July 9, 2007. Call in at 10:55 a.m. Eastern Time Shar VanBoskirk Senior Analyst Forrester Research Teleconference Organizi...
Theme Interactive marketing organization success is more about maturity than structure.
Agenda <ul><li>What is the current state of interactive marketing organizations? </li></ul><ul><li>How should marketers or...
Marketers are shifting budgets “downstream”... Banner ads Email Web  sites DRTV TV Outdoor Newspaper Radio Magazines Direc...
. . . And expect online effectiveness to increase “ In the next three years, do you think marketing will be less effective...
But interactive is still just a fraction of overall marketing spend . . . (numbers have been rounded) Source: May 2, 2005,...
. . . And is still out of sync with consumer behavior 0% 10% 20% 30% 40% 50% TV Newspapers Radio Magazines Online for pers...
This shows up in IM orgs being very tactically focused Base: 132 interactive marketers Source: Forrester’s Q3 2006 Interac...
Who is telling us this? Respondents by revenue Respondents by industry Base: 115 interactive marketers Base: 132 interacti...
Respondents also range across sales model and target customer “ Which of the following best describes your marketing organ...
A few surprises: Firms are not new to interactive marketing “ How long has your company been doing interactive marketing?”...
More tenured interactive marketers actually outsource more “ What percent of your company’s overall interactive marketing ...
And regardless of size and budgeting approach “ Please indicate the statement that best  describes your team’s budget.” “ ...
Interactive marketing is an underdog across firms Percentage who agree with each statement about their interactive marketi...
So, how should organizations change?
The customer-centric marketing organization Source: July 13, 2006, Forrester Big Idea “Reinventing The Marketing Organizat...
 
Think instead about aligning with one of two models <ul><li>Channel managers —  Interactive marketing team is its own divi...
Channel manager orgs are larger “ How many people at your company are part of a team dedicated to interactive marketing?” ...
And are governed by more senior management “ What is the title of the executive in charge of your interactive marketing ef...
The best approach toward integration is to mature within your given model   <ul><li>Get into the model that fits your busi...
Use our guide to determine and grow maturity *Customer-centric marketing organization (CCMO)
Characteristics of Level 2 *Customer-centric marketing organization (CCMO)
Characteristics of Level 3 *Customer-centric marketing organization (CCMO)
The best approach toward integration is to mature within your given model   <ul><li>Get into the model that fits your busi...
What skills do you need? “ What skills are the most critical for success on your interactive marketing team?” Base: 132 in...
And where should your IM team fit? “ Does your company’s interactive team also include any of the following?” Base: 81 int...
In summary <ul><li>Interactive marketing is getting budget and attention — at last! </li></ul><ul><li>But marketing organi...
Thank you Shar VanBoskirk +1 617/613-5845 [email_address]   www.forrester.com
Upcoming SlideShare
Loading in …5
×

Shar VanBoskirk Senior Analyst Forrester Research

722 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
722
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Shar VanBoskirk Senior Analyst Forrester Research

  1. 1. July 9, 2007. Call in at 10:55 a.m. Eastern Time Shar VanBoskirk Senior Analyst Forrester Research Teleconference Organizing For Interactive Marketing
  2. 2. Theme Interactive marketing organization success is more about maturity than structure.
  3. 3. Agenda <ul><li>What is the current state of interactive marketing organizations? </li></ul><ul><li>How should marketers organize their interactive marketing groups? </li></ul><ul><li>How can marketers mature their interactive marketing organizations? </li></ul>
  4. 4. Marketers are shifting budgets “downstream”... Banner ads Email Web sites DRTV TV Outdoor Newspaper Radio Magazines Direct mail Telemarketing Search Rich media Blogs Affiliate networks DIRECT ONLINE ADVERTISING
  5. 5. . . . And expect online effectiveness to increase “ In the next three years, do you think marketing will be less effective, about the same, or more effective in each of the following?” Source: May 2, 2005, “US Online Marketing Forecast: 2005 To 2010” Base: 77 marketers 0% 20% 40% 60% 80% 100% Less e f fectiv e About the same More e f fectiv e 9% 1% 4% 12% 13% 8% 10% 23% 40% 26% 33% 53% 46% 53% 44% 13% 23% 21% 23% 29% 38% 34% 62% 52% 68% 61% 40% 49% 44% 53% 78% 75% 75% 65% 58% 55% 56% 14% 8% 7% 7% 7% 5% 3% 3% Search engine marketing W eb site s Wireless Email Online display ads Online classifieds Product placement Direct mail Radio Outdoor Magazine T elevisio n Newspaper Y ellow page s Print classifieds
  6. 6. But interactive is still just a fraction of overall marketing spend . . . (numbers have been rounded) Source: May 2, 2005, “US Online Marketing Forecast: 2005 to 2010” Display advertising Search engine marketing Online classifieds Email marketing Total 2009 2010 2008 2007 2006 2005 2004 Digital marketing spending (US$ millions) $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Percent of total advertising 5% 6% 6% 7% 7% 7% 8% Display advertising Search engine marketing Online classifieds Email marketing $2,173 $4,268 $1,393 $4,128 $ 1 1,96 2 $2,654 $5,671 $1,451 $4,890 $14,666 $3, 1 1 9 $7,067 $1,522 $5,695 $17,403 $3,584 $8,287 $1,600 $6,379 $19,849 $4,000 $9,463 $1,557 $7,017 $22,037 $4,375 $10,533 $1,606 $7,578 $24,093 $4,705 $ 1 1,57 1 $1,664 $8,109 $26,049
  7. 7. . . . And is still out of sync with consumer behavior 0% 10% 20% 30% 40% 50% TV Newspapers Radio Magazines Online for personal or work reasons* Percent of ad spending on each media type in 2004 Percent of total media time households spend with each media type Base: US households *Base: US online households Source: Forrester’s Consumer Technographics® 2004 North American Benchmark Study, McCann Erickson, and IAB 34% of media time 6% of all ad spending
  8. 8. This shows up in IM orgs being very tactically focused Base: 132 interactive marketers Source: Forrester’s Q3 2006 Interactive Marketing Organization Online Survey “ Which of the following functions are the responsibilities of your interactive marketing team?” 86% 77% 74% 71% 64% 59% 54% 31% 28% 77% 46% 43% 28% Analysis and planning Execution Email marketing Web design/management Online advertising Search engine optimization (SEO) Paid search Other emerging channels (blogs, RSS, and eService) eCommerce Inbound marketing Mobile marketing Web analytics Market research Cross-channel customer experience management Persona development
  9. 9. Who is telling us this? Respondents by revenue Respondents by industry Base: 115 interactive marketers Base: 132 interactive marketers Source: Forrester’s Q3 2006 Interactive Marketing Organization Online Survey Less than $100M 23% $100M to less than $500M 18% $500M to less than $1B 8% $1B to less than $10B 34% $10B or more 17% Manufacturing 27% Retail 16% Business services 13% Media and travel 23% Finance and insurance 18% Other 4% (percentages may not total 100 because of rounding)
  10. 10. Respondents also range across sales model and target customer “ Which of the following best describes your marketing organization’s primary audience?” “ What is the primary sales model that your marketing organization supports?” Base: 132 interactive marketers Source: Forrester’s Q3 2006 Interactive Marketing Organization Online Survey (percentages may not total 100 because of rounding) Direct to consumer or end user 42% Mix of direct and indirect 40% Indirect, through channel partners 17% Only consumers 14% Primarily consumers 36% Roughly split between consumers and businesses 22% Primarily businesses 15% Only businesses 13%
  11. 11. A few surprises: Firms are not new to interactive marketing “ How long has your company been doing interactive marketing?” Base: 132 interactive marketers Source: Forrester’s Q3 2006 Interactive Marketing Organization Online Survey (percentages may not total 100 because of rounding) Less than three years 21% Three years to less than five years 27% Five years to less than 10 years 41% 10 years or more 12%
  12. 12. More tenured interactive marketers actually outsource more “ What percent of your company’s overall interactive marketing work would you say is outsourced?” Base: 132 interactive marketers Source: Forrester’s Q3 2006 Interactive Marketing Organization Online Survey None 1 1 % 1% to less than 10% 15% 10% to less than 25% 33% 25% to less than 50% 18% 50% to 100% 23% Almost 50% of IM organizations with five-plus years of experience outsource more than 25% of their work.
  13. 13. And regardless of size and budgeting approach “ Please indicate the statement that best describes your team’s budget.” “ How many people at your company are part of a team dedicated to interactive marketing?” Base: 132 interactive marketers Source: Forrester’s Q3 2006 Interactive Marketing Organization Online Survey (percentages may not total 100 because of rounding) Three to five 27% One to two 1 1 % Six to 10 14% 1 1 to 3 0 1 1 % 31 or more 18% No dedicated team 18% Dedicated budget that our manager/ director sets 42% Dedicated budget that someone in another part of marketing sets 16% Dedicated budget that someone outside of marketing sets 10% Shares budget with other marketing teams 23% Other 9%
  14. 14. Interactive marketing is an underdog across firms Percentage who agree with each statement about their interactive marketing organization (1 or 2 on a scale of 1 [strongly agree] to 5 [strongly disagree]) Base: 108 interactive marketers Source: Forrester’s Q3 2006 Interactive Marketing Organization Online Survey 0% 10% 20% 30% 40% 50% 60% 70% It is understaffed It is still an emerging function It competes with other marketing functions for budget It is underfunded It is responsible for identifying new marketing channels It is a collaborator on multichannel program design It proactively recommends product and customer strategies It has substantial support from above It has substantial support from peer organizations It is a service bureau that responds to incoming requests It struggles to prove the ROI of its efforts It struggles to build and prove a business case for budget
  15. 15. So, how should organizations change?
  16. 16. The customer-centric marketing organization Source: July 13, 2006, Forrester Big Idea “Reinventing The Marketing Organization”
  17. 18. Think instead about aligning with one of two models <ul><li>Channel managers — Interactive marketing team is its own division used to drive sales through the online channel. </li></ul><ul><ul><li>Typically direct sales organizations like Orbitz or Dell responsible for their company’s site and online transactions, as well as the development of marketing programs that will lead to Web sales. </li></ul></ul><ul><li>Excellence centers — Interactive marketing team is tapped by multiple divisions around the company to provide expertise on campaigns. </li></ul><ul><ul><li>Typically a “shared service” model prevalent at brand- or product-centric organizations like Nestlé Purina or Caterpillar. </li></ul></ul>
  18. 19. Channel manager orgs are larger “ How many people at your company are part of a team dedicated to interactive marketing?” Excellence centers † Channel managers* *Base: 78 interactive marketers † Base: 54 interactive marketers Source: Forrester’s Q3 2006 Interactive Marketing Organization Online Survey No dedicated team 14% 31 or more 21% 1 1 to 3 0 14% One to two 10% Three to five 27% Six to 10 14% No dedicated team 24% 31 or more 15% 1 1 to 3 0 7% One to two 13% Three to five 28% Six to 10 13%
  19. 20. And are governed by more senior management “ What is the title of the executive in charge of your interactive marketing efforts?” Excellence centers † Channel managers* *Base: 78 interactive marketers † Base: 54 interactive marketers (percentages do not total 100 because of rounding) Source: Forrester’s Q3 2006 Interactive Marketing Organization Online Survey Senior executive 13% Marketing executive 42% Marketing director 32% Marketing manager 6% Other marketing position 6% Senior executive 1 1 % Marketing executive 39% Marketing director 30% Marketing manager 19% Other marketing position 2% But that doesn’t mean they are better
  20. 21. The best approach toward integration is to mature within your given model <ul><li>Get into the model that fits your business. </li></ul><ul><li>Check your current maturity. </li></ul><ul><li>Move gradually from one level to the next. </li></ul>
  21. 22. Use our guide to determine and grow maturity *Customer-centric marketing organization (CCMO)
  22. 23. Characteristics of Level 2 *Customer-centric marketing organization (CCMO)
  23. 24. Characteristics of Level 3 *Customer-centric marketing organization (CCMO)
  24. 25. The best approach toward integration is to mature within your given model <ul><li>Get into the model that fits your business. </li></ul><ul><li>Check your current maturity . </li></ul><ul><li>Move gradually from one level to the next. </li></ul><ul><li>Market internally and experiment. </li></ul><ul><li>Maintain performance while maturing. </li></ul>
  25. 26. What skills do you need? “ What skills are the most critical for success on your interactive marketing team?” Base: 132 interactive marketers *Base: 78 interactive marketers †Base: 54 interactive marketers Source: Forrester’s Q3 2006 Interactive Marketing Organization Online Survey 0% 10% 20% 30% 40% 50% 60% 70% Channel managers* Excellence centers † All respondents Strategy Campaign planning Web analytics Customer analysis Creative Communication Technology and technical integration Project management Channel expertise Multitasking Data management
  26. 27. And where should your IM team fit? “ Does your company’s interactive team also include any of the following?” Base: 81 interactive marketers *Base: 48 interactive marketers †Base: 33 interactive marketers Source: Forrester’s Q3 2006 Interactive Marketing Organization Online Survey 0% 10% 20% 30% 40% 50% 60% Channel managers* Excellence centers † All respondents eBusiness/eCommerce Brand marketing Direct marketing Product marketing IT Customer service Sales None of these; we are an independent group Other
  27. 28. In summary <ul><li>Interactive marketing is getting budget and attention — at last! </li></ul><ul><li>But marketing organizations are still poo-pooed, back-burnered, neglected, and underleveraged. </li></ul><ul><li>Bring your company’s interactive marketing organization toward integration by: </li></ul><ul><ul><li>Identifying your best organizational model. </li></ul></ul><ul><ul><li>Gradually maturing from one level to the next using Forrester’s guide. </li></ul></ul>
  28. 29. Thank you Shar VanBoskirk +1 617/613-5845 [email_address] www.forrester.com

×