Digital Marketing as Seen by Czech Digital Agencies

Digital Marketing as Seen by Czech Digital Agencies
members of Asociace.BIZ and Digitální Agentury association
in 2011

Jana Filová
November 2011

Summary

The following document maps the point of view of Czech leading implementers
of digital and web projects on digital marketing topics. It is based on non-commercial
online survey of members of Asociace.BIZ and Digitální Agentury association as well as
of selected non-member agencies. The results may be interesting not only for those who
run various digital projects, but also for their clients and marketing professionals.

One of the most interesting findings mentioned is the usage and effectiveness comparison
of digital marketing channels, evaluation of advertising effectiveness metrics, and
information about the profile and consumer behavior, new technologies and trends.

Document is divided into 3 parts:
1. Key findings
2. Survey respondents
3. Survey results

Digital Marketing as Seen by Czech Digital Agencies © Jana Filová, 2011 2

Methodology

 The data set consists of responses of all members of Asociace.BIZ and Digitální
Agentury association as well as of selected non-member agencies that have decided
to participate in the survey. The representatives of digital agencies were invited
to participate in online polling. The survey was anonymous.

 Data collection was conducted from June to September 2011. New members joining
any of associations at that time were asked to complete a questionnaire. In other cases,
some companies have become members of both associations. Data analysis includes
the distribution of respondents by group membership in a particular association
as of early November 2011.

 The data referred to in the charts represent the absolute value or percentage of valid
responses to the question examined in the selected characteristic or characteristic from
a predefined range. Most questions are displayed as data aggregated for all respondents
as well as responses compared in 4 groups: only Asociace.BIZ members, only Digitální
Agentury members, members of both associations and non-members.


1. Key findings
Summary of key survey results


Staff resources, outsourcing and internal know-how

 Half of all surveyed companies have an independent digital marketing department
in their organizational structure. Six of them are members of Asociace.BIZ and Digitální
Agentury association, four companies are members only of Digitální Agentury
association. Average number of employees of these departments is 15.

 Almost all surveyed companies employ their own staff or other resources
in design and website development (96%), website hosting and maintenance (86%)
and web analytics (86%). All (100%) members of both associations and members of only
Digitální Agentury association have in their team employees for creative development
of digital advertising. All members of only Digitální Agentury have a staff position
in the field of brand management.

 For most of the surveyed companies (definitely / rather yes) it is more effective
to outsource the marketing research (86%) and video production (75%) than to build
up their own know-how. Design and website development (82%), creative website
development (79%) and web analytics (79%), strategic planning (75%) and social media
marketing (71%) are considered (definitely / rather yes) as inefficient for outsourcing.


Investments in digital marketing and digital media

 Compared to 2010, almost two thirds (61%) of surveyed companies assume
a moderate increase of number of digital projects in 2011.

 Out of total, 93% of companies agree (definitely / rather yes) with the assertion that
consumer behavior change is the main reason for the changes associated with
investments in digital marketing.

 In 2011, the majority of surveyed companies (definitely / rather yes) invested or planned
to invest in integrated online campaigns (89%), social networking (86%) and mobile
applications (86%). On the other side they have not (definitely / rather no) invested and
have not planned to invest in an external marketing research of social networks through
research agencies (61%), social shopping (57%) and bloggers (54%).

 Almost a third (29%) of the surveyed companies predict that share of investment
in unpaid digital media will significantly increase this year. Half of the surveyed
companies foresaw a moderate share increase of investment in paid digital media (50%)
and keeping the same share of investment in paid traditional media (54%).


Marketing channels usage, their effectiveness and measurement

 In 2011, almost all (93%) surveyed companies (definitely / rather yes) used or planned to
use the corporate website / microsite and Facebook as digital marketing channels.

 The 86% of surveyed companies (definitely / rather yes) used or planned to use the
consumer website / microsite as a digital marketing channel in 2011. They also
considered them definitely or more efficient (96%) than the corporate website /
microsite (93%) and Facebook (86%).

 Brand and product awareness (57%) and lead acquisition (54%) are considered
as extremely important promotional effectiveness metrics. They represent the most
important evaluation metrics in general. In the seven-point rating scale of extremely
important (1) to extremely unimportant (7), companies evaluated this categories only
in a scale of 1 – 3. Their evaluation does not exceed the median border. Conversely,
the surveyed companies evaluate the time on site, CPM, SPIR metrics or page views
in the scale of 2 – 5, a minimum of companies consider the following metrics as
extremely important.


Development in 2011 and the most important sources of information

 Web analytics (89%) and social network marketing (82%) are areas in which
the majority of the surveyed companies (definitely / rather yes) want to develop in 2011.

 Foreign professional media are the most important information source. The surveyed
companies (definitely / rather yes) collect from them information about online profile
and behavior of consumers (86%) and information about new technologies and trends
in the digital marketing area (93%).

 Other information sources of online profile and consumer behavior (definitely /
rather yes) are professional conferences (82%), Czech professional media (75%)
and the independent member associations and business networks (75%).

 The colleagues in marketing (93%), conferences (82%) and social networks (79%)
(definitely / rather yes) are other important information sources of new technologies
and trends in digital marketing. On the contrary, two thirds of surveyed companies
(definitely / rather no) do not use information from books of Czech authors (68%).


2. Survey respondents
Turnover in 2010
Human resources for digital marketing
Outsourcing vs. in-house resources


List of respondents (in alphabetical order)

AARON GROUP MEDIA FACTORY Czech Republic
AMI Praha MOTION Media
brandz friendz NETservis
eBRANA Nydrle Digital
Et netera OgilvyInteractive
Euro RSCG 4D Onlio
FG Forrest PragueBest
GREY Digital Publicis Modem
H1 SiteOne
Internet Projekt Smarcoms
Lundegaard SYMBIO Digital
MARK/BBDO Symblaze
Mather Advertures WDF - Web Design Factory
McCann Digital Wunderman

Note: Respondents are split into groups based on their membership as of early November 2011.

Respondents by membership

In total 28 companies participated in the survey.

Only Asociace.BIZ members Only Digitální Agentury members
AARON GROUP Euro RSCG 4D
AMI Praha GREY Digital
brandz friendz MARK/BBDO
Et netera McCann Digital
FG Forrest
MOTION Media
H1
Symblaze
Internet Projekt 21%
43%
Lundegaard
Asociace.BIZ and Digitální Agentury
NETservis
members
Onlio
25% Mather Advertures
SiteOne
11% MEDIA FACTORY Czech Republic
WDF - Web Design Factory
Nydrle Digital
Non-members OgilvyInteractive
eBRANA Publicis Modem
PragueBest SYMBIO Digital
Smarcoms Wunderman

Note: Respondents are split into groups based on membership as of early November 2011.

Contact person completing the questionnaire

 Data about the surveyed companies were obtained mostly from company executives,
namely 15 CEOs and 4 Marketing Directors.
 Among other employees filling out the questionnaire on behalf of surveyed company,
there were 2 digital division managers and 2 projects managers.

Executive Director (CEO)
11% Marketing Director
4%
Client Support Director
4%
4% Creative Director
4% Marketing Manager
53%
7% Research and Development Director
Sales Director
14%
Other


Preferred company description

 Most of surveyed companies prefer to be ranked as a digital agency (11)
or as an internet agency (8), only 3 as a software company.
 Remaining six companies would prefer either combined (“at the boundary
of web agency and software company”) or less frequent descriptions (system solution
provider or advertising agency, respectively other description like creative digital agency,
communication web agency or web integrator). Always a single company was listed
in any of above less frequent categories.

Digital agency
14%
Internet agency
4%
4% Software company
39%
System solution provider
11%
Advertising agency
Other
29%


Turnover in 2010

 Turnover of surveyed companies in 2010 came only from the Czech Republic.
No company listed any other country. One company has not disclosed its revenue.

6 6
6
Number of companies

4
3 3 3

2 2
2
1 1 1

0
5 - 10 10 - 20 20 - 30 30 - 40 40 - 50 50 - 60 60 - 70 90 - 100 > 100 Revenue
Data
nezveřejňuje
not disclosed
Turnover in 2010 in millions of CZK

11 18 32 26 57 52 25 33 114 45
Average number of employees in a given category

Note: The surveyed companies reported the current number of employees in 2011. Correlation of turnover
in 2010 and average number of employees in 2011 is only approximate.

Average number of employees

 Average number of employees in all surveyed companies was 35. The lowest
number of employees was 8, the highest number reached 130 employees.

8
8
7
Number of companies

6
5

4

2
2
1 1 1 1 1 1

0
< 10 10 - 19 20 - 29 30 - 39 40 - 49 50 - 59 70 - 79 80 - 89 90 - 99 > 100

Average number of employees


Independent digital marketing department

 A half of surveyed companies have an independent digital marketing department
within their organizational structure.

9
9

6
6
4
3
3
2 2
1 1

0
Independent oddělení
Samostatné digital Bez samostatného odělení
Without independent digital
digitálního marketingu
marketing department digitálního department
marketing marketingu

15 13 17 10 3 5 45* 3
Average number of digital marketing staff in a given category

Only Asociace.BIZ members
Only Digitální Agentury members
Asociace.BIZ and Digitální Agentury members
Note: *The correct value/ answer of the respondent. Non-members

Own staff or other resources in digital marketing

 Almost all surveyed companies employ their own staff or other resources in design
and website development (96%).

Website design and development
Website hosting and maintenance

32% Web analytics (with focus on ROI campaign optimization)
36%
39% 96% Social media marketing

43% Digital advertising creative development
86%
Mobile application development
46%
Strategic planning
54% 86% Social media monitoring
57% Digital brand management
79%
61% Media buying
64%
Blog writing and editing
Social community site management
Video production

Chart shows the answers Yes


 In 2011, nearly half of surveyed companies considered it as definitely more effective to
outsource the marketing research (43%), media buying (43%) and video production
(43%) than to build up the in-house know-how.

Marketing research

11% Media buying
14%
18% 43% Video production
Social media monitoring
21%
Mobile application development
43%
21% Blog writing and editing
Social community site management
25%
43% Website hosting and maintenance
32%
Social media marketing
Digital advertising creative development

Chart shows the answers Definitely yes


For which of following activities do you consider outsourcing to be more efficient
than building of internal know-how?
0% 20% 40% 60% 80% 100%
33% 50%
Marketing research 33% 50%
57% 43%
67%

58% 8%
33% 50%
Media buying 29% 29%
33% 33%

58% 25%
33% 50%
Video production 14% 43%
67%

50% 25%
17% 33%
Social media monitoring 29% 29%
100%

25% 25%
17% 50%
Mobile application development 29% 43%
33%

Only Digitální Agentury members Chart shows the answers:
Asociace.BIZ and Digitální Agentury members Definitely yes - marked by full line
Non-members Rather yes - marked by dashed line

3. Survey results
Estimated growth of digital projects in 2011
Investment areas in digital marketing
Investments in digital media
Digital marketing channels usage and effectiveness
Evaluation of advertising effectiveness metrics
Development areas in digital marketing in 2011
Sources of information about consumer behavior
Sources of information about technologies and trends


Estimated growth of digital projects in 2011

 Compared to 2010, almost two thirds (17) surveyed companies assumed a moderate
increase in number of digital projects in 2011. One-third (9) assumed a significant
increase, and only 2 the same number of digital projects.

6
6
Number of companies

5 5 5

4

2 2
2
1 1 1

0
Significant increase Moderate increase Same number

Only Digitální Agentury members
Asociace.BIZ and Digitální Agentury members
Non-members

Reasons of changes related to investments

 According to almost half (46%) of surveyed companies, the consumer behavior
change is the main reason for investment changes in digital marketing.
 29% of companies definitely agree with impact of competitive forces and other reasons
(related to efficiency, ROI, communications, and building personal contact with the target
group, new technologies and global trends, etc.).

Changing consumer behavior
29%
46% Competitive forces

7% Cost reduction due to economic crisis
Organizational efficiencies
14% Top-down directive
Other
14% 29%

Chart shows the answers Definitely agree

Reasons of changes related to investments

What is the main reason driving the changes of investments in digital marketing?

0% 20% 40% 60% 80% 100%
33% 58%
Changing consumer behavior 50% 50%
43% 43%
100%

42% 33%
33% 33%
Competitive forces 57%
33% 33%

17% 42%
67%
Organizational efficiencies 14% 43%
33% 33%

8% 75%
67%
Cost reduction due to economic crisis
14% 71%
67% 33%

8% 17%
Top-down directive 17% 33%
57%
67%
Asociace.BIZ and Digitální Agentury members Definitely agree - marked by full line
Non-members Rather agree - marked by dashed line


 In 2011, more than half of the surveyed companies definitely invested or planned
to invest in integrated online campaigns (57%) using microsites, Facebook activities
and offline overlap, and social networks (54%).

Integrated online campaigns
Social networks
21% Mobile applications
18%
21% 57% SEO
21% Digital brand experiences
54%
29% Email marketing
Online advertising
36% 46% Social networks applications
36% Viral / social media campaigns
43%
39%
Digital infrastructure
Games
Other



In which of the following areas have your company already invested or wants to
invest in 2011?
0% 20% 40% 60% 80% 100%
42% 42%
Integrated online campaigns 83% 17%
86% 14%
67%

33% 33%
67% 33%
Social networks 71% 29%
67% 33%

42% 42%
67% 33%
Mobile applications 43% 43%
33% 33%

42% 25%
33% 50%
SEO 43% 29%
67% 33%

17% 33%
Digital brand experiences 83%
57% 29%
67%



 Almost one third (29%) of surveyed companies predicted that proportion of unpaid
digital media investments will significantly increase in 2011.
 The moderate increase in the share of investment in paid digital media was reported
by 50% and the same share of investment in paid traditional media by 54% of surveyed
companies.

7%

Unpaid digital media

Paid digital media
29%
18%
Paid traditional media

Chart shows the answers Significantly increase


How do you expect the share of investments in paid vs. unpaid media to change in
your company in 2011?

60% 54%
50%

40% 36% 36%
32%
29%
21%
20% 18% 18%

7%

0%
Significantly Moderate Same share Moderate Significantly
increase increase decrease decrease

Unpaid digital media
Paid digital media
Paid traditional media

Digital marketing channels usage

 In 2011, two thirds (68%) of surveyed companies definitely used or planned to use
the corporate website / microsite as a digital marketing channel.
 More than half of the surveyed companies used the consumer website / microsite (54%)
and Facebook (54%).

Corporate website / microsite (1)
25%
Consumer website / microsite (2)
29% 68%
Facebook
29%
Twitter

54% LinkedIn
36%
Mobile web
43% 54% YouTube
Mobile applications

(1) presentation of companies, organizations
Chart shows the answers Definitely yes (2) presentation or sale of products and services to customers

Digital marketing channels usage

Which of the following digital marketing channels does your company use or plan to
use in 2011?
0% 20% 40% 60% 80% 100%
83% 17%
Corporate website / microsite 50% 33%
57% 29%
67% 33%

67% 17%
17% 67%
Consumer website / microsite 57% 29%
67% 33%

58% 42%
67% 33%
Facebook 43% 43%
33% 33%

67% 17%
17% 50%
Twitter 29% 43%
33% 33%

50% 25%
LinkedIn 33% 33%
29% 14%
33%


Digital marketing channels effectiveness

 Two-thirds (68%) of surveyed companies consider the consumer website / microsite
as definitely effective digital marketing channel.
 Corporate website / microsite is considered to be definitely an effective digital marketing
channel by two fifths (39%) of surveyed companies, Facebook by one fifth (21%).

Consumer website / microsite (2)
11%
11% Corporate website / microsite (1)
11%
Facebook
68%
18% Mobile applications
YouTube
21%
Mobile web

21% Blogs
39%
21% LinkedIn
Twitter

(1) presentation of companies, organizations
Chart shows the answers Definitely effective (2) presentation or sale of products and services to customers

Digital marketing channels effectiveness

How would you rate the efficiency of following digital marketing channels?

0% 20% 40% 60% 80% 100%
68% 28%
Consumer website / microsite 50% 50%
86% 14%
67% 33%

40% 52%
100%
Corporate website / microsite 57% 29%
33% 67%

24% 64%
Facebook 17% 83%
43% 57%
67%

24% 52%
33% 67%
Mobile application 29% 57%
33%

24% 48%
YouTube 33% 50%
29% 71%
67%

Asociace.BIZ and Digitální Agentury members Definitely effective - marked by full line
Non-members Rather effective - marked by dashed line


 Brand and product awareness (57%) and lead acquisition (54%) are considered
as extremely important advertising effectiveness metrics.

11%
11%
Brand and product awareness

57% Lead acquisition
21%
Number of interactions (forwarding to friends, etc.)

CTR (click-through rate)

Immediate ROI calculated from the observed sales
54%

Chart shows the answers Extremely important


 Time on site, CPM, SPIR metrics or page views were evaluated by surveyed companies
as more important to average important advertising effectiveness metrics.

39%
40%

32% 32%
30% 29% 29%
25%
21% 21%
20% 18% 18% 18%
14% 14%
11% 11%
10% 7% 7% 7% 7% 7% 7%
4% 4% 4% 4% 4% 4% 4%

0%
1 2 3 4 5 6 7

Extremely important Extremely unimportant

Time on site
CPM (cost per mile)
SPIR metrics (number of unique visitors, etc.)
Page views


 In 2011, more than half of the surveyed companies definitely gained or planned to gain
an experience in web analytics (71%), social media marketing (61%), design
and website development (57%).

Web analytics (with focus on ROI campaign optimization)

Social media marketing
21%
32%
71% Website design and development
32%
Digital advertising creative development

61% Social media monitoring
39%
Strategic planning
39% Mobile application development
57%
43% Social community site management

46% 50% Digital brand management

Website hosting and maintenance

Marketing research



In which of following digital marketing areas do you gain or plan to gain further
experience in 2011?
0% 20% 40% 60% 80% 100%
67% 25%
Web analytics 50% 33%
86%
0%
100

50% 25%
50% 33%
Social media marketing 86%
0%
67% 33%

67% 17%
33% 50%
Website design and development 57% 29%
67% 33%

25% 25%
67% 33%
Digital advertising creative development 86%
0%
33% 67%

50% 17%
Social media monitoring 17% 67%
57% 29%
67% 33%



 The surveyed companies gained the information about the online profile and consumer
behavior definitely through foreign (39%) and Czech (36%) professional media.

Foreign professional media

14% Czech professional media
18% 39% Professional conferences and meetings

21% Industry analytical reports

36% Blogs
21%
In-house research department
25% 29% Social network monitoring tools
29%
Consulting groups

Independent member associations, business networks



From which sources do you obtain the information about online profile and
consumer behavior?
0% 20% 40% 60% 80% 100%
33% 33%
Foreign professional media 50% 50%
29% 71%
67% 33%

50% 25%
50%
Czech professional media 29% 57%
67% 33%

33% 50%
17% 33%
Professional conferences and meetings 14% 86%
67% 33%

33% 33%
67%
Industry analytical reports 29% 43%
67%

25% 33%
Blogs 17% 50%
29% 43%
33% 33%


Sources of information about new technologies and trends

 The surveyed companies obtain information about new technologies and digital marketing
trends definitely through colleagues in marketing / marketing peers (68%) and foreign
professional media (46%).

Colleagues in marketing
Foreign professional media
14%14%
Social networks
14%
68% Professional conferences and meetings
21%
Marketing blogs of foreign companies or authors
21%
Independent member associations, business networks
46%
29% Link sharing application (Delicious, Digg, etc.)
Czech professional media
29% 39%
RSS
29% 36%
Books by foreign authors
Marketing blogs of Czech companies or authors
Industry analytical reports


Sources of information about new technologies and trends

From which sources do you obtain the information about new technologies
and trends in digital marketing?
0% 20% 40% 60% 80% 100%
67% 25%
Colleagues in marketing 50% 50%
86% 14%
50%

42% 42%
67% 33%
Foreign professional media 29% 71%
67% 33%

25% 33%
50% 50%
Social networks 57% 29%
33% 67%

33% 50%
17% 50%
Professional conferences and meetings 43% 43%
67% 33%

25% 33%
33% 50%
Marketing blogs of foreign companies or authors 29% 43%
33% 67%


This survey was prepared and executed by Jana Filová as a part of her doctoral studies
at the University of Economics in Prague. In case of interest in additional survey information
or results publication please contact the author at jana.filova(at)centrum.cz.

Survey realization was supported by Asociace.BIZ and Digitální Agentury association,
sponsored by Michal Kříž (Asociace.BIZ) and Robert Haas (Digitální Agentury association).

http://www.asociace.biz/ http://www.digitalniagentury.cz/

Technical support was provided by Data Collect s.r.o.

http://www.datacollect.cz/

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