.
Better understanding of marketing ROI.
I believe that [leveraging] data and analytics is the best way to go for our marketing team in the future. Data analysis is a key factor in determining the company's marketing goals. Our company is continually looking to enhance or improve the amount and quality of data received in order to improve our marketing strategies.
Data and analytics has a major impact on [our] marketing. Data allows us to see what's good and what we need to improve.
Data tells us how well or how poorly our marketing team is doing in regards to driving sales and maximizing profit.
Quantitative measures don't lie.
Figure 14. 100% of U.S. marketers surveyed feel that data and analytics will have an increasingly important role to play within their own team and other marketing teams in the future. A sample of U.S. marketers' answers to this open response survey question are featured above.
© DataXu, Inc.
19
Responsibility for Marketing Data Marketers' attitudes towards data and analytics vary according to their title and geographic region. Figure 15 identifies the individual within the org who marketers feel is primarily responsible for the day-to-day management of data to inform marketing strategy.
• 25% of global marketers state that the Chief Marketing Officer is the individual responsible within their organization for the day-to-day management of data to inform marketing strategy.
• 14% of global marketers identify the Director of Marketing as responsible for the day-to-day management of data to inform marketing strategy.
• 11% of global marketers identify the Vice President of Marketing as responsible for the day-to-day management of data.
• 65% of global CMO survey respondents feel that they are responsible for the day-to-day management of data to inform marketing strategy.
• 33% of global CMTs survey respondents feel that they are responsible for the day-to-day management of data to inform marketing strategy.
Who in your organization is responsible for the day-to-day management of data to inform the marketing strategy? Chief Marketing Officer (CMO)
25%
Marketing Director
14%
VP of Marketing
11%
Chief Marketing Technologist (CMT)
9%
Head of Marketing
8%
Chief Information Officer (CIO)
6%
Marketing Manager
5%
Digital Manager
3%
Brand Manager
3%
Chief Digital Officer (CDO)
3%
Head of Digital
3%
Other
3%
IT Manager
2%
Chief Technology Officer (CTO)
2%
Digital Director
2%
Head of IT
1%
IT Director
0%
• 22% of VPs surveyed, 24% of Heads of Marketing surveyed, and 22% of Marketing Directors surveyed feel that they personally are responsible for the management of data to inform marketing strategy within their organization.
20
Figure 15. 25% of global marketers state that the CMO is responsible for the day-to-day management of data to inform their marketing department's strategy. 14% of global marketers identify their Marketing Director as the responsible party, while 11% identify the VP of Marketing as the responsible party. © DataXu, Inc.
Role of Data in Annual Budget Allocations Marketing departments around the world use a variety of methodologies to allocate annual marketing budgets.
• 7% of global marketers allocate their annual
• 37% of global marketers state that they analyze
budget based on direction from the C-Suite.
the ROI and performance of each channel before allocating next year's marketing budget according
• 7% of global marketers brainstorm ideas
to the highest performing channels.
with their team and allocate budget according
Although the majority of budget allocation methods utilize data and analytics to inform future marketing
• 27% of global marketers look at what was spent
strategies and channel allocations, a few common
on line items during the previous year, and
allocation methods do not include the consideration of
increase future spend by X% for the coming year.
to the most popular ideas generated.
• 2% of global marketers outsource their marketing to a third-party and are therefore not responsible
historical marketing performance data or analytics.
• 12% of marketers employ a consultant to advise Marketers may wish to review the responses of their
for specific allocations within the annual budget.
how to allocate budgets in the coming year.
peers (shown in Figure 16) who claim to use datadriven methods for budget allocation with a slight dose of skepticism. As the survey responses depicted
• 8% of global marketers leverage technology to generate their annual marketing plan.
in Figures 12 and 13 reveal (pages 16-17), marketers identify calculating marketing ROI across channels as their greatest current marketing challenge. Therefore, it seems unlikely that 37% of all marketers surveyed are able to accurately analyze the ROI and performance of
When it comes to allocating your company's annual marketing budget, which process is most similar to the one your company follows?
each channel and use those metrics to dictate 2017 marketing budget allocations, as stated in Figure 16. Variation between the responses of all global marketers
We actually outsource our marketing to a third-party, so they decide for us.
2%
surveyed and/or the responses of U.S. and European marketers surveyed was no more than 1%-3%; therefore only global results are depicted in Figure 16.
We all brainstorm ideas and then allocate budget to what most people agree sounds good for the coming year.
7% 7% 8%
37%
Global
We allocate our budget however the CEO/C-Suite wants us to.
We analyze ROI from each channel, such as Social Media or Events or Webinars, and then allocate more spend towards the highest performance channels for the coming year.
12% We use technology to generate our annual marketing plan for us.
Figure 16. 37% of global marketers state that they analyze the ROI and performance of each marketing channel before allocating next year's marketing budget to the best-performing channels. © DataXu, Inc.
27%
We look at what we spent on line items last year, and increase spend this year by X%.
We employ a consultant to tell us how to spend our budget next year. 21
6. Planned 2017 Marketing Technology Investments Even with the added time and resource challenges that
In which area(s) of marketing are you planning on using marketing technology/software over the next 12 months?
managing multiple point solution technologies brings to team members, marketers anticipate adding additional marketing technologies to their marketing tech stack in the next 12 months (Figure 17). It seems likely that marketers plan to address previously identified but as-of-yet-unsolved-for marketing weaknesses and/or threats through the use of additional marketing tech. U.S. marketers plan to increase investments in both customer insights analysis marketing technology as well as in programmatic marketing technology in 2017.
71% Social media management
47% 55% 63%
Email marketing
42% 49%
Digital advertising (including display, mobile, social media and video)
62% 42%
49% 46%
Customer insights/analysis
38% 41%
The following insights were derived from comparing current marketing technology usage (as depicted
43% Content marketing
35%
in Figure 7 on page 10) with planned marketing technology usage over the next 12 months (depicted in Figure 17).
38%
36% PR
25% 29% 32%
CRM
25% 27% 34%
Programmatic marketing
Figure 17. Although European marketers seem to be planning a slight reduction in the utilization of marketing technologies over the next 12 months, European marketers and U.S. marketers alike intend to increase investments in specialized customer insights/analytics software. Content marketing technology usage is projected to rise by 1% in 2017 to 35% utilization by European marketers, while utilization of programmatic marketing technologies in 2017 by U.S. marketers is slated to rise 10% YoY to 34% utilization in 2017. 22
23% 27% 22% 20% 21%
SEO
We do not use any marketing technologies
Other
1%
3% 2%
2% 1% 1%
USA
Europe
Global
© DataXu, Inc.
• 46% of U.S. marketers intend to leverage
• 38% of European marketers surveyed expect to
specialized customer insights/analytics software
leverage customer insights/analysis software in
in the coming year, versus the 36% of U.S.
2017, up from the 35% of European marketers
marketers currently utilizing this type of
who utilize this type of technology today.
decline from 29% of European marketers to 25%.
• Programmatic marketing technology usage is slated to decline from 25% of European
software. It may be that an increasing sense of disconnection from today’s consumer is
• Specialized CRM software usage is slated to
• 35% of European marketers anticipate using
marketers to 23% in 2017. The exception to this
prompting U.S. marketers to turn to software
content marketing software in the coming year,
trend occurs in the UK, where 37% of marketers
to obtain a holistic view of consumers and their
up 1% from the 34% who currently use content
in possession of budgets of more than GBP 1
complex behaviors across all devices
marketing software today.
million intend to utilize programmatic marketing technology in 2017. Only 26% of UK marketers
and channels.
EU 2017 Marketing Technology Reductions
with an annual marketing budget of less than
specialized programmatic marketing technologies
Among European marketers, the following technologies
marketing technologies in 2017.
in the coming year, versus the 24% of U.S.
are expected to decrease in utilization over the next 12
marketers currently utilizing programmatic
months. The catalyst behind this anticipated contrac-
marketing technologies.
tion in marketing technology usage within Europe in the
from 21% to 20%. The exception to this trend
coming year may be marketers' self-professed fears of
occurs within the UK, where 30% of marketers
impending budget cuts to their department.
with annual budgets of more than GBP 1 million
• 34% of U.S. marketers intend to leverage
• 62% of U.S. marketers intend on leveraging digital advertising technology in the coming year—a category of technology often considered
• Specialized social media technology usage
to encompass programmatic marketing in
is slated to decline from 56% of European
addition to data management platforms (DMPs),
marketers to 47% in 2017.
ad exchanges and supply-side platforms (SSPs).
EU 2017 Marketing Technology Investments
• Email marketing technology usage is slated
GBP 1 million intend to utilize programmatic
• SEO technology usage is slated to decline 1%
anticipate leveraging SEO technologies in the coming 12 months.
• German marketers are the least likely to utilize specialized SEO technologies in 2017; only 10.5% of German marketers anticipate
to decline from 55% of European marketers
using specialized SEO technologies in 2017,
to 42% in 2017.
irrespective of budget size.
Many European marketers plan to slightly reduce investments in marketing technologies over the next 12 months, with only two categories of technology
• Digital advertising technology usage is slated to decline from 52% of European marketers to 42%.
attracting increased investment from European marketers in 2017: customer insights/analytics software and content marketing software.
© DataXu, Inc.
• PR software usage is slated to decline from 30% of European marketers to 25%.
23
7. Trends In Martech And Adtech Management Marketing organizations around the world utilize a
I have distinct needs for both martech and adtech and have different solution providers for both. Agree or disagree?
variety of specialized marketing technology solutions to streamline marketing workflows, organize marketing content and advertising campaigns and simplify analytics and reporting.
USD $1.45M+
USD $750K $1.45M+
5%
USD $1.45M+
6%
USD $750K $1.45M+ 4%
USD USD $750K $1.45M+ $1.45M+ 5%
5%
USD $1.45M+
10%
However, hands-to-keyboard usage of marketing technologies is not always the responsibility of brand marketers. In many instances, marketers indicate that
40%
53%
57%
44%
35% 53%
USD $750K $1.45M+
USD USD $750K $1.45M+ $1.45M+
7%
30% 28%
their company's agency is the primary manager and/
7%
Disagree
43%
Neither Agree Nor Disagree
22%
56%
or end user of martech or adtech solutions licensed on behalf of their company. The party responsible for 60%
the selection of marketing technologies, as well as the ultimate end user, varies by geographic location of the
54%
42%
organization and size of annual marketing budget.
Perceived Differences Between Martech
Global
52%
43%
60%
Agree
50%
42%
UK
37%
USA
Germany
50%
Southern Europe
Solutions and Adtech Solutions 34% of global marketers feel that a distinct difference exists between martech and adtech solutions. Another 25% of global marketers do not see a difference
Figure 18. The percentage of marketers who recognize distinct needs for martech and adtech varies by location and by size of annual marketing budget. This graph excludes the responses of global marketers with budgets under USD $750,000.
between the two categories of technology.
• Among U.S. marketers, 41% feel that there is a distinct difference between martech and adtech. 17% of U.S. marketers disagree, while the rest of U.S marketers surveyed are unsure.
• 31% of European marketers see a difference between martech and adtech; 29% of EU marketers do not, and the rest are unsure.
24
Distinct Martech Needs Versus Adtech Needs More than half (52%) of global marketers state that they have distinct needs for both martech and adtech and have different solution providers as a result. 7% of global marketers do not feel that they have distinct needs for both martech and adtech.
• 56% of U.S. marketers have distinct needs for both martech and adtech. 8% do not feel they have distinct needs for martech and for adtech.
• Of U.S. marketers with budgets of USD $750,000 to USD $1.45 million, 60% recognize distinct needs for martech and adtech (Figure 18). © DataXu, Inc.
• 50% of European marketers recognize a distinct difference between martech and adtech. 7% of European marketers do not feel they have distinct needs for martech and distinct needs for adtech.
• In all European countries surveyed, with the
Future Convergence of Martech and Adtech When asked if they believe martech and adtech will converge completely within the next five years, the responses of marketers vary widely.
• 49% of global marketers believe that martech
exception of Germany, marketers with smaller
and adtech will converge completely within the
budgets are more prone to recognize distinct
next five years. 10% disagree with this statement.
needs for martech and distinct needs for adtech.
• 53% of U.S. marketers believe that martech and
Rising Levels of Collaboration Between Martech and Adtech Vendors Although a large percentage of marketers think about
adtech will converge completely within the next five years. 8% disagree with this statement.
• 47% of European marketers believe that martech
martech and adtech as being different from one another,
and adtech will converge completely within the
over half of the 532 marketers surveyed state that they
next five years. 11% disagree with this statement.
have begun observing more and more collaboration and/ or combined solutions between martech vendors and platforms and adtech vendors and platforms.
• 70% of U.S. marketers state that they have begun observing more and more collaboration
• UK marketers express higher levels of certainty on this question than any other sub-group of European marketers surveyed. 50% of UK marketers believe that martech and adtech will converge completely within the next five years.
and/or combined solutions between martech and adtech vendors and platforms. Only 2% of U.S. marketers feel this is not the case.
• 60% of European marketers state that they have
• 70% of UK marketers with annual marketing budgets of greater than GBP 1 million believe that martech and adtech will converge completely within the next five years.
begun observing more and more collaboration and/or combined solutions between martech and adtech vendors and platforms. 7% of European marketers feel that this is not the case.
© DataXu, Inc.
25
Roles of Brand Marketers And Agencies in Day-to-Day Martech and Adtech Management The role of the agency during a marketing department's selection of specific martech solutions and adtech solutions varies by geographic location and size of annual marketing budget. Today, the most prevalent model of marketing technology management is one of true partnership between brand marketers and their agencies.
• 54% of global marketers choose technologies in partnership with their agency, but then leave dayto-day technology management to agency staff.
• 10% of global marketers leave the selection and management of technologies entirely in the hands of their agency.
• 47% of U.S. marketers choose technologies in partnership with their agency, but then leave dayto-day technology management to agency staff.
• 18% of U.S. marketers leave the selection and management of technologies entirely in the hands of their agency.
• 54% of European marketers choose technologies in partnership with their agency, but leave dayto-day technology management to agency staff.
• 10% of European marketers leave the selection and management of technologies entirely in the hands of their agency.
26
© DataXu, Inc.
Agencies remain trusted partners throughout the marketing technology decision-making process. 54% of all brand marketers surveyed choose marketing technologies in partnership with their agency, and then entrust the day-to-day management of the technologies to agency staff members.
© DataXu, Inc.
27
Future In-House Management of Martech
Future In-House Management of Adtech
When it comes to managing martech, most marketers
When it comes to managing adtech, most marketers
have shifted at least a portion of their martech solutions
have also shifted at least a portion of their adtech
in-house (Figure 19, page 29).
solutions in-house (Figure 19, page 29).
• 59% of global marketers expect to manage significantly more or slightly more martech
manage significantly more or slightly more
in-house in the next 12 months.
adtech in-house in the next 12 months.
• 62% of U.S. marketers surveyed expect to
• 55% of U.S. marketers surveyed expect to
manage significantly more or slightly more
manage significantly more or slightly more
martech in-house in the next 12 months.
adtech in-house in the next 12 months.
• 58% of European marketers overall expect to
• 57% of European marketers overall expect to
manage significantly more or slightly more
manage significantly more or slightly more
martech in-house in the next 12 months.
adtech in house in the next 12 months.
• 57% of UK marketers say that all or the majority of their martech solutions are managed in-house.
• 27% of global marketers surveyed anticipate
• 56% of UK marketers say that all or the majority of their adtech solutions are managed in-house.
• 31% of global marketers surveyed anticipate
current martech levels to stay the same over the
current adtech levels to stay the same over the
next year.
next year.
• 30% of U.S marketers anticipate current martech levels to stay the same over the next year.
28
• 54% of global marketers surveyed expect to
• 39% of U.S marketers anticipate current adtech levels to stay the same over the next year.
• 25% of European marketers overall anticipate
• 27% of European marketers overall anticipate
current martech levels to stay the same over
current adtech levels to stay the same over
the next year.
the next year.
© DataXu, Inc.
Do you expect the level of martech that is managed in-house by your company to change in the next 12 months?
Do you expect the level of adtech managed in-house at your company to change in the next 12 months?
Global
Global
I expect us to manage significantly less of our martech in-house
Less
1%
Same
9%
More
27%
I expect us to manage slightly less of our martech in-house
I expect the level to stay the same
27% I expect us to manage slightly more of our martech in-house
32% I expect us to manage significantly more of our martech in-house
Less Same I expect us 2% 8% 31% to manage significantly less I expect us to I expect the of our adtech manage slightly level to stay in-house less of our adtech the same in-house
More
I expect us to manage significantly more of our adtech in-house
I expect us to manage slightly more of our adtech in-house
USA
USA Less
Same
1%
30%
More
24%
38%
3% I expect us to manage slightly less of our martech in-house
I expect the level to stay the same
I expect us to manage slightly more of our martech in-house
I expect us to manage significantly more of our martech in-house
Less Same I expect us 1% 39% to manage 3% significantly less I expect us to I expect the of our adtech manage slightly level to stay in-house less of our adtech the same in-house
3% Don’t know
More
26%
29%
I expect us to manage slightly more of our adtech in-house
I expect us to manage significantly more of our adtech in-house
2% Don’t know
Europe
Europe I expect us to manage significantly less of our martech in-house
29%
3% Don’t know
4% Don’t know
I expect us to manage significantly less of our martech in-house
27%
Less
1%
11%
Same
25%
I expect us to I expect the manage slightly level to stay less of our the same martech in-house
More
29% I expect us to manage slightly more of our martech in-house
5% Don’t know
29% I expect us to manage significantly more of our martech in-house
Less Same I expect us 10% 27% 3% to manage significantly less I expect us to I expect the of our adtech manage slightly level to stay in-house less of our adtech the same in-house
More
28% I expect us to manage slightly more of our adtech in-house
29% I expect us to manage significantly more of our adtech in-house
3% Don’t know
Figure 19. 32% of global marketers surveyed expect to manage significantly more martech in-house over the next 12 months (versus 29% for adtech). 27% expect to manage slightly more martech in-house (versus 27% for adtech), while 27% of global marketers surveyed anticipate current in-house martech levels staying the same over the next year (versus 31% for adtech). © DataXu, Inc.
29
What do you believe is the greatest benefit of managing martech in-house? 1%
I do not think managing martech in-house is better - I prefer to work together with my agency
5%
I do not think managing martech in-house is better - I prefer to outsource this entirely
5%
11%
33%
Don’t know/no opinion
It gives advertisers direct access to their own data
Global 22%
It gives better results on marketing campaigns
It gives better results on marketing campaigns
12%
It gives better results on marketing campaigns
44%
USA
It’s more cost-effective
18%
Other
5%
1%
Don’t know/no opinion I do not think managing adtech in-house is better -I prefer to work together with my agency
13%
32%
It gives advertisers direct access to their own data
It offers greater transparency
21%
I do not think managing martech in-house is better - I prefer to outsource this entirely
1% 1% 5% 28%
11%
It’s more cost-effective
Europe
6% 14%
It offers greater transparency
25%
38%
USA
It’s more cost-effective
17%
22% I do not think managing adtech in-house is better - I prefer to outsource this entirely
1% 1% 6%
4% 28%
13%
It gives advertisers direct access to their own data
24%
I do not think managing adtech in-house is better - I prefer to outsource this entirely
2% 1%
Other Don’t know/no opinion I do not think managing adtech in-house is better - I prefer to work with my agency
It gives better results on marketing campaigns
24%
Don’t know/no opinion
It gives better results on marketing campaigns
It’s more cost-effective
Global
I do not think managing adtech in-house is better - I prefer to work with my agency
It gives advertisers direct access to their own data
I do not think managing adtech in-house is better - I prefer to outsource this entirely
5% 4%
It offers greater transparency
18%
I do not think managing martech in-house is better - I prefer to work together with my agency
It gives advertisers direct access to their own data
I do not think managing martech in-house is better - I prefer to work together with my agency
5% 3%
It offers greater transparency
Don’t know/no opinion
It offers greater transparency
23%
Don’t know/no opinion It gives advertisers direct access to their own data
It’s more cost-effective
What do you believe the greatest benefit is of managing adtech in-house?
It’s more cost-effective
Europe
It offers greater transparency
It gives better results on advertising campaigns
20%
27% Figure 20. For U.S. marketers, the number one perceived benefit of moving both martech and adtech in-house is cost-effectiveness. For European marketers, cost-effectiveness also ranks first, but is closely followed by improved campaign results and increased transparency as the most compelling arguments in favor of managing martech and adtech in-house. 30
© DataXu, Inc.
Benefits of Managing Martech In-House And Managing Adtech In-House
Bringing Martech In-House • 44% of U.S. marketers feel that the greatest
Bringing Adtech In-House • 38% of U.S. marketers feel that the greatest
When it comes to managing martech and/or
benefit of bringing martech in-house is improved
benefit of bringing adtech in-house is improved
adtech in-house, the rationale behind transitioning
cost-effectiveness.
cost effectiveness.
technologies in-house varies by region.
• 28% of European marketers overall feel that the
• 28% of European marketers overall feel that the
The number one perceived benefit of moving both
greatest benefit of bringing martech in-house is
greatest benefit of bringing adtech in-house is
martech and adtech in house for U.S. marketers is
improved cost-effectiveness.
improved cost-effectiveness.
improved cost-effectiveness (Figure 20, page 30). For European marketers, cost-effectiveness ranks first but is closely followed by improved campaign results and increased transparency as the most compelling arguments for managing martech and adtech in-house (Figure 20, page 30).
• 25% of European marketers overall feel that the greatest benefit of bringing martech in-house is
benefit of bringing adtech in-house is improved
improved transparency.
cost effectiveness.
• 40% of German marketers feel that the greatest
• 20% of European marketers overall feel that the
benefit of bringing martech in-house is improved
greatest benefit of bringing adtech in-house is
transparency.
improved transparency.
• 24% of European marketers overall feel that the
• 27% of European marketers overall feel that the
greatest benefit of bringing martech in-house is
greatest benefit of bringing adtech in-house is
improved campaign results.
improved campaign results.
• 39% of French marketers feel that the greatest
© DataXu, Inc.
• 39% of French marketers feel that the greatest
• 50% of Spanish marketers feel that the greatest
benefit of bringing martech in-house is improved
benefit of bringing adtech in-house is improved
campaign results.
campaign results.
31
32
© DataXu, Inc.
8. Conclusion In 2016, brand marketers find themselves charged
• Some marketers work with ten or more vendors
with the success of their businesses more heavily
and/or platforms simultaneously across the
than ever before. Perhaps this is why marketing and
martech and adtech landscapes.
advertising technologies continue to make their way onto marketing budget sheets around the world at an accelerating pace and scale.
• More and more marketers are considering bringing marketing or advertising technologies in-house, although the rationale behind such
The Increasing Importance of Technology and Analytics Within Marketing Departments
a move varies by geographic region.
• Cost efficiency is the primary perceived benefit
Shifting Consumer Behaviors and Difficulty Measuring Cross-Channel Performance Will Drive Additional Tech Investments in 2017 Customer insight analytics and programmatic marketing are two additional areas in which marketers expect to invest marketing dollars over the next 12 months.
• One-third of global marketers cite poor visibility
78% of U.S. marketers identify understanding
of bringing martech and/or adtech in-house
into metrics on whether or not their marketing is
marketing technologies as a skill that is increasingly
for U.S. marketers.
working, and difficulty proving that one marketing
becoming a prerequisite to success for senior marketers. Marketing technologies bring numerous efficiencies and cost-savings to the table if leveraged correctly, but they also bring their own set of unique challenges. The responses of the 532 global marketers surveyed for this report make it clear that the widespread adoption of a variety of martech and adtech solutions by global marketers is accompanied by both positives and pitfalls.
channel works better than another channel, as
• Cost efficiency, improved transparency and
the largest current threats to their team’s success.
improved campaign performance are the key perceived benefits of bringing martech and/or adtech in-house for European marketers.
• 46% of U.S. marketers intend to leverage customer insight analytics in 2017, up from the 36% of U.S. marketers currently using these
The majority of global marketers already manage at
types of analytics.
least a portion of their technology solutions in-house. However, the most prevalent model of marketing
• 41% of global marketers and 37% of U.S.
Along with marketing technology expertise, 65% of U.S.
technology management today is one of true
marketers surveyed believe the single biggest
marketers identify being data literate and understanding
partnership between marketers and their agencies.
marketing challenge facing their organization
digital media (72%) as mission-critical skills in today’s digital-first world.
Disparate Marketing Technology Solutions
• Among all global marketers surveyed, 54% choose technologies in partnership with their agency, but then leave the day-to-day management of technologies to agency staff.
23% of marketers state that they are stretched too thin across too many marketing technology vendors
• 10% of global marketers leave both the selection
and platforms as a result of utilizing specialized point
of and management of technologies entirely in
solutions for a slew of marketing functions.
the hands of their agency.
© DataXu, Inc.
is creating the most efficient marketing mix possible across channels to drive results. Few partners or platforms offer marketing technology solutions today which reliably address cross-channel analysis and optimization. However, real-time crosschannel marketing mix analysis and optimization is the only true solution to marketers' most pressing challenge: creating the most efficient mix possible to drive results for their business. 33
Research Contributors
DX-WP-MODMIX-001
DataXu’s mission is to make marketing better using data science. The world’s top brands and agencies use DataXu to better understand and engage customers across all devices and media formats. Our solution provides marketers with unparalleled Media Activation, Marketing Analytics and Data Management capabilities. With sixteen offices in eleven countries, DataXu’s full-stack solution is powering the digital transformation of the world’s most valuable brands.
Morar are specialists in measuring and advising on brand performance. The team includes researchers, consultants, strategists and software developers; together, providing managers with the insight and ideas to grow the value of their brands. Morar’s services include research, strategy and brand positioning. Based in London, Morar’s work spans the globe having worked with over 130 companies in more than 30 countries, ranging from blue-chip global corporations to small national and local businesses. Our clients include Burberry, Fitness First, Burtons Biscuits, Moo, Nandos, Mercedes-Benz, Boots, Cancer Research UK, eFinancialCareers, Orange, THUS, WI, Top Up TV, Tata, Peabody Trust, Ukash, Snell, People Tree, Ping Pong and Tourism New Zealand.
Withpr is a dynamic, full service PR agency, powered by collaborative thinking. Clever, creative and commercially-minded, we specialise in strategic PR across the adtech, fintech and clean tech sectors. Finalist in PRWeek’s New Consultancy of the Year 2012, Withpr has the rigour, standards and connections of a big agency, with the dynamism, energy and openness of a smaller team. We cover 12 languages across the team and implement campaigns across the US, LatAm and Europe that deliver business-changing results.
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