Professional Documents
Culture Documents
Executive summary..........................................................................3
Introduction.......................................................................................6
Appendix: Methodology.................................................................25
This research from Smart Insights and Technology for Marketing (TFM) explores
approaches businesses use to plan and manage their investments in digital marketing.
Findings and recommendations are grouped in 5 areas aimed at improving the commercial
contribution of digital marketing for businesses.
Good practice: Audit your digital marketing capabilities and create a roadmap for
digital transformation to improve capabilities over the medium to long-term. Digital
transformation isnt a quick process so its best to plan ahead.
Likewise, nearly half (49%) dont have a clearly defined marketing strategy.
Good practice: Dont just execute! Create a long-term integrated digital strategy
and plan aligning with marketing and business priorities.
Good practice: With the diversity of paid, owned and earned media, its important
to focus resources and optimisation on core channels that drive value.
This research also found that the most commonly adopted marketing technologies
are email marketing and marketing automation, SEO and social media management
technologies. AB/ MVT platforms are not used by most marketers.
Good practice: You cant compete if you update your website or your
communications approaches every few years... Create a plan for Always-on
This visual shows the opportunities for delivering more relevant, more effective
marcomms across the customer lifecycle. It also suggests the complexity of options
and the challenges of integration. In this report, well see that many businesses are
still at an early stage of harnessing the potential of digital media and technology. By
reviewing common practices and following the strategy recommendations we hope that
this report will help you identify new opportunities to exploit the range of digital media
and technology we explore.
To achieve this aim we surveyed Smart Insights members who are based around the
world and attendees of the TFM and eCommerce Expo event who are based in the UK
and Europe. The survey was completed online during April 2017. Thank you if you took
the time to share your experiences of digital marketing.
There were 609 respondents, with the majority were from the United Kingdom or the
United States. Respondents were marketing managers of various levels of seniority.
Further details on the sample frame are available at the end of the report.
Thousands of Individual and Business members from over 80 countries use our premium
planning and management toolkits, templates, guides and video courses to map, plan
and manage their marketing using the Smart Insights RACE Planning framework.
RECOMMENDED RESOURCES
Strategy development and planning templates
We have developed a series of tools for Expert members to help them plan:
Digital strategy toolkit. This template contains a full workbook to create a
digital marketing strategy to Reach-Act-Convert and Engage your audience.
7 Steps Digital Strategy guide and course. Step-by-step guidance.
Example digital marketing plans. An example online marketing plan and
blank template using the Smart Insights RACE Planning framework.
TFM 2017, taking place 27-28 September in Olympia, London, will educate, inspire and
facilitate the adoption of new martech to give marketers the competitive advantage.
Visitors will be wowed by experiential content, see killer keynotes from top brands, and
receive specialist training and tech demonstrations tailored to their needs.
eCommerce Expo is the only event dedicated to the entire breadth of ecommerce,
helping visitors streamline business processes, remain agile and keep pace with
the latest trends, all helping to optimise the customer journey. Co-located with TFM,
and taking place 27-28 September at Olympia, London, the event offers high quality
thought leadership and networking, and covers all aspects of the online transactional
process from marketing, web-platforms and payments through to delivery and
customer service.
For more information and to register to attend for free, visit technologyformarketing.co.uk.
We hope you find this research and recommendations useful in reviewing and shaping
your use of digital marketing. If you have any comments or questions, do get in touch.
We asked companies to rate their digital capabilities from an initial level, 1 through to an
advanced optimized level of 5 by referencing the capability assessment shown on the
next page. Results show that the majority of companies rate their capabilities at lower
levels of 1 to 3 on this scale of 1 to 5.
AIMING FOR DIGITAL Take your digital marketing to the next level with our
capability assessment. Use our visual checklist to audit
MARKETING EXCELLENCE how well your business or clients are exploiting their digital
marketing and then plan how to take it to the next level.
FIVE. Optimized
FOUR. Quantified
THREE. Defined
Digital
TWO. Managed
Capability ONE. Initial Business-aligned
Agile strategic
approach
Defined vision and strategy and roadmap
Prioritised marketing strategy
A. Strategic activities
No strategy
Approach
C. Management Verbal support, but Sponsorship and Active championing and Integral part of
Limited
Buy-in inadequate resourcing increased investment approriate investment strategy development
E. Data
Limited / no Separate data, tools Partially integrated Integrated systems Flexible approach to
and
customer database and IT services systems and data and 360o data sources optimize resources
Infrastructure
Refine your Digital Marketing Strategy Check out our hub page http://bit.ly/smartstrategy for Join our Expert members to download digital marketing planning
with Smart Insights member toolkits. our free blog articles and planning template. templates and our 7 Step guides to digital strategy.
Results show that the majority of companies rate their capabilities at lower levels of 1 to
3 on this scale of 1 to 5. Integrated customer communications and integrated customer
experience are also mostly at the initial stage.
Since digital marketing involves execution of many marketing processes and activities,
its useful to rate different types of capabilities by their current effectiveness as shown by
our capability review below. To download a larger version of the capability matrix go to
http://bit.ly/smarttransformation or use our interactive capability graders in the members
area.
Scoring your digital capabilities can help show colleagues your current use of digital
marketing and how far you need to go. This can help prioritisation of future improvements.
The weakest processes that are important for future improvement can be identified and
prioritised. Creating a roadmap is a great way to show that Digital Transformation is a
long-term journey and cant be achieved overnight, or without sufficient investment.
!
KEY STRATEGY RECOMMENDATION 1: BENCHMARK YOUR CAPABILITIES
Score your digital capabilities to benchmark and then analyse how you can
improve and to win the case for investment
Assess what your current capabilities are overall and for key digital channels
to communicate to colleagues where you need to improve. All Smart Insights
members can use our interactive benchmarks in the member area to review their
digital capabilities across the Smart Insights RACE Planning framework.
Daniel Rowles, Digital Marketing Consultant and Trainer, Target Internet
Organisations who recognise the importance of digital media and technologies in the
future and seek to accelerate the rate of change to integrating digital marketing into their
business create digital transformation programmes.
To find out the commitment to digital transformation we asked respondents about their
current adoption of digital transformation programmes.
The results, shown on the next page, show that nearly 8% have a digital transformation
in place for longer than two years and 2 in 10 (21%) have just started. Over 3 in 10 (33%)
are preparing to start their digital transformation program.
33%
Only a small percentage have had a programme in place for over two years. This
highlights that many businesses are still in a period of transitioning to being digital first,
and the process of digital transformation is far from finished. As with our previous report,
a significant proportion of organisations 4 in 10 (37%) have no intention to implement a
programme because they feel it is inappropriate for their type of business, for example,
startups and smaller businesses or businesses who are online pureplays.
RECOMMENDED RESOURCES
Smart Insights Benchmarking Tools
We have developed a series of strategic tools to help companies review their
digital marketing and make the case for more investment in digital marketing:
Digital marketing audit / benchmark
A detailed spreadsheet based technique for assessing a company in 6 key
areas with an Ecommerce option (PRICE framework) available also
Competitor benchmarking tools
A recommended process and tools for comparing performance.
Business case template
Improvement needed can be justified through this template and the companion Ebook
Does yourhave
Does your organisation organisation have
a clearly defined a clearly
digital defined
marketing strategy?
digital marketing strategy?
17% Number of
Respondents
604
Shockingly, nearly half of businesses dont have a digital marketing strategy, but they are
doing digital marketing. This seems to go along with a more general lack of planning since
44% do not have a marketing strategy. It seems that businesses are working campaign to
campaign, planning reactive digital marketing approaches rather than annual strategies.
!
KEY STRATEGY RECOMMENDATION 2: CREATE A DIGITAL PLAN
Create a specific digital marketing plan aligned with marketing strategy
To provide focus and direction for the future, create a detailed digital marketing
plan defining the digital channel strategy for each major market / proposition.
Only 6% of companies thought their integration process was completely optimised. Yet
there is reason to be optimistic about the state of marketing integration. In our last survey
over 50% were satisfied with their integration, and again more than half are satisfied, with
14% fully integrated and 32% actively trying. Around 3 in 10 (29%) have limited integration.
Integration requires a clear marketing or business strategy and plan also. The survey
results suggest that lack of a marketing plan in a substantial proportion of organisations
may make it difficult to align a digital plan against!
A focus on improving customer journeys by businesses can help resolve customer journey
issues, increase sales and conversions. Businesses are focusing more on customer and
user experience than ever, but still have a way to go.
In our customer persona toolkit we show how different techniques such as customer
persona development, customer journey analysis and content mapping can be used to
review and improve digital experiences in conjunction with conversion rate optimisation.
Since improving your customer journey can be one of the most effective way to boost online
leads and sales and bottom line. With that in mind, we asked respondents which techniques
their businesses were using to research and improve the effectiveness of their customer journey.
Last year AB testing was the most popular technique, but its brilliant to see how many
businesses are also embracing customer personas.
Number of
Which techniques do you use to research and improve Respondents
customer journey effectiveness? 583
Personas (53%) and customer journey mapping (52%) lead the way with. AB testing also
popular (48%). Yet surprisingly, only a quarter (26%) are using Net Promoter Score, which
is such a simple technique businesses can use to review customer satisfaction and focus
improvements. See our Quick Win on CSAT and NPS to see how to get up-to-speed1.
Usability studies are only used by 23% of businesses, which suggests businesses are not
fully embracing the benefits of user experience research to improve conversions and loyalty.
Social media management (61%) and search management (65%) platforms were
implemented the most before 2017, but most (47%) are not using a full marketing cloud
solution. However, website personalization (35%) and full marketing cloud (33%) are the
most popular planned for future use.
Which technologies form part of your Martech stack?
AB or MVT
22% 13% 22% 39%
website testing platform
Ad management
31% 21% 23% 24%
(e.g. retargeting or Programmatic)
Collaboration tools -
35% 17% 14% 31%
employees and agency
Content or
20% 25% 17% 14%
commerce management
Search management
55% 25% 12% 8%
(SEO and/or AdWords)
Website personalisation
24% 20% 35% 21%
In place before 2017 New/updated in 2017 Planning future update for 2018+
Not used / Not relevant
RECOMMENDED RESOURCES
Strategy development and planning templates
Number of
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Content marketing
17% 40% 30% 13%
Website personalisation
18% 26% 16% 40%
Display advertising
26% 31% 10% 33%
including Programmatic
Considering the marketing activities with the highest ROI, marketers consider organic
search or SEO (32% rated highly for ROI), content marketing (30%) and email marketing
(30%) the most effective. This suggests that these techniques demand investment in
most businesses and optimization as explained in the next section. Paid techniques
such as AdWords (20%), social media ads (17%) and display including programmatic
(10%) were rated significantly lower. Earned media techniques such as online PR and
outreach (15%) and organic social media (20%) were also relatively low, however many
considered these medium ROI, so still worthwhile. It was surprising that only 16% rate
website personalization as high ROI, perhaps because of the cost of deploying these
services. Note that this had the highest rating of Dont use of N/A. Display advertising
including Programmatic was also highly rated in this category (33%).
Formal pitches appear to be requested less than ever, this used to be a common method,
however free trials are common and marketers more often need to submit a business
case in order to get budget. Its unclear whether the need for business cases slows down
the decision making process.
Techniques
Techniques used to used
decide onto decide
significant on significant
new technology investments new
technology investments
We typically make a business case with
55%
calculated cost/benefit for high cost martech
Number of
Other 3% Respondents
609
To assess your investments in digital media we recommend you take a look at our
Content Distribution matrix.
You can plot volume of leads and sales for different digital media on the horizontal
axis against cost-effectiveness on a vertical axis. You should review specific ad
network placements such as AdWords remarketing or paid social media marketing
techniques. See our Content Distribution Matrix infographic for an example.
Philip Sheldrake, Author, the Business of Influence
Its striking that marketers can respond to survey questions about effectiveness
and admit simultaneously a paucity in measurement capability.
If they measure at all, the majority of marketing teams measure outputs in my
experience, not outcomes. Its far easier to measure outputs, but easy and useful
arent the same thing. If you measure simply what you can rather than what you
should, subsequent conclusions will be entirely a function of output measurability
than anything resembling strategic effectiveness.
How to encourage measurement of effectiveness? We must appeal to emotions
and character in order to have logic prevail. Every line manager understands the
emotional pressures of reporting to a higher up, and having answers is part and
parcel of good relations with the boss. Talk about the emotional power that comes
from confidence in good measurement and evaluation.
On the character front, distinguish between management (doing things right) and
leadership (doing the right things). Many managers aspire to lead, and that starts
with knowing the right things to do. Investing in understanding what works and what
doesnt is the right thing to do because it helps determine the right things to do.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Mobile
27% 22% 20% 9% 6% 16%
(Mobile visits and/or apps)
Content marketing
25% 29% 22% 8% 9% 7%
Email and marketing automation are the most optimized, followed by digital media.
Overall amount of testing was varied but mobile apps and mobile websites suffers from
a lack of optimization, which is surprising as more people are using apps and mobile
devices for purchases.
As you can see below, our results from 2016 show that mobile optimization is getting
poorer, as currently mobile optimization stands at over 2 in 10 (22%), the lowest
oprimisation in this survey.
We hope you have found this report useful to compare against your approaches to digital
marketing and inform your investments.
Do let us know if you have any comments or questions via @SmartInsights or our
community.
RECOMMENDED RESOURCES
Strategy development and planning templates
We have developed a series of tools for Expert members to help them plan:
Digital strategy toolkit. This template contains a full workbook to create a
digital marketing strategy to Reach-Act-Convert and Engage your audience.
7 Steps Digital Strategy guide and course. Step-by-step guidance.
Example digital marketing plans. An example online marketing plan and
blank template using the Smart Insights RACE Planning framework.
The survey was completed online during April 2017. There were 609 respondents from
all over the world. The majority of respondents came from the UK and Europe and the
United States.
Types of business
Businesses respondents represented a wide range of sectors and sizes including Retail,
Financial services, Consumer brands, travel and public sector/education.
Respondents
Respondents all worked in marketing roles, but at various levels of seniority, from CEO
to assistant.
VP / Director: 5%
Owner / Proprietor: 8%
Assistant:10%
Company activities were diverse with agencies, IT and retail the most important and
business-to-business represented over many other categories.
Number of
Company Activity Respondents
608
0% 5% 10% 15%
Agency 15%
IT 10%
Retail 9%
Other 9%
Marketing / Media 8%
Consultancy / Management consultancy 8%
Manufacturing 8%
Public Sector / Government / Education 6%
Finance / Banking / Insurance 5%
Construction / Engineering / Automotive 4%
Travel, Venues & Leisure 4%
Hospitality & Leisure 2%
FMCG / Consumer brand 2%
Voluntary Sector / Charity 2%
Training provider 2%
Pharmaceuticals 1%
Transportation / Logistics 1%
Telecommunications 1%
Utilities 1%