|Customers with digital DNA expect data driven value|
- Chapter 7 in Scott Brinker’s (AKA: @chiefmartec) marketing book, A New Brand of Marketing, “From Agencies to In-House Marketing”, lays out the in-house vs agency shift perfectly. Traditionally agencies’ bread and butter is within the advertising campaign – as advertising has moved digitally, ad networks and ad-tech have continued to mature allowing practitioners to work directly with these networks and/or utilizing programmatic ad buying to optimize their spend. In a sense, cutting out the middle man (agencies). This might help explain the large difference in growth between digital revenue growth at agencies and digital spend from the practitioner. While companies are spending more dollars on digital, it is more of a do-it-yourself approach.
- Anecdotally, through my conversations with clients and marketing executives, on more than one occasion I have heard marketers bringing core agency work internal. The two main reasons for this action are:
- Scope: For marketing executives who are trying to build a full scale demand engine or attribution models, they are finding it very hard to identify an agency partner who can deliver this vision from start to finish, particularly with expertise across the entire project. (A fair caveat is very few companies can do this internally!) They are still utilizing agencies, but typically for projects around high level strategy or vision and/or very specific tactical portions of their larger campaigns.
- Speed: To truly compete digitally, marketers have realized that speed is an asset. From content creation, to adjusting advertisements in real-time and to making sure the latest and greatest technologies are being tested and used, speed is a factor. Advanced marketers are often realizing by bringing many of these activities in-house, it is much easier to increase speed – it is also much easier to retain the talent that can execute in the manner necessary to succeed.
Or maybe 2014 will be the year of mobile, or the year content marketing. Ok, Ok, I can guarantee one thing, 2014 will be the year of the horse.
While 2014 might not be the year of digital marketing, digital will continue to be deeply important to the marketing organization. As digital spend continues to increase, the focus grows. Despite this, there can be a lack of clarity around the topic. What exactly falls within digital marketing? How much budget is actually being spent on digital? And how does it all meld together?
Let’s dive in.
Digital Marketing Budget Trends:
What is Digital Marketing:
For specific definitions for each area please view IDC’s Worldwide Sales, Marketing, and Market Intelligence Taxonomy, 2013.
Digital as an Organizational Practice:
3 Take Aways:
- Digital marketing spend is growing, FAST, it will be 50% of the (multi-billion dollar) B2B tech marketer’s program budget by 2016.
- Work to define digital marketing so everyone in the organization is speaking in the same terms.
- Do not separate digital from the rest of marketing, it is too important to sit on an island.
- Engagement – who’s downloading what how often from the platform
- Transactions – deal registration, order submission, billing update, MDF reconciliation.
- Execution– the number of leads their marketing has produced, how leads are progressing through their pipeline
- Social interactions – groups they join, how they participate, what SMEs they interact with.
- Performance data – closed deals, order value
To dive in deeper I tapped the knowledge of 3 digital and social marketing leaders to educate me on how their organizations are harnessing the power of social through “Paid Social” Campaigns. The experts I spoke with are listed below:
IDC’s CMO Advisory Service has been advising this for some time, but as I read more blogs and attend more marketing based events like FutureM, the reality of overarching change is becoming obvious. IDC’s data points to this as well; investment in Digital Marketing within the Enterprise Tech industry has increased from 12.6% of budgets in 2009 to 29.2% by the end of 2012* – we expect this trend to continue.
Below I have outlined 3 sessions that did a great job of highlighting the change that is taking place. I then took particularly interesting or relevant quotes and expanded on them.
“The buyer is on a journey and the vendor is not invited.”
“Good professionals let the data speak, if you don’t have good data – don’t make a decision!”
Discussion around Analytics and Big Data resonate strongly with me – they are hot topics in the marketing world and can provide immense value. Our group always urges marketers to utilize data any chance they can. However, it is easy to get caught up in the excitement of trying to quickly move projects forward while using data as a guide. Chuck’s quote reminds us to be honest with yourself and be honest in your decision making process, don’t make a decision based on data unless it is telling a clear objective story.
For more information on data driven marketing download IDC’s study “Data-Driven Marketing: A Survey of Marketing Automation Maturity in Global High-Tech Companies”
You can follow Sam Melnick on twitter: @SamMelnick or contact him at smelnick (at) IDC (dot) com
*Source: IDC’s 2012 Tech Marketing Benchmark Study (full results to be published this quarter)
Data analytics was the big winner in the 2012 US Presidential race. In fact, 11:17 PM (US ET) November 6th was the moment data analytics went mainstream. This was when Ohio was officially projected to go to Obama. It was the ultimate validation for Nate Silver and his data analytics approach to election forecasting. To much fanfare he accurately predicted the results of the election in all 50 states without doing any of his own polling. He used sophisticated analytic models based on data from as many third party polls he could find. To this he added the secret sauce of data analytics – a keen understanding of how different types of data from different sources relate to one another in context.
- Standardizing records: Unifying the customer (voter) database
- Widening perspective: Combining diverse data types: demographics; buying/voting history; response by media; donation/activity by trigger (celebrity dinner), model (contest) and method (mobile); group/church membership, social networking activity (Reddit), etc.
- Judicious targeting: Carefully identifying the potential for influencing voters that could influence the election. Not worth targeting easily influenced voters if they don’t live in a county that can help swing a state. Not worth targeting difficult to influence voters even if they live in a critical county. This is essential for achieving impact and ROI.
- Media mix modeling: which media channels have the greatest impact on which kinds of voters?
- Action oriented outreach: Understanding the specifics of why and how certain people act and designing multiple outreach experiments (progressive offers, channel mix, social references, etc.) based on that.
- Openness to innovation: data driven models may point to approaches that are counter intuitive for some decision makers. They can seem risky and mysterious. They will not be right all the time. Controlled risk is part of the evolutionary process to effectiveness. Without a tolerance for experimentation however, you will not develop a data driven culture, you will in fact kill it.
- $200M EU lift based on a sophisticated solutions recommendation engine
- 45% more subscription revenue with no increase in a multi-million dollar marketing budget
- Tens of millions of dollars in revenue uplift from simple web behavioral changes
- Skunk Works Project
- Don’t Forget Mobile
For more research on Social Marketing please view our report: Despite the Hype, B2B Social Marketing Is Still in Its Infancy: 2012 Guidance for New Investment Dollars and Staff
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- Customer intelligence: Data.com enriches contact and account information with fresh feeds from sources such as LinkedIn and many others. Enables both sales and marketing to create detailed contact profiles for segmentation, targeting and campaign management.
- Social advertising and content management: The recent Buddy Media acquisition provides support for a wide range of social channels (social, web, mobile) and formats including contests, videos, and photos. Users can coordinate their publishing and advertising activity and measure impact throughout the social sphere.
- Social listening and analytical tools: Radian 6 monitors popular social services such as Twitter, Facebook, LinkedIn, YouTube, as well as blogs, forums, communities and more. Supports 17 languages and mobile access.
- Core CRM functionality: Salesforce.com consolidates resources to provide sales reps with a single source that can connect them with other applications, contacts, colleagues and workflows. Pulls data together into account/opportunity context. Delivers reporting data to sales and sales managers and can provide opportunity and pipeline performance data into other systems such as marketing and order management.