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The CMO Survey Report: Highlight and Insights August 2014
Mission 
-To collect and disseminate the opinions of top marketers in order to predict the future of markets, track marketing excellence, and improve the value of marketing in firms and society. 
-The survey is an objective source of information about marketing. It is a non-commercial operation dedicated to the field of marketing, not the sale of products and services. 
Survey Operation 
-Founded in August 2008, The CMO Survey is administered twice a year via an Internet survey. Many questions repeat to observe trends over time. 
-The August 2014 survey was the twelfth administration of The CMO Survey. 
Sponsoring Organizations 
About The CMO Survey 
2
Survey Sample 
-4262 top U.S. marketers at Fortune 1000, Forbes Top 200, and top marketers who are AMA Members or Duke University Alumni and Friends 
-351 responded for a 8.3% response rate 
Survey Administration 
-Email contact with four follow-up reminders 
-Survey in field from July 22-August 12, 2014 
-89% of respondents VP-level or above 
Results Interpretation 
-M = sample mean; SD = sample standard deviation 
-B2B = Business-to-Business firms; B2C = Business-to-Consumer firms 
Survey methodology 
3
Topic 1: Marketplace Dynamics……………………………………………………… 5-10 
Topic 2: Firm Growth Strategies…………………………………………………….. 11-14 
Topic 3: Marketing Spending………………………………………………………… 15-26 
Topic 4: Financial and Marketing Performance……………………………………. 27-33 
Topic 5: Social Media…………………………………………………..…………….. 34-44 
Topic 6: Marketing Jobs…………………………………………………………….... 45-49 
Topic 7: Marketing Organization…………………………………………………….. 50-51 
Topic 8: Marketing Leadership……………………………………………………..... 52-57 
Topic 9: Marketing Analytics………………………………………………………..... 58-67 
Survey topics 
4
The CMO Survey Report: Highlight and Insights August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Marketer optimism for U.S. economy reaches highest point in 5 years 
Figure 1.1.How optimistic are you about the overall U.S. economy on a 0-100 scale with 0 being the least optimistic and 100 the most optimistic? 
6 
47.7 
56.5 
57.8 
55.6 
63.3 
52.2 
63.4 
58.4 
62.7 
65.7 
66.1 
66.4 
40 
50 
60 
70 
80 
Feb-09 
Aug-09 
Feb-10 
Aug-10 
Feb-11 
Aug-11 
Feb-12 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
Marketer Optimism About Overall Economy
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Optimism for US economy remains high across all sectors; B2B service leads 
Figure 1.2.How optimistic are you about the overall U.S. economy on a 0-100 scale with 0 being the least optimistic and 100 the most optimistic? 
7 
48 
45 
48 
46 
51 
66 
66 
66 
66 
64 
66 
68 
66 
65 
65 
0 
20 
40 
60 
80 
100 
Overall 
B2B Services 
B2B Product 
B2C Product 
B2C Services 
February 2009 
February 2014 
August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
75% 
69% 
59% 
49% 
50% 
34% 
76% 
71% 
67% 
52% 
51% 
31% 
0% 
20% 
40% 
60% 
80% 
100% 
Increased abilityto acquire newcustomers 
Increasedcustomer purchasevolume 
Customers will buymore relatedproducts & servicesfrom my firm 
Increasedability to retaincustomers 
Increased entry ofnew customersinto the market 
Increasedcustomer priceper unit 
February 2014 
August 2014 
Positive customer acquisition, retention, and growth metrics forecasted; price lags 
Figure 1.3.Forecasted customer outcomes in next 12 months (% of respondents) 
8
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Figure 1.4.Customers’ top priority in next 12 months (% of respondents) 
Service trumps product as customer’s top priority; price inches up 
9 
31% 
18% 
17% 
19% 
9% 
7% 
26% 
23% 
19% 
18% 
9% 
5% 
0% 
5% 
10% 
15% 
20% 
25% 
30% 
35% 
40% 
Superior ProductQuality 
ExcellentService 
LowPrice 
TrustingRelationship 
Superior Innovation 
Brand 
February 2014 
August 2014
Increased competition is expected – rivalry, price-cutting, and innovation 
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Figure 1.5.Increased competitor interactions in next 12 months (% of respondents) 
10 
69% 
59% 
56% 
41% 
35% 
23% 
0% 
20% 
40% 
60% 
80% 
100% 
More intenserivalry forcustomers 
More competitorprice-cutting 
More competitorinnovation 
Emergence ofnew domesticcompetitors 
Emergence ofnew globalcompetitors 
More cooperationon non-pricestrategies 
August 2014 
*Question format used for the first time August-2014.
The CMO Survey Report: Highlight and Insights August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Firms decrease market penetration and move toward riskier growth strategies in next year 
Types of growth strategies 
Existing 
Products/ 
Services 
New 
Products/ 
Services 
Existing 
Markets 
Market 
Penetration 
Strategy 
Product/Service Development Strategy 
New Markets 
Market 
Development Strategy 
Diversification 
Strategy 
* % of spending across growth strategies 
Growth 
Strategy 
Actual Spendingin Past 12 Months 
Expected Spending in Next 12 Months 
PercentChange Expected 
Market 
Penetration 
Strategy 
53% 
46% 
-13% 
Market 
Development 
Strategy 
15% 
17% 
+13% 
Product/Service 
Development 
Strategy 
22% 
24% 
+9% 
Diversification 
Strategy 
10% 
13% 
+30% 
Table 2.1.How growth spending is expected to change* 
12
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Organic growth investments 74% of growth budgets 
Figure 2.2.How firms will grow in the next 12 months* 
* Percentage of spending across growth strategies 
13 
Organic growth 73% 
Growth from partnerships12% 
Growth from acquisitions10% 
Growth from licensing arrangements 
4% 
B2B Product 
B2B Services 
B2C Product 
B2C Services 
Growth from within your firm (organic growth) 
73% 
75% 
71% 
77% 
Growth from partnerships 
12% 
11% 
12% 
12% 
Growth from acquisitions 
10% 
11% 
11% 
6% 
Growth from licensing arrangements 
4% 
3% 
6% 
5%
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
B2C companies are most likely to sell through the Internet 
Figure 2.3.Percent of company sales expected to be through the internet in next 12 months 
14 
Internet 11% 
Other89% 
B2B Product 
B2B Services 
B2C Product 
B2C Services 
Sales through Internet 
10% 
9% 
15% 
14% 
Sales through other channels 
90% 
91% 
85% 
86%
The CMO Survey Report: Highlight and Insights August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Marketing budgets remain positive but trend downward since 2010 
Figure 3.1.Percent change in marketing budgets in next 12 months 
16 
0.5% 
1.1% 
5.9% 
9.2% 
6.7% 
9.1% 
8.1% 
6.4% 
6.1% 
4.3% 
6.7% 
5.1% 
0% 
2% 
4% 
6% 
8% 
10% 
12% 
Feb-09 
Aug-09 
Feb-10 
Aug-10 
Feb-11 
Aug-11 
Feb-12 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
Change in Marketing Spending
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Expenses including in marketing spending 
Table 3.1. Marketing spending in your company include the following items (% of respondents) 
Overall 
B2B 
Product 
B2B 
Services 
B2C 
Product 
B2C 
Services 
Overhead costs associated with marketing 
45.9% 
48.2% 
50.8% 
35.8% 
44.2% 
Salaries and wages of marketing employees 
43.9% 
50.0% 
49.2% 
29.9% 
38.5% 
Marketing analytics 
41.0% 
42.9% 
40.7% 
43.3% 
36.5% 
Marketing research 
40.7% 
42.9% 
38.1% 
47.8% 
34.6% 
17
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Sector differences in marketing spend 
Figure 3.2.Percent change in marketing budgets in next 12 months 
18 
6.7% 
5.4% 
6.4% 
7.1% 
5.8% 
5.1% 
4.4% 
4.7% 
7.0% 
5.3% 
0% 
2% 
4% 
6% 
8% 
10% 
Overall 
B2B Product 
B2B Services 
B2C Product 
B2C Services 
February 2014 
August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Companies increase digital spend at the expense of traditional advertising 
*Refers to media advertising not using the web. 
Figure 3.3.Percent change in traditional advertising* vs. digital marketing spend in next 12 months 
19 
1.3% 
-0.8% 
-1.9% 
-2.7% 
-2.1% 
-0.1% 
-3.6% 
11.2% 
12.8% 
11.5% 
10.2% 
10.1% 
8.2% 
10.8% 
-5% 
0% 
5% 
10% 
15% 
Aug-11 
Feb-12 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
Traditional Advertising Spend 
Digital Marketing Spend
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Digital marketing spend increases across sectors 
Figure 3.4.Change in digital marketing spending in next 12 months by sector 
20 
8.2% 
9.0% 
7.4% 
7.7% 
8.2% 
10.8% 
10.7% 
11.5% 
11.2% 
9.0% 
0% 
2% 
4% 
6% 
8% 
10% 
12% 
14% 
Overall 
B2B Product 
B2B Services 
B2C Product 
B2C Services 
February 2014 
August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Spend in other marketing categories is also increasing 
Figure 3.5.Percent change in marketing spending in next 12 months 
21 
5.1% 
7.8% 
4.0% 
4.9% 
7.9% 
7.8% 
4.5% 
4.3% 
0% 
2% 
4% 
6% 
8% 
10% 
Customer RelationshipManagement 
New Product Introductions 
New Service Introductions 
Brand Building 
February 2014 
August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Integrating knowledge and consulting services top knowledge investments 
*Developing knowledge about how to do marketing refers to the development of new marketing capabilities, while marketing training involves transferring existing marketing knowledge to employees. 
Figure 3.6.Changes in firm spending on marketing knowledge in next 12 months 
22 
2.7% 
1.8% 
4.9% 
3.1% 
2.4% 
6.0% 
4.0% 
3.8% 
3.8% 
2.5% 
0% 
2% 
4% 
6% 
8% 
10% 
Integrating whatwe knowabout marketing 
Marketingconsultingservices 
Marketingresearch andintelligence 
Developingknowledge abouthow to do marketing 
Marketingtraining 
February 2014 
August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
*Question asked in Feb-11 for the first time. 
Marketing budgets represent 10.9% of overall firm budgets 
Figure 3.7.Marketing budget as a percent of firm budget* 
23 
8.1% 
10.0% 
10.4% 
11.4% 
10.6% 
9.4% 
10.9% 
10.9% 
0% 
2% 
4% 
6% 
8% 
10% 
12% 
14% 
16% 
Feb-11 
Aug-11 
Feb-12 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
% Marketing Budget
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Table 3.2a. Marketing percentage of firm budget by economic sector 
B2B 
Product 
B2B 
Services 
B2C 
Product 
B2C 
Services 
August 2014 
10.5% 
7.7% 
17.0% 
11.1% 
<$25 
Million 
$26-99 
Million 
$100-499 
Million 
$500-999 
Million 
$1-9.9 
Billion 
>$10 
Billion 
August 2014 
11.9% 
8.6% 
11.8% 
14.2% 
8.7% 
14.0% 
0% 
Internet Sales 
1-10% 
Internet Sales 
>10% 
Internet Sales 
August 2014 
9.7% 
10.7% 
13.4% 
Table 3.2b. Marketing percentage of firm budget by company sales revenue 
Table 3.2c. Marketing percentage of firm budget by company internet sales 
Who has the biggest marketing budgets? 
24
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Marketing spending as a percentage of firm revenues is 8.3% 
Figure 3.8.Marketing spending as a percentage of firm revenues* 
*Question asked in Feb-12 for the first time. 
25 
8.5% 
11.0% 
7.9% 
7.8% 
9.3% 
8.3% 
0% 
2% 
4% 
6% 
8% 
10% 
12% 
14% 
16% 
Feb-12 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
% Marketing Spend
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Table 3.3a. Marketing spending as a percentage of firm revenues by economic sector 
B2B 
Product 
B2B 
Services 
B2C 
Product 
B2C 
Services 
August 2014 
7.8% 
7.5% 
9.0% 
10.4% 
<$25 
Million 
$26-99 
Million 
$100-499 
Million 
$500-999 
Million 
$1-9.9 
Billion 
>$10 
Billion 
August 2014 
11.0% 
7.3% 
6.1% 
3.7% 
6.7% 
11.9% 
0% 
Internet Sales 
1-10% 
Internet Sales 
>10% 
Internet Sales 
August 2014 
7.1% 
6.9% 
12.5% 
Table 3.3b. Marketing spending as a percentage of firm revenues by company sales revenue 
Table 3.3c. Marketing spending as a percentage of firm revenues by company internet sales 
Marketing spending as a percentage of firm revenues by firm and industry 
26
The CMO Survey Report: Highlight and Insights August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Company performance on financial metrics positive but flat 
Figure 4.1.Percent change in firm performance in prior 12 months 
28 
3.9% 
3.0% 
3.4% 
4.0% 
3.2% 
3.2% 
0% 
1% 
2% 
3% 
4% 
5% 
Firm sales 
Firm profits 
Marketing ROI 
February 2014 
August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Performance on key customer and brand assets no significant change 
Figure 4.2.Percent change in performance on customer and brand metrics in prior 12 months 
29 
3.6% 
1.9% 
3.5% 
3.3% 
2.0% 
3.7% 
0% 
1% 
2% 
3% 
4% 
5% 
Customer acquisition 
Customer retention 
Brand value 
February 2014 
August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
B2B Product sector shows highest performance gains 
Overall 
B2B 
Product 
B2B 
Services 
B2C 
Product 
B2C 
Services 
Firm sales 
4.0% 
4.6% 
4.1% 
3.6% 
3.0% 
Marketing ROI 
3.2% 
3.8% 
3.6% 
1.8% 
2.5% 
Firm profits 
3.2% 
3.5% 
3.1% 
3.0% 
2.8% 
Customer acquisition 
3.3% 
4.0% 
3.1% 
3.2% 
2.4% 
Customer retention 
2.0% 
2.1% 
2.2% 
2.0% 
1.3% 
Brand value 
3.7% 
3.7% 
4.1% 
3.5% 
3.3% 
Table 4.1. Percent change in performance in prior 12 months by sector 
30
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Firm performance goals remain strong 
Actual firm performance 
in prior 12 months 
Goal in the 
next 12 months 
Firm sales 
4.0% 
6.7% 
Marketing ROI 
3.2% 
5.2% 
Firm profits 
3.2% 
5.8% 
Customer acquisition 
3.3% 
5.9% 
Customer retention 
2.0% 
4.7% 
Brand value 
3.7% 
5.8% 
Table 4.2. Percent change in performance 
31
Increased focus on marketing that benefits society and minimizes environmental impact 
Figure 4.3.Rate your firm on each the following non-financial metrics during the last 12 months (% Excellent & Goodon a 5-point scale where 1=Poor and 5=Excellent) 
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
32 
36.1% 
31.1% 
41.6% 
41.6% 
0% 
10% 
20% 
30% 
40% 
50% 
Marketing that isbeneficial for society 
Minimizing the impact of marketingon the ecological environment 
August 2013 
August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
B2C companies more likely to be marketing leaders 
Figure 4.4.How would you rate your company’s marketing excellence? 
(7-point scale where 1=Very Weak and 7=Leader) 
33 
4.6% 
5.5% 
3.6% 
6.8% 
2.6% 
44.6% 
46.6% 
47.6% 
36.4% 
43.6% 
29.2% 
30.1% 
28.6% 
31.8% 
25.6% 
21.7% 
17.8% 
20.3% 
25.0% 
28.2% 
0% 
20% 
40% 
60% 
80% 
100% 
Overall 
B2B Product 
B2B Services 
B2C Product 
B2C Services 
A Leader/ Excellent=6-7 
Strong=5 
Fair/Good=3-4 
Very Weak/Weak=1-2
The CMO Survey Report: Highlight and Insights August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Social media spending expected to be 21.4% of marketing budgets in five years 
Figure 5.1.Social media spending as a percent of marketing budgets 
35 
9.4% 
13.2% 
21.4% 
0% 
5% 
10% 
15% 
20% 
25% 
Current Levels 
Over Next 12 Months 
In Next 5 Years 
% of Marketing Budget
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Social media spending across sectors 
Overall 
B2B 
Product 
B2B 
Services 
B2C 
Product 
B2C 
Services 
Current Social Media Spending 
9.4% 
9.5% 
9.2% 
10.4% 
8.6% 
Social Media Spending in the next 12 months 
13.2% 
12.6% 
13.3% 
15.0% 
11.9% 
Social Media Spending in the next 5 years 
21.4% 
19.9% 
22.2% 
22.8% 
21.0% 
Table 5.1.Changes in social media spending across sectors 
36
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
No growth on human capital for social media: Tech investments appear to dominate? 
Figure 5.2.Location of social media employees 
In-house 
social media employees 
Outsourced 
social media employees 
B2BProduct 
4.1 
2.0 
B2BServices 
4.1 
1.5 
B2CProduct 
5.7 
3.9 
B2CServices 
4.9 
2.1 
Table 5.2. Social media employees by sector 
37 
1.7 
2.4 
4.1 
2.9 
1.1 
1.3 
2.1 
2.1 
0 
1 
2 
3 
4 
5 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
In-house social media employees 
Outsourced social media employees
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Social media remains poorly integrated with marketing strategy 
38 
Figure 5.3.How effectively is social media linked to your firm’s marketing strategy? 
(1=Not integrated, 7=Very integrated) 
3.8 
3.8 
3.8 
3.8 
3.9 
3.8 
3.9 
1 
2 
3 
4 
5 
6 
7 
Feb-11 
Feb-12 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
Mean Integration Level
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
B2C Product companies have the highest social media integration 
Figure 5.4.How well is social media integrated with marketing strategy? 
(1=Not At All Effectively, 7=Very Effectively) 
39 
24.9% 
30.2% 
25.8% 
18.7% 
19.5% 
53.1% 
51.9% 
51.7% 
54.2% 
56.1% 
22.1% 
18.1% 
22.5% 
27.1% 
24.4% 
0% 
10% 
20% 
30% 
40% 
50% 
60% 
70% 
80% 
90% 
100% 
Overall 
B2B Product 
B2B Services 
B2C Product 
B2C Services 
Top 2 Box=6-7 
Middle 3 Box=3-5 
Bottom 2 Box=1-2
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Persistent poor integration of customer information across channels 
Figure 5.5.How effectively does your company integrate customer information across purchasing, communication, and social media channels (1=Not At All Effectively, 7=Very Effectively)? 
40 
3.5 
3.8 
3.4 
3.5 
3.6 
1 
2 
3 
4 
5 
6 
7 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
Mean Integration Level 
*Question asked in Aug-12 for the first time.
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Only 15% of firms able to show impact of social media on business 
Figure 5.6.. Which best describes how you show the impact of social media on your business? 
41 
B2B Product 
B2B Services 
B2C Product 
B2C Services 
We haven't been able to show the impact yet 
54.2% 
42.0% 
46.9% 
30.8% 
We have a good qualitative sense of the impact, but not a quantitative impact 
34.9% 
43.2% 
34.7% 
51.3% 
We have proven 
the impact 
quantitatively 
10.8% 
14.8% 
18.4% 
17.9% 
Have proven the impact quantitatively 15% 
Haven't been able to show the impact yet 
45% 
Have a good qualitative sense of the impact, but not a quantitative impact 
40%
Social media metrics: Firms shift toward referral and text measures and away from financial metrics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Metrics 
August 2010 
August 2014 
Hits/visits/page views 
47.6% 
60.7% 
Number of followers or friends 
24.0% 
45.0% 
Repeat visits 
34.7% 
38.7% 
Conversion rates (from visitor to buyer) 
25.4% 
31.3% 
Buzz indicators (web mentions) 
15.7% 
24.2% 
Sales levels 
17.9% 
16.8% 
Online product/service ratings 
8.2% 
14.0% 
Customer acquisition costs 
11.8% 
13.7% 
Net promoter score 
7.5% 
12.8% 
Revenue per customer 
17.2% 
12.5% 
Other text analysis ratings 
6.6% 
11.7% 
Customer retention costs 
7.7% 
6.3% 
Abandoned shopping carts 
3.8% 
6.0% 
Profits per customer 
9.4% 
6.0% 
Table 5.3.Social Media Metrics Used by Firms* 
*Red indicates metric use has decreased; green indicates that metric use has increased, and changes of 1% or less are classified as no change. 
. 
42
Use of online customer behavior data expected to increase over time 
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Figure 5.7.Does your company use customer behavior data collected online for targeting purposes? 
Figure 5.8.Is your company's use of such data increasing, decreasing, or staying the same over time? 43 
Yes41% 
No59% 
81.7% 
18.3% 
0.0% 
0% 
20% 
40% 
60% 
80% 
100% 
Increasing 
About the same 
Decreasing
Most marketers have low levels of concern over the use of online customer data 
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Figure 5.9.How worried are you that the use of online customer data could raise questions about privacy? Mean = 3.4 (SD = 1.6) 
44 
12.8% 
20.2% 
14.7% 
22.9% 
21.1% 
7.3% 
0.9% 
0% 
5% 
10% 
15% 
20% 
25% 
1Not At AllWorried 
2 
3 
4 
5 
6 
7VeryWorried
The CMO Survey Report: Highlight and Insights August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Marketing hiring positive but continues to decline 
Figure 6.1.Percentage change in marketing hires planned in next 12 months 
46 
6.2% 
7.2% 
5.2% 
6.5% 
5.4% 
5.5% 
4.7% 
3.8% 
0% 
3% 
6% 
9% 
12% 
15% 
Feb-11 
Aug-11 
Feb-12 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
Increase in Marketing Hires in Next 12 Months
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Sector differences in marketing hires: B2B services largest hiring increase 
Figure 6.2.Percentage change in marketing hires planned in next 12 months 
47 
3.8% 
2.3% 
5.3% 
3.8% 
3.6% 
0% 
2% 
4% 
6% 
8% 
10% 
Overall 
B2B Product 
B2B Services 
B2C Product 
B2C services
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Outsourcing of marketing jobs increases 
Figure 6.3.Percentage of company marketing expected to be outsourced in next 12 months 
48 
3.2% 
3.1% 
3.5% 
2.6% 
3.1% 
4.3% 
0% 
2% 
4% 
6% 
8% 
10% 
Feb-12 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
Percentage Change in Outsourcing
The CMO Survey Report: Highlight and Insights August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Marketing employees 5% of total 
Figure 7.1.Marketing Employees as a Percentage of Total Employees 
50 
2.4% 
2.0% 
6.4% 
2.3% 
4.2% 
1.1% 
3.1% 
2.5% 
1.2% 
6.3% 
5.0% 
0% 
2% 
4% 
6% 
8% 
10% 
12% 
Feb-09 
Aug-09 
Feb-10 
Aug-10 
Aug-11 
Feb-12 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
Percentage of Total Employees
Marketing and sales are equal partners in most companies, esp. B2B Product 
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
51 
Figure 7.2. The marketing-sales relationship (% of respondents) 
66% 
12% 
11% 
8% 
3% 
0% 
10% 
20% 
30% 
40% 
50% 
60% 
70% 
80% 
Sales and marketingwork togetheron an equal level 
We don'thave asales function 
Sales isin charge ofmarketing 
Sales is withinthe marketingfunction 
We have a salesfunction, but not amarketing function 
Sales and marketing work together on an equal level 
B2B Product 
75.0% 
B2B Services 
59.7% 
B2C Product 
61.5% 
B2C Services 
66.7%
The CMO Survey Report: Highlight and Insights August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Marketing leadership erosion in key strategic areas 
Table 8.1. Percentage of companies in which marketing leads activity* 
Weaker marketing leadership: 
•Promotion 
•Marketing research 
•Market entry 
•New products 
•CRM 
•Pricing 
•Target/Market selection 
•Innovation 
•Customer service 
Stronger marketing leadership: 
•Brand 
•Social media 
•Public relations 
•Competitive intelligence 
Activity 
Aug-13 
Aug-14 
Brand 
80.7% 
84.4% 
Advertising 
83.9% 
83.9% 
Social media 
74.9% 
78.4% 
Positioning 
76.7% 
76.9% 
Promotion 
80.3% 
74.9% 
Marketing analytics** 
69.1% 
68.3% 
Public relations 
62.3% 
65.8% 
Marketing research 
66.4% 
65.3% 
Competitive intelligence 
55.6% 
57.3% 
Lead generation 
56.1% 
56.3% 
Market entry strategies 
54.7% 
52.3% 
New products 
48.4% 
41.7% 
CRM 
40.4% 
38.2% 
Pricing 
37.2% 
32.2% 
Targeting/Market selection 
39.9% 
30.7% 
Innovation 
32.7% 
30.2% 
Sales 
27.8% 
26.6% 
Customer service 
22.0% 
19.6% 
Stock market performance 
3.1% 
2.5% 
* Red indicates marketing’s influence has decreased, green indicates that marketing’s influence has increased, and changes of1%or less are classified as no change. 
53
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Marketing leaders retained for an average of 5.3 years; likely to be insiders 
Figure 8.1.Marketing leader retention 
54 
4.3 
4.6 
4.3 
5.4 
4.1 
4.8 
5.1 
4.6 
5.3 
8.0 
9.0 
8.8 
10.5 
9.2 
9.5 
10.0 
9.4 
10.0 
0 
2 
4 
6 
8 
10 
12 
Aug-09 
Aug-10 
Aug-11 
Feb-12 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
Years top marketer in current rolein the firm 
Years top marketer in any role inthe firm
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Number of people reporting to top marketer 
Figure 8.2.Number of people reporting to top marketer 
55 
7.2 
7.3 
6.0 
8.6 
5.6 
6.9 
5.5 
17.0 
15.4 
25.4 
24.6 
17.5 
16.1 
16.3 
0 
5 
10 
15 
20 
25 
30 
Aug-10 
Aug-11 
Feb-12 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Number of direct reports 
Number of indirect reports
Increasing pressure to prove the value of marketing 
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Figure 8.3.Do you feel pressure from your CEO or Board to prove the value of marketing? 
Figure 8.4.Is this pressure increasing, decreasing, or about the same? 
56 
Yes62% 
No38% 
65% 
35% 
0% 
0% 
20% 
40% 
60% 
80% 
100% 
Increasingpressure 
Same 
Decreasingpressure
Best Practices from Marketing Leaders: See full interviews at www.cmosurvey.org/cmo-insights/ 
Senior Vice President and Chief Marketing Officer Beth Comstock discusses how GE approaches marketing: “You have to create a platform that invites innovative ideas.” This platform involves four capabilities that have produced an array of new products, services, customers, and business models. 
Chief Marketing Officer Kim Feil discusses how she built a marketing function. From insights to accountability, she describes the organization, processes, metrics, and talent management strategies important to this effort. 
Executive Vice President and Chief Marketing Officer Geert van Kuyck shares ideas on building the essential skill set for CMOs and the importance of defining the CMO’s mission. He discusses the use of the Net Promoter Score and other metrics to evaluate business results at Philips, touching on Philips’ engagement with LinkedIn and social media metrics. 
Executive Vice President and Chief Marketing Officer Stephen Quinn describes how Walmart rebuilt its customer focus. Key steps involved harnessing internal support, generating market insight, using customer-focused metrics, living the brand internally, and building marketing talent. 
Global Marketing Officer Marc Pritchard shares views on how marketing contributes to P&G’s performance. He talks about how P&G learns about customers and how it is relentless in its attention to building loyal customers and strong brands in the store, on the web, and around the world. 
57
The CMO Survey Report: Highlight and Insights August 2014
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Spending on marketing analytics expected to increase 73% in three years 
Figure 9.1.Percent of marketing budget spent on marketing analytics 
59 
7.1% 
12.3% 
0% 
3% 
6% 
9% 
12% 
15% 
Current Levels 
In Next 3 Years
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Spending on marketing analytics by firm and industry characteristics 
Current 
In Next 
3 years 
<$25M 
6.6% 
11.2% 
$26-99M 
5.8% 
10.2% 
$100-499M 
6.9% 
11.9% 
$500-999M 
7.5% 
13.0% 
$1-9.9B 
8.1% 
15.1% 
$10+B 
9.8% 
13.9% 
Table 9.1c. Firm size differences 
Table 9.1b. Firm internet sales differences 
Current 
In Next 
3 years 
0% 
6.5% 
11.8% 
1-10% 
7.5% 
12.5% 
>10% 
7.9% 
13.2% 
Table 9.1a. Firm sector differences 
Current 
In Next 
3 years 
B2BProduct 
8.2% 
13.1% 
B2BServices 
7.1% 
12.0% 
B2CProduct 
5.4% 
9.8% 
B2CServices 
7.3% 
14.4% 
60
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Only one-third of projects use marketing analytics; no improvement despite spending 
Figure 9.2.Percentage of projects using available or requested marketing analytics* 
61 
*This question was asked in Feb-12 for the first time. 
37.0% 
35.0% 
30.4% 
29.0% 
32.5% 
32.3% 
20% 
25% 
30% 
35% 
40% 
45% 
50% 
Feb-12 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
Percentage using marketing analytics
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Contribution of marketing analytics remains low and is not improving 
Figure 9.3.To what degree does the use of marketing analytics contribute to your company's performance? 1 = Not at all and 7 = Very highly 
62 
*This question was asked in Feb-12 for the first time. 
3.9 
3.7 
3.5 
3.7 
3.7 
1 
2 
3 
4 
5 
6 
7 
Aug-12 
Feb-13 
Aug-13 
Feb-14 
Aug-14 
Mean Contribution Level
Marketing analytics contributions by sector and firm differences 
63 
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
To what degree does the use of marketing analytics contribute to your company's performance? (1=Not At All, 7=Very Highly) 
Table 9.2a. Industry sector differences 
Sector 
Mean (SD) 
Banking/Finance/Insurance 
3.6 (1.7) 
Communications/Media 
4.0 (2.1) 
Consumer Packaged Goods 
4.0 (2.0) 
Energy 
4.0 (2.2) 
Healthcare/Pharma. 
4.2 (1.7) 
Manufacturing 
3.3 (1.6) 
Mining/Construction 
4.0(0.0) 
Retail/Wholesale 
4.1(2.3) 
Service/Consulting 
2.9 (1.9) 
Tech Software Biotech 
4.3(1.7) 
Transportation 
4.2 (0.8) 
Sector 
Mean (SD) 
B2BProduct 
3.6(1.6) 
B2BServices 
3.4(1.9) 
B2CProduct 
4.3(2.0) 
B2CServices 
4.2(1.9) 
Table 9.2b. Economic sector differences 
Table 9.2c. Firm internet sales differences 
Mean (SD) 
0% ofsales 
3.5(1.9) 
1-10% of sales 
3.7(1.7) 
>10% of sales 
4.2(1.9)
Majority of companies do not evaluate marketing analytics 
64 
Figure 9.4. Does your company formally evaluate the quality of marketing analytics? 
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
64 
B2C Services 
B2B Services 
B2C Product 
B2B Product 
Yes, evaluate quality 
47% 
38% 
29% 
24% 
No, do not evaluate quality 
53% 
62% 
71% 
76% 
Yes33% 
No67%
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
Companies lack quantitative metrics to demonstrate impact of marketing spending 
Figure 9.5.Metrics for demonstrating impact of marketing spending on business 
65 
37% 
44% 
19% 
33% 
44% 
23% 
0% 
10% 
20% 
30% 
40% 
50% 
We prove theimpact quantitatively 
We have a good qualitativesense of the impact, but not aquantitative impact 
We haven't been able toshow the impact yet 
Short-Term Impact 
Long-Term Impact
Analytics 
Leadership 
Organization 
Jobs 
Social Media 
Performance 
Spending 
Growth 
Marketplace 
How companies measure marketing ROI 
Figure 9.8.How companies measure marketing ROI 
What percent of your marketing budget do you spend measuring your marketing ROI? 
•Mean = 2.31% 
•SD = 3.26% 
•95% Confidence interval = 1.83% -2.79% 
66 
Manager judgements19.8% 
Customer surveys20.7% 
Econometric modeling17.8% 
Experiments11.9% 
Other9.3% 
We don't measure marketing ROI20.4%
Next survey: January 2015 
Participate: Sign up here 
Media: Press releases and coverage 
Feedback: Send comments to moorman@duke.edu 
Preview 
67

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The CMO Survey Report: Highlight and Insights August 2014

  • 2. Mission -To collect and disseminate the opinions of top marketers in order to predict the future of markets, track marketing excellence, and improve the value of marketing in firms and society. -The survey is an objective source of information about marketing. It is a non-commercial operation dedicated to the field of marketing, not the sale of products and services. Survey Operation -Founded in August 2008, The CMO Survey is administered twice a year via an Internet survey. Many questions repeat to observe trends over time. -The August 2014 survey was the twelfth administration of The CMO Survey. Sponsoring Organizations About The CMO Survey 2
  • 3. Survey Sample -4262 top U.S. marketers at Fortune 1000, Forbes Top 200, and top marketers who are AMA Members or Duke University Alumni and Friends -351 responded for a 8.3% response rate Survey Administration -Email contact with four follow-up reminders -Survey in field from July 22-August 12, 2014 -89% of respondents VP-level or above Results Interpretation -M = sample mean; SD = sample standard deviation -B2B = Business-to-Business firms; B2C = Business-to-Consumer firms Survey methodology 3
  • 4. Topic 1: Marketplace Dynamics……………………………………………………… 5-10 Topic 2: Firm Growth Strategies…………………………………………………….. 11-14 Topic 3: Marketing Spending………………………………………………………… 15-26 Topic 4: Financial and Marketing Performance……………………………………. 27-33 Topic 5: Social Media…………………………………………………..…………….. 34-44 Topic 6: Marketing Jobs…………………………………………………………….... 45-49 Topic 7: Marketing Organization…………………………………………………….. 50-51 Topic 8: Marketing Leadership……………………………………………………..... 52-57 Topic 9: Marketing Analytics………………………………………………………..... 58-67 Survey topics 4
  • 6. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Marketer optimism for U.S. economy reaches highest point in 5 years Figure 1.1.How optimistic are you about the overall U.S. economy on a 0-100 scale with 0 being the least optimistic and 100 the most optimistic? 6 47.7 56.5 57.8 55.6 63.3 52.2 63.4 58.4 62.7 65.7 66.1 66.4 40 50 60 70 80 Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Marketer Optimism About Overall Economy
  • 7. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Optimism for US economy remains high across all sectors; B2B service leads Figure 1.2.How optimistic are you about the overall U.S. economy on a 0-100 scale with 0 being the least optimistic and 100 the most optimistic? 7 48 45 48 46 51 66 66 66 66 64 66 68 66 65 65 0 20 40 60 80 100 Overall B2B Services B2B Product B2C Product B2C Services February 2009 February 2014 August 2014
  • 8. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace 75% 69% 59% 49% 50% 34% 76% 71% 67% 52% 51% 31% 0% 20% 40% 60% 80% 100% Increased abilityto acquire newcustomers Increasedcustomer purchasevolume Customers will buymore relatedproducts & servicesfrom my firm Increasedability to retaincustomers Increased entry ofnew customersinto the market Increasedcustomer priceper unit February 2014 August 2014 Positive customer acquisition, retention, and growth metrics forecasted; price lags Figure 1.3.Forecasted customer outcomes in next 12 months (% of respondents) 8
  • 9. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Figure 1.4.Customers’ top priority in next 12 months (% of respondents) Service trumps product as customer’s top priority; price inches up 9 31% 18% 17% 19% 9% 7% 26% 23% 19% 18% 9% 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% Superior ProductQuality ExcellentService LowPrice TrustingRelationship Superior Innovation Brand February 2014 August 2014
  • 10. Increased competition is expected – rivalry, price-cutting, and innovation Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Figure 1.5.Increased competitor interactions in next 12 months (% of respondents) 10 69% 59% 56% 41% 35% 23% 0% 20% 40% 60% 80% 100% More intenserivalry forcustomers More competitorprice-cutting More competitorinnovation Emergence ofnew domesticcompetitors Emergence ofnew globalcompetitors More cooperationon non-pricestrategies August 2014 *Question format used for the first time August-2014.
  • 12. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Firms decrease market penetration and move toward riskier growth strategies in next year Types of growth strategies Existing Products/ Services New Products/ Services Existing Markets Market Penetration Strategy Product/Service Development Strategy New Markets Market Development Strategy Diversification Strategy * % of spending across growth strategies Growth Strategy Actual Spendingin Past 12 Months Expected Spending in Next 12 Months PercentChange Expected Market Penetration Strategy 53% 46% -13% Market Development Strategy 15% 17% +13% Product/Service Development Strategy 22% 24% +9% Diversification Strategy 10% 13% +30% Table 2.1.How growth spending is expected to change* 12
  • 13. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Organic growth investments 74% of growth budgets Figure 2.2.How firms will grow in the next 12 months* * Percentage of spending across growth strategies 13 Organic growth 73% Growth from partnerships12% Growth from acquisitions10% Growth from licensing arrangements 4% B2B Product B2B Services B2C Product B2C Services Growth from within your firm (organic growth) 73% 75% 71% 77% Growth from partnerships 12% 11% 12% 12% Growth from acquisitions 10% 11% 11% 6% Growth from licensing arrangements 4% 3% 6% 5%
  • 14. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace B2C companies are most likely to sell through the Internet Figure 2.3.Percent of company sales expected to be through the internet in next 12 months 14 Internet 11% Other89% B2B Product B2B Services B2C Product B2C Services Sales through Internet 10% 9% 15% 14% Sales through other channels 90% 91% 85% 86%
  • 16. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Marketing budgets remain positive but trend downward since 2010 Figure 3.1.Percent change in marketing budgets in next 12 months 16 0.5% 1.1% 5.9% 9.2% 6.7% 9.1% 8.1% 6.4% 6.1% 4.3% 6.7% 5.1% 0% 2% 4% 6% 8% 10% 12% Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Change in Marketing Spending
  • 17. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Expenses including in marketing spending Table 3.1. Marketing spending in your company include the following items (% of respondents) Overall B2B Product B2B Services B2C Product B2C Services Overhead costs associated with marketing 45.9% 48.2% 50.8% 35.8% 44.2% Salaries and wages of marketing employees 43.9% 50.0% 49.2% 29.9% 38.5% Marketing analytics 41.0% 42.9% 40.7% 43.3% 36.5% Marketing research 40.7% 42.9% 38.1% 47.8% 34.6% 17
  • 18. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Sector differences in marketing spend Figure 3.2.Percent change in marketing budgets in next 12 months 18 6.7% 5.4% 6.4% 7.1% 5.8% 5.1% 4.4% 4.7% 7.0% 5.3% 0% 2% 4% 6% 8% 10% Overall B2B Product B2B Services B2C Product B2C Services February 2014 August 2014
  • 19. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Companies increase digital spend at the expense of traditional advertising *Refers to media advertising not using the web. Figure 3.3.Percent change in traditional advertising* vs. digital marketing spend in next 12 months 19 1.3% -0.8% -1.9% -2.7% -2.1% -0.1% -3.6% 11.2% 12.8% 11.5% 10.2% 10.1% 8.2% 10.8% -5% 0% 5% 10% 15% Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Traditional Advertising Spend Digital Marketing Spend
  • 20. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Digital marketing spend increases across sectors Figure 3.4.Change in digital marketing spending in next 12 months by sector 20 8.2% 9.0% 7.4% 7.7% 8.2% 10.8% 10.7% 11.5% 11.2% 9.0% 0% 2% 4% 6% 8% 10% 12% 14% Overall B2B Product B2B Services B2C Product B2C Services February 2014 August 2014
  • 21. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Spend in other marketing categories is also increasing Figure 3.5.Percent change in marketing spending in next 12 months 21 5.1% 7.8% 4.0% 4.9% 7.9% 7.8% 4.5% 4.3% 0% 2% 4% 6% 8% 10% Customer RelationshipManagement New Product Introductions New Service Introductions Brand Building February 2014 August 2014
  • 22. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Integrating knowledge and consulting services top knowledge investments *Developing knowledge about how to do marketing refers to the development of new marketing capabilities, while marketing training involves transferring existing marketing knowledge to employees. Figure 3.6.Changes in firm spending on marketing knowledge in next 12 months 22 2.7% 1.8% 4.9% 3.1% 2.4% 6.0% 4.0% 3.8% 3.8% 2.5% 0% 2% 4% 6% 8% 10% Integrating whatwe knowabout marketing Marketingconsultingservices Marketingresearch andintelligence Developingknowledge abouthow to do marketing Marketingtraining February 2014 August 2014
  • 23. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace *Question asked in Feb-11 for the first time. Marketing budgets represent 10.9% of overall firm budgets Figure 3.7.Marketing budget as a percent of firm budget* 23 8.1% 10.0% 10.4% 11.4% 10.6% 9.4% 10.9% 10.9% 0% 2% 4% 6% 8% 10% 12% 14% 16% Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 % Marketing Budget
  • 24. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Table 3.2a. Marketing percentage of firm budget by economic sector B2B Product B2B Services B2C Product B2C Services August 2014 10.5% 7.7% 17.0% 11.1% <$25 Million $26-99 Million $100-499 Million $500-999 Million $1-9.9 Billion >$10 Billion August 2014 11.9% 8.6% 11.8% 14.2% 8.7% 14.0% 0% Internet Sales 1-10% Internet Sales >10% Internet Sales August 2014 9.7% 10.7% 13.4% Table 3.2b. Marketing percentage of firm budget by company sales revenue Table 3.2c. Marketing percentage of firm budget by company internet sales Who has the biggest marketing budgets? 24
  • 25. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Marketing spending as a percentage of firm revenues is 8.3% Figure 3.8.Marketing spending as a percentage of firm revenues* *Question asked in Feb-12 for the first time. 25 8.5% 11.0% 7.9% 7.8% 9.3% 8.3% 0% 2% 4% 6% 8% 10% 12% 14% 16% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 % Marketing Spend
  • 26. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Table 3.3a. Marketing spending as a percentage of firm revenues by economic sector B2B Product B2B Services B2C Product B2C Services August 2014 7.8% 7.5% 9.0% 10.4% <$25 Million $26-99 Million $100-499 Million $500-999 Million $1-9.9 Billion >$10 Billion August 2014 11.0% 7.3% 6.1% 3.7% 6.7% 11.9% 0% Internet Sales 1-10% Internet Sales >10% Internet Sales August 2014 7.1% 6.9% 12.5% Table 3.3b. Marketing spending as a percentage of firm revenues by company sales revenue Table 3.3c. Marketing spending as a percentage of firm revenues by company internet sales Marketing spending as a percentage of firm revenues by firm and industry 26
  • 28. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Company performance on financial metrics positive but flat Figure 4.1.Percent change in firm performance in prior 12 months 28 3.9% 3.0% 3.4% 4.0% 3.2% 3.2% 0% 1% 2% 3% 4% 5% Firm sales Firm profits Marketing ROI February 2014 August 2014
  • 29. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Performance on key customer and brand assets no significant change Figure 4.2.Percent change in performance on customer and brand metrics in prior 12 months 29 3.6% 1.9% 3.5% 3.3% 2.0% 3.7% 0% 1% 2% 3% 4% 5% Customer acquisition Customer retention Brand value February 2014 August 2014
  • 30. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace B2B Product sector shows highest performance gains Overall B2B Product B2B Services B2C Product B2C Services Firm sales 4.0% 4.6% 4.1% 3.6% 3.0% Marketing ROI 3.2% 3.8% 3.6% 1.8% 2.5% Firm profits 3.2% 3.5% 3.1% 3.0% 2.8% Customer acquisition 3.3% 4.0% 3.1% 3.2% 2.4% Customer retention 2.0% 2.1% 2.2% 2.0% 1.3% Brand value 3.7% 3.7% 4.1% 3.5% 3.3% Table 4.1. Percent change in performance in prior 12 months by sector 30
  • 31. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Firm performance goals remain strong Actual firm performance in prior 12 months Goal in the next 12 months Firm sales 4.0% 6.7% Marketing ROI 3.2% 5.2% Firm profits 3.2% 5.8% Customer acquisition 3.3% 5.9% Customer retention 2.0% 4.7% Brand value 3.7% 5.8% Table 4.2. Percent change in performance 31
  • 32. Increased focus on marketing that benefits society and minimizes environmental impact Figure 4.3.Rate your firm on each the following non-financial metrics during the last 12 months (% Excellent & Goodon a 5-point scale where 1=Poor and 5=Excellent) Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace 32 36.1% 31.1% 41.6% 41.6% 0% 10% 20% 30% 40% 50% Marketing that isbeneficial for society Minimizing the impact of marketingon the ecological environment August 2013 August 2014
  • 33. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace B2C companies more likely to be marketing leaders Figure 4.4.How would you rate your company’s marketing excellence? (7-point scale where 1=Very Weak and 7=Leader) 33 4.6% 5.5% 3.6% 6.8% 2.6% 44.6% 46.6% 47.6% 36.4% 43.6% 29.2% 30.1% 28.6% 31.8% 25.6% 21.7% 17.8% 20.3% 25.0% 28.2% 0% 20% 40% 60% 80% 100% Overall B2B Product B2B Services B2C Product B2C Services A Leader/ Excellent=6-7 Strong=5 Fair/Good=3-4 Very Weak/Weak=1-2
  • 35. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Social media spending expected to be 21.4% of marketing budgets in five years Figure 5.1.Social media spending as a percent of marketing budgets 35 9.4% 13.2% 21.4% 0% 5% 10% 15% 20% 25% Current Levels Over Next 12 Months In Next 5 Years % of Marketing Budget
  • 36. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Social media spending across sectors Overall B2B Product B2B Services B2C Product B2C Services Current Social Media Spending 9.4% 9.5% 9.2% 10.4% 8.6% Social Media Spending in the next 12 months 13.2% 12.6% 13.3% 15.0% 11.9% Social Media Spending in the next 5 years 21.4% 19.9% 22.2% 22.8% 21.0% Table 5.1.Changes in social media spending across sectors 36
  • 37. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace No growth on human capital for social media: Tech investments appear to dominate? Figure 5.2.Location of social media employees In-house social media employees Outsourced social media employees B2BProduct 4.1 2.0 B2BServices 4.1 1.5 B2CProduct 5.7 3.9 B2CServices 4.9 2.1 Table 5.2. Social media employees by sector 37 1.7 2.4 4.1 2.9 1.1 1.3 2.1 2.1 0 1 2 3 4 5 Feb-13 Aug-13 Feb-14 Aug-14 In-house social media employees Outsourced social media employees
  • 38. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Social media remains poorly integrated with marketing strategy 38 Figure 5.3.How effectively is social media linked to your firm’s marketing strategy? (1=Not integrated, 7=Very integrated) 3.8 3.8 3.8 3.8 3.9 3.8 3.9 1 2 3 4 5 6 7 Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Mean Integration Level
  • 39. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace B2C Product companies have the highest social media integration Figure 5.4.How well is social media integrated with marketing strategy? (1=Not At All Effectively, 7=Very Effectively) 39 24.9% 30.2% 25.8% 18.7% 19.5% 53.1% 51.9% 51.7% 54.2% 56.1% 22.1% 18.1% 22.5% 27.1% 24.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Overall B2B Product B2B Services B2C Product B2C Services Top 2 Box=6-7 Middle 3 Box=3-5 Bottom 2 Box=1-2
  • 40. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Persistent poor integration of customer information across channels Figure 5.5.How effectively does your company integrate customer information across purchasing, communication, and social media channels (1=Not At All Effectively, 7=Very Effectively)? 40 3.5 3.8 3.4 3.5 3.6 1 2 3 4 5 6 7 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Mean Integration Level *Question asked in Aug-12 for the first time.
  • 41. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Only 15% of firms able to show impact of social media on business Figure 5.6.. Which best describes how you show the impact of social media on your business? 41 B2B Product B2B Services B2C Product B2C Services We haven't been able to show the impact yet 54.2% 42.0% 46.9% 30.8% We have a good qualitative sense of the impact, but not a quantitative impact 34.9% 43.2% 34.7% 51.3% We have proven the impact quantitatively 10.8% 14.8% 18.4% 17.9% Have proven the impact quantitatively 15% Haven't been able to show the impact yet 45% Have a good qualitative sense of the impact, but not a quantitative impact 40%
  • 42. Social media metrics: Firms shift toward referral and text measures and away from financial metrics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Metrics August 2010 August 2014 Hits/visits/page views 47.6% 60.7% Number of followers or friends 24.0% 45.0% Repeat visits 34.7% 38.7% Conversion rates (from visitor to buyer) 25.4% 31.3% Buzz indicators (web mentions) 15.7% 24.2% Sales levels 17.9% 16.8% Online product/service ratings 8.2% 14.0% Customer acquisition costs 11.8% 13.7% Net promoter score 7.5% 12.8% Revenue per customer 17.2% 12.5% Other text analysis ratings 6.6% 11.7% Customer retention costs 7.7% 6.3% Abandoned shopping carts 3.8% 6.0% Profits per customer 9.4% 6.0% Table 5.3.Social Media Metrics Used by Firms* *Red indicates metric use has decreased; green indicates that metric use has increased, and changes of 1% or less are classified as no change. . 42
  • 43. Use of online customer behavior data expected to increase over time Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Figure 5.7.Does your company use customer behavior data collected online for targeting purposes? Figure 5.8.Is your company's use of such data increasing, decreasing, or staying the same over time? 43 Yes41% No59% 81.7% 18.3% 0.0% 0% 20% 40% 60% 80% 100% Increasing About the same Decreasing
  • 44. Most marketers have low levels of concern over the use of online customer data Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Figure 5.9.How worried are you that the use of online customer data could raise questions about privacy? Mean = 3.4 (SD = 1.6) 44 12.8% 20.2% 14.7% 22.9% 21.1% 7.3% 0.9% 0% 5% 10% 15% 20% 25% 1Not At AllWorried 2 3 4 5 6 7VeryWorried
  • 46. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Marketing hiring positive but continues to decline Figure 6.1.Percentage change in marketing hires planned in next 12 months 46 6.2% 7.2% 5.2% 6.5% 5.4% 5.5% 4.7% 3.8% 0% 3% 6% 9% 12% 15% Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Increase in Marketing Hires in Next 12 Months
  • 47. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Sector differences in marketing hires: B2B services largest hiring increase Figure 6.2.Percentage change in marketing hires planned in next 12 months 47 3.8% 2.3% 5.3% 3.8% 3.6% 0% 2% 4% 6% 8% 10% Overall B2B Product B2B Services B2C Product B2C services
  • 48. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Outsourcing of marketing jobs increases Figure 6.3.Percentage of company marketing expected to be outsourced in next 12 months 48 3.2% 3.1% 3.5% 2.6% 3.1% 4.3% 0% 2% 4% 6% 8% 10% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Percentage Change in Outsourcing
  • 50. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Marketing employees 5% of total Figure 7.1.Marketing Employees as a Percentage of Total Employees 50 2.4% 2.0% 6.4% 2.3% 4.2% 1.1% 3.1% 2.5% 1.2% 6.3% 5.0% 0% 2% 4% 6% 8% 10% 12% Feb-09 Aug-09 Feb-10 Aug-10 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Percentage of Total Employees
  • 51. Marketing and sales are equal partners in most companies, esp. B2B Product Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace 51 Figure 7.2. The marketing-sales relationship (% of respondents) 66% 12% 11% 8% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% Sales and marketingwork togetheron an equal level We don'thave asales function Sales isin charge ofmarketing Sales is withinthe marketingfunction We have a salesfunction, but not amarketing function Sales and marketing work together on an equal level B2B Product 75.0% B2B Services 59.7% B2C Product 61.5% B2C Services 66.7%
  • 53. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Marketing leadership erosion in key strategic areas Table 8.1. Percentage of companies in which marketing leads activity* Weaker marketing leadership: •Promotion •Marketing research •Market entry •New products •CRM •Pricing •Target/Market selection •Innovation •Customer service Stronger marketing leadership: •Brand •Social media •Public relations •Competitive intelligence Activity Aug-13 Aug-14 Brand 80.7% 84.4% Advertising 83.9% 83.9% Social media 74.9% 78.4% Positioning 76.7% 76.9% Promotion 80.3% 74.9% Marketing analytics** 69.1% 68.3% Public relations 62.3% 65.8% Marketing research 66.4% 65.3% Competitive intelligence 55.6% 57.3% Lead generation 56.1% 56.3% Market entry strategies 54.7% 52.3% New products 48.4% 41.7% CRM 40.4% 38.2% Pricing 37.2% 32.2% Targeting/Market selection 39.9% 30.7% Innovation 32.7% 30.2% Sales 27.8% 26.6% Customer service 22.0% 19.6% Stock market performance 3.1% 2.5% * Red indicates marketing’s influence has decreased, green indicates that marketing’s influence has increased, and changes of1%or less are classified as no change. 53
  • 54. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Marketing leaders retained for an average of 5.3 years; likely to be insiders Figure 8.1.Marketing leader retention 54 4.3 4.6 4.3 5.4 4.1 4.8 5.1 4.6 5.3 8.0 9.0 8.8 10.5 9.2 9.5 10.0 9.4 10.0 0 2 4 6 8 10 12 Aug-09 Aug-10 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Years top marketer in current rolein the firm Years top marketer in any role inthe firm
  • 55. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Number of people reporting to top marketer Figure 8.2.Number of people reporting to top marketer 55 7.2 7.3 6.0 8.6 5.6 6.9 5.5 17.0 15.4 25.4 24.6 17.5 16.1 16.3 0 5 10 15 20 25 30 Aug-10 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Number of direct reports Number of indirect reports
  • 56. Increasing pressure to prove the value of marketing Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Figure 8.3.Do you feel pressure from your CEO or Board to prove the value of marketing? Figure 8.4.Is this pressure increasing, decreasing, or about the same? 56 Yes62% No38% 65% 35% 0% 0% 20% 40% 60% 80% 100% Increasingpressure Same Decreasingpressure
  • 57. Best Practices from Marketing Leaders: See full interviews at www.cmosurvey.org/cmo-insights/ Senior Vice President and Chief Marketing Officer Beth Comstock discusses how GE approaches marketing: “You have to create a platform that invites innovative ideas.” This platform involves four capabilities that have produced an array of new products, services, customers, and business models. Chief Marketing Officer Kim Feil discusses how she built a marketing function. From insights to accountability, she describes the organization, processes, metrics, and talent management strategies important to this effort. Executive Vice President and Chief Marketing Officer Geert van Kuyck shares ideas on building the essential skill set for CMOs and the importance of defining the CMO’s mission. He discusses the use of the Net Promoter Score and other metrics to evaluate business results at Philips, touching on Philips’ engagement with LinkedIn and social media metrics. Executive Vice President and Chief Marketing Officer Stephen Quinn describes how Walmart rebuilt its customer focus. Key steps involved harnessing internal support, generating market insight, using customer-focused metrics, living the brand internally, and building marketing talent. Global Marketing Officer Marc Pritchard shares views on how marketing contributes to P&G’s performance. He talks about how P&G learns about customers and how it is relentless in its attention to building loyal customers and strong brands in the store, on the web, and around the world. 57
  • 59. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Spending on marketing analytics expected to increase 73% in three years Figure 9.1.Percent of marketing budget spent on marketing analytics 59 7.1% 12.3% 0% 3% 6% 9% 12% 15% Current Levels In Next 3 Years
  • 60. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Spending on marketing analytics by firm and industry characteristics Current In Next 3 years <$25M 6.6% 11.2% $26-99M 5.8% 10.2% $100-499M 6.9% 11.9% $500-999M 7.5% 13.0% $1-9.9B 8.1% 15.1% $10+B 9.8% 13.9% Table 9.1c. Firm size differences Table 9.1b. Firm internet sales differences Current In Next 3 years 0% 6.5% 11.8% 1-10% 7.5% 12.5% >10% 7.9% 13.2% Table 9.1a. Firm sector differences Current In Next 3 years B2BProduct 8.2% 13.1% B2BServices 7.1% 12.0% B2CProduct 5.4% 9.8% B2CServices 7.3% 14.4% 60
  • 61. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Only one-third of projects use marketing analytics; no improvement despite spending Figure 9.2.Percentage of projects using available or requested marketing analytics* 61 *This question was asked in Feb-12 for the first time. 37.0% 35.0% 30.4% 29.0% 32.5% 32.3% 20% 25% 30% 35% 40% 45% 50% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Percentage using marketing analytics
  • 62. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Contribution of marketing analytics remains low and is not improving Figure 9.3.To what degree does the use of marketing analytics contribute to your company's performance? 1 = Not at all and 7 = Very highly 62 *This question was asked in Feb-12 for the first time. 3.9 3.7 3.5 3.7 3.7 1 2 3 4 5 6 7 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Mean Contribution Level
  • 63. Marketing analytics contributions by sector and firm differences 63 Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace To what degree does the use of marketing analytics contribute to your company's performance? (1=Not At All, 7=Very Highly) Table 9.2a. Industry sector differences Sector Mean (SD) Banking/Finance/Insurance 3.6 (1.7) Communications/Media 4.0 (2.1) Consumer Packaged Goods 4.0 (2.0) Energy 4.0 (2.2) Healthcare/Pharma. 4.2 (1.7) Manufacturing 3.3 (1.6) Mining/Construction 4.0(0.0) Retail/Wholesale 4.1(2.3) Service/Consulting 2.9 (1.9) Tech Software Biotech 4.3(1.7) Transportation 4.2 (0.8) Sector Mean (SD) B2BProduct 3.6(1.6) B2BServices 3.4(1.9) B2CProduct 4.3(2.0) B2CServices 4.2(1.9) Table 9.2b. Economic sector differences Table 9.2c. Firm internet sales differences Mean (SD) 0% ofsales 3.5(1.9) 1-10% of sales 3.7(1.7) >10% of sales 4.2(1.9)
  • 64. Majority of companies do not evaluate marketing analytics 64 Figure 9.4. Does your company formally evaluate the quality of marketing analytics? Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace 64 B2C Services B2B Services B2C Product B2B Product Yes, evaluate quality 47% 38% 29% 24% No, do not evaluate quality 53% 62% 71% 76% Yes33% No67%
  • 65. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace Companies lack quantitative metrics to demonstrate impact of marketing spending Figure 9.5.Metrics for demonstrating impact of marketing spending on business 65 37% 44% 19% 33% 44% 23% 0% 10% 20% 30% 40% 50% We prove theimpact quantitatively We have a good qualitativesense of the impact, but not aquantitative impact We haven't been able toshow the impact yet Short-Term Impact Long-Term Impact
  • 66. Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace How companies measure marketing ROI Figure 9.8.How companies measure marketing ROI What percent of your marketing budget do you spend measuring your marketing ROI? •Mean = 2.31% •SD = 3.26% •95% Confidence interval = 1.83% -2.79% 66 Manager judgements19.8% Customer surveys20.7% Econometric modeling17.8% Experiments11.9% Other9.3% We don't measure marketing ROI20.4%
  • 67. Next survey: January 2015 Participate: Sign up here Media: Press releases and coverage Feedback: Send comments to moorman@duke.edu Preview 67