Unicaglobalmarketingsurvey2010

The State of Marketing 2010 Unica�’s Global Survey of Marketers

Unica Corporation | www.unica.com 2

2010 is shaping up to be an exciting year for marketers. Unprecedented change, brought on by a volatile economy, the meteoric rise of new channels, and theincreased demand for financial accountability, are creating a new era in marketing �– one that is more immediate, more personal, more social, and moreengaging. To gain a better understanding of the trends in marketing strategy, tactics, and technology usage, Unica partnered with Salloway & Associates, anindependent research company, to survey over 150 online and direct marketers. The marketers surveyed:

represent companies frommultiple industries, geographies, and sizes

span both executive andmiddle management roles, but are all involved in technology purchase

have responsibility for a broad set of marketing functions that include both online and offline marketing

Here is a snapshot of the key findings:

Challenges & Bottlenecks �– Marketers highlight turning data intoactions as one of their top issues and see IT as their number onebottleneck.

Inbound Marketing �– Marketing is in charge of inbound marketingactivities, and nearly three quarters (73%) of companies surveyedare leveraging these customer initiated interactions to servemarketing messages and offers.

Centralized Decisioning �– Organizational and financial concerns,rather than technical barriers, are slowing the adoption ofcentralized decisioning. However, it has already been adopted bysome (25%) forward looking marketers and is poised for growth(with 40% saying they have plans to adopt).

Integrating Online and Offline Marketing �– Many marketers useboth aggregate web data and offline data when making decisionsabout marketing offers. Interestingly, email is the channel whereboth online and offline data are most likely to be used indecisioning. Note the integration of online and offline data isslowed by technical and financial concerns. Based on Unica�’smarket experience, the reported high rates of online/offlineintegration indicate marketers are using aggregate reporting andweb transaction data rather than individual level web behaviors.

Adoption of Marketing Technology �– Contact optimization andsocial media monitoring will be the fastest growing marketingtechnologies, while Marketing Resource Management (MRM) willcontinue to lag. Email marketing, web and customer analytics, andcampaignmanagement are widely adopted, but have varyingmaturity. A case in point is the large field of email vendors used bysurvey respondents �– none having more than 10% share �– a strongindicator of a highly fragmented, immature market.

Emerging Marketing Channels �– Mobile, rich media, and socialmedia marketing are all being adopted with enthusiasm bymarketers. This adoption is growing both at a fast pace and evenlyacross the tactics within each channel.

Mobile Marketing �– Continues its march toward greatersignificance. A third of marketers already conduct some type ofmobile marketing. For those marketers who have embraced mobile,the rich interactivity of mobile websites and mobile applications isproving to be an equal draw to text messaging�’s reach.

Social MediaMarketing �– Is embraced by almost half of marketers,and adoption is healthy across most social tactics. However,marketers need to think more about integrating social media withother marketing tactics.


MARKETING PRACTICES & BUSINESS PROBLEMS

Marketers Struggle with Turning Data into Actions

When asked what issues are important to their success, marketersresponded that everything is important. All answer options scoredbetween 84% and 97% as being either very important or somewhatimportant. Marketers highlight turning data into action as one of theirtop issues. They also said measuring results & increasing effectivenessis a very important issue.

Figure 1: The Importance of Issues to Marketers

Q: How important is each of the following issues for your company�’s marketingorganization?

Base: Total Sample (155 Respondents)

Marketers See IT as the #1 Bottleneck

While marketers agree that all the survey issues are important, theyexpress less consensus when asked about bottlenecks in their business.The lack of IT support for marketing�’s technology needs is the number onebottleneck; followed by measurement, analysis & learning, and integratingcross channel efforts.

Figure 2: Level of Bottleneck Experienced in the Marketing Process

Q: How big a bottleneck does your company experience for each of the following?



INTERACTIVE MARKETING

Three Quarters of Companies Use Customer InitiatedInteractions as Marketing Opportunities

Customer initiated interactions provide an excellent opportunity topersonalize marketing communications. A customer who engages withyour brand by their own choice and shares their wants and needs is muchmore receptive to your marketing offers. Almost three quarters (73%) ofmarketers say they currently use targeted/personalized messages in atleast one inbound channel. There is notably more net expected usage incall centers and on websites than in physical stores/branches. Surprisingly,there are currently no significant differences by geography, despite Europegenerally being considered more forward thinking in this area. However,Europeans do say that in the next 12 months they will be more aggressivein adopting targeting/personalization on websites (30% in Europe versus13% in North America).

Figure 3: Usage of Targeted Messages in Customer Initiated Interactions

Q. In which channels is your company delivering or planning to delivertargeted/personalized messages during customer initiated interactions?


Inbound Marketing Predominately Owned by Marketing

When asked about marketing�’s role in customer initiated interactions, only2% of companies said that marketing was not involved. There is a very highlevel of involvement from marketing in delivering targeted/personalizedmessages in inbound marketing with 65% having primary responsibility andanother 32% where marketing assists.

Figure 4: Marketing�’s Role in Delivering Targeted Messages in CustomerInitiated Interactions

Q. What is marketing�’s role in delivering targeted/personalized messages in customerinitiated interactions?

Base: Total Sample Delivering Targeted/Personalized Messages in Customer InitiatedInteractions (113 Respondents)


Centralized Decisioning Adopted by Forward LookingMarketers and Poised for Growth

"Centralized Decisioning" technology coordinates outbound and inboundmarketing through a single system maintaining a comprehensive contactand response history. The moremarketers can centralize matchingcustomers to marketing messages and offers, the easier it is to have a wellorchestrated dialogue with customers. One quarter of marketers are usingcentralized decisioning technology. While this is relatively smallpenetration, 40% say they plan to adopt it in the future, and more thanhalf of those will adopt in the next 12 months.

In the short term there are no differences across geographies, but longerterm, Europe is more receptive to Centralized Decisioning. 25% ofEuropean marketers plan to use Centralized Decisioning more than 12months from now (only 11% of North Americans) and 26% of NorthAmericans have no plans (only 13% of Europeans).

Figure 5: Company Expected Usage of "Centralized Decisioning�”

Q. What is your company doing or planning to do with centralized decisioning?


Adoption Slowed by Organizational and Financial ConcernsNot Technical Barriers

When asked what prevents marketers from adopting centralizeddecisioning, the biggest barriers are:1. Not being internally ready e.g. organizational structure, corporate

culture or internal processes2. Financial barriers lack of budget

Lack of budget was selected as a barrier by almost all Europeanrespondents (86%) and on a wide basis among North America respondents(69%). Not too surprisingly, non marketing executives see the lack ofexecutive sponsorship as a major barrier; whereas the executivesthemselves don�’t have this problem.

Figure 6: Ranking of the Top 3 Potential Barriers to Achieve"Centralized Decisioning�”

Q. What are your biggest barriers to adopting centralized decisioning?

Base: Total Sample Answering Familiar with the Concept, Know What Company Is Doingin This Area AND Rated Item as Being a Barrier (114 Respondents)


Many Marketers Use Web Data When Making Decisions about Offers

For years marketers have been using demographics and transactional datato segment customers and improve campaign results. Website datarepresents a tremendous opportunity to complement this withinformation about customer interests, intent, and behavior. A very highproportion of respondents (75%) use this data whenmaking decisionsabout marketing offers.

Figure 7: Use of Online Data whenMaking Decisions aboutMarketing Offers

Q. Is your company currently using or planning to use data about your online visitors andtheir behavior on your website when making decisions about marketing offers?


Current use of online visitor data is already widespread in email, directmail, and web offers. Moreover, in the next year, many expect it to beused in making decisions about marketing offers across all marketingchannels (expected channel use ranging from 51% 92%). The biggestgrowth will come from web, call center, and mobile offers in particular.

Based on Unica�’s market experience, the reported high rates ofonline/offline integration indicate marketers are using aggregate analysisand web transaction data. As their use of web data matures, they willtransition to individual customer analysis and web behavior.

Figure 8: Use of Online Data whenMaking Marketing Decisions aboutMarketing Offers by Channel

Q. In which of the following channels is your company using or planning to use dataabout your online visitors and their behavior on your site when making decisions aboutmarketing offers?

Base: Total Answering Currently Using or Planning to Use Online Visitor Data when MakingMarketing Offers (116 Respondents)


Marketers Maintain Use of Offline Data in Offer Decisioning

Given the seismic shift in marketing caused by the Internet, it�’s interestingto understand the impact on the use of traditional offline data inmarketing. Respondents report high usage of integrated offline data inoffer decisioning (similar to their high use of online data).

Figure 9: Use of Offline Data whenMaking Decisions aboutMarketing Offers

Q. Is your company currently using or planning to use offline data when makingdecisions about marketing offers?


Email Is the Channel where Both Online and Offline Data AreMost Likely Used in Decisioning

Offline data, like online data, is used consistently across all marketingchannels. Interestingly, email is the channel where both online and offlinedata are most likely to be used in decisioning �– it even ties direct mail foroffline use!

Figure 10: Use of Offline Data When Making Decisions about MarketingOffers by Channel

Q. In which of the following channels is your company using or planning to use offline datawhen making decisions about marketing offers?

Base: Total Answering Currently Using or Planning to Use Online Visitor Data when MakingMarketing Offers (116 Respondents)


Integrating Online & Offline Data Is Slowed by Technical and Financial Concerns

Companies face amultitude of problems when it comes to integrating their online and offline channels. Like centralized decisioning, financial concerns bubbleto the top of the list �– both lack of budget and uncertain ROI. The one major difference is �“not being internally ready,�” which ranked as a lower barrier hereversus centralized decisioning. When ranking top barriers, all of them surfaced on a wide scale basis (50%+ ranking all barriers as a top 3 barrier). There wasalso a difference in responses geographically. Essentially all European respondents (90%) ranked lack of budget as a top barrier, compared to a much smallerpercentage of North American respondents (62%).

Figure 11: Ranking of the Top 3 Barriers to Integrating Online & Offline Data

Q. What are your biggest barriers for integrating online and offline data?

Base: Total Sample Currently Using or Planning to Use Offline Data when Making Marketing Offers AND Rated Item as Being a Barrier (106 Respondents)


Marketers Need to Coordinate Online Marketing with Other Marketing Functions

Surprisingly, only half of online marketing functions report into a centralized corporate marketing organization. Another one in five report into eCommerce.The remainder is evenly spread in small amounts across a variety of areas within the organization �– an executive office (e.g., reports directly to CEO or COO);centralized service organization where they provide services to the business line owners; decentralized reporting within the line of business; or in some otherway. When marketing does not own online channels, they must be vigilant about maintaining influence, visibility, and coordination over marketing activities inthese channels.

Even though online marketing doesn�’t always report into one marketing organization, it is still reasonably well aligned with the direct marketing function,either reporting into the same marketing organization (62%) or reporting into separate marketing organizations, and is dotted line/matrix managed with eachother (21%).

Figure 12: Reporting Structure of Online Marketing

Q. Into which department does online marketing department report?


Figure 13: The Organization of Direct & Online Marketing

Q. How are direct marketing and online marketing organized within your company?



ADOPTION OF MARKETING TECHNOLOGY

Email Marketing, Web & Customer Analytics, and CampaignManagement Widely Adopted, with Varying Maturity

Email marketing, web analytics, customer analytics, and campaignmanagement are expected to be the most widely used categories ofmarketing software in the next 12 months (78% 86% expected use for eachof these categories over the next year). However, other questions revealthat despite similar adoption rates and widespread usage, thesetechnologies have dramatically different levels of maturity. Over half (58%)of web analytics adoption consists of free tools like Google Analytics andYahoo Analytics (although sometimes in combination with paid tools).Furthermore, email marketing software is fragmented across manydifferent vendors. Nine different vendors had 7% to 10% adoption, but noemail vendor has more than 10% adoption. These facts highlight therelative immaturity of both web analytics and email markets.

Contact Optimization and Social Media Monitoring AreGrowth Winners, while MRM Lags

When looking more broadly across additional marketing technologycategories, no new categories surface as adoption winners. However,contact optimization (25% growth) and social media monitoring (21%growth) will be the highest growth categories in the next 12 months.

The lowest rates of technology adoption are in the tactical and processfocused areas: marketing resource management (MRM); marketing mixoptimization; marketing financial management; marketing assetmanagement; distributed/field marketing; public relations management;event detection; and event management (39% 48% current and expecteduse for each of these categories).

Figure 14: Current and Expected Usage by Software Category

Q. Which of the following marketing software categories does yourcompany currently use or is planning to use?



EMERGING MARKETING CHANNELS

Marketers Adopt Emerging Channels with Enthusiasm

The Internet combined with broad consumer adoption of mobile, social,and rich media technologies has set in motion a chain reaction in thefragmentation of media and the proliferation of marketing channels. Thelist of emerging marketing channels continues to grow at an astoundingpace. A very high proportion (84%) of marketers said that they plan toleverage at least one emerging marketing tactic (rich media, mobilemarketing, or social media) in the next year.

Figure 15: Current or Planned Use of Emerging Marketing Tactics

Q. Are you currently using or planning to use any emerging marketing tactics (e.g.mobile marketing, rich media marketing, or social media marketing)?


High use of all the emerging technologies is expected in the next 12months: social media marketing (e.g., Facebook: 70%); rich mediamarketing (e.g., video or podcasts: 67%); and mobile marketing (e.g.,mobile websites or mobile applications: 57%).

Figure 16: Usage of Emerging Marketing Tactics

Q. Which of the following marketing tactics is your company currently using or planningto use?



Mobile Marches toward Greater SignificanceThe tremendous success and buzz around Apple�’s iPhone and Google�’sAndroid have caused interest in mobile marketing to explode. Given thecombination of new devices, faster networks and new location awaretechnology, mobile will continue its steady march toward greatersignificance. In fact, one third of marketers (33%) are already conductingsome type of mobile marketing. As expected, adoption is slightly higher inEurope (37%) when compared to North America (29%).

Figure 17: Marketers�’ Adoption of Mobile Marketing

Q. Is your company currently using or planning to use mobile marketing tactics (e.g.mobile messaging, mobile applications, or mobile websites)?


The Rich Interactivity of Mobile Websites and ApplicationsIs Proving an Equal Draw to SMS�’s ReachMobile adoption is increasing worldwide, with anticipated very high yearover year growth in the 30%+ range �– across all mobile marketing tactics.Furthermore, usage of these tactics is expected to double in this timeperiod: 75% expected use for SMS/MMS/WAP campaigns; 66% expecteduse for mobile websites; and 63% expected use for mobile applications.

For those marketers already conducting mobile marketing, what�’ssurprising is that adoption is relatively even across the different tactics �–despite SMS�’s broader reach. For those marketers who have embracedmobile, the rich interactivity of mobile websites and mobile applications isproving to be an equal draw to SMS�’s reach.

Figure 18: Marketers�’ Use of Specific Mobile Channels

Q. Which of the following mobile marketing tactics is your company planning to use?

Base: Total Sample Who Currently Use or Plan to Use Mobile Marketing(107 Respondents)


Press Play: Video Dominates Rich Media Investments

It�’s not a great leap to posit that Google�’s acquisition of YouTube in 2006 set in motion the dominance video enjoys today as the most adopted rich mediamarketing tactic. Videos created bymarketing (75%) rank first, followed by streaming media (61%); YouTube (61%); podcasts (55%); and ads within onlinevideos (48%) are the rich media tactics expected to be used most in the coming year. Year over year growth in the next 12 months for all these tactics isexpected to be in the 20% range.

Expected use in the next 12 months is significantly lower for in game ads/product placements (28%), virtual worlds (26%) and advergames (26%). Year overyear growth in these tactics is only in the 10% range.

Figure 19: Marketers�’ Use of Specific Rich Media Channels

Q. Which of the following rich media marketing tactics is your company planning to use?

Base: Total Sample That Currently or Plans to Use Rich Media Marketing in the Next 12 Months (125 Respondents)


Almost Half of Marketers Embrace Social Media Today

Sites like Facebook and Twitter have had a meteoric rise. These channelsare not only used by hundreds of millions of people but also put immensepower in the hands of consumers. Blogs, product reviews, and other socialmedia are mixed with your marketing messages to shape consumers�’perceptions of your brand. The mass adoption of social media has createdanguish for most marketers. However, despite this distress, almost half ofthe marketers surveyed (47%) currently use social media for marketing,and nearly another quarter (23%) plan to use it in the next 12 months.

Figure 20: Current and Planned Usage of Social Media Marketing

Q. Is your company currently using or planning to use social media marketing tactics(e.g., Blogs, Facebook, User Communities)?


However, the adoption differs dramatically by geography. Europeansappear more tentative. More marketers in North America (58%) thanEurope (34%) currently use social media marketing. Europeans areexpected to catch up as their adoption speeds up this year (30% expectedgrowth versus North America�’s 18%). Nevertheless, many more in Europeremain on the sidelines altogether (20%) with no plans to use social media.

Figure 21: Social Marketing Usage by Geography

Q. Is your company currently using or planning to use social media marketing tactics(e.g., Blogs, Facebook, User Communities)?



Adoption is Healthy across Tactics for Social Media Marketing

When asked about specific social media marketing tactics, there is high expected usage across most tactics. Third party social networking sites, like Facebookand MySpace, as well as blogs are mainstays in the marketing mix.

While marketers rely heavily on these proven channels, they embrace Microblogging sites like Twitter, a newer tactic that, not surprisingly, sees strong growth.Results also indicate noteworthy growth this year in social tactics that help marketers leverage consumers to extend the reach of their brands and reinforcetheir messages (Viral Content/Word of Mouth, User Generated Content, and Voting Features/Product Reviews).

Figure 22: Social Media Marketing Tactics Currently or Plan to Use

Q. Which of the following social media marketing tactics is your company planning to use?

Base: Total Sample That Currently Uses or Plans to Use Social Media Marketing (125 Respondents)


Marketers�’ To Do List: Integrating Social Media with Other Marketing Tactics

Marketers were also asked if they run social media programs as part of integrated campaigns, siloed and discrete from other campaigns, or on ad hoc basis.

Often emerging channels are not well integrated with existing marketing campaigns. Surprisingly, more marketers say they are trying to integrate thesecampaigns with other marketing campaigns/programs, although this does vary significantly by channel. The most widely integrated tactics are votingfeatures/product reviews, user generated content, and RSS feeds. Marketers are primarily integrating social campaigns in terms of timing, creative themes andbranding. As marketers expand their efforts to promote their brands, they should start to leverage integrated analysis and customer awareness, campaigndecisioning, and marketing execution to make the most effective use of social media.

Figure 23: Social Media Tactics that Marketers Integrate with Other Marketing Campaigns/Programs

Q. How integrated are the following social media tactics with other company marketing campaigns and programs?

Base: Respondents Who Currently Use Social Media Marketing (32 68 Respondents)


RESPONDENT PROFILES

Respondents Include a Wide Range of Industries, Geographies, and Sizes

The online and direct marketers that responded to the survey represent a wide range of industries. There are slightly more respondents from North America(54%) than from Europe (46%). Also, slightly more than half are from large companies that are above $1B+ in revenue.

Figure 24: Respondents by Industries, Geography, and Revenue

Figure 24 2: Respondents by GeographyFigure 24 1: Respondents by Industry

Figure 24 3: Respondents by Revenue

Base: Total Sample (155 Respondents) Online and Direct Marketers


More than One Third Are Marketing Executives, andAll Are Involved in the Purchase Process

Figure 25: Respondents by Role

Figure 25 1: Role in the Organization

Figure 25 2: Role in the Purchase of Technology


Respondents Are Responsible for a Broad Set of MarketingFunctions that Span Online & Offline Marketing

Figure 26: Respondents�’ Responsibilities

Table 26 1: Responsibility by Marketing Function

Percent Function54% Email Marketing

53% Direct or Database Marketing

48% Customer Insight or Analysis

45% Marketing Operations

35% Web Analytics

35% Cross Channel Customer Experience Management

30% Online Customer Experience

28% Online Advertising

25% Event Management

23% Search Engine Marketing (SEO, PPC)

21% Field or Channel Marketing, Sales Support, and/or Trade Promotions

14% Corporate Communications and/or Public Relations

7% All Marketing Functions

Figure 26 2: Responsibility by Channel


SURVEY METHODOLOGY

Unica Global Marketing Survey was fielded to over 150 online and direct marketing professionals.

Online surveys were completed in Q4 2009 within 2 geographic regions among Unica customers and prospective customers.

North America represents respondents from the U.S. & Canada. Europe represents respondents from 12 European countries that are large technologymarkets.

The average survey response time was 16 minutes.

All respondents were rigorously screened to ensure participation by the right respondents within the right companies according to the screeningrequirements below:

Responsible for at least one targeted marketing function: all marketing functions; cross channel customer experience management; customerinsight or analysis; direct or database marketing; email marketing; field or channel marketing, sales support, and/or trade promotions; marketingoperations; online advertising; search engine marketing (SEO, PPC); web analytics; or online customer experience.

Involved in the purchase process for marketing software.

Work for companies with annual revenues of US$250M+ to represent mid size and large company markets. Surveys were conducted among verylarge, large, and mid size companies.

Sample sources for the study include: large research panels that are representative of the target market audiences for the study and Unica suppliedsample of customers and prospects from their internal resources.

All surveys were conducted in English.

The incidence of the random research panel samples was 9% and, for Unica supplied samples, it was 49%. Incidence represents the number of peoplereached that qualified to participate in the research.

To encourage study participation, Unica disclosed its sponsorship and offered respondents who completed a survey a copy of the survey results.

The margin of error for this sample at the 90% confidence level with a 50% response is +7%.

Unica CorporationWorldwide HeadquartersReservoir Place North170 Tracer LaneWaltham, MA 02451USAT +1.781.839.8000F +1.781.890.0012E [email protected]

Unica is a registered trademark of Unica Corporation with the U.S.Patent and Trademark Office. The Unica logo and MARKETINGSUCCESS STARTS WITH U are trademarks of Unica Corporation. Allother trademarks are the property of their respective owners.

© 2010 Unica Corporation. All rights reserved.

About UnicaUnica Corporation (NASDAQ: UNCA) is the recognized leader in marketing software solutions. Unica�’s

advanced set of enterprise marketing management and on demandmarketing solutions empowers

organizations and individuals to turn their passion for marketing into valuable customer relationships and

more profitable, timely, and measurable business outcomes. These solutions integrate and streamline all

aspects of online and offline marketing. Unica�’s unique interactive marketing approach incorporates

customer analytics and web analytics, centralized decisioning, cross channel execution, and integrated

marketing operations. More than 1,000 organizations worldwide depend on Unica for their marketing

management solutions.

Unica is headquartered in Waltham, Massachusetts with offices around the globe.For more information, visit www.unica.com.

Unicaglobalmarketingsurvey2010

Business

Transcript of Unicaglobalmarketingsurvey2010