EMERGING DIGITAL MARKETING TRENDS
AUSTRALIA & NEW ZEALAND 2013

1
I love it... and the
possibilities seem
ENDLESS!!!
(Just give me a budget) ;)
Contents

Executive Summary	

4

Introduction .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  ....
1
EXECUTIVE SUMMARY

4
Introduction
Thank you for your interest in
the attitudes and behaviour
of marketers across Australia
and New Zealand.
Sit...
Summary of key themes
Digital marketing is no longer niche.

Digital marketing is now considered mainstream within the mar...
A snapshot of the Australian & NZ sectors

The majority of the marketing budget is
still being spent offline but within th...
What’s in the digital toolkit?

How do marketers feel about working
in the digital environment?

What’s hot right now?
•	 ...
Managing the digital
marketing strategy

What constitutes digital success
and how is it measured?

There is great variatio...
Barriers to the acceleration
of digital marketing
Limited financial resources is the most significant barrier to greater
i...
2
RESEARCH METHODOLOGY AND
PROFILE OF PARTICIPANTS

11
Sample profile

17+8+65320x

BUSINESS SECTOR

ROLE & EXPERIENCE
Marketing (<5 years)

14%

Marketing (5-14 years)

32%

Ma...
3
FINDINGS IN DETAIL
Part 1.
A Context for Digital Marketing in
Australia & New Zealand…

13
The sentiment amongst marketers is largely positive…

It is the place to be! It is growing, evolving and in the next 12-18...
But there are still plenty of cynics…

Digital is simply another advertising/marketing

Stop making out it’s something

me...
A number of challenges have been identified…

I think digital marketing is evolving as we

It will become a very crowded s...
Lack of resources is a common theme…

There is a lot for our organisation to learn from how digital

I love it... and the ...
Many are concerned about isolating digital activity
from the broader marketing mix

Growing, critical, but part of the gre...
But the overwhelming tone is of EXCITEMENT & OPTIMISM

I am very excited about the

Excited! So much opportunity and if we...
Spend on offline activities
still outstrips online spend
by more than 60%

390+610= 39%
610+390= 61%
ONLINE/DIGITAL MARKET...
The momentum however is
clearly towards an increased
spend on digital marketing

And it is larger firms now
driving the in...
The use of social media & customer databases feature
heavily in current marketing activities

ONLINE

OFFLINE

840+160= 84...
The top 5 over-rated marketing channels are all OFFLINE

380+620= 38%
240+760= 24%
160+840= 16%
150+850= 15%
130+870= 13%
...
The top 5 growth opportunities are all ONLINE

220+780= 22%
140+860= 14%
120+880= 12%
100+900= 10%
80+920= 8%
60+940= 6%
3...
3
FINDINGS IN DETAIL
Part 2.
Current patterns of behaviour
in digital marketing

25
What is in the digital toolkit and how
is that expected to change?

88+85+63+57+55+53+40+40+38+26+24+18+11
26
BASE: CLIENT...
Some interesting observations about the different
digital activities being implemented
<5 YEARS MARKETING EXPERIENCE

5-14...
What’s planned for the
next 12 months?

What’s not on the radar yet…?

440+560= 44%
410+590= 41%
400+600= 40%
400+600= 40%...
There are several digital functions not well understood by marketers…

IP LOOKUP

?
?

220+780= 22%
160+840= 16%
140+860= ...
The knowledge gaps lie most significantly with junior-mid level marketers
<5 YEARS MARKETING EXPERIENCE

5-14 YEARS MARKET...
Analytics & personalisation are the areas most want to be doing better…

IP LOOKUP 17%

ECOMMERCE SERVICES 19%

MARKETING ...
Attitudes & behaviour of marketers working in a digital world
There is a clear need to deliver enhanced training to those ...
While most feel quietly
confident about their own
skills in digital marketing…
Q: How would you rate your own
knowledge of...
Almost one in four think their
organisation is more digitally
competent than their competitors…

240+760= 24%
300+700= 30%...
Digital marketing is now mainstream. Marketers feel more
confident about it and are embracing the opportunities.

Q: Liste...
Mid-size companies are the
most likely to be seeing rewards
from their digital activities

Digital success amongst midsize...
Managing the digital marketing strategy
There is great variation in approach taken to
managing the digital marketing funct...
Multiple platforms are common for managing content
activity, particularly in larger companies

Q: Still thinking about the...
Most marketers feel vulnerable
about their social media
strategy & keep a close eye
on competitor activity

470+530= 47%
4...
What constitutes digital success and how is it measured?
Most track ROI to report back
to the executive team… But
20% are ...
Marketers with weak digital
marketing skills are also far less
likely to be measuring digital ROI

20+80+x

On average, do...
Marketers are in no doubt about
what the boss is looking for!

Web analytics could be used more
effectively in most organi...
Use of web analytics
FUNCTIONS

USED EXTENSIVELY

USED MODERATELY

LIMITED/ NO USE

For reporting

38%

41%

16%

For insi...
Barriers to the acceleration of digital marketing
Limited financial resources is the most significant barrier
to greater i...
Limited budgets are a more
significant problem for smaller
companies who would like
to invest more in digital

51+49+x

Ju...
Younger marketers do not feel that clear objectives are being
set for ROI on digital activities. Senior marketers must do
...
Summary of key themes
Digital marketing is no longer niche.

Digital marketing is now considered mainstream within the mar...
About Sitecore
Sitecore is the global leader in customer experience management software for delivering the marketing that ...
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Australia and New Zealand Emerging Digital Marketing Trends by SITECORE

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Sitecore together with First Point Research and Consulting present a uniquely Australian and New Zealand study into the marketer’s relationship with and understanding of digital marketing.

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Australia and New Zealand Emerging Digital Marketing Trends by SITECORE

  1. 1. EMERGING DIGITAL MARKETING TRENDS AUSTRALIA & NEW ZEALAND 2013 1
  2. 2. I love it... and the possibilities seem ENDLESS!!! (Just give me a budget) ;)
  3. 3. Contents Executive Summary 4 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Summary of key themes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 A snapshot of the Australian & NZ sectors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 What’s in the digital toolkit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Findings in Detail 13 Part 1. A Context for Digital Marketing in Australia & New Zealand… How do marketers feel about working in the digital environment?. . . . . . . . . . . . . . . . 8 Findings in Detail Managing the digital marketing strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Part 2. What constitutes digital success and how is it measured? . . . . . . . . . . . . . . . . . . . . . . . 9 25 Current patterns of behaviour in digital marketing Barriers to the acceleration of digital marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Research Methodology and Profile of Participants 11 Sample profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 About Sitecore 48
  4. 4. 1 EXECUTIVE SUMMARY 4
  5. 5. Introduction Thank you for your interest in the attitudes and behaviour of marketers across Australia and New Zealand. Sitecore together with First Point Research and Consulting are pleased to present a uniquely Australian and New Zealand study into the marketer’s relationship with and understanding of digital marketing. Digital marketing is a rapidly evolving industry. Marketers are faced with a diverse and growing range of channels, a consumer journey with multichannel touch points, different technologies to deliver to each channel and no consistent approach to the measurement of marketing effectiveness. With these challenges comes greater scrutiny of marketing budgets and demands for increased linkages to sales. With this survey we analyse the current state of digital marketing and attitudes to the challenges and opportunities within the Australian and New Zealand markets. It’s not uncommon to see reports discussing the trends within this space, however many only focus on the United States or United Kingdom and presume these countries reflect the stance in Australia and New Zealand. Other reports simply confirm what is already known – that it’s happening now and will continue long into the future. With that in mind, we wanted to get to the truth of digital marketing in Australia and New Zealand, even if that meant some potentially disruptive insights. Read on and find out how your organisation and role compares to others in your industry, seniority and organisation size. Robert Holliday Managing Director Sitecore Australia & New Zealand This research study conducted with 330 marketing managers examines: • Current patterns of behaviours in digital marketing • The current digital toolkit and how it is expected to change • Attitudes of marketers working in a digital world • Managing the digital marketing strategy • What constitutes digital success and how it is measured • The barriers to the acceleration of digital marketing 5
  6. 6. Summary of key themes Digital marketing is no longer niche. Digital marketing is now considered mainstream within the marketing repertoire. Marketers have seen the opportunities presented and are now embracing them. (page 35) Big companies are waking up to the advantages. Large companies are now leading the investment in digital marketing activities. While smaller companies were the early adopters of digital marketing, the big spenders are now catching up and are the most likely to be investing more in digital over the next 12 months. (page 21) Senior marketers are building their own skills in digital marketing but greater emphasis is now needed at the junior-mid levels. Experienced marketers (15yrs+ in the industry) are more likely to have undertaken specific training in digital marketing (relative to those with 10yrs or less in the industry) and this is reflected in their knowledge of the digital tools available to them, application of more sophisticated digital tools and higher rates of measurement of ROI. Less experienced marketers are less knowledgeable about digital, are less likely to measure ROI and are generally less confident about the digital marketing strategies they implement. (page 32) Web analytics is not being used effectively. Web analytics are used primarily for periodic reporting and most marketers are frustrated in their knowledge that they could be used far more effectively. Web analytics is the number one area marketers would like to see their organisations improve. (page 31) Big appetite for predictive analytics. Digital ROI is a work in progress. 6 Predictive analytics is largely viewed as the next ‘golden ticket’ but most feel ill equipped to move in that direction. (page 31) ROI of digital activity is still evolving and most are still focused on visits to the website as a primary measure of success. 20% are not measuring ROI at all. (page 40)
  7. 7. A snapshot of the Australian & NZ sectors The majority of the marketing budget is still being spent offline but within the next 12 months the spend on digital marketing activities is likely to outstrip offline. • The most significant differences in the application of digital marketing activities is observed across the scale of organisations. • • Organisations with turnover of $20million+ are still more traditional in their marketing activities while smaller companies (turnover of $2million or less) are using digital marketing more extensively. • The indication however is that larger companies have now realised they need to ‘get on board’. Large companies are the most likely to be spending more on digital in the next 12 months (75% of high turnover companies indicate they will invest more money in digital in the next 12 months, compared with 50% of companies with a turnover of $2million or less). 73% intend to spend more on digital in the next 12 months (only 2% will spend less on digital); and • Two of the top three most common marketing activities in late 2013 are digital activities. Only 11% intend to increase spend on traditional marketing (while 33% will spend less). Social media & email marketing to existing customer databases (both used by more than 80% of the organisations surveyed) are currently the most widely used marketing activities. The top 5 ‘areas of growth’ all fall within the scope of digital marketing. The top 5 ‘over-rated marketing channels’ are all traditional marketing channels. • • Social media (22% perceive it as the greatest opportunity for future growth); emailing to their own database (14%); personalisation (12%); mobile (10%) and paid search (8%) are perceived as the key growth areas. Print (38% perceive it as over-rated); TV (24%); trade shows (16%); direct mail (15%) & radio (13%). 7
  8. 8. What’s in the digital toolkit? How do marketers feel about working in the digital environment? What’s hot right now? • Web analytics (currently used by 88% of companies). • Email marketing (currently used by 85% of companies). There is a clear need to deliver enhanced training to junior and mid-level marketers. What are the priorities for the next 12 months? • • Predictive analytics (44% planning to use within 12 months). • Content profiling (40% planning to use within 12 months). • Integration to CRM (40% planning to use within 12 months). Formal training in digital marketing is heavily skewed to marketers with 15 years or more experience (53% vs 38%). It appears as an industry there is an assumption that young marketers are obtaining the necessary skills in their undergraduate courses… and this doesn’t appear to be the case. • Mobile adapted version of the website (37% planning to use within 12 months). While most feel relatively confident with their digital marketing skills, younger marketers are much less confident in their skills, which is not surprising given they are far less likely to be completing specific training courses in digital marketing. What are the knowledge roadblocks? • • Personalisation (40% planning to use within 12 months). • IP Lookup for sales (22% don’t know what this is). • Predictive analytics (16% don’t know what this is). • Marketing automation (14% don’t know what this is). Analytics & personalisation are the areas marketers want to see their organisations improve. • Web analytics (51% want to see their organisation get better at this). • Predictive analytics (50% want to see their organisation get better at this). • Personalisation (50% want to see their organisation get better at this). 8 While 27% of marketers with 15yrs or more experience in marketing rate their digital skills as ‘excellent’, only 13% of marketers with less than 5 years experience view their digital skills as ‘excellent’. The enhanced training received by senior marketers is reflected not only in their higher level of digital competency, but also in a competitive edge. • While 33% of senior marketers think their organisation is ‘ahead of most competitors’, only 22% of junior to mid level marketers believe that. Digital marketing is no longer considered niche. Marketers feel more confident about it and are embracing the opportunities presented by the sector. • 95% now view digital marketing as mainstream; • 83% find digital marketing stimulating and exciting. Mid-Larger companies have been slower to invest in digital but are now seeing success and are feeling more confident in the process.
  9. 9. Managing the digital marketing strategy What constitutes digital success and how is it measured? There is great variation in the way the digital marketing function is managed across organisations. While the vast majority (80%) of organisations track ROI on their digital marketing activities, the big surprise is that 20% are not tracking ROI on digital activities at all. • The largest proportion (46%) use ROI to report back to management. • • A small but significant segment (14%) are tracking the ROI but are unsure of how to use it. • • As might be expected, there are significant differences between small-medium size companies compared with larger firms. While the most common scenario is now to have a ‘digital marketing team’ (28% overall), this increases to 34% amongst large companies and only 15% amongst smaller companies. A large proportion still rely on a single marketing person to handle all marketing activities (20% overall) but this is more prevalent in smaller companies (38%) and far less so in larger companies (10%). Multiple platforms are common for managing content activity, particularly in larger companies. • 73% on average are using multiple platforms and only 17% are using a single platform. Social media is the area that marketers are most vigilant about the activities of their competitors. • The most common measure of digital success is the use of website traffic. The three most common measures of success are: • Visits to the website (73%); • Conversions/ sales/ new customer acquisitions (57%); and • Leads generated (44%) Most marketers are in no doubt though about how ‘the boss’ measures success: • Conversions/ sales/ new customer acquisitions (43%) is cited by the largest proportion as the key indicator sought by the management team, followed by having KPIs aligned with the business objectives (14%). Web analytics could be used far more effectively in most organisations. • They are generally used in periodic marketing meetings (in 48% of organisations) and few are using them in real time (only 8%). • The most common use of web analytics is in reporting (38% using them extensively for reporting) and to a lesser extent for insights (22%). • Few are using web analytics for recommendations for content for market automation, or site or content optimisation (only around 10% are using them regularly for these functions). 47% think their competitors have an edge over them in social media. 9
  10. 10. Barriers to the acceleration of digital marketing Limited financial resources is the most significant barrier to greater investment in digital marketing. Many participants articulated this in their open comments, but the survey results reinforce the problem: • 51% view a limited marketing budget as a significant barrier. • The problem is even worse in Australia (52% cite limited budget as a significant barrier) relative to New Zealand (42%). NO MONEY! Junior & mid level marketers are far more likely to cite a lack of digital marketing knowledge as a barrier. Previous results support this and reinforce a need for more training at junior levels. • 33% of younger marketers identify ‘lack of marketing knowledge’ as a significant barrier, compared with 18% of senior marketers. I DON’T KNOW HOW TO...! Younger marketers don’t feel that clear objectives are being set for ROI on digital activities. Senior marketers must do more to keep their team moving in the same direction. • 10 31% amongst younger marketers identify ‘lack of clear understanding of ROI’ as a significant barrier to further investment in digital, compared with just 12% of senior marketers. WHAT DO YOU MEAN BY ROI?
  11. 11. 2 RESEARCH METHODOLOGY AND PROFILE OF PARTICIPANTS 11
  12. 12. Sample profile 17+8+65320x BUSINESS SECTOR ROLE & EXPERIENCE Marketing (<5 years) 14% Marketing (5-14 years) 32% Marketing (15 years +) 15% Web development/ IT 20% Other (Customer service / operations) 18% GOVERNMENT 17% FINANCE/ INSURANCE 20% EDUCATION 8% TECHNOLOGY 6% OTHERS 25% MEDIA 5% LOCATION HEALTHCARE 3% RETAIL 3% SERVICES 3% MANUFACTURING 5% NON PROFIT 5% SPORT & LEISURE 5% ANNUAL TURNOVER 88% 12% <$2MILLION 8% $20MILLION OR MORE 48% 12 BASE: CLIENT SIDE SAMPLE (N=330) $2- $19MILLION 16% DON’T KNOW 28% *responses have been rounded so could add to more than 100%. Fieldwork was conducted via online survey from 1-9 October 2013.
  13. 13. 3 FINDINGS IN DETAIL Part 1. A Context for Digital Marketing in Australia & New Zealand… 13
  14. 14. The sentiment amongst marketers is largely positive… It is the place to be! It is growing, evolving and in the next 12-18 I’m excited about new platforms months we will see a lot of dinosaurs leaving traditional methods and possibilities for reaching our and jumping into the “”new”” digital marketing space. Mobile is the tip of target audience which has grown up with the iceberg, and where a lot of money & efforts will be concentrated on. technology and are first embracers. Australian marketing is about 10 Digital marketing is fast moving and it takes time and effort to keep up with the technology. If you can keep up there are exciting times ahead. years behind the UK in strategy and channel optimisation, however, the need to satisfy and focus on the customer is always at the forefront of strategic conversations. If companies don’t I’m excited, with Google Glass about to disrupt social media, have a plan in place to implement an and Pebble leading the charge into smartwatch technology, effective digital marketing plan, including wearable digital devices will become integrated, more so, into every aspect of life. And marketers need to be able to harness these trigger based CRM, then they are already technologies and provide customers with better brand experiences. 14 reporting through to optimisation and 5 years behind their competitors.
  15. 15. But there are still plenty of cynics… Digital is simply another advertising/marketing Stop making out it’s something medium, we use it alongside traditional media it isn’t. Digital is just another set at different weights depending on the campaign of channels - some work, some don’t. objectives. It’s not a silver bullet, it may work in some I wish the BS and noise would die. cases and not in others... like any other medium! It’s still full of digi-spruikers Digital marketing is just another tool in the tool conning money out of marketers kit. It’s not always the answer, sometimes it is the by pretending there is something best/sole solution and sometimes it is part of an integrated special about digital. With all these digi- strategy. It’s probably going to grow in importance experts we have not seen any market as many more people spend more time online. share shifts, nor any reduction in budgets from testing and analytics. 15
  16. 16. A number of challenges have been identified… I think digital marketing is evolving as we It will become a very crowded space so we speak. There’s little differentiation between need to develop effective new ways to cut editorial content and sponsored content and I think through the clutter and connect with potential clients. that this is going to be a problem. Many people want to buy native advertising, but if there is too much vendor content, then it will significantly reduce the value of such content and their proposition. As a marketing manager I feel overwhelmed at the enormity of creating and implementing a digital marketing plan with very little budget. I feel like our organisation has left it all up Digital marketing has much potential but the rapidly evolving nature of it makes long term usage strategies difficult to plan for. There is always something new, lots of static about social media, frauds to my department and there is no support for us. My working week is now 80% digital and I am not sure when that turning point occurred. Over the next 12-18 months I can see that the digital task will continue to be my team’s focus as we strive to harness its many facets. It will be unlikely that we employ digital specialists, so we are all trying to get up to speed with digital marketing as best we can. purporting to be experts, people who don’t understand specific industries, a disconnect between reality and fact which will continue into the future. 16 Positive as far as ROI and insight goes, apprehensive as to how long it will last, fear consumers will say enough is enough with the stalking style tactics.
  17. 17. Lack of resources is a common theme… There is a lot for our organisation to learn from how digital I love it... and the possibilities seem marketing can benefit our business. We currently need more ENDLESS!!! (Just give me a budget) ;) resources to even look at digital within the next 12 - 18 months. I feel agnostic and Lots of potential for creating great campaigns, however resources are often understated and great tools end up being under-utilised. yet resigned to not doing anything about it, knowing there is absolutely no budget for such activities. Exciting opportunities exist. However, as a Government body that sets industry standards and ensures industry compliance we are greatly restricted in terms of budget in the current economic environment. 17
  18. 18. Many are concerned about isolating digital activity from the broader marketing mix Growing, critical, but part of the greater marketing mix, integrated campaigns still provide best return. digital alone won’t succeed. Digital marketing will grow I feel that people have very high exceptions of however it should not be looked digital marketing and that they need to understand at in isolation in the total marketing mix. it is one platform of a good multi-channel campaign. Awash with opportunity but must be part of overall business strategy. Requires a huge corporate cultural shift but those that embrace it and move forward with it will reap the rewards. 18
  19. 19. But the overwhelming tone is of EXCITEMENT & OPTIMISM I am very excited about the Excited! So much opportunity and if we don’t outlook for the digital marketing lose the NBN plans in Australia then we’ll have industry. I am only a newbie and not exponential growth in digital marketing. Marketers will need formally trained, but the last two years to be creative to stay one step ahead of the media savvy working in this space have convinced public. But the challenges and opportunities excite me! me that this is the career I want. I feel very passionately about digital marketing and would like to partake in more training courses to keep up to date with new technologies and improvements. Bring it on...! 19
  20. 20. Spend on offline activities still outstrips online spend by more than 60% 390+610= 39% 610+390= 61% ONLINE/DIGITAL MARKETING ACTIVITIES OFFLINE MARKETING ACTIVITIES 100  AVERAGE PROPORTION OF THE MARKETING BUDGET SPENT ONLINE VS OFFLINE Q: Approximately what proportion of your marketing budget would currently be spent online (ie. on digital marketing activities) compared with offline marketing activities? Smaller firms are leading the way in their investment in digital 39+61+x 39% The average proportion of the marketing budget, on average, spent on DIGITAL marketing activities BY COMPANY TURNOVER 550+450= 55% < $2MILLION 460+540= 46% $2-19MILLION 330+670= 33% $20MILLION OR MORE 20 BASE: CLIENT SIDE SAMPLE (N=330)
  21. 21. The momentum however is clearly towards an increased spend on digital marketing And it is larger firms now driving the increased spend in digital and ‘catching up’ 73+20+2+5+0+1+48+33+8 73+27+x 73% 20% 2% 5% ONLINE/DIGITAL MARKETING 11% 48% 33% 8% OFFLINE MARKETING 100  INCREASE SPEND 100  MAINTAIN SPEND 100  DECREASE SPEND 100  DON’T KNOW Q: Looking ahead to the next 12-18 months, what is planned for your digital marketing budget and your offline marketing budgets? Indicates they will increase their spend on DIGITAL marketing activities 73% BY COMPANY TURNOVER 500+500= 50% < $2MILLION 760+240= 76% 750+250= 75% $2-19MILLION $20MILLION OR MORE 21 BASE: CLIENT SIDE SAMPLE (N=330)
  22. 22. The use of social media & customer databases feature heavily in current marketing activities ONLINE OFFLINE 840+160= 84% 810+190= 81% 600+400= 60% 550+450= 55% 320+680= 32% 310+690= 31% 270+730= 27% 210+790= 21% 170+830= 17% 150+850= 15% 120+880= 12% 90+910= 9% 820+180= 82% 650+350= 65% 590+410= 59% 470+530= 47% 460+540= 46% 360+640= 36% 180+820= 18% 180+820= 18% EMAIL TO OWN DATABASE SOCIAL MEDIA DISPLAY ADS PAID SEARCH MOBILE BUSINESS/ WEB ANALYTICS EMAIL TO EXTERNAL DATABASE VIDEO ADS WEBINARS AFFILIATE MARKETING PERSONALISATION PRICE COMPARISON SITES 22 BASE: CLIENT SIDE SAMPLE (N=330) PRINT TRADE SHOWS DIRECT MAIL RADIO TV OTHER EVENTS TELEMARKETING OUT OF HOME Q: Looking at the extensive list below of offline and online marketing channels, please indicate which channels currently feature within your marketing mix (or the marketing mix of the organisation you deal with most often). (Multiple answers possible)
  23. 23. The top 5 over-rated marketing channels are all OFFLINE 380+620= 38% 240+760= 24% 160+840= 16% 150+850= 15% 130+870= 13% 110+890= 11% 60+940= 6% 60+940= 6% 60+940= 6% 50+950= 5% 40+960= 4% 40+960= 4% 30+970= 3% 20+980= 2% 50+950= 5% PRINT TV TRADE SHOWS DIRECT MAIL RADIO DISPLAY ADS SOCIAL MEDIA TELEMARKETING PAID SEARCH EMAIL MARKETING OUT OF HOME PRICE COMPARISON SITES AFFILIATE MARKETING WEBINARS Q: Of those channels that currently feature in your marketing mix, which, if any, do you think are over-rated and would prefer to see less of your marketing budget spent on? OTHERS 23 BASE: CLIENT SIDE SAMPLE (N=330)
  24. 24. The top 5 growth opportunities are all ONLINE 220+780= 22% 140+860= 14% 120+880= 12% 100+900= 10% 80+920= 8% 60+940= 6% 30+970= 3% SOCIAL MEDIA EMAIL TO OWN DATABASE PERSONALISATION MOBILE PAID SEARCH TV ALL OTHERS Q: Looking again at the comprehensive list of marketing channels, which ONE channel, do you perceive offers the greatest opportunity for growth of your organisation (or the organisation you deal with most often) over the next 12-18 months? 24 BASE: CLIENT SIDE SAMPLE (N=330)
  25. 25. 3 FINDINGS IN DETAIL Part 2. Current patterns of behaviour in digital marketing 25
  26. 26. What is in the digital toolkit and how is that expected to change? 88+85+63+57+55+53+40+40+38+26+24+18+11 26 BASE: CLIENT SIDE SAMPLE (N=330) 18% 11% IP LOOKUP MARKETING AUTOMATION 26% 24% CONTENT PROFILING INTEGRATION TO CRM/ CUSTOMER REPOSITORIES ECOMMERCE SERVICES PERSONALISATION MOBILE ADAPTED VERSION OF WEBSITE TESTING 57% 55% 53% 40% 40% 38% SOCIAL MEDIA INTEGRATION CAMPAIGN MANAGEMENT 85% 63% EMAIL MARKETING WEB ANALYTICS 88% PREDICTIVE ANALYTICS What’s hot right now? Q: To what extent does your organisation use the following? WEB ANALYTICS AND EMAIL MARKETING ARE ON FIRE!
  27. 27. Some interesting observations about the different digital activities being implemented <5 YEARS MARKETING EXPERIENCE 5-14 YEARS MARKETING EXPERIENCE 15YEARS + MARKETING EXPERIENCE Web analytics 81% 91% 88% Email marketing 85% 88% 90% Campaign management 71% 58% 78% Social media integration 67% 59% 47% Testing 52% 46% 57% Mobile adapted version of the website 48% 41% 55% Personalisation 54% 37% 55% Ecommerce services 27% 40% 61% Integration to CRM 46% 33% 31% Content profiling 35% 19% 29% Marketing automation 27% 23% 33% Predictive analytics 23% 12% 24% IP Lookup 17% 10% 12% Q: To what extent does your organisation use the following? 27 BASE: CLIENT SIDE SAMPLE (N=330)
  28. 28. What’s planned for the next 12 months? What’s not on the radar yet…? 440+560= 44% 410+590= 41% 400+600= 40% 400+600= 40% 370+630= 37% 350+650= 35% 340+660= 34% 290+710= 29% 260+740= 26% 260+740= 26% 210+790= 21% 90+910= 9% 70+930= 7% 380+620= 38% 300+700= 30% 270+730= 27% 220+780= 22% 180+820= 18% 150+850= 15% 140+860= 14% 120+880= 12% 100+900= 10% 80+920= 8% 60+940= 6% 60+940= 6% 100  PLANNING TO USE IN THE NEXT 12 MONTHS Q: To what extent does your organisation plan to use the following in the next 12 months?: PREDICTIVE ANALYTICS CONTENT PROFILING INTEGRATION TO CRM PERSONALISATION MOBILE VERSION OF WEBSITE SOCIAL MEDIA INTEGRATION MARKETING AUTOMATION IP LOOKUP CAMPAIGN MANAGEMENT TESTING ECOMMERCE SERVICES WEB ANALYTICS EMAIL MARKETING Q: What does your organisation plan to use in the next 12 months? 28 BASE: CLIENT SIDE SAMPLE (N=330) IP LOOKUP ECOMMERCE SERVICES MARKETING AUTOMATION PREDICTIVE ANALYTICS CONTENT PROFILING INTEGRATION TO CRM PERSONALISATION TESTING CAMPAIGN MANAGEMENT MOBILE VERSION OF WEBSITE EMAIL MARKETING SOCIAL MEDIA INTEGRATION 100  NO INTENT TO USE IN THE NEXT 12 MONTHS
  29. 29. There are several digital functions not well understood by marketers… IP LOOKUP ? ? 220+780= 22% 160+840= 16% 140+860= 14% 90+910= 9% 70+930= 7% 60+940= 6% 60+940= 6% 40+960= 4% 50+950= 5% 30+970= 3% 20+980= 2% PREDICTIVE ANALYTICS ? MARKETING AUTOMATION TESTING INTEGRATION TO CRM PERSONALISATION MOBILE VERSION OF WEBSITE CAMPAIGN MANAGEMENT CONTENT PROFILING SOCIAL MEDIA INTEGRATION EMAIL MARKETING 100  I DON’T KNOW WHAT THAT IS Q: To what extent does your organisation use the following? 29 BASE: CLIENT SIDE SAMPLE (N=330)
  30. 30. The knowledge gaps lie most significantly with junior-mid level marketers <5 YEARS MARKETING EXPERIENCE 5-14 YEARS MARKETING EXPERIENCE 15 YEARS + MARKETING EXPERIENCE IP Lookup 27% 22% 14% Predictive analytics 13% 22% 4% Marketing automation 17% 13% 6% Testing 10% 12% 2% Content profiling 10% 18% 10% Integration to CRM 2% 7% 4% Personalisation 4% 5% 0% Mobile adapted version of the website 8% 6% 0% Campaign management 4% 3% 2% Social media integration 4% 1% 0% Q: To what extent does your organisation use the following: (I DON’T KNOW WHAT THAT IS) 30 BASE: CLIENT SIDE SAMPLE (N=330)
  31. 31. Analytics & personalisation are the areas most want to be doing better… IP LOOKUP 17% ECOMMERCE SERVICES 19% MARKETING AUTOMATION 32% TESTING 32% INTEGRATION TO CRM 32% CAMPAIGN MANAGEMENT 33% EMAIL MARKETING 34% MOBILE VERSION OF WEBSITE 35% CONTENT PROFILING 38% SOCIAL MEDIA INTEGRATION 42% PERSONALISATION 50% PREDICTIVE ANALYTICS 50% 100  WHAT COULD YOUR ORGANISATION BE DOING BETTER? 51+50+50+42+38+35+34+33+32+32+32+19+17 WEB ANALYTICS 51% Q: Which of the following, if any, do you think your organisation should be doing better? Please select all that apply. (Multiple responses possible) 31 BASE: CLIENT SIDE SAMPLE (N=330)
  32. 32. Attitudes & behaviour of marketers working in a digital world There is a clear need to deliver enhanced training to those new to the industry Q: Have you undertaken any training courses in digital marketing? ‘YES’, THEY HAVE UNDERTAKEN A TRAINING COURSE 40+60+x 40% YES 60% NO SOME OF THE TRAINING UNDERTAKEN INCLUDED.. 530+470= 53% 15 YEARS+ IN MARKETING 540+460= 54% 32 BASE: CLIENT SIDE SAMPLE (N=330) • Post-graduate degrees • Industry Association courses • Sitecore training courses • ADMA courses • Google Adwords • Google Analytics • SEO/SEM • Short courses (1-2 days) Seminars Webinars • 5-14 YEARS IN MARKETING Undergraduate degrees (units within) • 380+620= 38% • • < 5 YEARS IN MARKETING In-house training
  33. 33. While most feel quietly confident about their own skills in digital marketing… Q: How would you rate your own knowledge of digital marketing? 170+830= 17% EXCELLENT 430+570= 43% GOOD 280+720= 28% ADEQUATE 110+890= 11% LIMITED 10+990= 1% POOR The more concentrated training directed at senior marketers is reflected in their own confidence… and also lack of confidence amongst younger marketers 17+83+x Marketers that rate their own digital marketing skills as ‘excellent’ 17% MARKETING EXPERIENCE 130+870= 13% < 5 YEARS IN MARKETING 230+770= 23% 5-14 YEARS IN MARKETING 270+730= 27% 15 YEARS+ IN MARKETING 33 BASE: CLIENT SIDE SAMPLE (N=330)
  34. 34. Almost one in four think their organisation is more digitally competent than their competitors… 240+760= 24% 300+700= 30% 180+820= 18% 120+880= 12% 120+880= 12% 40+960= 4% AHEAD OF MOST OF OUR COMPETITORS ABOUT THE SAME AS OUR COMPETITORS ABOUT 6 MONTHS BEHIND OUR COMPETITORS ABOUT 12 MONTHS BEHIND OUR COMPETITORS MORE THAN 12 MONTHS BEHIND OUR COMPETITORS I DON’T KNOW/ COULDN’T SAY 100  DIGITAL COMPETENCY WITHIN THE ORGANISATION 24% MARKETING EXPERIENCE 220+780= 22% < 5 YEARS IN MARKETING 230+770= 23% 5-14 YEARS IN MARKETING 15 YEARS+ IN MARKETING EDUCATION SECTOR: 19% GOVERNMENT SECTOR : 30% BASE: CLIENT SIDE SAMPLE (N=330) 24+76+x Marketers believe they are ahead of most of their competitors in terms of digital competency 330+670= 33% Q: Which of the following best describes your impression of the digital competence within your organisation? 34 Senior marketers feel particularly confident about their competitive position. The enhanced training received by senior marketers is reflected not only in their higher level of digital competency… but also in a competitive edge
  35. 35. Digital marketing is now mainstream. Marketers feel more confident about it and are embracing the opportunities. Q: Listed below are a number of statements other people have shared with us about how they are feeling about digital marketing. Using a scale from 1 to 5 please indicate the extent to which you agree or disagree with each statement. I now see digital marketing as part of mainstream marketing I find working on digital marketing activities both stimulating and exciting I feel more confident executing digital marketing activities than I did 12 months ago Measurement of the impact of digital marketing activities continues to be a major challenge for the industry I continue to be impressed by the outcomes achieved by our digital marketing activities I prefer traditional, offline marketing methods as they have a proven ROI I avoid getting involved in digital marketing activities when I can I don’t really ‘get’ the fuss about digital marketing 950+50= 95% 830+170= 83% 720+280= 72% 650+350= 65% 600+400= 60% 80+600+320= 8% 70+830+100= 7% 70+830+100= 7% 60% DISAGREE 83% DISAGREE 83% DISAGREE 100  STRONGLY AGREE/ AGREE 100  DISAGREE 35 BASE: CLIENT SIDE SAMPLE (N=330)
  36. 36. Mid-size companies are the most likely to be seeing rewards from their digital activities Digital success amongst midsize companies is now translating to increased confidence 60+40+x BY COMPANY TURNOVER 72+28+x 550+450= 55% 630+370= 63% 690+310= 69% 750+250= 75% 590+410= 59% 700+300= 70% 60% Continue to be impressed by the outcomes achieved by their digital marketing activities < $2MILLION $2-19MILLION $20MILLION OR MORE 36 BASE: CLIENT SIDE SAMPLE (N=330) 72% Feel more confident executing digital marketing activities than they did 12 months ago BY COMPANY TURNOVER < $2MILLION $2-19MILLION $20MILLION OR MORE
  37. 37. Managing the digital marketing strategy There is great variation in approach taken to managing the digital marketing function We outsource all digital marketing activities We have a single marketing person who handles all activities, including digital We employ a ‘digital manager’ or equivalent We have a ‘digital marketing team’ We have different teams for different digital marketing functions Something else I don’t know 80+920= 8% 200+800= 20% 130+870= 13% 280+720= 28% 220+780= 22% 80+920= 8% 40+960= 4% 380+620= 38% 100+900= 10% 150+850= 15% 340+660= 34% 100  < $20MILLION TURNOVER 100  > $20MILLION TURNOVER Q: How does your organisation currently manage the digital marketing activities? 37 BASE: CLIENT SIDE SAMPLE (N=330)
  38. 38. Multiple platforms are common for managing content activity, particularly in larger companies Q: Still thinking about the content management activities listed previously, do you use different platforms to manage the different activities or are they all managed from a single platform/ one solution? BY COMPANY TURNOVER 10+17+73x 10% I DON’T KNOW 17% SINGLE PLATFORM/ ONE SOLUTION 73% DIFFERENT/ MULTIPLE PLATFORMS $2-19MILLION $20MILLION OR MORE 670+330= 67% 670+330= 67% 770+230= 77% 210+790= 21% 220+770= 22% 170+830= 17% MULTIPLE PLATFORMS < $2MILLION ONE SOLUTION 38 BASE: CLIENT SIDE SAMPLE (N=330)
  39. 39. Most marketers feel vulnerable about their social media strategy & keep a close eye on competitor activity 470+530= 47% 410+590= 41% 390+610= 39% 370+630= 37% 270+730= 27% 150+850= 15% SOCIAL MEDIA TECHNOLOGY APPS MOBILE NZ marketers are feeling left behind in the area of business and web analytics 37+63+x Overall feel that competitors have an edge in business/ web analytics 37% BUSINESS/ WEB ANALYTICS 350+650= 35% EMAIL PLATFORMS 500+500= 50% AUSTRALIA NEW ZEALAND OTHERS RESPONSES 100  WHERE DO YOUR COMPETITORS HAVE AN EDGE Q: In which of the following areas, if any, do you feel that your competitors have an edge over what your organisation is doing (or the organisation you are dealing with most often)? 39 BASE: CLIENT SIDE SAMPLE (N=330)
  40. 40. What constitutes digital success and how is it measured? Most track ROI to report back to the executive team… But 20% are NOT TRACKING ROI on digital activities at all! 500+500= 50% 380+620= 38% 160+840= 16% 140+860= 14% 200+800= 20% YES, TO REPORT BACK TO THE EXECUTIVE TEAM YES, TO DETERMINE WHERE TO SPEND MORE FUNDS OR WHERE TO CUT BACK YES, FOR ADDITIONAL FUNDING YES, BUT I’M NOT SURE HOW TO USE THE INFORMATION YET NO, WE DON’T TRACK THE ROI ON DIGITAL ACTIVITIES Q: Does your organisation track the ROI on digital marketing activities? Smaller companies tend to be the ones not tracking ROI 20+80+x Don’t track the ROI on their digital marketing activities 20% BY COMPANY TURNOVER 250+750= 25% < $2MILLION 150+850= 15% $2-19MILLION 160+840= 16% $20MILLION OR MORE 40 BASE: CLIENT SIDE SAMPLE (N=330)
  41. 41. Marketers with weak digital marketing skills are also far less likely to be measuring digital ROI 20+80+x On average, do NOT track the ROI on their digital marketing activities 20% BY DIGITAL MARKETING COMPETENCY 50+950= 5% EXCELLENT 120+880= 12% GOOD Most marketers are still anchored to website traffic as an indicator of digital success 730+270= 73% 570+430= 57% 440+560= 44% 380+620= 38% 380+620= 38% 290+710= 29% 230+770= 23% 70+930= 7% 40+960= 4% 30+970= 3% VISITS TO THE WEBSITE CONVERSIONS/ SALES/ NEW CUSTOMER ACQUISITIONS LEADS GENERATED KPIS ALIGNED WITH BUSINESS OBJECTIVES MARKETING OBJECTIVES ACHIEVED INCREASED SITE PERFORMANCE HIGHER CUSTOMER SATISFACTION KPIS ALIGNED WITH CUSTOMER LIFECYCLE ACROSS MULTIPLE CHANNELS SHORTENED TIME FROM CONTENT CREATION TO PUBLISHING WE DON’T MEASURE THE IMPACT OF OUR DIGITAL ACTIVITIES 250+750= 25% ADEQUATE 540+460= 54% LIMITED 100  MEASURES OF DIGITAL SUCCESS CURRENTLY USED? Q: How does your organisation measure the success of digital marketing activities? Please select all that apply (multiple answers possible). 41 BASE: CLIENT SIDE SAMPLE (N=330)
  42. 42. Marketers are in no doubt about what the boss is looking for! Web analytics could be used more effectively in most organisations 430+570= 43% 140+860= 14% 100+900= 10% 90+910= 9% 60+940= 6% 60+940= 6% 100+900= 10% 480+520= 48% 80+920= 8% 280+720= 28% 160+840= 16% CONVERSIONS/ SALES/ NEW CUSTOMER ACQUISITIONS KPIS ALIGNED WITH BUSINESS OBJECTIVES LEADS GENERATED VISITS TO THE WEBSITE MARKETING OBJECTIVES ACHIEVED HIGHER CUSTOMER SATISFACTION OTHER RESPONSES 100  MEASURE MOST VALUED BY MANAGEMENT Q: Which measurement do you believe is valued most highly by the management team? Please just choose one of the options below 42 BASE: CLIENT SIDE SAMPLE (N=330) PERIODIC MARKETING MEETINGS REAL TIME BOTH OF THESE I DON’T KNOW/ COULDN’T SAY Q: Are the analytics that are gathered used primarily in ‘real time’ or for discussion and reviews during periodic marketing meetings?
  43. 43. Use of web analytics FUNCTIONS USED EXTENSIVELY USED MODERATELY LIMITED/ NO USE For reporting 38% 41% 16% For insights 22% 43% 28% For recommendations about SEO/SEM 17% 35% 38% For recommendations about content optimisation 12% 34% 40% For recommendations about conversion optimisation 10% 30% 51% For recommendations about Site optimisation 10% 37% 45% For recommendations about which content should be used for market automation 5% 19% 62% Q: To what extent does your organisation currently use web analytics for each of the following functions? 43 BASE: CLIENT SIDE SAMPLE (N=330)
  44. 44. Barriers to the acceleration of digital marketing Limited financial resources is the most significant barrier to greater investment in digital marketing Limited marketing budget Lack of understanding/ education about digital marketing Lack of capabilities in digital software Lack of executive support and buy-in Lack of clear understanding of ROI Reliance on traditional marketing Difficulty recruiting digital staff A fear of failure Difficulty retaining digital staff 510+490= 51% 340+660= 34% 330+670= 33% 300+700= 30% 290+710= 29% 270+730= 27% 160+840= 16% 150+850= 15% 110+890= 11% 520+480= 52% 420+580= 42% 300+700= 30% 530+470= 53% 260+740= 26% 330+670= 33% 100  AUSTRALIA 100  NZ 100  SIGNIFICANT BARRIER Q: Listed below are a number of factors that have been identified as barriers to increasing the investment in digital marketing at different organisations. How significant do you perceive each of these issues as a barrier in your organisation? 44 BASE: CLIENT SIDE SAMPLE (N=330)
  45. 45. Limited budgets are a more significant problem for smaller companies who would like to invest more in digital 51+49+x Junior & mid level marketers are far more likely to cite a lack of digital marketing knowledge as a barrier. Previous results support this and reinforce a need for more training at junior levels BY COMPANY TURNOVER 34+66+x 710+290= 71% 330+670= 33% 650+350= 65% 350+650= 35% 430+570= 43% 180+820= 18% 51% Overall identify a ‘limited marketing budget’ as a significant barrier to further investment in digital marketing < $2MILLION $2-19MILLION $20MILLION OR MORE 34% BY MARKETING EXPERIENCE Overall identify ‘lack of understanding/ education about digital marketing’ as a significant barrier to further investment in the area < 5 YEARS IN MARKETING 5-14 YEARS IN MARKETING 15 YEARS+ IN MARKETING 45 BASE: CLIENT SIDE SAMPLE (N=330)
  46. 46. Younger marketers do not feel that clear objectives are being set for ROI on digital activities. Senior marketers must do more to keep their team moving in the same direction 29+71+x Overall, identify ‘lack of clear understanding of ROI’ as a significant barrier to further investment in digital marketing. 29% BY MARKETING EXPERIENCE 310+690= 31% < 5 YEARS IN MARKETING 290+710= 29% 5-14 YEARS IN MARKETING 120+880= 12% 15 YEARS+ IN MARKETING 46 BASE: CLIENT SIDE SAMPLE (N=330) ROI?
  47. 47. Summary of key themes Digital marketing is no longer niche. Digital marketing is now considered mainstream within the marketing repertoire. Marketers have seen the opportunities presented and are now embracing them. Big companies are waking up to the advantages. Large companies are now leading the investment in digital marketing activities. While smaller companies were the early adopters of digital marketing, the big spenders are now catching up and are the most likely to be investing more in digital over the next 12 months. Senior marketers are building their own skills in digital marketing but greater emphasis is now needed at the junior-mid levels. Experienced marketers (15yrs+ in the industry) are more likely to have undertaken specific training in digital marketing (relative to those with 10yrs or less in the industry) and this is reflected in their knowledge of the digital tools available to them, application of more sophisticated digital tools and higher rates of measurement of ROI. Less experienced marketers are less knowledgeable about digital, are less likely to measure ROI and are generally less confident about the Digital Marketing strategies they implement. Web analytics is not being used effectively. Web analytics are used primarily for periodic reporting and most marketers are frustrated in their knowledge that they could be used far more effectively. Web analytics is the number one area marketers would like to see their organisations improve. Big appetite for predictive analytics. Predictive analytics is largely viewed as the next ‘golden ticket’ but most feel ill equipped to move in that direction. Digital ROI is a work in progress. ROI of digital activity is still evolving and most are still focused on visits to the website as a primary measure of success. 20% are not measuring ROI at all. 47
  48. 48. About Sitecore Sitecore is the global leader in customer experience management software for delivering the marketing that matters most – highly relevant content and personalised digital experiences that delight customers, increase loyalty and drive revenue. With Sitecore’s fully unified, powerful, and easy-to-use software suite, marketers can focus on engaging customers instead of managing data – to deliver experiences that are relevant, immediate, and integrated across channels. More than 3000 of the world’s leading brands – including Nissan Australia, Network 10, AustralianSuper, Canon, Blackmores, Jenny Craig, Sydney Airport, AGL, Water Corporation, and TAL. e. Sales-au@sitecore.net t. +61 2 8014 8857 Level 4, 50 Pitt Street SYDNEY NSW 2000 Level 1, 27-31 King St MELBOURNE VIC 3000 www.sitecore.net 48
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