WHAT'S DRIVING MARKETING IN 2014 - A Research Study from Conversant
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WHAT’S DRIVING MARKETING IN 2014 A Research Study from Conversant
Table of Contents 3 SUMMARY POINTS
4 DIGITAL SPENDING AND CHANNELS
5 RTB TRENDS
6 PASSION FOR PERSONALIZATION
7 PERSONALIZATION BENEFITS AND CHALLENGES
8 VENDORS AND MEASUREMENT
9 WHAT SHOULD MARKETERS DO NOW?
10 SURVEY METHODOLOGY
2WHAT’S The study, conducted in late 2013 by leading
insights provider Advertiser Perceptions,
DRIVING
gathered the opinions of both “brand-side”
and “agency-side” marketing leaders.
MARKETING A major Conversant research study evaluating
attitudes, plans and actions of both brand
IN 2014:
marketers and agencies reveals a shift in focus
among marketers in 2014. As pressure for driving
results becomes stronger, marketers are moving
away from piecemeal tactics and experimentation
A RESEARCH STUDY and doubling down budgets on those strategies
FROM CONVERSANT
and tactics that they can count on to deliver a
higher return in the coming year.
EXECUTIVE SUMMARY 1
More dollars spent on
fewer, but proven, ROI-
3
Vendor consolidation
as marketers seek the
The data demonstrates that marketers are positive channels right strategic partners
sharpening their focus in 2014. They are building and vehicles
smarter, more effective strategies and teams that
will drive the best possible results. In the coming Emphasis on Reevaluating
2 4
year, the industry can expect to see four key shifts understanding approaches to
as marketers focus on the following: and implementing measurement to
personalized ensure marketers
marketing programs are allocating
resources effectively
3BIGGER BUDGETS, DIGITAL CHANNELS MARKETERS
BETTER FOCUS PLAN TO USE IN 2014
Both brand and agency leaders expect digital marketing These advertising and marketing decision-makers say that video spending will
budgets to continue to grow in 2014. But as marketers continue to grow and will play a dominant role in digital marketing this year.
and agencies become more knowledgeable about Approximately 61% of marketers plan to use it in their strategies, which will make
digital and “what works” for their audiences, they are video the number one channel for 2014.
planning to consolidate spending across fewer, proven
channels, with a smaller share of spend going to novel Cross-device spend is also escalating. In 2013, 41% of overall marketing budgets
but unproven tactics. were invested in integrated cross-platform advertising. In 2014, these leaders
report that cross-device marketing will be front-and-center, with 59% of advertisers
planning to invest in this channel. This represents the largest jump of any channel
this year and will make it the second most commonly used tactic overall.
Reported digital spend by agency
and brand respondents Percentage of Brand and Agency marketers
that plan to use this channel in 2014.
AGENCY
70%
2013
$
14.9 MM +20%
YOY
61% 59%
60% 57%
2014 $
17.8 MM
50%
CROSS-DEVICE ADVERTISING
MARKETER
40%
2013 $
16 MM +38
%
YOY 32%
30%
DISPLAY BANNERS
2014
$
22.1MM 20%
AFFILIATE
10%
VIDEO
0%
4Average Percent of Digital/Mobile Budget
Allocated to RTB By Spend Level IMPORTANCE
AND USE OF
BRANDS THAT SPEND
LESS THAN $10 MM
BRANDS THAT SPEND
$
10 MM OR MORE REAL-TIME BIDDING
31% 45% Many advertisers expect to increase their use of
RTB exchange media in 2014. Marketers with
Next 12 Months digital budgets of greater than $10 Million expect
22% 35% Past 12 Months
to spend 45% of their total budget via RTB. Brands
that spend less than $10 Million per year expect to
spend 31% of their total budgets via RTB.
Not surprisingly, larger brands also believe RTB is
Percent of Marketers Rating a more important part of the digital mix. Thirty-
RTB as Extremely or Somewhat eight percent of marketers that spend more than
Important By Spend Level $10 Million rate RTB as “Extremely Important”
versus just 21% of brand marketers with less than
$10 Million to spend.
BRANDS THAT SPEND BRANDS THAT SPEND
LESS THAN $10 MM $
10 MM OR MORE
66% 84%
45% 45%
21% 38%
Extremely Important
Somewhat Important
Combined
577+23 73+27
THE YEAR OF PERSONALIZATION
Both agency and brand marketers agree that
personalization is a key strategic imperative for 2014.
The key driver behind the personalization movement appears to be
the consumer’s need for individualized brand experiences. Today,
they demand communications that are relevant to their
77% 73%
individual needs. of marketers agree of marketers agree
that individualized that personalized
Brands can respond to this consumer demand with individually messages and one-to-one marketing
tailored messaging and media. offers will be more is the future
effective than mass
This trend is indicative of the industry-wide and decades-long messages/offers
progression away from mass marketing to a more focused approach
featuring messaging that speaks to the needs of the individual.
Percent of Respondents that
strongly agree with the statement:
OPINIONS ABOUT I believe that individualized messages and offers can
be more effective than mass messages and offers.
PERSONALIZED MEDIA
- BY COMPANY TYPE AND JOB TITLE Agency Associate Agency Agency Buyer/
Agency
Media Director Supervisor Planner
30+70+R 33+67+R 26+74+R 32+68+R
The research shows that more
experienced, senior marketers
are more likely to believe in the 30% 33% 26% 32%
power of personalized media.
Advertiser VP, SVP,
Marketer Advertiser CMO
President, etc...
44+56+R 59++R41 38++R62
44% 59% 38%
6BENEFITS AND CHALLENGES
OF PERSONALIZED MARKETING
The marketers surveyed believe that personalized marketing offers a variety of positive benefits, many of which are key KPIs for their roles. Key
among those benefits are increased sales and stronger brand perceptions.
But the research also reveals that 47% of marketers believe their teams lack the expertise needed to develop and deliver personalized marketing
programs. This may also serve as an explanation for why some marketers reported concerns that personalized marketing isn’t possible, and why
others seem unaware of its broad scale availability. This highlights a need for marketers to learn more and seek guidance from the right partner to
better understand how to strategically execute and benefit from the power of personalization.
Hundreds of companies are already implementing personalized marketing. While many more plan to capitalize on the benefits of personalization
in 2014, many marketers reported challenges and barriers to implementing personalized media programs.
BENEFITS OF A PERSONALIZED CHALLENGES OF A PERSONALIZED
MEDIA PROGRAM MEDIA PROGRAM
AGENCY AGENCY
MARKETER MARKETER
70% 700=
IMPROVED RESPONSE RATE 64% 640=
HIGHER MEDIA COSTS
56% 560=
54% 540=
67% 670= INCREASED SALES INCREASED MARKETING/ 63% 630=
MANAGEMENT COMPLEXITY
55% 550=
50% 500=
STRONGER BRAND 63% 630= HIGH CREATIVE 60% 600=
PERCEPTIONS DEVELOPMENT COSTS
56% 560= 50% 500=
INCREASED PRODUCT TRIAL/ 45% 450= CREATIVE ISSUES/PROBLEMS 45% 450=
TRIAL RATES WITH QUALITY CREATIVE
46% 460= 41% 410=
INCREASED REPEAT 36% 360= DIFFICULTY MEASURING 41% 410=
PURCHASES/REPEAT RATE CAMPAIGN EFFECTIVENESS
60% 600= 34% 340=
INCREASED AVERAGE 28% 280= LOSS OF CREATIVE/ 25% 250=
REVENUE PER USER (ARPU) BRAND CONTROL
48% 480= 29% 290=
7VENDOR CONSOLIDATION BETTER
After years of embracing an increasingly crowded vendor environment,
MEASUREMENT
there is growing evidence that marketers want and need to streamline
vendor relationships. The average number of vendor relationships The findings show that measurement is also top-of-mind for brand
among those surveyed was 27, a cumbersome number that is marketers and agencies alike. Growing numbers of marketers now
motivating marketers to partner with fewer vendors that can offer question the accuracy of the most commonly-used approaches to
more comprehensive solutions. Nearly half of agencies (49%) and measurement, such as last click or last view. In the coming year, almost
approximately one-third of marketers (33%) believe there are too many one-third of marketers (32%) will seek better and more complete
digital marketing vendors. measurement strategies, with one-third reporting that they’ll change
their approach to measurement in 2014.
This illustrates that, after years of tolerating an
increasing amount of complicated vendor Plans to Change Measurement
27
relationships (in the already complicated Approach in Coming Year
Lumascape), marketers have to reduce
the amount of vendor coordination and Percent of
management they deal with. Working with Respondents
fewer vendors will provide marketers with more (Sorted by Overall)
integrated measurement and will ensure that Average Number of
each vendor has a stronger understanding of the Vendors/Providers
YES
marketer’s needs, goals and programs as a whole. Used in One Year 43%
NO 26%
DON’T KNOW
VENDOR COUNT IN 2013 32%
40%
32% Audience Breakdown of Those
Planning to Change Measurement
30%
BY COMPANY TYPE BY TOTAL ADVERTISING SPEND LEVEL
39+61+R
18 19 19%
%
%
20%
BRANDS THAT SPEND
39% Agency 41%
$
10 MM OR MORE
OVER 20
10%
26+74+R
10% Percent of
11-20
Respondents
BRANDS THAT SPEND 24%
7-10
4-6
LESS THAN $10 MM
1-3
# of Vendors/Providers 26 % Marketer
0% Used in One Year
8WHAT
4
SHOULD Become a By asking the right questions,
personalization measurement can only get
MARKETERS DO evangelist by: better. Senior marketers make
NOW? • Communicating how
a lot of assumptions about
the measurement methodologies their
1
personalization is driving results for companies use, many of them inaccurate.
Avoid chasing the “shiny object” hundreds of blue chip companies Marketers and agencies need to ask the
and focus on building on what right questions about measurement to
works. As more and more • E xplaining that personalization find the right way to move forward.
companies demand greater is the next logical step in the
ROI from their marketing leaders, we industry’s move from mass to For example:
expect to see more dollars spent on individualized marketing
proven tactics. While new platforms and • D oes my methodology include
technologies can be exciting, their ability • Pointing out that there are online and offline?
to drive results is usually unknown, and personalized approaches for
marketers are showing increased caution companies at all stages of • D oes my methodology represent
when it comes to how they allocate readiness, from comprehensive, true incremental sales?
their budgets. ongoing solutions to more selective,
campaign-based offerings • D oes my methodology see
causality where there’s only
2
correlation?
3
Personalization is a must. It’s
time to better understand what’s “Think Big” in vendors, data, • D o the flaws in my current
possible. Many marketers find and solutions. Marketers and methodology limit my ability
the idea of personalization agencies would do well to to optimize effectively?
appealing, but have doubts about consider what’s under the
whether it’s feasible for their business. hood from potential vendors. Can that
The reality is that personalization is hot startup really deliver the data and
possible, and can be cost effective technology necessary for great results at With these priorities in mind,
and efficient. Marketers should adopt scale? Additionally, management costs marketers can set their brands up for
strategies to educate their organizations will become an even more important a great deal of learning and success
on the value of personalized marketing. consideration as marketers and agencies in 2014.
decide whom to work with. Expect to
see declines in the number of vendors
that people partner with, and further
spending behind proven industry giants.
9SURVEY METHODOLOGY
PROFILE OF
RESPONDENTS
An online survey was conducted among a broad set of agency and marketing
leaders between October 18 and November 4, 2013. Two hundred marketer
Company Type and agency contacts from the The Advertiser Perceptions Media Decision
Maker Database and third-party databases were surveyed. The sample was
designed to be reflective of a broad cross-section of the industry.
41% 410= MARKETER
Contact qualifications were as follows:
59% 590= AGENCY
•Significantly involved in digital/online media advertising selection decisions
• Senior level marketer or agency decision-maker
• $2 Million past 12-month minimum spend
Job Title - Marketer
27% 270= CMO ABOUT CONVERSANT
73% 730= VP, SVP, PRES., ETC...
Conversant, Inc. (Nasdaq: CNVR) is the leader in personalized digital
marketing. Combining the strengths of ValueClick Media, Commission
Junction, Mediaplex, Greystripe and Dotomi, Conversant helps the world’s
biggest companies grow by creating personalized experiences that deliver
higher returns for brands and greater satisfaction for people. We offer a fully
Job Title - Agency integrated personalization platform, personalized media programs and the
world’s largest affiliate marketing network – all fueled by a deep understanding
40% 400= SUPERVISOR of what motivates people to engage, connect and buy.
39% 390= ASSOCIATE MEDIA DIRECTOR
For more information, please visit www.conversantmedia.com.
21% 210= BUYER/PLANNER
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