Consumer Voice Shaping Marketing Budgets; Programmatic Not So Much27 Aug, 2014 By: Doug McPherson
SAN JOSE, Calif. – The Chief Marketing Officer Council’s annual state of marketing global benchmark study is out – and despite all the talk about programmatic buying, marketers are apparently looking to put their money elsewhere during the next 12 months.
When asked to identify where marketers will allocate marketing budget across operational and process areas in the next year:
- 12 percent in product marketing
- 12 percent in strategy and branding
- 7 percent in marketing and planning
- 7 percent in sales and lead management
- 5 percent in market research, among other areas
- 1 percent in advertising technology systems and platforms like programmatic buying, and marketing tools
- 1 percent in collaboration and workflow systems
Despite the limited planned tech investments, marketers said they would look for new hires skilled in analytics. More than half (55 percent) plan headcount additions compared with 22 percent who expect reductions.
Some 63 percent of marketers plan to improve marketing strategies through customer segmentation and targeting, but only 6 percent see themselves as leaders in “Big Data” management – compared with 62 percent who view themselves as keeping pace or lagging behind competitors.
More than half (54 percent) report they expect overall budgets to increase. About a quarter (27 percent) believe their budgets will remain the same.
Nearly 50 percent of survey respondents listed optimizing search for website marketing, as well as events and trade shows, as the most effective ways to brand and generate demand in their market. Another 42 percent admit the most value lies in social media interaction and engagement. These areas surpassed traditional print and broadcast media, and well ahead of mobile search and mobile advertising.
The report also predicts a shakeup of agency partners. While 63 percent of marketers rate agency partner contributions extremely valuable or pretty good, 66 percent plan to make one or more changes to their agency rosters in the next 12 months. A lack of business results, value-added thinking, and uninspired creative advertisements and messages top the list of reasons for changes in agency partners.
The CMO Council surveyed 525 senior marketing executives worldwide for the study.