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

AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

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


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 4548 46

51

66 66 66 66 6466 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


75%69%

59%

49% 50%

34%

76%71%

67%

52% 51%

31%

0%

20%

40%

60%

80%

100%

Increased abilityto acquire new

customers

Increasedcustomer purchase

volume

Customers will buymore related

products & servicesfrom my firm

Increasedability to retain

customers

Increased entry ofnew customersinto the market

Increasedcustomer price

per 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


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


Increased competition is expected –

rivalry, price-cutting, and innovation


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-price

strategies

August 2014

*Question format used for the first time August-2014.


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

DiversificationStrategy

* % of spending across growth strategies

Growth

Strategy

Actual

Spending in

Past 12

Months

Expected

Spending in

Next 12

Months

Percent

Change

Expected

Market

Penetration

Strategy53% 46% -13%

Market

Development

Strategy15% 17% +13%

Product/Service

Development

Strategy22% 24% +9%

Diversification

Strategy10% 13% +30%

Table 2.1. How growth spending is expected to change*

12


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 partnerships

12%

Growth from acquisitions

10%

Growth from licensing

arrangements4%

B2B

Product

B2B

Services

B2C

Product

B2C

Services

Growth from

within your firm

(organic growth)

73% 75% 71% 77%

Growth from

partnerships12% 11% 12% 12%

Growth from

acquisitions10% 11% 11% 6%

Growth from

licensing

arrangements

4% 3% 6% 5%


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

Internet10% 9% 15% 14%

Sales through

other channels90% 91% 85% 86%


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


Expenses including in marketing

spending

Table 3.1. Marketing spending in your company include the following items (% of respondents)

OverallB2B

Product

B2B

Services

B2C

Product

B2C

Services

Overhead costs associated

with marketing45.9% 48.2% 50.8% 35.8% 44.2%

Salaries and wages of

marketing employees43.9% 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


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



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


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%




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



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 know

about marketing

Marketingconsultingservices

Marketingresearch andintelligence

Developingknowledge about

how to do marketing

Marketingtraining



*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


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


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


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


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



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



B2B Product sector shows highest

performance gains

OverallB2B

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


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 & Good on a 5-point scale where 1=Poor and 5=Excellent)


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


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%


A Leader/ Excellent=6-7

Strong=5

Fair/Good=3-4

Very Weak/Weak=1-2


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


Social media spending across sectors

OverallB2B

Product

B2B

Services

B2C

Product

B2C

Services

Current Social Media

Spending9.4% 9.5% 9.2% 10.4% 8.6%

Social Media Spending in

the next 12 months13.2% 12.6% 13.3% 15.0% 11.9%

Social Media Spending in

the next 5 years21.4% 19.9% 22.2% 22.8% 21.0%

Table 5.1. Changes in social media spending across sectors

36


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

B2B Product 4.1 2.0

B2B Services 4.1 1.5

B2C Product 5.7 3.9

B2C Services 4.9 2.1

Table 5.2. Social media employees by sector

37

1.7

2.4

4.1

2.9

1.11.3

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


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


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%


Top 2 Box=6-7

Middle 3 Box=3-5

Bottom 2 Box=1-2


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.


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 yet54.2% 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

quantitatively10.8% 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

LeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

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 timeAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

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%No

59%

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


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 7Very

Worried


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


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


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%


Percentage Change in Outsourcing


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 ProductAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

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 together

on an equal level

We don'thave a

sales function

Sales isin charge ofmarketing

Sales is withinthe marketing

function

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%


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 of 1% or less are classified as no change.

53


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

4.14.8

5.1

4.65.3

8.09.0 8.8

10.5

9.2

9.510.0

9.410.0

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


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 6.95.5

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 marketingAnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

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

Yes 62%

No 38%

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/

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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.

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Spending on marketing analytics expected

to increase 73% in three years

Figure 9.1. Percent of marketing budget spent on marketing analytics

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7.1%

12.3%

0%

3%

6%

9%

12%

15%

Current Levels In Next 3 Years


Spending on marketing analytics by

firm and industry characteristics

CurrentIn 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

CurrentIn 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

CurrentIn Next

3 years

B2B Product 8.2% 13.1%

B2B Services 7.1% 12.0%

B2C Product 5.4% 9.8%

B2C Services 7.3% 14.4%

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Only one-third of projects use marketing

analytics; no improvement despite spending

Figure 9.2. Percentage of projects using available or requested marketing analytics*

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*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%


Percentage using marketing analytics


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

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*This question was asked in Feb-12 for the first time.

3.93.7

3.53.7 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

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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)

B2B Product 3.6 (1.6)

B2B Services 3.4 (1.9)

B2C Product 4.3 (2.0)

B2C Services 4.2 (1.9)

Table 9.2b. Economic sector differences

Table 9.2c. Firm internet sales differences

Mean (SD)

0% of sales 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

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Figure 9.4. Does your company formally evaluate the quality of marketing analytics?


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%


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 a

quantitative impact

We haven't been able toshow the impact yet

Short-Term Impact Long-Term Impact


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%

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Manager judgements

19.8%

Customer surveys20.7%

Econometric modeling

17.8%

Experiments11.9%

Other9.3%

We don't measure

marketing ROI

20.4%

Next survey: January 2015

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The CMO Survey Report: Highlight and Insights August 2014

Marketing

Transcript of The CMO Survey Report: Highlight and Insights August 2014