Managing digital-marketing-smart-insights-2015

41
Managing Digital Marketing in 2015 Best practices for integrating digital technology, marketing and advertising to fuel business growth Author: Dr Dave Chaffey, SmartInsights.com Research in collaboration with TFM&A 2015 Published with Expert commentary: February 2015

Transcript of Managing digital-marketing-smart-insights-2015

Page 1: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing in 2015

Best practices for integrating digital technology, marketing and advertising to fuel business growthAuthor: Dr Dave Chaffey, SmartInsights.com

Research in collaboration with TFM&A 2015

Published with Expert commentary: February 2015

Page 2: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 2

Contents

Executive summary ...........................................................................3

Managing Digital Marketing in 2015 .................................................3

1. Review Digital Marketing Contribution and Capabilities ...........9

2. Developing Strategies And Plans For Digital Marketing ..........13

3. Managing change with Digital Transformation programmes ...19

4. Development of Digital Skills and Managing Change ..............22

5. Investing In Digital Marketing In 2015 ........................................25

6. Innovation And Optimising Digital Marketing ...........................30

Appendix ..........................................................................................33

Methodology ....................................................................................33

Page 3: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 3

Executive summaryManaging Digital Marketing in 2015

This research from Smart Insights and TFM&A 2015 explores approaches businesses

use to plan and manage their investments in digital marketing. Findings and recommen-

dations are grouped in 6 areas aimed at improving the commercial contribution of digital

marketing for businesses.

1. Digital marketing capabilities and transformation

The majority of companies are still actively working on transformation of their digital

marketing capabilities – less than 20% rating their digital communications, customer

communications or performance improvement process at an advanced level.

When asked about managing digital transformation, again just 20% of businesses had a

transformation programme in place, but with 33% planning to implement a programme

within the next 12 months.

þ Good practice: Audit your digital marketing capabilities and create a roadmap for

transformation to improve capabilities over the medium to long-term.

2. Digital marketing strategy and planning

In business, it’s recognised that plans help companies to prioritise, set goals and allocate

resources to meet targets. Yet a planned approach often isn’t followed in digital marketing

or marketing:

ý One half (50%) of businesses surveyed do not have a defined digital plan or

strategy, although they are active in digital marketing.

ý Nearly half (45%) also don’t have a defined marketing plan in the business to align

digital strategy against.

þ Good practice: Don’t just execute! Create a long-term digital strategy and plan

aligning with marketing and business priorities.

Page 4: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 4

Executive summary

3. Managing change via digital transformation programmes

Integration of digital channels into marketing activities was identified as a major challenge

in the research – only a quarter of companies (24%) were happy with their level of

integration of digital marketing and traditional communications.

ý The main barriers to integration are:

1. Lack of integrated strategy and plans (27%)

2. Teams structured in silos (23%)

3. Lack of skills in integrated communications (17%)

þ Good practice: Use digital transformation programmes to eliminate digital

marketing silos and improve integration through integrated planning and

collaboration during campaigns.

4. Development of digital skills

Across respondents to the survey, nearly 60% of peoples’ time is now devoted to digital

marketing activities, showing the importance of skills development in this area.

Many marketers are now confident in their knowledge of digital channels with nearly

half saying they are confident, with in-depth knowledge or sufficient knowledge for what

they need across different digital marketing techniques. However, there is still hunger for

deeper learning about digital marketing approaches, particularly in Big Data and CRM

(58% want to improve their knowledge), digital strategy (53%), search engine marketing

(51%), content marketing (50%) and social media marketing (47%).

þ Good practice: Review and develop your personal or employees’ digital skills.

Are you a T or W-shaped marketer?

5. Investing in digital marketing in 2015

þ The research shows the ongoing importance of the core digital marketing channels

with similar levels of effectiveness compared to 2014. Email marketing was rated as

highly or very effective by 51% of respondents followed by SEO (45%) and AdWords

(34%). Organic use of social media wasn’t far behind with 33%, but with only 21%

believing paid social media was effective.

þ Many marketers are planning to increase investment across these channels with

Email marketing (59%), SEO (51%) and AdWords (46%) leading the pack.

Page 5: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 5

Executive summary

þ Good practice: With the diversity of paid, owned and earned media, it’s important

to focus resources and optimisation on core channels that drive value.

6. Innovation and optimising digital marketing

The opportunity to dynamically update and test digital media has always been claimed to

be one of its main benefits compared to traditional media, so we were interested to see

to what extent companies have processes in place to execute this continuously. Around

a quarter to a third of companies have embraced optimisation, with these leaders running

frequent tests or continuously optimising. The percentage of leaders who optimised

individual channels or contact points was 30% for website (desktop experience). 21% for

Mobile (mobile site and/or apps), 29% for landing pages, 35% for email marketing, 29%

for social media marketing, 28% for content marketing and 31% for paid digital media.

þ Good practice: You can’t compete if you update your website, your

communications approaches every few years... Create a plan for “Always-on”

optimisation of digital media and integrated customer experiences.

Methodology

We surveyed Smart Insights members who are based around the world and previous

attendees of Technology for Marketing & Advertising, a conference based in the UK. The

survey was completed online during November and December 2014.

There were 765 respondents, with the majority (62%) in senior, management roles.

Respondents are typically experienced in marketing, with nearly two thirds having more

than five years experience and over a third having more than 10 years experience.

Further details on the sample frame are available at the end of the report.

Page 6: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 6

Introduction

The need for managing digital transformation

In a Google Think article, A “Post Digital” World, Really? Y&R Chairman and CEO David

Sable argued against those commentators who said that businesses and consumers are

now in a “Post Digital” world. We concur. You will see from the results of this survey that

the reality for many businesses is that despite widespread adoption of digital technology

by their customers and their most advanced competitors, we are still in an era of

managing transformation to improved digital capabilities. Many businesses are limited in

their capabilities and currently lack plans. However, there is a strong appetite to improve

their approach to digital marketing using digital transformation and increased investment

in digital media and technology.

How well do companies manage digital marketing?

At Smart Insights we believe that successful marketers look beyond chasing every

latest technology innovation, following a more strategic, managed approach based

on optimising communications for key customer touchpoints. So, in this research we

wanted to go beyond reviewing the digital marketing tactics deployed and explore the

strategic approaches businesses take to manage the transformation needed to improve

the commercial contribution of digital marketing integrated with all marketing activities.

About Smart Insights

Smart Insights provides actionable marketing resources to help businesses succeed

online. More than 80,000 Basic members use our blog, sample marketing templates

and weekly Digital Marketing Essentials newsletter to follow best practices and keep

up-to-date with the developments that matter in digital marketing.

Thousands of Expert members from over 80 countries use our planning and management

templates, guides and video courses to map, plan and manage their marketing using the

Smart Insights RACE Planning framework.

Here are 10 reasons why Expert members use our resources.

Page 7: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 7

Introduction

RECOMMENDED RESOURCES

Strategy development and planning templates

We have developed a series of tools for Expert members to help them plan:

þ Digital strategy toolkit. This template contains a full workbook to create a digital marketing strategy to Reach-Act-Convert and Engage your audience.

þ 7 Steps Digital Strategy guide and course. Step-by-step guidance.

þ Example digital marketing plans. An example online marketing plan and blank template using the Smart Insights RACE Planning framework.

About Technology for Marketing & Advertising (TFM&A)We teamed up with TFM&A to research and present these findings and recommenda-

tions.

TFM&A is the leading event for the marketing industry in the UK. Now in its 15th year,

TFM&A offers the opportunity to learn from a diverse educational programme hosting

the latest industry topics, source solutions from leading marketing tech suppliers, and

network with other marketing professionals.

To share best practices in managing digital marketing, Dr Dave Chaffey of Smart Insights

will be presenting the research and recommendations in seminar sessions at TFM&A

2015, taking place 25-26 February at Olympia London. To register to attend for free,

click here.

For year round marketing and ecommerce insight, research and downloads, please visit

tfmainsights.com.

Page 8: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 8

Introduction

About the report author

Dr Dave Chaffey is CEO and co-founder of digital marketing

management advice site Smart Insights. He is author of 5

bestselling books on Ecommerce including Digital Marketing:

Strategy, Implementation and Practice and was recognised by the

Chartered Institute of Marketing in 2004 as one of 50 marketing

‘gurus’ worldwide who have helped shape the future of marketing.

Research findings and recommendations

In common with all resources for members in our Smart Insights Digital Marketing Library,

we want this report to be practical and actionable, to make a commercial difference

to your business. So, the results presented from this research are structured around

practical activities companies can use to follow a more strategic, planned approach to

digital marketing.

As always with Smart Insights, each section is based around questions the marketer can

ask to review and so improve his or her approach to managing digital marketing.

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.

Dave Chaffey, SmartInsights.com, January 2015

Page 9: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 9

1 Review digital marketing capabilities and implement digital transformation

Does your company have the right capabilities in place to make the most of digital marketing?

Whether companies are able to deliver on the potential of digital channels to contribute

value depends on whether they have the right capabilities in place across the company

for all the digital touchpoints that need to be managed.

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.

24%

25%

19%

18%

18%

23%

19%

34%

34%

33%

35%

32%

35%

34%

27%

25%

32%

29%

27%

27%

26%

11%

12%

11%

10%

12%

11%

14%

4%

4%

5%

7%

11%

5%

6%

0% 20% 40% 60% 80% 100%

G. Integrated customer experience

F. Integrated customer communications

E. Data and infrastructure

D. Resourcing and structure

C. Management buy-in

B. Performance Improvement process

A. Strategic approach

1 Lowest

2 Managed

3 De�ned

4 Quanti�ed

5 Optimized

Q11 Assessment of digital marketing capabilities in organisation

Assessment of digital marketing capabilities in organisation

www.tfma.co.ukwww.smartinsights.com

Page 10: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 10

5 Investing in digital marketing1 Importance of digital marketing

Since digital marketing involves execution of many marketing processes and activities,

it’s useful to rate different types of capabilities by their current effectiveness. This can

help prioritisation of future improvements. The weakest processes that are important

for future improvement can be identified and prioritised. A roadmap can then be used to

improve capabilities and improvements reviewed against this.

To download a larger version of the capability matrix go to http://bit.ly/smarttransformation

!KEY STRATEGY RECOMMENDATION 1: BENCHMARK 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. The assessment of capabilities was based on the survey respondents reviewing a capability review which can be viewed on the Smart Insights Digital Transformation page.

ONE. InitialTWO. Managed

THREE. DefinedFOUR. Quantified

FIVE. Optimized

No strategy

Prioritised marketingactivities

Defined vision andstrategy

Business-alignedstrategy and roadmap

Agile strategicapproach

No KPIs Volume-based KPIsNo dashboards

Quality-based KPIs‘Last click’ attributionBusiness dashboards

Value-based KPIsWeighted attribution

Ad hoc CRO

Lifetime-value KPIsContinuous CRO

Limited Verbal support, butinadequate resourcing

Sponsorship and increased investment

Active championing and approriate investment

Integral part of strategy development

No specific skills Core skills centralised or agencies

Centralised hub and spoke

Dedicated resources

Decentralisation and reskilling

Balanced blend of marketing skills

Limited / no customer database

Separate data, toolsand IT services

Partially integratedsystems and data

Integrated systems and 360o data sources

Flexible approach tooptimize resources

Not integrated Core push activities synchronised

Integrated inboundapproach

Integrated, Personalised, Paid-Owned-Earned

media

Media optimized for ROI and to maximize CLV

Website not integrated Desktop and mobile support, not personalized

Partially personalizeddesktop and mobile

experience

Integrated, Personalized web, mobile, email and social media

communications

Full contexual personalized experiences

and recommendations

A. StrategicApproach

B. PerformanceImprovement

Process

C. ManagementBuy-in

D. Resourcingand

Structure

E. Data and

Infrastructure

F. IntegratedCustomer

Communications

G. IntegratedCustomer

Experience

“Laggard” “Developingcapability”

“Competent average capability”

“Above-sector averagecapability”

“Market leadingcapability”

DigitalCapability

Refine your Digital Marketing Strategywith Smart Insights member toolkits.

Check out our hub page http://bit.ly/smartstrategy for our free blog articles and planning template.

Join our Expert members to download digital marketing planning templates and our 7 Step guides to digital strategy.

Take your digital marketing to the next level with our capability assessment. Use our visual checklist to audit

how well your business or clients are exploiting their digital marketing and then plan how to take it to the next level.

AIMING FOR DIGITAL MARKETING EXCELLENCE

Page 11: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 11

5 Investing in digital marketing1 Importance of digital marketing

“EXPERT VIEW – AUDITING DIGITAL CAPABILITIES

Daniel Rowles, Digital Marketing Consultant and Trainer, Target Internet

I think the best practice of auditing digital capability is of huge significance and this is inline with other findings around a lack of strategy and internal skills. Organisations are just waking up to the need to step back and look at their digital capability and assess what it is that is holding them back, and what they need to change in order to make effective digital possible. The emergence of Digital Transformation as a key issue that organisations are thinking about is great news. Understanding the gap between where we are now and where we need to be is essential.

Its surprising how many organisations are still dealing with the basics, but I think this reflects back to need for digital capability auditing and the need for organisational transformation. Without the fundamental building blocks in place that will give the right environment for digital, no progress can be made. Many marketers are spending their time battling with IT infrastructure issues or getting management buy in, and this prevents the advancement of their digital marketing.

Adoption of digital transformation programmes

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 a new question in this

years survey asking about use of Digital Transformation programmes.

The results, shown on the next page, show that over one quarter (30%) of businesses

already have a transformation programme in place, with many businesses still looking to

launch their digital transformation programme.

Page 12: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 12

5 Investing in digital marketing1 Importance of digital marketing

11%

19%

33%

37%

We have had a digital transformation process in place for more than 2 years

We are planning to introduce a programme within the next 12 months

We have no plans to run a digital transformation programme

We have just started a digital transformation programme (within the last 2 years)

Assessment of digital marketing capabilities in organisation

Adoption of digital transformation programmes in business

A significant proportion of organisations 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 RESOURCESSmart 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:

þ Digital marketing audit / benchmark A detailed spreadsheet based technique for assessing a company in 6 key areas. Best suited to larger organisations. Ecommerce option (PRICE framework) available from Chris Jones.

þ Competitor benchmarking tools A recommended process and tools for comparing performance.

þ Business case template Improvement needed can be justified through this template and the companion Ebook.

www.tfma.co.ukwww.smartinsights.com

Page 13: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 13

Developing Strategies And Plans For Digital Marketing2 Developing Strategies And Plans For Digital Marketing

Is digital marketing based on a planned approach?

We believe that to gain the most from digital platforms, a structured, planned approach

based on a solid strategy will give the best results. Plans help businesses to prioritise,

set goals and resource at the right level to hit targets. That’s well known for business and

marketing plans. We wondered whether businesses take a planned approach to digital

marketing too. Without structured plans, there is a danger you will be subject to “shiny

object syndrome”, always chasing your tail, as Jeff Bezos of Amazon has referred to.

We found that a majority of organisations responding to the survey do use a planned

approach to digital marketing, but many still don’t.

34%

16%

50%

Yes - it's integrated into our marketing strategy

Yes - it's defined in a separate document No - we are doing digital marketing, but no defined strategy

Q9 Does your organisation have a clearly de�ned digital marketing strategy?

Does your organisation have a clearly defined digital marketing strategy?

! KEY STRATEGY RECOMMENDATION 3: 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.

www.tfma.co.ukwww.smartinsights.com

Page 14: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 14

2 Developing strategies

Shockingly, nearly half of businesses do not have a digital strategy, but they are doing

digital marketing.

“EXPERT VIEW – OVERCOMING INTERNAL ROADBLOCKS

Kieran Flanagan, Marketing Director, EMEA, HubSpot

The biggest road block for most businesses is usually themselves. To be more accurate, that person in the company who owns the budget/resources and doesn’t understand digital. There are too many CMOs, CEOs or other variations of senior management who still don’t fully understand digital. They usually have a team beneath them trying to push digital forward, but they won’t hand over the keys to let them make the necessary changes.

One way this can be bridged is with continued education. Education around digital marketing has never been better. There are so many places marketers can go to upskill themselves on digital.

They other way is of course with results. Marketers who want to push digital forward within their company need to demonstrate positive results before they’ll get the necessary budget/resources need to make this happen. What I tell marketers in this position is to initially look for quick wins. What is the quickest way you can demonstrate success to your manager/CMO/CEO. How do you provide them with that moment where they start to see the value in what you are proposing.

Equally, it’s important to avoid creating a silo of digital resources and practice through

digital transformation. So we see a digital plan as a short-term tool to define your digital

future and help transform your business until it becomes an integrated part of planning

for business as usual.

RECOMMENDED RESOURCES

Strategy development and planning templates

We have developed a series of tools to help Expert members plan:

þ Digital strategy toolkit. This template contains a full workbook to create a digital marketing strategy to Reach-Act-Convert and Engage your audience over the next year or in a 90 day planning period.

þ Example digital marketing plans. An example online marketing plan and blank template using the Smart Insights RACE Planning framework.

Page 15: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 15

2 Developing strategies

BEST PRACTICE TIP 1

Ensure your plan and deployment of digital resources is integrated

Although you may initially need a separate digital plan to help you create a strategy and get buy-in for investment in digital channels, it’s important to keep it well integrated. That means supporting common business goals and consistent with brand and communication strategy. The long-term aim should be to integrate your digital plan into your marketing communications plan.

Integration requires a clear marketing or business strategy and plan also. The survey

results suggests that lack of a marketing plan in a substantial proportion of organisations

may make it difficult to align a digital plan against!

55.19%

44.81% Yes

No

Q8 Does your organisation have a clearly de�ned marketing strategy, e.g. an annual marketing plan, against which you can align your investments in digital technology and media?

This shows the necessity for digital marketing managers to work with their colleagues to

agree how digital marketing can support and integrate with marketing.

As we would expect, leading companies who rate their digital capability at level 4 or 5 for

strategic approach as shown in the first chart in this report are more likely to base this

on a defined strategy. 90 percent of leading companies have a digital marketing strategy

Does your organisation have a clearly defined marketing strategy, e.g. an annual marketing plan, against which you can

align your investments in digital technology and media?

Page 16: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 16

2 Developing strategies

(integrated in 70 percent of companies, defined in a separate document in 20 percent of

companies). Of other companies, 75% of ‘digital laggards’ don’t have a digital marketing

strategy.

What should the planning horizon for digital planning be?

Traditionally, business and marketing planning in many larger businesses has been

long-term. Long-term planning enables consistent strategies to be followed in line with

forecast changes in the marketplace and resources allocated. We recommend that,

although digital media change rapidly, the long-term transformation needed by digital

means that you won’t be able to transform the organisation in 3, 6 or even 12 months.

In our previous 2014 research we found that many businesses do not have a long-term

planning horizon with less than one fifth looking beyond the current year.

How far ahead do you plan when considering how digital technologies will contribute to your marketing?

2%

46%

32%

37%

20%

0% 10% 20% 30% 40%

>3 year and strategic initiatives de�ned

2-3 year vision and strategic initiatives de�ned

Annual plans maximum

Campaign and quarterly plans maximum

mainly day-today, week-to-week operations

How far ahead do you plan when considering how digital technologies will contribute to your marketing?

BEST PRACTICE TIP 2

Create a hierarchy of plans for different timescales and activities

To help develop a more coherent approach to marketing planning, we suggest you develop a hierarchy of plans as shown in the diagram below. Annual business and marketing objectives can cascade into goals, objectives and KPIs for different

Page 17: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 17

2 Developing strategies

“EXPERT VIEW – DELIVERING RELEVANCE

Jim Sterne, Founder, eMetrics Summit & Digital Analytics Association

The most important factor for digital strategy in 2015 is flexibility. Your target audience is changing all the time. Younger people are come into your market and the rest are getting inexorably older. Everybody uses different technologies for content consumption than they did just last year. Trends, memes, themes, and cultural norms shift constantly. You have to keep up to keep your message relevant.

The only way to do that successfully is to keep your finger on the pulse of your customers’ behavior and opinion. Track what they do and ask them how they feel... all the time. Bringing these two data streams together is your only hope for delivering the right messages to the right people at the right time, segment by segment.

Managing these two data streams in tandem is the significant challenge. Focusing too much on one or the other, in terms of budget, tools or report weighting, can blur the results and tarnish your decision making.

Yes, that means you need two teams, the quantitative group and the qualitative group, and the wisdom to merge the fruits of their intellectual labors.

Page 18: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 18

2 Developing strategies

How should digital marketing and traditional marketing be integrated?

There is a risk that separate digital marketing plans and teams lead to silos for digital

marketing, so it’s important to think about how you manage integration.

The research shows marketers are making solid progress towards integration, although

relatively few describe their approach as fully integrated.

“Only a quarter of companies (24%) were happy with their level of integration of digital marketing and traditional communications”.

Q12

12%

24%

40%

17%

7%

0% 10% 20% 30% 40%

Not integrated. Our use of digital marketing is ad hoc and not integrated.

Limited integration. We use digital marketing, but it isn't well integrated into overall strategy.

Actively trying to integrate the two. We are making solid progress in integrating digital and traditional

marketing.

Fully-integrated. Digital marketing is integrated within the wider marketing plan but we're not

optimising.

Optimising. Full integration and processes are reviewed for optimisation.

How well integrated are your digital and traditional marketing activities?

How well integrated are your digital and traditional marketing activities?

www.tfma.co.ukwww.smartinsights.com

Page 19: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 19

2 Developing strategies

The research showed that the lack of a planned approach is most damaging to

integration. Creation of separate teams for digital marketing and traditional marketing

also presents problems for integration, showing the importance of developing processes

and developing skills that involve collaboration across silos.

Q12 Which single factor most limits integration of digital marketing channels?

27%

13%

23%

17%

8%

12%

0% 10% 20% 30%

Lack of integrated strategy and plans

Lack of process for making the business case

Teams structured in silos

Lack of skills in integrated brand communications

Uncertainty in our commitment to digital channels

Other

Which single factor most limits integration of digital marketing channels?

BEST PRACTICE TIP 3

Allocate and ringfence time for collaboration

The ‘other’ choice was high when asked about integration, with many citing time, budget and resource. This suggests there was poor realisation that time needs to be allocated by management for collaboration.

www.tfma.co.ukwww.smartinsights.com

Page 20: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 20

3 Managing change through digital transformation programmes

How many digital marketing specialists do companies employ?

Although it’s often said that digital marketing will become part of “modern marketing”, the

reality in companies is that specialist resources and agencies are required to manage

specific digital marketing techniques. To find the importance of this we asked how many

specialist digital marketing roles are used in companies. Across companies there were

an average of:

þ 11.5 staff in the marketing organisation

þ 3.3 staff who were digital marketing specialists

So, that’s an average of between one quarter and one third of marketing roles (28.3%)

held by digital marketing specialists in organisations.

Which resources are used for digital marketing?

With the growing importance of digital marketing in driving leads and sales, a key

resourcing question is which digital marketing activities should be managed internally

and which can be outsourced. There is an argument that some digital marketing activities

should be managed internally since they are so vital to the brand or since the “devil is in

the detail”. For example, digital marketing activities such as search, content, email and

social media marketing typically required a deep understanding of the customer and

micro-management of communications to gain the best results for a brand.

Results from our research in 2014 suggests that in companies of the types surveyed,

managing digital marketing activities in-house is widely used, particularly for social

media, email marketing and SEO.

Page 21: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 21

3 Resourcing digital marketing

0% 25% 50% 75% 100%

SEO (Search EngineOptimisation)

Paid Search Marketing (Google AdWords)

Social Media Marketing (earned incl content marketing)

Social Media Marketing (paid media)

Display advertising

Online PR

Email marketing

Content marketing asset creation

Blogging

Mainly in-house Mixture Mainlyoutsourced

We don't invest in

this activity or N/A

18%

14%

13%

13%

16%

19%

15%

20%

16%

21%

23%

7

12%

20%

14%

5

10

6

15%

29%

9%

38%

34%

27%

10%

17%

25%

46%

35%

71%

37%

30%

40%

70%

54%

53%

This chart also shows that significant numbers are failing to exploit the full range of tools

available. This is particularly true for the paid media options.

BEST PRACTICE TIP 4

Review opportunities for using paid media to meet online goals

Options such as Google AdWords and paid ads in social networks give opportunities to create incremental awareness and increase conversion through the use of remarketing.

Popularity of resourcing options for digital marketing

www.tfma.co.ukwww.smartinsights.com

Page 22: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 22

3 Resourcing digital marketing

Are we resourcing sufficiently in different digital marketing activities?

With the range of digital channels available, there is also the challenge of investing the

optimal amount in different digital marketing activities. This is not straightforward given

the challenges of:

ý Attributing sales to the right channels / customer touchpoints using analytics

ý Fragmented decision-making on digital marketing investment

ý The pace with which new digital marketing channels are introduced

Results show a common perception amongst people working in marketing that

insufficient time is spent on planning, measurement and optimisation (respondents could

choose multiple answers). This is potentially a management failing since managers are

responsible for ringfencing time for these activities.How do you rate your company's relative investment in these digital marketing activities (choose all that apply)

Q15

53%

46%

43%

40%

40%

38%

0% 10% 20% 30% 40% 50%

Insuf�cient time invested in measurement, testing and optimisation for maximising ROI.

Insuf�cient time spent on planning.

Insuf�cient investment in paid media within organisation?(e.g. Display ads, paid search, sponsorships).

Insuf�cient investment in earned media within organisation?(e.g. PR, In�uencer outreach, building brand advocates).

Insuf�cient investment in owned media within organisation?(e.g. desktop and mobile site and apps, Facebook,

LinkedIn, Twitter, etc).

Insuf�cient joined up thinking leading to poor integration.

How do you rate your company’s relative investment in these digital marketing activities (choose all that apply)

www.tfma.co.ukwww.smartinsights.com

Page 23: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 23

3 Resourcing digital marketing

Although best practice advice usually recommends a planned approach to digital

marketing using the dynamic benefits of digital technology to optimise campaigns and

creative, many felt that organisations weren’t devoting enough time to this. Around 40%

believed that insufficient time was spent on planning and optimisation to improve ROI.

RECOMMENDED RESOURCES

Structuring digital teams and job descriptions

We have developed a series of templates to help define the best ways to manage digital marketing. These are:

þ Digital marketing team structure toolkit

þ Digital marketing job descriptions and roles template

þ Business case template

Page 24: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 24

3 Resourcing digital marketing

4Development of skills and talent within marketing employees will help companies

compete through a better quality of digital marketing. Given this, we wanted to explore

the personal challenges for marketers of keeping up-to-date and the skills requirements.

Across respondents to the survey nearly 60% of peoples’ time is now devoted to digital

marketing activities, showing the importance of skills development in this area.

We asked about specific personal needs for skills development. Many marketers are now

confident in their knowledge of digital channels with nearly half (46%) saying they are

confident, with in-depth knowledge or sufficient knowledge for what they need across

different digital marketing techniques. However, there is still hunger for new learning,

particularly in Big Data and CRM (62% want to improve their knowledge), content

marketing (55%), digital strategy (52%) and social media marketing (48%).

PR

PPC)

26%

13%

19%

32%

16%

20%

27%

22%

22%

33%

15%

32%

25%

25%

50%

58%

42%

53%

39%

51%

47%

2%

8%

6%

0%

13%

3%

2%

0% 20% 40% 60% 80% 100%

Assessment of personal knowledge of digital marketing

Content marketing

CRM and Big Data

Design (web, mobile, multichannel)

Digital strategy

PR

Search Engine Marketing (SEO and PPC)

Social media marketing

I'm confident and have in-depth knowledge

I know the basics and that's all I need

I need to improve my depth of knowledge

Not relevant to me

Q2

www.t-f-m.co.ukwww.smartinsights.com

Assessment of personal knowledge of digital marketing

Development of Digital Skills

PR

PPC)

26%

13%

19%

32%

16%

20%

27%

22%

22%

33%

15%

32%

25%

25%

50%

58%

42%

53%

39%

51%

47%

2%

8%

6%

0%

13%

3%

2%

0% 20% 40% 60% 80% 100%

Assessment of personal knowledge of digital marketing

Content marketing

CRM and Big Data

Design (web, mobile, multichannel)

Digital strategy

PR

Search Engine Marketing (SEO and PPC)

Social media marketing

I'm confident and have in-depth knowledge

I know the basics and that's all I need

I need to improve my depth of knowledge

Not relevant to me

Q2

www.t-f-m.co.ukwww.smartinsights.com

www.tfma.co.ukwww.smartinsights.com

Page 25: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 25

4 Skill development

“EXPERT VIEW – CRM AND BIG DATA SKILLS

Nick Baggott, Trainer and Consultant, Director, Navigate Consulting

“The survey shows that the digital skills that most marketers feel they need to improve most revolve around CRM and Big Data. I am not surprised by this. The most engaging digital channels are personalised around the needs and behaviours of individual users. Marketers will have experienced this on sites like Amazon and Netflix and are wondering how they could achieve the same degree of personalisation and relevance with their own digital content. They will also be aware that display ads, search and social media are also becoming more personalised.

So marketers need to up their game in terms of CRM, because it will help them to develop more engaging and personalised content in their owned channels, but also so that they can understand how to be more effective in using the paid and earned media channels like Google and Facebook.

Marketing is becoming more of a science than an art. Analytics skills are crucial to your ability to target and develop engaging content. Sophisticated testing and measurement are crucial if you want to justify marketing budgets and really understand what is working. The technology costs are reducing, the software is becoming easier to use, so CRM is now affordable, achievable and has never been more crucial to marketing success.”

Given the range of potential techniques to master there has been much talk within digital

marketing of the necessity for marketers to broaden their skill-sets and to embrace and

learn broadly, while focusing on key areas – to become a T-Shaped Marketer.

The T-Shaped Marketer is a marketer that has broad knowledge covering a wide range

of digital tactics with in-depth knowledge in 1 or 2 specific areas as shown by the chart

on the next page*.

“EXPERT VIEW – CUSTOMER UNDERSTANDING IS CRUCIAL

Geraint Holliman – Director of Strategy and Head of Content Marketing at DIRECTIONGROUP

The most important skills for any marketer are around customer understanding. Too often I find that marketers simply do not understand how their customers actually buy their product and the role that digital channels play in that process.

If you don’t understand how your customer, thinks, feels and behaves then you have very little chance of delivering engaging and compelling communication, whether digital or not.

* Smart Insights: Are you a T-Shaped Marketer?

Page 26: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 26

4 Skill development

This representation of the T-Shaped marketer shows content marketing at the heart of the skill set. When we discussed this on our blog, some suggested that a “W-Shaped” marketer is closer to the mark with several core competencies required, for example an analytical approach should be a common feature in addition to SEO, Content or UX, for example.

“EXPERT VIEW – THE MOST IMPORTANT DIGITAL SKILLS?

Philip Sheldrake, Author, the Business of Influence

When considering the most important skills of the digital marketer?, it’s a tension between getting the most for the organisation and for the individual. Ideally, this tension will be the focus of ongoing alignment, and the skills acquired will then best serve the individual’s career progression and the marketing strategy the organisation is executing.

So the answer is, depends. One thing is certain however, the best marketers invest hours every week without fail in their continuous professional development.

RECOMMENDED RESOURCES

TFM&A Insights Content Skills Assessment Tool

Luke Bilton, Director of Digital and Content for UBM Live has developed this free tool to score content marketing competence available from TFM&A Insights.

þ Download Content Marketing Skills Assessment Tool

Page 27: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 27

Investing In Digital Marketing In 20155 Investing In Digital Marketing In 201

Which are the most effective digital marketing channels to invest in?

To choose the right level of investment in digital marketing requires an assessment of which channels will produce significant volumes of leads and sales at an acceptable cost per acquisition (CPA) for new customers. Reviewing your marketing channels through comparing these two factors shows which channels warrant most investment.

The most effective channels as rated by our respondents for their expected performance

in 2015 are shown in the chart below.

Highest-rated digital media channels for 2015 (lead and sale volume)Q16b

45%

34%

33%

19%

23%

51%

21%

0% 20% 40% 60%

Search Engine Optimisation (SEO)

Paid Search Marketing (AdWords)

Social media (organic)

Display advertising

Online PR

Email marketing

Social media (paid ads)

Top Online Marketing Channels in 2015

www.tfma.co.ukwww.smartinsights.com

Page 28: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 28

5 Investing in digital marketing

“EXPERT VIEW – MEASURING CHANNEL SUCCESS

Kieran Flanagan, Marketing Director, EMEA, HubSpot

The question for me is how are marketers measuring the success of these channels. Often marketers will try measure all channels by the same metrics. They look at leads or sales generated by each channel and then rank them in order of conversions they generate. Measuring in this way will mean channels like social will always be below Adwords and SEO, and will probably not look that attractive.

Measuring against the right metrics is such an important part of making good decisions on what channels to invest time and energy in. Paid social media could look bad when measured against direct leads and sales attributed to it, but may look great when you look at multi-attribution reports for those same metrics.

The assessments by marketers of channel effectiveness are consistent with the patterns

reported for driving visits across websites reported by SimilarWeb - use this tool for comparing to competitors. Search and direct visits are the main traffic drivers, with Social

media marketing and display also low. Email is included within the referrals category in

this example - so this can’t be compared to the reported data from marketers in our study.

Within the retail sector, the volume of search is even higher - the example data below

shows sources of visits for US retail site visitors.

Page 29: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 29

5 Investing in digital marketing

Here is the full reporting of media effectiveness from rating each on a 5 point scale.Channel cost effectiveness in 2015 Q18

7%

12%

11%

17%

13%

4%

16%

14%

19%

22%

25%

19%

13%

21%

23%

23%

26%

23%

28%

22%

18%

28%

21%

22%

13%

19%

30%

16%

22%

10%

15%

5%

9%

26%

8%

6%

15%

4%

18%

12%

6%

21%

Search EngineOptimisation (SEO)

Paid Search Marketing(AdWords)

Social media (organic)

Display advertising

Online PR

Email marketing

Social media (paid ads)

1 Lowest 2 Low-medium 3 Medium 4 Medium-high 5 Highest 5 Don’t use or N/A

0% 20% 10% 30% 40% 50% 70% 60% 100% 90% 80%

Channel cost effectiveness in 2015

www.tfma.co.ukwww.smartinsights.com

Page 30: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 30

5 Investing in digital marketing

Channel rating for volume of leads or sales expected by businesses Q16a

0% 20% 10% 30% 40% 50% 70% 60% 100% 90% 80%

10%

17%

16%

21%

16%

8%

20%

15%

18%

23%

26%

23%

13%

20%

25%

18%

24%

18%

28%

24%

21%

27%

22%

21%

15%

16%

28%

13%

18%

12%

12%

4%

7%

24%

8%

5%

13%

4%

16%

9%

4%

18%

Search EngineOptimisation (SEO)

Paid Search Marketing(AdWords)

Social media (organic)

Display advertising

Online PR

Email marketing

Social media (paid ads)

1 Lowest 2 Low-medium 3 Medium 4 Medium-high 5 Highest 5 Don’t use or N/A

Channel rating for volume of leads or sales expected by businesses

BEST PRACTICE TIP 5

Review channel volume against ROI to select the best mix

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.

The research shows the ongoing importance of the core digital marketing channels with

Email marketing rated highly or very effective by 52% of respondents followed by SEO

(45%) and Adwords (34%). Organic use of social media wasn’t far behind with 33%, but

with only 21% believing paid social media was effective.

www.tfma.co.ukwww.smartinsights.com

Page 31: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 31

5 Investing in digital marketing

Investment changes in Digital Advertising in 2015 Q20

7%

6%

5%

5%

4%

4%

25%

26%

25%

24%

26%

34%

39%

30%

38%

51%

35%

25%

29%

37%

33%

20%

35%

36%

0% 20% 40%

Facebook advertising

Twitter advertising

LinkedIn advertising

Google AdWords Display Network including Remarketing

Mobile display advertising

Other Ad Networks

Increase Stay the same Decrease Don't use or N/A

Investment changes in Digital Advertising in 2015

We also asked how allocation of investment in digital channels would vary in 2015 which

is an alternative view on the most effective techniques. Many marketers are planning to

increase investment across these channels with Email marketing (59%), SEO (51%) and

AdWords (46%) leading the pack.

Investment changes in digital media in 2015 Q19

3%

6%

3%

9%

5%

3%

4%

39%

33%

38%

40%

41%

33%

32%

51%

46%

53%

33%

41%

59%

43%

7%

14%

6%

18%

13%

6%

20%

0% 20% 40% 60%

Search Engine Optimisation (SEO)

Paid Search Marketing (AdWords)

Social media (organic)

Display advertising

Online PR

Email marketing

Social media (paid ads)

Increase Stay the same Decrease Don't use or N/A

Investment changes in digital media in 2015

www.tfma.co.ukwww.smartinsights.com

www.tfma.co.ukwww.smartinsights.com

Page 32: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 32

5 Investing in digital marketing

Finally, we also reviewed the breakdown of intended Paid and Earned media investment.

Paid media

There are a substantial proportion of businesses that don’t use each of the paid media

options shown in the next chart. However, a large proportion of businesses are looking

to increase investment in paid media, particularly for advertising in social media, a

significant trend for 2015.

Use of data for targeting

We also looked at innovation in using data for targeting. Learning about data, CRM and

Marketing Automation was seen as a great interest in 2015. The results show that, overall

businesses are long way from the 360 degree customer view and personalised customer

lifecycle marketing that many have discussed for a long time.

Data-driven marketing - how well are you able to target your audience?

46%

48%

44%

19%

29%

30%

0% 10% 20% 30% 40% 50%

Disclosed pro�le (e.g. age or gender)

Behavioural segment (e.g. preference or intent based on Recency, Frequency or Monetary value of

Customer value (current)

Customer value (future e.g. predictive modelling)

Channel preference

Social media interactions or sentiment

Q14

Data-driven marketing - how well are you able to target your audience?

www.tfma.co.ukwww.smartinsights.com

Page 33: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 33

5 Investing in digital marketing

“ EXPERT VIEW – ENCOURAGING MEASUREMENT OF EFFECTIVENESS

Philip Sheldrake, Author, the Business of Influence

It’s 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. It’s far easier to measure outputs, but easy and useful aren’t 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

“EXPERT VIEW – A SOCIAL MEDIA BACKLASH?

International Social Media Speaker, Writer and Advisor, Debsylee.com

From my own experience many are still struggling to get to grips with how to use social media effectively. The analogy I tend to use is that it’s like passing your driving test; knowing the theory and ‘how to’ is just the start. Once you get behind the wheel of a car then you start to understand that a large part of it is about preempting and anticipating the actions of other road users (or your social media audience, if you will). Email marketing, SEO and Adwords are areas that many have become proficient at, but the truth is that social media is lagging behind in terms of popularity because we’re still trying to use old and laboured techniques that just don’t work on the various platforms. They don’t inspire audiences, and so they are largely ignored.

The implications are that some businesses will undoubtedly abandon the platforms and others will continue to utilise them by actively progressing their involvement, with some making real headway. At that point, expect to see a resurgence in interest and curiosity!

I’d only advise businesses to walk away from social media when user numbers start to tail off, and there is no sign of that happening any time soon.

Page 34: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 34

5 Investing in digital marketing

“EXPERT VIEW – A SOCIAL MEDIA BACKLASH?

Michelle Carville, Social Media Consultant, Trainer and author

I wouldn’t say there’s a backlash – but social is much more about broadening the touch points a consumer has with a brand or business, rather than direct sales. With Adwords and in many cases, SEO, there is a very clear view on exactly how much £1 spent on Google Adwords or SEO effort returns to the bottom line.

Social is rather more complex to pin down – and therefore, that is probably driving the believe that it’s far less effective. What’s interesting is content marketing and social are far more about growing a relationship with a brand or business – and therefore, the quality of the consumer when they do come on board has been proven to be far higher than a simple direct response consumer coming via adwords.

It’s still early days on looking at the impact of strengthening relationships and loyalty prior to direct consumer purchase – and so I think as marketers we’ll be

“EXPERT VIEW – A SOCIAL MEDIA BACKLASH?

Gerraint Holliman, Director of Strategy and Head of Content Marketing at DIRECTIONGROUP

‘Most marketers see social media as a communications medium in the same way as they would see advertising or direct marketing: one-way, interruptive, broadcast messaging.

Until marketers wake up to the fact that the beauty of social media is that digital channels enable customers to speak back to you then it will continue its downward spiral into redundancy.’

Page 35: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 35

5 Investing in digital marketing

Earned media

Within earned media we reviewed a range of content marketing techniques in our 2014

report (omitted in 2015 for brevity). Across these content formats the majority of marketers

said they would increase investment in these tactics.

How will investment in these earned media approaches change (2014)?

www.tfma.co.ukwww.smartinsights.com

Page 36: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 36

6 Innovation And Optimising Digital Marketing

Are marketers managing digital marketing activities continuously?

The opportunity to dynamically update and test digital media has always been claimed

to be one of its main benefits compared to traditional media, so we were interested to

see to what extent companies have processes in place to manage this continuously.

The concept of Always-on marketing has emerged to show a change in emphasis

from burst marketing campaigns to generate awareness and response to investment in

marketing activities which continuously drive and meet changing demand for products

and services as consumers search and review products and services, what Google has

called the Zero Moment of Truth (ZMOT).

For Always-on marketing to be effective, efforts should be made to increase the

effectiveness of different digital channels through testing, review and optimisation. We

explored the use of digital marketing optimisation through a question which reviews the

use of testing across channels. The response to this question shows a core group of

respondents have moved beyond intermittent to more regular structured testing and

optimisation programmes.

A relatively small proportion (around a quarter to a third of companies) have embraced

optimisation with these leaders running frequent tests or continuously optimising. The

percentage of leaders who optimised individual channels using continuous optimisation

or structured tests were. There was no significant increase from 2014.

þ Website (Desktop experience) 30%

þ Mobile (Mobile site and/or apps) 21%

þ Landing pages 29%

þ Email marketing 35%

þ Social media marketing 29%

þ Content marketing 28%

þ Paid digital media 30%

The next page shows a full breakdown of planned structured optimisation tests for 2015.

Page 37: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 37

6 Innovation and optimisation

Always-on marketing and Digital Agility - use of structured optimisation tests to improve results

Q17

13%

22%

17%

11%

16%

18%

21%

24%

25%

26%

21%

28%

24%

21%

28%

19%

23%

27%

22%

25%

17%

13%

11%

16%

22%

17%

16%

12%

17%

10%

13%

13%

12%

12%

11%

4%

12%

6%

6%

6%

6%

18%

Website (Desktop experience)

Mobile (Mobile site and/or apps)

Landingpages

Email marketing

Social media marketing

Content marketing

Paid digital media

1 No Optimisation 2 Some limited

3 Intermittent optimisation projects 4 Frequent tests

5 Continuous optimisation 5 Don’t use or N/A

0% 20% 10% 30% 40% 50% 70% 60% 100% 90% 80%

Always-on marketing and Digital Agility - use of structured optimisation tests to improve results

“EXPERT VIEW – TOWARDS AGILE MARKETING

Joe Edwards, Consultant, Brand Joe

The term lean / agile marketing seem to be appearing more and more, which “Measurement, testing and optimisation” underpin these. I would argue that perhaps it’s not actually about more investment at all, it’s about re-aligning existing budgets and re-setting objectives.

In a lean world it’s about minimum viable product, if we start thinking like that in marketing we’d not need more budget for testing, it would just be built-in, we’d reap the rewards of our marketing efforts, enough to build the next program, where more investment would be a natural by-product of the previous activity, perhaps a holy grail ... but if it’s more budget we need then, it’s business case we need to provide, what are your expected outcomes from further investment, can you project or build KPIs around what additional conversions you would hope to achieve.

www.tfma.co.ukwww.smartinsights.com

Page 38: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 38

“EXPERT VIEW – TOWARDS AGILE MARKETING

Joe Edwards, Consultant, Brand Joe

In a lean world, it’s about minimum viable product, if we start thinking like that in marketing we’d not need more budget for testing, it would just be built-in, we’d reap the rewards of our marketing efforts enough to build the next program, where more investment would be a natural by-product of the previous activity. Perhaps a holy grail ... but if it’s more budget we need then, it’s business case we need to provide. What are your expected outcomes from further investment, can you project or build KPIs around what additional conversions you would hope to achieve?

It seems that many marketers are frustrated by the barriers to innovation in digital

marketing. How could this be changed? We wondered which factors are limiting

innovation. The main factors limiting innovation are shown below (Surveyed in 2014).

It is expected that budget limitations may restrict innovation, but lack of process to

encourage innovation and trial can be addressed.

6 Innovation And Optimising Digital Marketing

Page 39: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 39

2 Developing strategies

BEST PRACTICE TIP 6

Identify flexible processes that encourage trial and innovation

Finding methods to encourage trial and innovation of new digital media technologies and media should be explored by managers given the rate at which digital media change. This gives both opportunities through gaining cut-through via new media and content formats and counters the threats through changes to algorithms affecting visibility in search and social media marketing..

RECOMMENDED RESOURCES

Strategy development and planning templates

We have developed a series of tools for Expert members to help them plan:

þ Digital strategy toolkit. This template contains a full workbook to create a digital marketing strategy to Reach-Act-Convert and Engage your audience.

þ 7 Steps Digital Strategy guide and course. Step-by-step guidance.

þ Example digital marketing plans. An example online marketing plan and blank template using the Smart Insights RACE Planning framework.

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 via @SmartInsights or our Contact Us.

Page 40: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 40

AppendixMethodologyAppendixMethodology

The survey was completed online during November and December 2014. In this section

we summarise the characteristics of respondents to the survey.

Respondent profiles

We surveyed Smart Insights Expert members who are based around the world and

previous attendees of Technology for Marketing and Advertising, which is a conference

based in the UK, so the emphasis is on UK attendees.

Since this research explores how digital marketing is managed, our research focuses

on the views of marketing managers, digital marketing managers and company owners.

0% 5% 10% 15% 20% COUNT PERCENT

Non Board Director

Ecomerce Manager

Student

Board Director / CEO

Consultant

Marketing Executive

Other option

Digital Marketing

Head of Department

Digital Marketing Manager

Owner / Proprietor

Managing Director

ANSWERS

765100%

148

112

104

84

62

56

50

49

44

21

20

15

19%

15%

15%

11%

8%

7%

7%

6%

6%

3%

3%

2%

SKIPS

00%

Which of these best describes your role? (Mandatory)

www.tfma.co.ukwww.smartinsights.com

Page 41: Managing digital-marketing-smart-insights-2015

Managing Digital Marketing 2015

© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 41

7 Appendix

Our respondents are typically experienced in marketing, with nearly two thirds having more than five years experience and over a third having more than 10 years experience.

Types of business

Businesses respondents represented a wide range of sectors and sizes including Retail,

Financial services, Consumer brands, travel and public sector/education.

Size of company was assessed based on the resources devoted to marketing in terms

of spend on marketing services and media. Spend on marketing services was skewed

towards smaller businesses, but with 52% of respondents planning to invest more than

£50,000 on external marketing services and media in 2015.

We also wanted to assess the relative importance of digital marketing in terms of dedicated

resources for digital marketing. To do this we asked how many people worked in the

marketing team overall and how many were focused primarily on digital. We explore this

further in the section on resourcing (section 3).

COUNT PERCENT

ANSWERS

76099%

187

133

111

92

79

71

45

42

25%

18%

15%

12%

10%

9%

6%

6%

SKIPS

51%

0% 12.5% 25%

£500,000 to £1million

£300,000 - £500,000

£1 million+

£100,000 - £300,000

£50,000 - £100,000

Don't Know

£10,000-50,000

£0-£10,000

How much does your business plan to invest in marketing services and media for 2015? (excluding salary)

www.tfma.co.ukwww.smartinsights.com