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The Talent Revolution in
Digital Marketing
The Boston Consulting Group (BCG) is a global
management consulting firm and the world’s
leading advisor on business strategy. We partner
with clients from the private, public, and not-for-
profit sectors in all regions to identify their
highest-value opportunities, address their most
critical challenges, and transform their enterprises.
Our customized approach combines deep in­sight
into the dynamics of companies and markets with
close collaboration at all levels of the client
organization. This ensures that our clients achieve
sustainable compet­itive advantage, build more
capable organizations, and secure lasting results.
Founded in 1963, BCG is a private company with
82 offices in 46 countries. For more information,
please visit bcg.com.
September 2015
Dominic Field, Jody Visser, and Nicolas de Bellefonds
The Talent Revolution in
Digital Marketing
Commissioned by
Advised by
Supported by
2 The Talent Revolution in Digital Marketing
AT A GLANCE
New research shows that companies do not have the digital-marketing skills they
need to engage consumers, and marketers are not sufficiently focused on develop-
ing these essential digital capabilities.
Shortfalls in Digital-Marketing Skills and Mismatches in Priorities
The biggest performance and priority shortfalls are in increasingly critical skills
related to mobile and video, testing, and programmatic advertising.
Revamped Training and Culture Are Critical to Closing the Gaps
Current training and development programs are either ineffective or insufficient.
Creating a culture that enables a test-and-learn approach and calculated risk-taking
is essential to closing the digital-skills gap.
A Broader Digital Transformation Can Create Competitive Advantage
Transforming marketing organizations into skilled digital operations requires
senior-leadership commitment—and follow-through in such areas as talent devel-
opment, technology investment, and the cultivation of agile organizational struc-
tures. Companies that start the journey now have a huge opportunity to create
competitive advantage.
The Boston Consulting Group 3
While still important,
traditional skills such
as creativity and
brand building no
longer suffice in a
digital-first reality.
Digital marketing is not only the future, it’s the present. But do today’s
marketers have the skills they need to operate in a digital world?
New research by The Boston Consulting Group shows that they do not—and that
the gaps and shortfalls are bigger than companies assume. The signs for the future
are even more troubling, as many marketers seem focused on catching up on yes-
terday’s needs rather than embedding into their organizations the capabilities and
expertise that will be required tomorrow. The companies that act now to transform
their marketing capabilities will be much better positioned to connect with their
customers in the years to come.
Marketers know that digital channels are critical to engaging today’s consumer.
Global spending on digital advertising will reach $178 billion in 2016, almost 30
percent of total ad spending, according to eMarketer. Digital advertising already
represents a third of all ad spending in the U.S. today, and many forecasts see digi-
tal reaching parity with TV in a few years’ time. In the UK, almost 60 percent of
consumers use social media each week for an average of 52 minutes per day. In
Germany, about 13 percent of all commerce is now transacted online or via mobile
devices; online sales are growing at more than 20 percent a year. Worldwide, a
quarter of consumers use smartphones, a percentage that will rise to a third, or
some 2.5 billion people, by 2018. In developed economies, of course, the percentag-
es are much higher.
Marketing organizations are feeling the pressure created by these shifts. And while
still important, traditional skills such as creativity and brand building no longer suf-
fice in a digital-first reality. Marketing has become much more of a science requir-
ing technical, data-crunching abilities. With new digital channels and tools con-
stantly emerging, marketing organizations must become more agile—to borrow a
term from the world of software development—iterating much more quickly in or-
der to adapt to rapidly changing conditions. (See The Agile Marketing Organization,
BCG Focus, September 2015.)
But before companies can address the gaps, they need to know where and how large
they are. To address this challenge, BCG joined forces with Google and a team of
marketing industry experts to form the Talent Revolution Initiative. Our first under-
taking was to survey some 1,100 marketers (including digital specialists, brand man-
agers, customer marketers, and public relations practitioners) at 57 companies in the
UK and Germany on their organizations’ digital-marketing capabilities, learning and
development efforts, and future requirements. (See the sidebar, “About this Report.”)
4 The Talent Revolution in Digital Marketing
With the rapid growth in digital
spending and the expanding impact
of digital channels on consumers’
behavior, it’s more important than
ever for marketing organizations to
understand where and how they can
most effectively influence consumer
behavior and whether they can do so
efficiently.
Google commissioned BCG, supported
by digital-training experts The Knowl-
edge Engineers and a team of market-
ing industry organizations (see the
Acknowledgments for a list of the
organizations involved), to assess the
current state of digital skills in
marketing organizations. The findings
outlined herein were discussed with
Google executives, but BCG is respon-
sible for the analysis and conclusions.
We surveyed some 1,100 marketers at
57 companies to understand how they
rate their marketing organizations
against digital-marketing best prac-
tices. Participating companies were
from the retail, consumer products,
financial services, and technology,
media, and telecommunications
industries, as well as from public-sec-
tor, education, and not-for-profit
organizations. We focused the survey
on companies in the UK and Germa-
ny, two highly developed economies
that are following different trajecto-
ries with respect to digital’s economic
impact but that together broadly
represent the current state of the
digital market in developed Western
nations.
We asked marketers to assess their
organizations’ capabilities across a
digital-marketing framework that
includes nine categories of skills. (See
the exhibit below.) The first three
categories are related to planning:
marketing and brand strategy, partner
management, and critical organiza-
tion enablers. The next three involve
execution: digital targeting, digital-
Marketing and
brand strategy
Digital
targeting
Metrics and
measurement
Partner
management
Digital
content
Marketing
analytics
Critical
enablers
Digital
channels
Test
and learn
PLAN1
ACT2
MEASURE3
Source: BCG analysis
Digital-Marketing Skills Framework
About This Report
The Boston Consulting Group 5
The results are eye-opening. On BCG’s 100-point Digital Capabilities Index (DCI)
(with 100 indicating best practice), the average digital-skills score for all marketers
was 57. While a few companies ranked higher than 70, the majority fell squarely
into the 55-to-60-point range. (See Exhibit 1.) Industries such as retail and financial
services were particularly weak.
On the one hand, these scores should be a wake-up call for CEOs and CMOs of any
customer-facing organization. On the other, the current state of play is not that surpris-
ing, given the relative youth and rapid development of digital marketing in general.
Companies face the biggest shortfalls in some of the most important capabilities—
skills related to mobile, video, testing, partner management, and organizational en-
ablers, for example—which will only increase in importance in the next several
years. At the moment, at least, marketers are not singling out these skills as imme-
diate or longer-term learning and development (LD) priorities for their teams.
Moreover, in many instances, companies do not see these critical skills as top near-
term business priorities.
The scale and nature of the skills gaps suggest that companies need to do much
more than tinker with their recruitment and training programs. Most require a
transformation in their marketing functions: making the development of digital ca-
pabilities a top business priority, rewiring the organization accordingly, and signifi-
cantly boosting LD programs to produce the needed skills. In addition to champi-
oning digital engagement, top management must deliver resources, support for new
initiatives, and investment in capabilities and platforms that capitalize on the op-
portunities digital technologies offer. In LD specifically, companies ought to shift
their focus to support an agile marketing organization characterized by self-learn-
ing (in addition to more traditional training), an adaptive strategy based on the test-
and-learn approach, and much more calculated risk taking.
This is a big undertaking—and an equally big opportunity for those that seize it
first. The playing field is mostly even; research shows that most companies face
content development and distribu-
tion, and expertise in seven digital
channels (search, websites, display
media, mobile advertising, mobile
Web and applications, social media,
and video). The final three sets of
skills relate to measurement: metrics
and measurement, marketing
analytics, and testing.
Marketers rated their teams’ current
capabilities and performance in each
skill and in each of the seven digital
channels on a scale of one to six.
Responses were turned into an index
with 100 equaling best practice. We
also asked respondents to list the
capabilities that are critical for
business success in the medium term
(three years) and the skills in which
they need learning and development
support in the next 12 months.
6 The Talent Revolution in Digital Marketing
broadly similar gaps and needs. Since the DCI rates companies against best prac-
tice, there’s plenty of room for improvement. Even companies at the top of their in-
dustries have major gaps in critical capabilities.
Better talent will lead to better business performance. Moving now and moving
quickly can deliver long-lasting improvements in both skills development and the
marketing organization’s ability to drive top-line results. Given the shortage of digi-
tal talent, and the time it takes to revamp LD programs and push the results
through large, multilayered organizations, those companies that get a head start
will have a huge opportunity to accelerate ahead of their peers and build sustain-
able long-term advantage.
Shortfalls in Talent, Training, Preparedness, and Priorities
The digital capabilities of today’s marketing organizations vary in quality by indi-
vidual skill, channel, and industry. (See Exhibit 2 and the Appendix.) Moreover,
there’s a big dichotomy between skills related to leadership, strategy, and planning
and those necessary for effective execution. Take one example: marketers give cred-
it to senior leaders for emphasizing the importance of adapting marketing to a digi-
tal world (a score of 74 out of 100 on the DCI), but access to technology platforms
to make the most of consumer data—a basic but essential necessity in today’s digi-
tal marketplace—garners a score of only 47.
Marketers do a number of things well. They believe they have the ability to connect
diverse sets of data on consumers to better understand motivations and behaviors
(a score of 70). Companies are good at sourcing and using a variety of digital con-
tent (72). With the exception of the retail industry—which scored 61, drawing down
Digital Capabilities Index score
40 40–45 45–50 50–55 55–60 60–65 65–70 70–75 75
14
10
9
8
3
1
5
4
3
Number of respondents
0
2
4
6
8
10
12
14
Source: BCG Talent Revolution Survey, 2015.
Exhibit 1 | Marketers Do Not Give Themselves High Scores for Digital-Marketing Capabilities
The Boston Consulting Group 7
the overall average—marketers think they are generally successful at translating
marketing objectives into actionable metrics (69).
Marketers are relatively clear about the role that websites play in the consumer
journey (69), and many believe their websites can do more to serve differing cus-
tomer needs (58). Marketers also feel they have a relatively good understanding of
the role of social media in the consumer journey (66), although they need to do
more to create a consistent voice for each brand across various platforms (60). Pub-
CURRENT PERFORMANCE
PLANACTMEASURE
Consumer
goods
Build strategy
and plans
Partner
management
Enablers
Digital
content
Digital
targeting
Channels
Search
Website
Display
media
Mobile
advertising
Mobile Web
and apps
Social media
Video
Metrics and
measurement
Marketing
analytics
Testing
OVERALL
DCI SCORE
30–45 46–60 61–75
Retail
Tech,media,
telecom
Financial
services
Publicsector,
education,
notforprofit
Consumer
goods
Tech,media,
telecom
Financial
services
Publicsector,
education,
notforprofit
Consumer
goods
Retail
Tech,media,
telecom
Financial
services
Publicsector,
education,
notforprofit
Retail
IMPORTANCE TO FUTURE
OF THE BUSINESS TOPTHREE LD PRIORITY
Source: BCG Talent Revolution Survey, 2015.
Exhibit 2 | Marketers Give Themselves Poor Grades Across Essential Skills
8 The Talent Revolution in Digital Marketing
Relative strength in
websites and social
media falls away
when marketers are
asked to rate their
capabilities in video,
mobile advertising,
and mobile Web
and apps.
lic-sector, education, and not-for-profit marketers feel they do an especially good
job with social media (71), much more so than marketers in retail (56), technology,
media, and telecommunications (64), and financial services (57).
But look more broadly and more deeply, and a different picture emerges—one
that shows marketing organizations largely unprepared for digital, particularly
with respect to evolving technology. While senior leadership gets high marks for
support (74), the grades for structure and talent fall mostly in the low- to mid-50s.
Scores for investing in new capabilities that address a changing marketplace (53)
and for developing marketing platforms that make the most of customer data (47)
are especially low. Companies see themselves as developing content well (63), but
they fall short on distribution and, especially, on making content relevant to where
consumers are in the purchasing journey (49). Respondents from public-sector, ed-
ucation, and not-for-profit organizations and from technology, media, and telecom-
munications companies think they perform reasonably well on marketing analytics
and on metrics and measurement; not so for those in the consumer products, fi-
nancial services, and retail sectors. Testing received some of the lowest scores in
the survey from marketers in all sectors and was especially low for consumer
goods companies, with a score of 45.
Even more telling, perhaps, is where marketers see themselves with respect to vari-
ous digital channels. The relative strength in websites and social media falls away
quickly when marketers are asked to rate their capabilities in video (a score of 49),
mobile advertising (40), and mobile Web and apps (48), scores that should be cause
for concern at a time when consumers are increasingly on their smartphones and
watching videos.
Several talent and performance gaps stand out:
•• Video. Scores were particularly low (38) in the use of technology to keep consum-
ers engaged with a brand.
•• Mobile Advertising. This capability received low scores across the board, with the
lowest assessment being on the use of location data in mobile campaigns
(36)—one of mobile’s most beneficial attributes for marketers—and a low score
on the use of data to determine the right spending levels for mobile (38).
•• Display Media. Advertisers have a serious shortfall of talent in the fastest growing
and most important area of display advertising: programmatic advertising using
real-time bidding (41).
•• Testing. In an increasingly data-driven function, one of the basic skills of an agile
marketing organization is the ability to test, learn, adapt a campaign, then test
again. But few advertisers use online channels as a testing ground for offline
channels (a DCI score of 34).
•• Partner Management. Marketers are less than sanguine about the capabilities of
their agency partners and about the relationships they have with these suppli-
ers. Many do not believe their creative or media agencies are at the cutting edge
The Boston Consulting Group 9
30–45 46–60 61–75
CONSUMER
GOODS RETAIL
TECH, MEDIA,
 TELECOM
FINANCIAL
SERVICES
PUBLIC SECTOR,
EDUCATION, 
NOT FOR PROFIT AVERAGE
We have a learning program that enables
me to build the digital knowledge and
skills required for my role
Digital-marketing training materials are
easily available when I need them
Digital-marketing course materials are up
to date with the latest technology trends,
new advertising products, and solutions
I can spend enough time to develop my
digital-marketing capabilities
We build communities of best practice
to help us all build digital knowledge
and skills faster
Learning program allows for different
styles of learning (e.g., classroom,
e-learning, on the job, with a buddy)
Overall, I believe we have a very effective
and impactful learning and development
program for digital marketing
OVERALL LD SCORE
Source: BCG Talent Revolution Survey, 2015.
Exhibit 3 | Employees Are Not Getting the Training They Need
of digital marketing. They have trouble working effectively with their agency
partners and challenging them to get better results. Partner management
received a DCI score of 54.
Training Programs Are Insufficient
Employees get it: they recognize that their marketing organizations are not per-
forming as well as they could or should be. They see their companies’ current LD
programs as part of the problem. (See Exhibit 3.)
Marketing staff are frustrated by the level and quality of the training that they have
available. They gave their employers an average score of only 46 for offering “a very
effective and impactful learning and development program for digital marketing”—
less than halfway to best practice. The retail industry scored especially poorly (39),
but none of the sectors we surveyed scored over 48 on this topic.
Digital training materials are seen as neither up to date (45) nor easily available
when they are needed (51). Organizations are not effective at facilitating sharing of
best practices (50), and they do not allow staff sufficient time to build their digital
skills (47). LD programs scored slightly higher in the consumer goods and in the
public, education, and not-for-profit sectors, but the overall average was only 49.
10 The Talent Revolution in Digital Marketing
Many marketers are
not putting a priority
on developing or
improving the skills
that correspond to
impending areas
of growth.
Looking to the Future…or Living in the Past?
The situation does not appear set to improve in the near term. If marketing organiza-
tions are not well prepared now, they will be even less digitally capable in the future—
especially in the channels where demand for up-to-date skills is likely to be greatest.
When we asked marketers to identify their teams’ top three LD needs for the next
12 months and the most important skills and digital channels for business success
in the next three years, respondents across the board stressed strategy development
and planning (an area of broad current strength). A few pointed to marketing ana-
lytics, metrics and measurement, and digital targeting, but these ran far behind the
leader. Marketers attached much lower importance and priority—in some cases,
troublingly low—to multiple areas related to execution, as well as to several
fast-growing digital channels. (See Exhibit 4.)
One might expect that the areas with big skills gaps, such as those discussed above,
would be targets of concerted attention going forward. Yet when we asked market-
ers about their top LD priorities for the next twelve months, video scored 43; mo-
bile advertising, 37; display media, 27; and testing, 44.
There are several explanations for this disconnect, including the possibility that
many marketers do not have a good grasp of the importance of newer digital
channels (which would also be a troubling indication of the degree of their
engagement with consumers). Whatever the reason, the data clearly indicates
that many marketers seem to be living in the past rather than looking to the
future. They are not putting a priority on developing or improving the skills that
correspond to impending areas of growth; as a result, they risk being left behind
or even out of the game. In the fast-developing digital-marketing environment,
backward-looking or reactive approaches to LD will almost certainly fail to
deliver the talent that companies need, especially considering the lead times
required to embed new practices in the daily practice of large, multilayered
organizations.
Among the many skills and channels that appear to be in danger of receiving insuffi-
cient attention, the following are some of the most important, given current market
trends.
Mobile Advertising. The UK Advertising Association reports that spending on
mobile advertising in the UK grew almost 60 percent, to £1.62 billon, in 2015.
According to eMarketer, UK mobile advertising accounted for 30 percent of a total
£7.3 billion in digital spending in 2014; it expects mobile advertising to become the
single largest ad channel this year and to claim 40 percent of total paid media
spending in the UK by 2018. Globally, mobile ad spending will reach $75 billion in
2017, according to ZenithOptimedia. Marketers feel they perform poorly at mobile
advertising—and they consider it of low business importance (43) and a low
priority in terms of LD (37).
Mobile Web and Apps. The situation is slightly better for mobile website and app
development, but not by a lot. This channel scored only 48 for current perfor-
mance, 56 for business importance, and 50 as a top-three LD priority—at a time
The Boston Consulting Group 11
CURRENT PERFORMANCE
Build strategy
and plans
Partner
management
Enablers
Digital content
Digital targeting
Metrics and
measurement
Marketing
analytics
Testing
Channels
Search
Website
Display media
Mobile
advertising
Mobile Web
and apps
OVERALL DCI
SCORE
Social media
Video
IMPORTANCE TO
FUTURE OF THE BUSINESS TOPTHREE LD PRIORITY
Consumer
goods
Financial
services
Publicsector,
education,
notforprofit
Retail
Tech,media,
telecom
Consumer
goods
Financial
services
Publicsector,
education,
notforprofit
Retail
Tech,media,
telecom
Consumer
goods
Financial
services
Publicsector,
education,
notforprofit
Retail
Tech,media,
telecom
TOTAL
TOTAL
AVERAGE
30–45 46–60 61–75
Source: BCG Talent Revolution Survey, 2015.
Exhibit 4 | Marketers Are Not Emphasizing Execution, Especially in Fast-Growing Channels
when Internet access on mobile devices has surpassed access on PCs, according to
comScore. The primary experience with the Internet for an entire generation of
consumers in the developed world—the 16- to 34-year-old Millennials, who out-
number the baby boomers and have a far greater degree of technical sophistication,
appetite for consumption, and desire to be connected—is mobile. The vast majority
of the world’s population lives in developing markets, where the Internet experi-
ence is and will continue to be mostly mobile.
12 The Talent Revolution in Digital Marketing
Companies that
commit themselves to
transforming their
marketing operations
into agile outfits have
the opportunity to
market themselves as
go-to destinations for
digital talent.
Video. Online video presents a similar dichotomy between market reality and
marketer priority. The IAB UK reports that mobile video-ad spending rose 142
percent to £164 million in 2014, more than a third of total video-ad spending of
£442 million (a 43 percent increase from 2013). Similarly, a recent IAB survey found
that more than two-thirds of all advertisers expect to increase digital video-ad
budgets in the next 12 months. Globally, Statista estimates that online video-ad
spending will grow 18 percent in 2015 to some $10 billion. Nonetheless, video
received very low scores for importance (44) and priority (43), with some exceptions
in consumer goods and financial services.
Display Media. Our research has shown that for display advertisers and their agencies,
digital display campaigns that employ programmatic, or automated, buying of adver-
tising placements can achieve big gains in performance—an average 32 percent
improvement in cost per action—and in some cases, improvements of more than 50
percent. (See Improving Engagement and Performance in Digital Advertising, BCG Focus,
September 2014.) But to achieve these gains in large-scale campaigns, advertisers need
to take advantage of the potential to experiment and learn online and make effective
use of individuals with advanced digital skills. It does not bode well when marketers
rank their current display-media skills at only 49 and the priority they assign to
improving these skills dead last (22) among the capabilities and channels we surveyed.
Testing. One of the great benefits of digital technology is the ability to test just
about anything with consumers quickly, easily, and inexpensively—from ad copy to
campaigns and offers. In pricing, for example (a complementary function to market-
ing), the ability to test, learn, and adapt in real time is the basis for dynamic pricing,
which, pioneered by Amazon and others, has helped upend the retail business.
Marketers, however, are slow and inconsistent in determining how and to what
extent to test. Few place a priority on developing their testing skills (44)—a serious
oversight or miscalculation, in our opinion.
Other Skills. Marketers give some digital skills, such as marketing analytics, digi-
tal-content creation, and digital targeting, higher marks for business importance and
skills development, but even these scores (which fall into the 55-to-65 range) trail the
realities of the marketplace. Big data, branded content, and targeting consumers for
advertising delivery based on digital behavior are three of the biggest trends in
marketing today. Other key skills, such as partner management and metrics and
measurement, score even lower for importance and as an LD priority.
Closing the Talent Gap
The current talent gap could easily lead to a vicious circle, especially for those com-
panies that are slow to address their shortcomings. Marketers that cannot attract,
develop, and retain staff with advanced digital skills risk falling behind, since talent
in today’s increasingly transparent marketplace is quick to recognize companies
that do not measure up. The reverse is also true: talent attracts talent. Companies
that commit themselves to transforming their marketing operations into agile out-
fits, with LD playing a front-and-center role, have the opportunity to market them-
selves as go-to destinations for digital talent. Those companies that transform their
capabilities first may be hard for others to catch up with.
The Boston Consulting Group 13
The need for techni-
cally proficient and
specialized staff is
leading companies to
new talent pools.
No company should underestimate the challenge. The research, which our experi-
ence confirms, shows that many organizations require a broad transformation
of their digital capabilities just to stay in the game, much less lead the field.
This means both upgrading basic digital skills, such as website management,
search, and digital targeting, and rapidly developing more advanced skills, such
as data analytics and testing, in channels such as mobile and video. But it’s not
enough to address individual skills. Marketing organizations need people who ap-
preciate the strengths and shortcomings of each channel and can marry this
knowledge with a comprehensive understanding of the consumer journey, sup-
ported by technology to make use of the ever-increasing amounts of data avail-
able. The goal for forward-looking companies should be not only to “follow the
consumer” but to get ahead. Given where many companies stand today, this is a
tall order and will likely require a broad corporate commitment to a multiyear
journey.
Build or Buy?
In theory, companies can choose to build or buy talent, but in practice the current
imbalance in supply and demand means that acquiring talent from outside is both
difficult and expensive. For one thing, it’s never easy for nontechnical people, such
as those who staff most HR departments, to assess technical skills. Moreover, in a
fast-developing field, the best people want to work close to the cutting edge, in an
environment where their skills are challenged and their efforts are recognized and
rewarded. They will expect much more comprehensive training than what many
companies’ “lunch and learn” programs can provide, as well as training tied to spe-
cific roles and career paths within the organization.
Companies that are not good at digital marketing today are doubly challenged—
they will find it proportionately more difficult to attract digital talent than com-
panies that are already performing well. Candidates today use an array of
digital tools, including social media and specialized job-seeking sites such as
glassdoor.com, to research prospective employers. It’s simple to find out how
well a company measures up—and easy to move on if it doesn’t.
Transforming Marketing Talent
Most marketers need to rebuild their learning and development capability. The first
question a company should ask itself is whether its LD plans, as currently con-
structed, will help it to close the digital-marketing skills gap—or whether they are
just set up to do more of the same. Many organizations need to reassess their priori-
ties through an evidence-based approach, one that not only reflects internal re-
quests but also provides an objective assessment of where LD investment is actu-
ally required.
To find talent for newly defined roles, more and more companies are no longer
looking at grads with marketing degrees or people with branding backgrounds. The
need for technically proficient and specialized staff is leading companies to new tal-
ent pools. Demand is rising for data scientists, Ph.Ds, econometricians, mathemati-
cians, agency managers, and media professionals. Marketers are hiring more people
14 The Talent Revolution in Digital Marketing
It’s no longer suff-
cient to optimize
training and execu-
tion for today;
forward-looking
companies look to
the future while
fixing current gaps.
who have worked in nontraditional roles in digital and branded content as well as
in media companies.
As with many other things, where you start depends on where you stand, and com-
panies should not try to address all their digital-skills gaps at once. Nor should they
shy away from the time commitment this kind of step-change involves. Most mar-
keting organizations can benefit from doing five things.
Start with a strategic vision and roadmap. Companies need to identify early on the
role that digital marketing will play in fulfilling business objectives, and this will
help dictate the marketing platforms and capabilities that will enable them to
better connect with consumers and create competitive advantage going forward.
One consumer products company, for example, chose digital as the key to building
competitive advantage for its brands because its assessment of the competitive
landscape and the company’s financial resources showed little opportunity to win
in traditional channels. The company established digital channels as a clear busi-
ness priority, with the goal of becoming “the most advanced digital company in the
marketplace.” This set the company on a multiyear journey: expanding its digital
knowledge and capabilities, increasing digital spending, and embedding a digi-
tal-first mind-set throughout the organization.
Understand the real gaps. Understanding what and where the gaps are between
current performance and best practice—and how these gaps compare (or quite
possibly contrast) with current LD priorities—is an essential step. Advertisers
looking to get a comprehensive assessment of their digital-marketing skills and how
they compare with those of their peers can participate in the annual Talent Revolu-
tion survey (http://googledigitalacademy.com/talentrevolution/#trs survey), developed
with the assistance of more than 30 advertisers, agencies, and marketing experts to
help companies assess what they currently do well and where they can improve.
Focus on today and tomorrow. The fast-evolving world of digital marketing requires
marketing organizations to expand the focus of their LD programs—and their
marketing efforts generally. It’s no longer sufficient to optimize training and execu-
tion for today; forward-looking companies look to the future while fixing current
gaps. Above all, their revamped learning programs need to be agile and able to
evolve over time.
Companies should think in terms of a roadmap rather than a snapshot solution;
LD programs need to be as fluid as the digital marketplace and to continually in-
corporate new technologies and applications. For example, while one team address-
es shortcomings in Web search, another team can be looking at the challenges in
social media. And when the upgrading effort moves on to social media, an advance
team can be exploring mobile. Mandating a rising percentage of total spending on
digital each year can help the entire organization learn by doing.
Make a step-change in LD. Changes in LD should support a broader transforma-
tion in capability and focus. LD is not only for digital specialists; most companies
will need to expand the universe of executives and staff targeted for digital training.
For a digitally oriented culture to take hold, all levels of the marketing organization,
The Boston Consulting Group 15
from the CMO to marketing assistants, need to be engaged. Content can and should
be customized, but the importance of developing enhanced digital skills needs to
be reflected across the entire organization. One European company requires
marketers to attend 24 mandatory training sessions a year—which means essential-
ly a session every two weeks.
Our research shows that across all industries, the quality of digital LD is seen to
be wanting. Engaging, relevant, and memorable content is essential for any training
program; it is all the more important in a technical field such as digital. Not every-
one needs to know how to design a programmatic advertising platform, for exam-
ple, but every marketer today needs to be conversant in how programmatic ex-
changes work and the advantages they bring to both advertisers and publishers.
Similarly, performing data analytics or digital targeting requires a high degree of
technical expertise and training, and marketers need to understand and appreciate
the role these capabilities play in today’s marketing programs. Business and mar-
keting teams need to be involved in the design of training programs and to play a
role in program development. Off-the-shelf materials can be helpful, but custom-
ized, industry- and company-specific content will also be necessary.
The pace of digital change is such that traditional training approaches will not keep
an organization current. Companies need to foster an acceptance of and apprecia-
tion for self-learning, promoting ongoing learning as a basic responsibility of staff
and executives at all levels. As with other key enablers, leadership from the top can
play a critical role. Increasingly, we see top management going through digital-lead-
ership programs with their entire teams in order to lead by example and seed a cul-
ture of continual learning.
Enable a broader digital transformation. Revamping LD may not be sufficient by
itself. Rethinking the marketing organization more broadly may be necessary. For
example, some companies may want to centralize marketing functions for greater
control and efficiency. This can also make it easier to transform marketing initia-
tives into agile cycles measured in weeks rather than months. In addition, compa-
nies can create digital centers of excellence to facilitate sharing of best practices
and promote digital education and adoption. Adjusting marketing’s interface with
other corporate functions, such as legal, finance, and HR, is also critical to the
effectiveness of an agile organization. No company will have all the skills it needs
in-house; transforming how marketing collaborates with an expanding universe of
agency partners is another critical component.
No one can predict how digital technologies will evolve or how they will affect
consumer behavior in the future. But it’s easy to see the digital-skills divide ex-
panding between companies that have committed themselves to developing the
marketing skills they need—and are consequently looking to the future with confi-
dence in their capabilities—and those that are struggling to catch up. Much of the
difference will be determined by which companies embrace the talent revolution in
digital marketing now.
16 The Talent Revolution in Digital Marketing
Overall DCI score
Build strategy and plans
Clear understanding of consumer
We connect data from a diverse set of sources on consumers and their
activities to build a deeper understanding of them
We have a clear and up-to-date map of consumer journey(s) related to
my brand or product category
Our consumer journey map(s) capture all online and offline touch points
We know which digital touch points are the most critical moments for
our specific marketing objectives
Ability to build and execute successful cross-channel plans
We build successful cross-channel marketing plans based on our
understanding of critical touch points
Our digital-content strategy ensures that we tailor digital content for the
key moments in the consumer journey
We translate our marketing objectives into a set of actionable metrics
Data-driven trade-offs between channels
We use robust ROI models to optimize our marketing mix across all
channels (digital and traditional)
We allocate resources across digital channels based on a clear
understanding of the value and cost of each digital channel
We measure the impact of digital advertising based on a robust
attribution model
Partner management
Right partners with the same goal
Our media agency partners are at the cutting edge of marketing in a
digital world
Our creative agency partners are at the cutting edge of marketing in a
digital world
We have the right combination of agency partners to deliver our campaign
targets effectively
Establish accountability and align incentives
Our agency partners are clear on how their specific role affects the overall
success of the campaign
We are able to orchestrate our agency partners so that they work as one team
We confidently challenge our partners to ensure that we get the best out
of them
Overall campaign outcomes are a critical component of how we reward
our partners
Enablers
Senior leadership
Our senior leaders emphasize the importance of adapting marketing to
a digital world
Our senior leaders empower us to challenge established models
Our senior leaders have provided resources/investment/shelter for
marketing innovations (e.g., testing and nurturing new marketing models)
Structure and talent
Our marketing structure enables us to deliver well-coordinated
cross-channel communications
Consumer
goods
Financial
services
Publicsector,
education,
notforprofit
Retail
Tech,media,
telecom
Average
30–45 46–60 61–75
Appendix: DCI Scores by Industry and Skill
The Boston Consulting Group 17
Structure and talent (cont’d)
Other business functions (e.g., finance, IT, legal) give us the support
we need to succeed in our rapidly changing marketing environment
Our marketing teams are able to attract and retain critical digital talent
Continual investment
We are investing sufficiently in marketing capabilities to embrace
changes in the digital space
Our marketing-technology platforms allow us to make the most of
our consumer data
Channels
Search
We build our keyword strategy on our understanding of what keywords
consumers use
We optimize paid search based on signals such as device, location, time
and remarketing
We continuously measure paid-search performance and optimize
accordingly
Our paid-search advertising budget can be varied according to returns
Website
We fully understand the role our website plays in our consumers’
journey (both online and offline)
Our website is designed and optimized to deliver a great experience
across multiple devices (e.g., desktop, smartphone, tablet)
We ensure that our website is fully search-optimized at all times
Our website serves differing consumers needs across different visits
effectively
Display media
We fully understand the role that display media plays in our consumers’
journey
We use a range of data signals (e.g., interests, retargeting, search, social)
to target our display ads to the right person at the right time
We use a range of data signals to tailor the display ad content
We buy a significant proportion of our display ads using programmatic
and real-time bidding technology
Mobile advertising
Our mobile strategy is based on a clear understanding of mobile’s
role in the consumer journey
We effectively use location-based data in our mobile campaigns
We use data to effectively attribute the value of mobile and determine
the right spend levels
Mobile Web and apps
Our mobile website experience is optimized to how consumers choose
to use it
We fully understand the role apps play in our consumers’ journey
All the apps we build have a clear functionality/purpose that supports
our product/service offering
Consumer
goods
Financial
services
Publicsector,
education,
notforprofit
Retail
Tech,media,
telecom
Average
30–45 46–60 61–75
18 The Talent Revolution in Digital Marketing
Consumer
goods
Financial
services
Publicsector,
education,
notforprofit
Retail
Tech,media,
telecom
Average
Social media
We fully understand the role that social media plays in our consumers’
journey
We are able to pick the most influential social-media platforms to deliver
our campaign objectives
We have created a consistent social-media voice for each brand across
platforms
We use social media to raise brand awareness through a variety of
strategies (e.g., using key influencers, paying for ads)
Video
We fully understand the role of video in our consumers’ journey
We plan across online video and TV together in order to deliver our
campaign objectives
We are able to pick the most effective video-advertising platforms to
deliver our campaign objectives
We tailor our video creative to fit the consumer’s use of the device and
digital platform
We create more than one video and use technology (e.g., hotspots,
sequential retargeting) to keep consumers engaged with our brand
Digital content
Content creation
We consider multiple sources to develop our creative content (e.g., create
ourselves, co-create with media partners, curate content from others)
We optimize and improve our content with content analytics (e.g., measuring
content quality and audience engagement with clear success metrics)
We are actively building content development capabilities (more investment/
supporting agencies/different ways of working/finding new partners)
Our video content is designed to work best online
Content distribution
We have a media plan designed to ensure that our content is seen by
the right audience
We use tools and technology (e.g., “dynamic insertion”) to make our
content relevant to consumers and where they are in their journey
Our content is optimized to run on all relevant devices and platforms
Digital targeting
We convert our ideal consumer segments into targetable profiles based
on digital-audience data (e.g., behavior on website, search, social, video)
We continuously optimize our targeting based on performance throughout
the campaign
We use data gathered in one channel (e.g., video/website/social) to
remarket to consumers in other channels (e.g., search/display)
We maintain “one view of the consumer” across digital devices and
platforms
30–45 46–60 61–75
The Boston Consulting Group 19
Metrics and measurement
Choosing the right metrics and targets
We pick digital metrics that are good proxies for our marketing objectives
Our digital campaign targets are informed by best practices and historical
benchmarks
Measure effectively and optimize
We are set up to gather metrics from a wide range of channels (e.g. website,
search, social  video)
We track and optimize our campaigns in real time through ongoing
measurements
Marketing analytics
Access to data
We consistently conduct in-depth post campaign analysis across all media
channels
We connect data from all our digital activities to build a deeper understand-
ing of what did/didn’t deliver on our marketing objectives
Derive insight
We have the right mix of analytical capability and marketing experience
to be able to turn data into actionable insights
Key lessons from our post campaign analysis are fed into the next
campaign planning cycle
Testing
We design tests to accurately compare the performance of different
digital formats and targeting options
We design tests to accurately compare the performance of different
variants of digital content/creative
We pretest offline copy in online channels (e.g., TV ads on YouTube)
We embrace lessons from failed tests and distribute them widely as
learning opportunities
Consumer
goods
Financial
services
Publicsector,
education,
notforprofit
Retail
Tech,media,
telecom
Average
30–45 46–60 61–75
Source: BCG Talent Revolution Survey, 2015.
20 The Talent Revolution in Digital Marketing
About the Authors
Dominic Field is a partner and managing director in the London office of The Boston Consulting
Group and a global leader of the firm’s Marketing  Sales practice. You may contact him by e-mail
at field.dominic@bcg.com.
Jody Visser is a partner and managing director in BCG’s New York office and a global leader of the
firm’s Marketing  Sales practice. You may contact her by e-mail at visser.jody@bcg.com.
Nicolas de Bellefonds is a partner and managing director in the firm’s Paris office and a topic
leader for digital marketing. You may contact him by e-mail at debellefonds.nicolas@bcg.com.
Acknowledgments
The authors are grateful to Niall McKinney, CEO and founder of The Knowledge Engineers, for his
advice and insights in the preparation of this report. They also wish to acknowledge the assistance
and support of Debbie Morrison and the ISBA; Joanne Bolger and the Interactive Advertising Bu-
reau; Sarah Woodley and the Marketing Society; Camilla Woodhouse and the Marketing Academy;
Patrick Mills and IPA; Racheal Aldighieri and the DMA; Lars Gibbe and OWM; and Barbara Kolocek
and BVDW.
The authors are grateful to Arzu Yesilova for her work in coordinating the research and developing
this report. They also thank David Brooks, Tim Heal, Florian Friedel, and Ian Bartlett for their assis-
tance, and Neal Rich and Thomas Recchione for their input into the survey framework and design.
Finally, they thank David Duffy for his help with writing and Katherine Andrews, Gary Callahan,
Angela DiBattista, Kim Friedman, Abby Garland, Gina Goldstein, Amanda Provost, and Sara Stras-
senreiter for editing, design, production, and distribution.
For Further Contact
If you would like to discuss this report, please contact one of the authors.
To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcgperspectives.com.
Follow bcg.perspectives on Facebook and Twitter.
© The Boston Consulting Group, Inc. 2015. All rights reserved.
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Bcg talent-revolution-digital-marketing

  • 1. The Talent Revolution in Digital Marketing
  • 2. The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for- profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep in­sight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable compet­itive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 82 offices in 46 countries. For more information, please visit bcg.com.
  • 3. September 2015 Dominic Field, Jody Visser, and Nicolas de Bellefonds The Talent Revolution in Digital Marketing Commissioned by Advised by Supported by
  • 4. 2 The Talent Revolution in Digital Marketing AT A GLANCE New research shows that companies do not have the digital-marketing skills they need to engage consumers, and marketers are not sufficiently focused on develop- ing these essential digital capabilities. Shortfalls in Digital-Marketing Skills and Mismatches in Priorities The biggest performance and priority shortfalls are in increasingly critical skills related to mobile and video, testing, and programmatic advertising. Revamped Training and Culture Are Critical to Closing the Gaps Current training and development programs are either ineffective or insufficient. Creating a culture that enables a test-and-learn approach and calculated risk-taking is essential to closing the digital-skills gap. A Broader Digital Transformation Can Create Competitive Advantage Transforming marketing organizations into skilled digital operations requires senior-leadership commitment—and follow-through in such areas as talent devel- opment, technology investment, and the cultivation of agile organizational struc- tures. Companies that start the journey now have a huge opportunity to create competitive advantage.
  • 5. The Boston Consulting Group 3 While still important, traditional skills such as creativity and brand building no longer suffice in a digital-first reality. Digital marketing is not only the future, it’s the present. But do today’s marketers have the skills they need to operate in a digital world? New research by The Boston Consulting Group shows that they do not—and that the gaps and shortfalls are bigger than companies assume. The signs for the future are even more troubling, as many marketers seem focused on catching up on yes- terday’s needs rather than embedding into their organizations the capabilities and expertise that will be required tomorrow. The companies that act now to transform their marketing capabilities will be much better positioned to connect with their customers in the years to come. Marketers know that digital channels are critical to engaging today’s consumer. Global spending on digital advertising will reach $178 billion in 2016, almost 30 percent of total ad spending, according to eMarketer. Digital advertising already represents a third of all ad spending in the U.S. today, and many forecasts see digi- tal reaching parity with TV in a few years’ time. In the UK, almost 60 percent of consumers use social media each week for an average of 52 minutes per day. In Germany, about 13 percent of all commerce is now transacted online or via mobile devices; online sales are growing at more than 20 percent a year. Worldwide, a quarter of consumers use smartphones, a percentage that will rise to a third, or some 2.5 billion people, by 2018. In developed economies, of course, the percentag- es are much higher. Marketing organizations are feeling the pressure created by these shifts. And while still important, traditional skills such as creativity and brand building no longer suf- fice in a digital-first reality. Marketing has become much more of a science requir- ing technical, data-crunching abilities. With new digital channels and tools con- stantly emerging, marketing organizations must become more agile—to borrow a term from the world of software development—iterating much more quickly in or- der to adapt to rapidly changing conditions. (See The Agile Marketing Organization, BCG Focus, September 2015.) But before companies can address the gaps, they need to know where and how large they are. To address this challenge, BCG joined forces with Google and a team of marketing industry experts to form the Talent Revolution Initiative. Our first under- taking was to survey some 1,100 marketers (including digital specialists, brand man- agers, customer marketers, and public relations practitioners) at 57 companies in the UK and Germany on their organizations’ digital-marketing capabilities, learning and development efforts, and future requirements. (See the sidebar, “About this Report.”)
  • 6. 4 The Talent Revolution in Digital Marketing With the rapid growth in digital spending and the expanding impact of digital channels on consumers’ behavior, it’s more important than ever for marketing organizations to understand where and how they can most effectively influence consumer behavior and whether they can do so efficiently. Google commissioned BCG, supported by digital-training experts The Knowl- edge Engineers and a team of market- ing industry organizations (see the Acknowledgments for a list of the organizations involved), to assess the current state of digital skills in marketing organizations. The findings outlined herein were discussed with Google executives, but BCG is respon- sible for the analysis and conclusions. We surveyed some 1,100 marketers at 57 companies to understand how they rate their marketing organizations against digital-marketing best prac- tices. Participating companies were from the retail, consumer products, financial services, and technology, media, and telecommunications industries, as well as from public-sec- tor, education, and not-for-profit organizations. We focused the survey on companies in the UK and Germa- ny, two highly developed economies that are following different trajecto- ries with respect to digital’s economic impact but that together broadly represent the current state of the digital market in developed Western nations. We asked marketers to assess their organizations’ capabilities across a digital-marketing framework that includes nine categories of skills. (See the exhibit below.) The first three categories are related to planning: marketing and brand strategy, partner management, and critical organiza- tion enablers. The next three involve execution: digital targeting, digital- Marketing and brand strategy Digital targeting Metrics and measurement Partner management Digital content Marketing analytics Critical enablers Digital channels Test and learn PLAN1 ACT2 MEASURE3 Source: BCG analysis Digital-Marketing Skills Framework About This Report
  • 7. The Boston Consulting Group 5 The results are eye-opening. On BCG’s 100-point Digital Capabilities Index (DCI) (with 100 indicating best practice), the average digital-skills score for all marketers was 57. While a few companies ranked higher than 70, the majority fell squarely into the 55-to-60-point range. (See Exhibit 1.) Industries such as retail and financial services were particularly weak. On the one hand, these scores should be a wake-up call for CEOs and CMOs of any customer-facing organization. On the other, the current state of play is not that surpris- ing, given the relative youth and rapid development of digital marketing in general. Companies face the biggest shortfalls in some of the most important capabilities— skills related to mobile, video, testing, partner management, and organizational en- ablers, for example—which will only increase in importance in the next several years. At the moment, at least, marketers are not singling out these skills as imme- diate or longer-term learning and development (LD) priorities for their teams. Moreover, in many instances, companies do not see these critical skills as top near- term business priorities. The scale and nature of the skills gaps suggest that companies need to do much more than tinker with their recruitment and training programs. Most require a transformation in their marketing functions: making the development of digital ca- pabilities a top business priority, rewiring the organization accordingly, and signifi- cantly boosting LD programs to produce the needed skills. In addition to champi- oning digital engagement, top management must deliver resources, support for new initiatives, and investment in capabilities and platforms that capitalize on the op- portunities digital technologies offer. In LD specifically, companies ought to shift their focus to support an agile marketing organization characterized by self-learn- ing (in addition to more traditional training), an adaptive strategy based on the test- and-learn approach, and much more calculated risk taking. This is a big undertaking—and an equally big opportunity for those that seize it first. The playing field is mostly even; research shows that most companies face content development and distribu- tion, and expertise in seven digital channels (search, websites, display media, mobile advertising, mobile Web and applications, social media, and video). The final three sets of skills relate to measurement: metrics and measurement, marketing analytics, and testing. Marketers rated their teams’ current capabilities and performance in each skill and in each of the seven digital channels on a scale of one to six. Responses were turned into an index with 100 equaling best practice. We also asked respondents to list the capabilities that are critical for business success in the medium term (three years) and the skills in which they need learning and development support in the next 12 months.
  • 8. 6 The Talent Revolution in Digital Marketing broadly similar gaps and needs. Since the DCI rates companies against best prac- tice, there’s plenty of room for improvement. Even companies at the top of their in- dustries have major gaps in critical capabilities. Better talent will lead to better business performance. Moving now and moving quickly can deliver long-lasting improvements in both skills development and the marketing organization’s ability to drive top-line results. Given the shortage of digi- tal talent, and the time it takes to revamp LD programs and push the results through large, multilayered organizations, those companies that get a head start will have a huge opportunity to accelerate ahead of their peers and build sustain- able long-term advantage. Shortfalls in Talent, Training, Preparedness, and Priorities The digital capabilities of today’s marketing organizations vary in quality by indi- vidual skill, channel, and industry. (See Exhibit 2 and the Appendix.) Moreover, there’s a big dichotomy between skills related to leadership, strategy, and planning and those necessary for effective execution. Take one example: marketers give cred- it to senior leaders for emphasizing the importance of adapting marketing to a digi- tal world (a score of 74 out of 100 on the DCI), but access to technology platforms to make the most of consumer data—a basic but essential necessity in today’s digi- tal marketplace—garners a score of only 47. Marketers do a number of things well. They believe they have the ability to connect diverse sets of data on consumers to better understand motivations and behaviors (a score of 70). Companies are good at sourcing and using a variety of digital con- tent (72). With the exception of the retail industry—which scored 61, drawing down Digital Capabilities Index score 40 40–45 45–50 50–55 55–60 60–65 65–70 70–75 75 14 10 9 8 3 1 5 4 3 Number of respondents 0 2 4 6 8 10 12 14 Source: BCG Talent Revolution Survey, 2015. Exhibit 1 | Marketers Do Not Give Themselves High Scores for Digital-Marketing Capabilities
  • 9. The Boston Consulting Group 7 the overall average—marketers think they are generally successful at translating marketing objectives into actionable metrics (69). Marketers are relatively clear about the role that websites play in the consumer journey (69), and many believe their websites can do more to serve differing cus- tomer needs (58). Marketers also feel they have a relatively good understanding of the role of social media in the consumer journey (66), although they need to do more to create a consistent voice for each brand across various platforms (60). Pub- CURRENT PERFORMANCE PLANACTMEASURE Consumer goods Build strategy and plans Partner management Enablers Digital content Digital targeting Channels Search Website Display media Mobile advertising Mobile Web and apps Social media Video Metrics and measurement Marketing analytics Testing OVERALL DCI SCORE 30–45 46–60 61–75 Retail Tech,media, telecom Financial services Publicsector, education, notforprofit Consumer goods Tech,media, telecom Financial services Publicsector, education, notforprofit Consumer goods Retail Tech,media, telecom Financial services Publicsector, education, notforprofit Retail IMPORTANCE TO FUTURE OF THE BUSINESS TOPTHREE LD PRIORITY Source: BCG Talent Revolution Survey, 2015. Exhibit 2 | Marketers Give Themselves Poor Grades Across Essential Skills
  • 10. 8 The Talent Revolution in Digital Marketing Relative strength in websites and social media falls away when marketers are asked to rate their capabilities in video, mobile advertising, and mobile Web and apps. lic-sector, education, and not-for-profit marketers feel they do an especially good job with social media (71), much more so than marketers in retail (56), technology, media, and telecommunications (64), and financial services (57). But look more broadly and more deeply, and a different picture emerges—one that shows marketing organizations largely unprepared for digital, particularly with respect to evolving technology. While senior leadership gets high marks for support (74), the grades for structure and talent fall mostly in the low- to mid-50s. Scores for investing in new capabilities that address a changing marketplace (53) and for developing marketing platforms that make the most of customer data (47) are especially low. Companies see themselves as developing content well (63), but they fall short on distribution and, especially, on making content relevant to where consumers are in the purchasing journey (49). Respondents from public-sector, ed- ucation, and not-for-profit organizations and from technology, media, and telecom- munications companies think they perform reasonably well on marketing analytics and on metrics and measurement; not so for those in the consumer products, fi- nancial services, and retail sectors. Testing received some of the lowest scores in the survey from marketers in all sectors and was especially low for consumer goods companies, with a score of 45. Even more telling, perhaps, is where marketers see themselves with respect to vari- ous digital channels. The relative strength in websites and social media falls away quickly when marketers are asked to rate their capabilities in video (a score of 49), mobile advertising (40), and mobile Web and apps (48), scores that should be cause for concern at a time when consumers are increasingly on their smartphones and watching videos. Several talent and performance gaps stand out: •• Video. Scores were particularly low (38) in the use of technology to keep consum- ers engaged with a brand. •• Mobile Advertising. This capability received low scores across the board, with the lowest assessment being on the use of location data in mobile campaigns (36)—one of mobile’s most beneficial attributes for marketers—and a low score on the use of data to determine the right spending levels for mobile (38). •• Display Media. Advertisers have a serious shortfall of talent in the fastest growing and most important area of display advertising: programmatic advertising using real-time bidding (41). •• Testing. In an increasingly data-driven function, one of the basic skills of an agile marketing organization is the ability to test, learn, adapt a campaign, then test again. But few advertisers use online channels as a testing ground for offline channels (a DCI score of 34). •• Partner Management. Marketers are less than sanguine about the capabilities of their agency partners and about the relationships they have with these suppli- ers. Many do not believe their creative or media agencies are at the cutting edge
  • 11. The Boston Consulting Group 9 30–45 46–60 61–75 CONSUMER GOODS RETAIL TECH, MEDIA, TELECOM FINANCIAL SERVICES PUBLIC SECTOR, EDUCATION, NOT FOR PROFIT AVERAGE We have a learning program that enables me to build the digital knowledge and skills required for my role Digital-marketing training materials are easily available when I need them Digital-marketing course materials are up to date with the latest technology trends, new advertising products, and solutions I can spend enough time to develop my digital-marketing capabilities We build communities of best practice to help us all build digital knowledge and skills faster Learning program allows for different styles of learning (e.g., classroom, e-learning, on the job, with a buddy) Overall, I believe we have a very effective and impactful learning and development program for digital marketing OVERALL LD SCORE Source: BCG Talent Revolution Survey, 2015. Exhibit 3 | Employees Are Not Getting the Training They Need of digital marketing. They have trouble working effectively with their agency partners and challenging them to get better results. Partner management received a DCI score of 54. Training Programs Are Insufficient Employees get it: they recognize that their marketing organizations are not per- forming as well as they could or should be. They see their companies’ current LD programs as part of the problem. (See Exhibit 3.) Marketing staff are frustrated by the level and quality of the training that they have available. They gave their employers an average score of only 46 for offering “a very effective and impactful learning and development program for digital marketing”— less than halfway to best practice. The retail industry scored especially poorly (39), but none of the sectors we surveyed scored over 48 on this topic. Digital training materials are seen as neither up to date (45) nor easily available when they are needed (51). Organizations are not effective at facilitating sharing of best practices (50), and they do not allow staff sufficient time to build their digital skills (47). LD programs scored slightly higher in the consumer goods and in the public, education, and not-for-profit sectors, but the overall average was only 49.
  • 12. 10 The Talent Revolution in Digital Marketing Many marketers are not putting a priority on developing or improving the skills that correspond to impending areas of growth. Looking to the Future…or Living in the Past? The situation does not appear set to improve in the near term. If marketing organiza- tions are not well prepared now, they will be even less digitally capable in the future— especially in the channels where demand for up-to-date skills is likely to be greatest. When we asked marketers to identify their teams’ top three LD needs for the next 12 months and the most important skills and digital channels for business success in the next three years, respondents across the board stressed strategy development and planning (an area of broad current strength). A few pointed to marketing ana- lytics, metrics and measurement, and digital targeting, but these ran far behind the leader. Marketers attached much lower importance and priority—in some cases, troublingly low—to multiple areas related to execution, as well as to several fast-growing digital channels. (See Exhibit 4.) One might expect that the areas with big skills gaps, such as those discussed above, would be targets of concerted attention going forward. Yet when we asked market- ers about their top LD priorities for the next twelve months, video scored 43; mo- bile advertising, 37; display media, 27; and testing, 44. There are several explanations for this disconnect, including the possibility that many marketers do not have a good grasp of the importance of newer digital channels (which would also be a troubling indication of the degree of their engagement with consumers). Whatever the reason, the data clearly indicates that many marketers seem to be living in the past rather than looking to the future. They are not putting a priority on developing or improving the skills that correspond to impending areas of growth; as a result, they risk being left behind or even out of the game. In the fast-developing digital-marketing environment, backward-looking or reactive approaches to LD will almost certainly fail to deliver the talent that companies need, especially considering the lead times required to embed new practices in the daily practice of large, multilayered organizations. Among the many skills and channels that appear to be in danger of receiving insuffi- cient attention, the following are some of the most important, given current market trends. Mobile Advertising. The UK Advertising Association reports that spending on mobile advertising in the UK grew almost 60 percent, to £1.62 billon, in 2015. According to eMarketer, UK mobile advertising accounted for 30 percent of a total £7.3 billion in digital spending in 2014; it expects mobile advertising to become the single largest ad channel this year and to claim 40 percent of total paid media spending in the UK by 2018. Globally, mobile ad spending will reach $75 billion in 2017, according to ZenithOptimedia. Marketers feel they perform poorly at mobile advertising—and they consider it of low business importance (43) and a low priority in terms of LD (37). Mobile Web and Apps. The situation is slightly better for mobile website and app development, but not by a lot. This channel scored only 48 for current perfor- mance, 56 for business importance, and 50 as a top-three LD priority—at a time
  • 13. The Boston Consulting Group 11 CURRENT PERFORMANCE Build strategy and plans Partner management Enablers Digital content Digital targeting Metrics and measurement Marketing analytics Testing Channels Search Website Display media Mobile advertising Mobile Web and apps OVERALL DCI SCORE Social media Video IMPORTANCE TO FUTURE OF THE BUSINESS TOPTHREE LD PRIORITY Consumer goods Financial services Publicsector, education, notforprofit Retail Tech,media, telecom Consumer goods Financial services Publicsector, education, notforprofit Retail Tech,media, telecom Consumer goods Financial services Publicsector, education, notforprofit Retail Tech,media, telecom TOTAL TOTAL AVERAGE 30–45 46–60 61–75 Source: BCG Talent Revolution Survey, 2015. Exhibit 4 | Marketers Are Not Emphasizing Execution, Especially in Fast-Growing Channels when Internet access on mobile devices has surpassed access on PCs, according to comScore. The primary experience with the Internet for an entire generation of consumers in the developed world—the 16- to 34-year-old Millennials, who out- number the baby boomers and have a far greater degree of technical sophistication, appetite for consumption, and desire to be connected—is mobile. The vast majority of the world’s population lives in developing markets, where the Internet experi- ence is and will continue to be mostly mobile.
  • 14. 12 The Talent Revolution in Digital Marketing Companies that commit themselves to transforming their marketing operations into agile outfits have the opportunity to market themselves as go-to destinations for digital talent. Video. Online video presents a similar dichotomy between market reality and marketer priority. The IAB UK reports that mobile video-ad spending rose 142 percent to £164 million in 2014, more than a third of total video-ad spending of £442 million (a 43 percent increase from 2013). Similarly, a recent IAB survey found that more than two-thirds of all advertisers expect to increase digital video-ad budgets in the next 12 months. Globally, Statista estimates that online video-ad spending will grow 18 percent in 2015 to some $10 billion. Nonetheless, video received very low scores for importance (44) and priority (43), with some exceptions in consumer goods and financial services. Display Media. Our research has shown that for display advertisers and their agencies, digital display campaigns that employ programmatic, or automated, buying of adver- tising placements can achieve big gains in performance—an average 32 percent improvement in cost per action—and in some cases, improvements of more than 50 percent. (See Improving Engagement and Performance in Digital Advertising, BCG Focus, September 2014.) But to achieve these gains in large-scale campaigns, advertisers need to take advantage of the potential to experiment and learn online and make effective use of individuals with advanced digital skills. It does not bode well when marketers rank their current display-media skills at only 49 and the priority they assign to improving these skills dead last (22) among the capabilities and channels we surveyed. Testing. One of the great benefits of digital technology is the ability to test just about anything with consumers quickly, easily, and inexpensively—from ad copy to campaigns and offers. In pricing, for example (a complementary function to market- ing), the ability to test, learn, and adapt in real time is the basis for dynamic pricing, which, pioneered by Amazon and others, has helped upend the retail business. Marketers, however, are slow and inconsistent in determining how and to what extent to test. Few place a priority on developing their testing skills (44)—a serious oversight or miscalculation, in our opinion. Other Skills. Marketers give some digital skills, such as marketing analytics, digi- tal-content creation, and digital targeting, higher marks for business importance and skills development, but even these scores (which fall into the 55-to-65 range) trail the realities of the marketplace. Big data, branded content, and targeting consumers for advertising delivery based on digital behavior are three of the biggest trends in marketing today. Other key skills, such as partner management and metrics and measurement, score even lower for importance and as an LD priority. Closing the Talent Gap The current talent gap could easily lead to a vicious circle, especially for those com- panies that are slow to address their shortcomings. Marketers that cannot attract, develop, and retain staff with advanced digital skills risk falling behind, since talent in today’s increasingly transparent marketplace is quick to recognize companies that do not measure up. The reverse is also true: talent attracts talent. Companies that commit themselves to transforming their marketing operations into agile out- fits, with LD playing a front-and-center role, have the opportunity to market them- selves as go-to destinations for digital talent. Those companies that transform their capabilities first may be hard for others to catch up with.
  • 15. The Boston Consulting Group 13 The need for techni- cally proficient and specialized staff is leading companies to new talent pools. No company should underestimate the challenge. The research, which our experi- ence confirms, shows that many organizations require a broad transformation of their digital capabilities just to stay in the game, much less lead the field. This means both upgrading basic digital skills, such as website management, search, and digital targeting, and rapidly developing more advanced skills, such as data analytics and testing, in channels such as mobile and video. But it’s not enough to address individual skills. Marketing organizations need people who ap- preciate the strengths and shortcomings of each channel and can marry this knowledge with a comprehensive understanding of the consumer journey, sup- ported by technology to make use of the ever-increasing amounts of data avail- able. The goal for forward-looking companies should be not only to “follow the consumer” but to get ahead. Given where many companies stand today, this is a tall order and will likely require a broad corporate commitment to a multiyear journey. Build or Buy? In theory, companies can choose to build or buy talent, but in practice the current imbalance in supply and demand means that acquiring talent from outside is both difficult and expensive. For one thing, it’s never easy for nontechnical people, such as those who staff most HR departments, to assess technical skills. Moreover, in a fast-developing field, the best people want to work close to the cutting edge, in an environment where their skills are challenged and their efforts are recognized and rewarded. They will expect much more comprehensive training than what many companies’ “lunch and learn” programs can provide, as well as training tied to spe- cific roles and career paths within the organization. Companies that are not good at digital marketing today are doubly challenged— they will find it proportionately more difficult to attract digital talent than com- panies that are already performing well. Candidates today use an array of digital tools, including social media and specialized job-seeking sites such as glassdoor.com, to research prospective employers. It’s simple to find out how well a company measures up—and easy to move on if it doesn’t. Transforming Marketing Talent Most marketers need to rebuild their learning and development capability. The first question a company should ask itself is whether its LD plans, as currently con- structed, will help it to close the digital-marketing skills gap—or whether they are just set up to do more of the same. Many organizations need to reassess their priori- ties through an evidence-based approach, one that not only reflects internal re- quests but also provides an objective assessment of where LD investment is actu- ally required. To find talent for newly defined roles, more and more companies are no longer looking at grads with marketing degrees or people with branding backgrounds. The need for technically proficient and specialized staff is leading companies to new tal- ent pools. Demand is rising for data scientists, Ph.Ds, econometricians, mathemati- cians, agency managers, and media professionals. Marketers are hiring more people
  • 16. 14 The Talent Revolution in Digital Marketing It’s no longer suff- cient to optimize training and execu- tion for today; forward-looking companies look to the future while fixing current gaps. who have worked in nontraditional roles in digital and branded content as well as in media companies. As with many other things, where you start depends on where you stand, and com- panies should not try to address all their digital-skills gaps at once. Nor should they shy away from the time commitment this kind of step-change involves. Most mar- keting organizations can benefit from doing five things. Start with a strategic vision and roadmap. Companies need to identify early on the role that digital marketing will play in fulfilling business objectives, and this will help dictate the marketing platforms and capabilities that will enable them to better connect with consumers and create competitive advantage going forward. One consumer products company, for example, chose digital as the key to building competitive advantage for its brands because its assessment of the competitive landscape and the company’s financial resources showed little opportunity to win in traditional channels. The company established digital channels as a clear busi- ness priority, with the goal of becoming “the most advanced digital company in the marketplace.” This set the company on a multiyear journey: expanding its digital knowledge and capabilities, increasing digital spending, and embedding a digi- tal-first mind-set throughout the organization. Understand the real gaps. Understanding what and where the gaps are between current performance and best practice—and how these gaps compare (or quite possibly contrast) with current LD priorities—is an essential step. Advertisers looking to get a comprehensive assessment of their digital-marketing skills and how they compare with those of their peers can participate in the annual Talent Revolu- tion survey (http://googledigitalacademy.com/talentrevolution/#trs survey), developed with the assistance of more than 30 advertisers, agencies, and marketing experts to help companies assess what they currently do well and where they can improve. Focus on today and tomorrow. The fast-evolving world of digital marketing requires marketing organizations to expand the focus of their LD programs—and their marketing efforts generally. It’s no longer sufficient to optimize training and execu- tion for today; forward-looking companies look to the future while fixing current gaps. Above all, their revamped learning programs need to be agile and able to evolve over time. Companies should think in terms of a roadmap rather than a snapshot solution; LD programs need to be as fluid as the digital marketplace and to continually in- corporate new technologies and applications. For example, while one team address- es shortcomings in Web search, another team can be looking at the challenges in social media. And when the upgrading effort moves on to social media, an advance team can be exploring mobile. Mandating a rising percentage of total spending on digital each year can help the entire organization learn by doing. Make a step-change in LD. Changes in LD should support a broader transforma- tion in capability and focus. LD is not only for digital specialists; most companies will need to expand the universe of executives and staff targeted for digital training. For a digitally oriented culture to take hold, all levels of the marketing organization,
  • 17. The Boston Consulting Group 15 from the CMO to marketing assistants, need to be engaged. Content can and should be customized, but the importance of developing enhanced digital skills needs to be reflected across the entire organization. One European company requires marketers to attend 24 mandatory training sessions a year—which means essential- ly a session every two weeks. Our research shows that across all industries, the quality of digital LD is seen to be wanting. Engaging, relevant, and memorable content is essential for any training program; it is all the more important in a technical field such as digital. Not every- one needs to know how to design a programmatic advertising platform, for exam- ple, but every marketer today needs to be conversant in how programmatic ex- changes work and the advantages they bring to both advertisers and publishers. Similarly, performing data analytics or digital targeting requires a high degree of technical expertise and training, and marketers need to understand and appreciate the role these capabilities play in today’s marketing programs. Business and mar- keting teams need to be involved in the design of training programs and to play a role in program development. Off-the-shelf materials can be helpful, but custom- ized, industry- and company-specific content will also be necessary. The pace of digital change is such that traditional training approaches will not keep an organization current. Companies need to foster an acceptance of and apprecia- tion for self-learning, promoting ongoing learning as a basic responsibility of staff and executives at all levels. As with other key enablers, leadership from the top can play a critical role. Increasingly, we see top management going through digital-lead- ership programs with their entire teams in order to lead by example and seed a cul- ture of continual learning. Enable a broader digital transformation. Revamping LD may not be sufficient by itself. Rethinking the marketing organization more broadly may be necessary. For example, some companies may want to centralize marketing functions for greater control and efficiency. This can also make it easier to transform marketing initia- tives into agile cycles measured in weeks rather than months. In addition, compa- nies can create digital centers of excellence to facilitate sharing of best practices and promote digital education and adoption. Adjusting marketing’s interface with other corporate functions, such as legal, finance, and HR, is also critical to the effectiveness of an agile organization. No company will have all the skills it needs in-house; transforming how marketing collaborates with an expanding universe of agency partners is another critical component. No one can predict how digital technologies will evolve or how they will affect consumer behavior in the future. But it’s easy to see the digital-skills divide ex- panding between companies that have committed themselves to developing the marketing skills they need—and are consequently looking to the future with confi- dence in their capabilities—and those that are struggling to catch up. Much of the difference will be determined by which companies embrace the talent revolution in digital marketing now.
  • 18. 16 The Talent Revolution in Digital Marketing Overall DCI score Build strategy and plans Clear understanding of consumer We connect data from a diverse set of sources on consumers and their activities to build a deeper understanding of them We have a clear and up-to-date map of consumer journey(s) related to my brand or product category Our consumer journey map(s) capture all online and offline touch points We know which digital touch points are the most critical moments for our specific marketing objectives Ability to build and execute successful cross-channel plans We build successful cross-channel marketing plans based on our understanding of critical touch points Our digital-content strategy ensures that we tailor digital content for the key moments in the consumer journey We translate our marketing objectives into a set of actionable metrics Data-driven trade-offs between channels We use robust ROI models to optimize our marketing mix across all channels (digital and traditional) We allocate resources across digital channels based on a clear understanding of the value and cost of each digital channel We measure the impact of digital advertising based on a robust attribution model Partner management Right partners with the same goal Our media agency partners are at the cutting edge of marketing in a digital world Our creative agency partners are at the cutting edge of marketing in a digital world We have the right combination of agency partners to deliver our campaign targets effectively Establish accountability and align incentives Our agency partners are clear on how their specific role affects the overall success of the campaign We are able to orchestrate our agency partners so that they work as one team We confidently challenge our partners to ensure that we get the best out of them Overall campaign outcomes are a critical component of how we reward our partners Enablers Senior leadership Our senior leaders emphasize the importance of adapting marketing to a digital world Our senior leaders empower us to challenge established models Our senior leaders have provided resources/investment/shelter for marketing innovations (e.g., testing and nurturing new marketing models) Structure and talent Our marketing structure enables us to deliver well-coordinated cross-channel communications Consumer goods Financial services Publicsector, education, notforprofit Retail Tech,media, telecom Average 30–45 46–60 61–75 Appendix: DCI Scores by Industry and Skill
  • 19. The Boston Consulting Group 17 Structure and talent (cont’d) Other business functions (e.g., finance, IT, legal) give us the support we need to succeed in our rapidly changing marketing environment Our marketing teams are able to attract and retain critical digital talent Continual investment We are investing sufficiently in marketing capabilities to embrace changes in the digital space Our marketing-technology platforms allow us to make the most of our consumer data Channels Search We build our keyword strategy on our understanding of what keywords consumers use We optimize paid search based on signals such as device, location, time and remarketing We continuously measure paid-search performance and optimize accordingly Our paid-search advertising budget can be varied according to returns Website We fully understand the role our website plays in our consumers’ journey (both online and offline) Our website is designed and optimized to deliver a great experience across multiple devices (e.g., desktop, smartphone, tablet) We ensure that our website is fully search-optimized at all times Our website serves differing consumers needs across different visits effectively Display media We fully understand the role that display media plays in our consumers’ journey We use a range of data signals (e.g., interests, retargeting, search, social) to target our display ads to the right person at the right time We use a range of data signals to tailor the display ad content We buy a significant proportion of our display ads using programmatic and real-time bidding technology Mobile advertising Our mobile strategy is based on a clear understanding of mobile’s role in the consumer journey We effectively use location-based data in our mobile campaigns We use data to effectively attribute the value of mobile and determine the right spend levels Mobile Web and apps Our mobile website experience is optimized to how consumers choose to use it We fully understand the role apps play in our consumers’ journey All the apps we build have a clear functionality/purpose that supports our product/service offering Consumer goods Financial services Publicsector, education, notforprofit Retail Tech,media, telecom Average 30–45 46–60 61–75
  • 20. 18 The Talent Revolution in Digital Marketing Consumer goods Financial services Publicsector, education, notforprofit Retail Tech,media, telecom Average Social media We fully understand the role that social media plays in our consumers’ journey We are able to pick the most influential social-media platforms to deliver our campaign objectives We have created a consistent social-media voice for each brand across platforms We use social media to raise brand awareness through a variety of strategies (e.g., using key influencers, paying for ads) Video We fully understand the role of video in our consumers’ journey We plan across online video and TV together in order to deliver our campaign objectives We are able to pick the most effective video-advertising platforms to deliver our campaign objectives We tailor our video creative to fit the consumer’s use of the device and digital platform We create more than one video and use technology (e.g., hotspots, sequential retargeting) to keep consumers engaged with our brand Digital content Content creation We consider multiple sources to develop our creative content (e.g., create ourselves, co-create with media partners, curate content from others) We optimize and improve our content with content analytics (e.g., measuring content quality and audience engagement with clear success metrics) We are actively building content development capabilities (more investment/ supporting agencies/different ways of working/finding new partners) Our video content is designed to work best online Content distribution We have a media plan designed to ensure that our content is seen by the right audience We use tools and technology (e.g., “dynamic insertion”) to make our content relevant to consumers and where they are in their journey Our content is optimized to run on all relevant devices and platforms Digital targeting We convert our ideal consumer segments into targetable profiles based on digital-audience data (e.g., behavior on website, search, social, video) We continuously optimize our targeting based on performance throughout the campaign We use data gathered in one channel (e.g., video/website/social) to remarket to consumers in other channels (e.g., search/display) We maintain “one view of the consumer” across digital devices and platforms 30–45 46–60 61–75
  • 21. The Boston Consulting Group 19 Metrics and measurement Choosing the right metrics and targets We pick digital metrics that are good proxies for our marketing objectives Our digital campaign targets are informed by best practices and historical benchmarks Measure effectively and optimize We are set up to gather metrics from a wide range of channels (e.g. website, search, social video) We track and optimize our campaigns in real time through ongoing measurements Marketing analytics Access to data We consistently conduct in-depth post campaign analysis across all media channels We connect data from all our digital activities to build a deeper understand- ing of what did/didn’t deliver on our marketing objectives Derive insight We have the right mix of analytical capability and marketing experience to be able to turn data into actionable insights Key lessons from our post campaign analysis are fed into the next campaign planning cycle Testing We design tests to accurately compare the performance of different digital formats and targeting options We design tests to accurately compare the performance of different variants of digital content/creative We pretest offline copy in online channels (e.g., TV ads on YouTube) We embrace lessons from failed tests and distribute them widely as learning opportunities Consumer goods Financial services Publicsector, education, notforprofit Retail Tech,media, telecom Average 30–45 46–60 61–75 Source: BCG Talent Revolution Survey, 2015.
  • 22. 20 The Talent Revolution in Digital Marketing About the Authors Dominic Field is a partner and managing director in the London office of The Boston Consulting Group and a global leader of the firm’s Marketing Sales practice. You may contact him by e-mail at field.dominic@bcg.com. Jody Visser is a partner and managing director in BCG’s New York office and a global leader of the firm’s Marketing Sales practice. You may contact her by e-mail at visser.jody@bcg.com. Nicolas de Bellefonds is a partner and managing director in the firm’s Paris office and a topic leader for digital marketing. You may contact him by e-mail at debellefonds.nicolas@bcg.com. Acknowledgments The authors are grateful to Niall McKinney, CEO and founder of The Knowledge Engineers, for his advice and insights in the preparation of this report. They also wish to acknowledge the assistance and support of Debbie Morrison and the ISBA; Joanne Bolger and the Interactive Advertising Bu- reau; Sarah Woodley and the Marketing Society; Camilla Woodhouse and the Marketing Academy; Patrick Mills and IPA; Racheal Aldighieri and the DMA; Lars Gibbe and OWM; and Barbara Kolocek and BVDW. The authors are grateful to Arzu Yesilova for her work in coordinating the research and developing this report. They also thank David Brooks, Tim Heal, Florian Friedel, and Ian Bartlett for their assis- tance, and Neal Rich and Thomas Recchione for their input into the survey framework and design. Finally, they thank David Duffy for his help with writing and Katherine Andrews, Gary Callahan, Angela DiBattista, Kim Friedman, Abby Garland, Gina Goldstein, Amanda Provost, and Sara Stras- senreiter for editing, design, production, and distribution. For Further Contact If you would like to discuss this report, please contact one of the authors.
  • 23. To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcgperspectives.com. Follow bcg.perspectives on Facebook and Twitter. © The Boston Consulting Group, Inc. 2015. All rights reserved. 9/15
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