Marketer's Confidence Index January 2020
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Marketer’s Confidence Index January 2020 February 2020
Executive Summary
01 Marketer’s outlook on consumer spending has improved
considerably since mid 2019
The Marketer Confidence index is close again to previous heights: 128. Overall marketer’s
outlook is much more positive now but this has not translated into expected increases in
marketing budgets yet
02 Marketers’ optimism about the influence of the marketing
function remains stable
Marketers continue to be excited about the increasing possibilities coming
from data and in particular AI
03 Over the past year, marketers’ confidence that their teams are
doing the right things improved considerably
Nonetheless there still is a clear opportunity to improve further with the right
operating model
2
Detailed Results
Over the past six months markets have become significantly more positive on consumer
spending; the Marketer’s Confidence Index now stands at 128
Marketer’s 130 130 131 Investment
128
Confidence Index 126 Climate 60% 61% 64% 67% 67% 65% 66% 60% 65%
123 122
121 121
13% 12% 11% 10% 10% 11% 7% 10% 9%
Good Time
Jan May Dec Aug Jan Jul Jan Jul Jan Jan May Dec Aug Jan Jul Jan Jul Jan
2016 2016 2016 2017 2018 2018 2019 2019 2020 Bad Time 2016 2016 2016 2017 2018 2018 2019 2019 2020
Past (6 months) Future (6 months)
Customer 40% 39% 40% 46% 45% 43% 39%
46% Customer 48% 47%
35% 40% 42% 46% 46% 40%
39% 37%
Spending Spending
19% 19% 14% 19% 7%
21% 21% 20% 24% 21% 14% 12% 15% 12% 12% 17% 14% 12%
Increased Increased
Jan May Dec Aug Jan Jul Jan Jul Jan
Jan May Dec Aug Jan Jul Jan Jul Jan
Decreased Decreased 2016 2016 2016 2017 2018 2018 2019 2019 2020
2016 2016 2016 2017 2018 2018 2019 2019 2020
Past (6 months) Future (6 months)
Marketing 32% 32% 34% 35% 37% 36% 33% 28% 31% Marketing 27% 28%
36% 35% 34% 34% 32% 29% 33%
Budget Budget
21% 18% 21% 20% 19% 20% 21% 10%
22% 23% 14% 13% 13% 12% 12% 15% 14% 13%
Increased Increased
Jan May Dec Aug Jan Jul Jan Jul Jan Jan May Dec Aug Jan Jul Jan Jul Jan
Decreased 2016 2016 2016 2017 2018 2018 2019 2019 2020 Decreased 2016 2016 2016 2017 2018 2018 2019 2019 2020
4Marketers expectations and perceptions about their organizations’ future performance has not
changed significantly since mid 2019
Assessment of
+53% Expected performance in
-8% terms of revenue growth 71/100 Organization’s
Customer Centricity
Current revenue growth performance Expected performance of revenue growth Assessment of Org’s Customer Centricity
Jan May Dec Aug Jan Jul Jan Jul Jan Jan May Dec Aug Jan Jul Jan Jul Jan Jan May Dec Aug Jan Jul Jan Jul Jan
(7) Much
2016 2016 2016 2017 2018 2018 2019 2019 2020 2016 2016 2016 2017 2018 2018 2019 2019 2020 2016 2016 2016 2017 2018 2018 2019 2019 2020 1000
better than
competitors
16% 16% 14% 13%
9% 7% 9% 9% 9% 7% 9% 8% 18% 19% 18% 18%
11% 20%
13% 14% 12% 13% 12% 16% 15%
14%
17% 20%
22% 26% 19%
25%
27% 26% 28% 17%
33% 30% 30%
60% 60% 59%
31% 34% 35% 31%
53% 55% 56% 53% 53%
35% 26%
50% 23% 19%
20%
21% 22%
20% 22% 16% 23%
15% 13%
27% 28% 15%
31% 29% 34% 14% 13% 12%
33% 31% 29% 12% 10%
29% 9%
6% 13% 10%
7% 6%
5% 7% 7% 7%
7% 8% 8% 7% 7% 9% 7% 8%
4%
7% 5% 6% 4%
8%
15% 13% 10% 5% 6%
10% 11% 12% 8% 8% 4% 6% 4% 8%
7%
9% (1) Much 5% 5% 7%
6% 5%
3% 3% 3% 4% 4% 7% 4% 5% 3%
2% 3% 2% worse than 4% 6% 3% 7% 4%
2% 2% 2% 3% 2% 3% 3% 2%
1% 1% 2% 2% 1% 2% 2% 2% 2% competitors Increased Decreased 1% 0% 0% 1% 1% 1% 0 1% 1% 0
5Marketing budget allocation remains stable; spending on sponsoring remains the first
candidate for budget reductions while increases are most likely to go to media placement
Current Marketing Budget Distribution1 Changes to Marketing Budgets2
Reduction of marketing budget would be made in:
Product maintenance /
support (promotions, Sponsoring 23%
packaging) Media placement 21%
14% Creative (all channels) 18%
Creative (all channels)
Product maintenance/support (promotions, packaging) 12%
25%
Market Research/ Insights 11%
Innovation / New
Innovation/New Product Development 10%
Product Development
12%
Analytics 5%
Increase of marketing budget would go to:
9%
Analytics
21% Sponsoring 6%
8% Media Placement Media placement 23%
Market Research / Insights Creative (all channels) 18%
11% Product maintenance/support (promotions, packaging) 8%
Market Research/ Insights 14%
Sponsoring
Innovation/New Product Development 17%
Analytics 13%
1 Changes from July 2019 wave: no significant changes
2 Changes from July 2019 wave: no significant changes 6Marketers remain optimistic about their function’s influence; they are excited about all the new
possibilities of data and AI but mostly that’s not what they want the CMO to know more about
Most exciting developments
Marketing’s influence in
the organization +65% -7% AI
Marketing is taking over both
Digital and data
Continued integration of
Mass customization, market
research, analytics platforms
to optimize marketing efforts
analytics and customer technology and data science
experience into creating differentiated and
appealing customer As companies finally begin to
The move from mass experience mature in their technologies
customization to and capabilities to manage
personalization. This allows data, the push toward
Will the power and influence of the marketing function increase 5G and big data
customer experience will
for more specific and
or decrease over the next few years? individualized touch points The increasing ability to micro finally begin to become real.
with consumers target consumers
What does the CMO need to know more about?
The importance of spending Digital marketing The Concept that all
on research to achieve data customers are individuals, real
69% 71% driven marketing decision The importance of data individuals, and human
64% 65% 61% 65% 63% 65%
60% collection beings, not computers.
making
The importance of marketing Improve the customer social media
to established customers experience
Importance of knowing the
7% 6% 6% 8% 5% 8% 8% 7% Marketing automation Our lack of resources to win in market's preferences and to
9%
the market understand the data behind
Jan May Dec Aug Jan Jul Jan Jul Jan Analytics their choices
2016 2016 2016 2017 2018 2018 2019 2019 2020
7Over the past year marketers’ confidence that their team is doing the right things
increased but there is a clear opportunity to improve with the right operating model
How confident are you that your organization’s marketing team….
Change vs.
Not Confident Confident Jan 2019:
Has A Clear And Well Understood Brand Positioning In Place To Be 22% 55% +8%
Competitive
Is Investing In The Customers That Matter 16% 52% +9%
Has A Clear And Well Understood Strategy In Place To Be Competitive 24% 51% +7%
Is Doing Right Things To Drive Growth 20% 51% +10%
Has The Right Capabilities To Be Competitive 25% 50% +6%
Understands The ROI Of Marketing Plans 29% 45% +11%
Has Right Operating Model (People/Structure/Processes/Tools) To Be 39% 31%
Competitive +1%
Increase statistically significant 8Appendix & Methodology
Study setup and respondents
What When
• Short online survey
Fieldwork was conducted from January 8 – 27 2020
• Invites were sent to AMA newsletter subscribers and followers.
• For this wave a total of 303 respondents participated.
• Reliability interval for core questions up to 4.8% (at 90% reliability)
Who
Level Organization size Gender B2B – B2C
• C-level/ Board 11% Age • 1 – 100 35% • Female 62% • All Consumers 19%
• EVP/SVP 3% • Up to 35 32% • 101 – 500 20% • Male 38% • Mostly Consumers – some Business. 27%
• VP/Director 30% • 36 to 45 26% • 501 – 1,000 12% • About equally Consumers and Business. 13%
• Manager 36% • 46 to 55 19% • 1,001 – 5,000 7% • Mostly Business – some Consumers 15%
• Other 19% • 56 or older 12% • 5,001 – 10,000 6% • All Business 27%
• Rather not say 12% • More than 10,000 13%
10Marketer’s Confidence Index questions and calculation
The Index is constructed of:
2 questions asking about the past: 3 questions asking about the Future:
Past 6 month Costumer spending Future 6 month Costumer spending
Do you think that overall customer spending in your industry in the past six months What about the next six months? Will overall customer spending in your industry
has increased, decreased or stayed the same? increase, decrease or stay the same?
Increased Decreased Stayed the same Increased Decreased Stayed the same
Past 6 month Marketing Budget Future 6 month Marketing Budget
In the past six months has your organization’s marketing budget increased, What about the next six months? Will your organization’s marketing budget
decreased or stayed the same? increase, decrease or stay the same?
Increased Decreased Stayed the same Increased Decreased Stayed the same
Calculation Investment Climate
For every question we determine the NET of the positive minus the negative If you think about your organization doing large investments in new projects on top
responses (so the % Increased minus the % decreased). of your usual investment, such as investing in product innovation, do you think now
is a good or a bad time to make those investments?
- These nets are then weighted as follows and turned into an index number
- Questions about the past: 40% (weights: both 20%) A good time A bad time Neither a good nor a bad time
- Questions about the future: 60% (weights: 22.5% / 15% / 22.5% respectively)
11Other questions in the survey (1/2)
Current performance in terms of revenue growth (Slide 5) Current Marketing Budget distribution (Slide 6)
Could you please rate your own organization's current performance versus your Could you give us a sense of how your organization’s marketing budget is currently
competitors in terms of Revenue growth? assigned between
1 Much worse than competitors 7 Much better than competitors Slider scale where a respondent allocates 100 points across all items
Expected performance in terms of revenue growth (Slide 5) Changes to Marketing Budgets – Reduction (Slide 6)
What about the next six months? Will your organization’s performance in terms of If you suddenly had to reduce your organization’s marketing budget by 10%, where
Revenue growth improve, decline or stay the same? would you make the reduction?
Increased Decline Stay the same Slider scale where a respondent allocates 10 points across all items with budget
Assessment of organization’s Customer Centricity (Slide 5) Assessment of organization’s Customer Centricity (Slide 6)
On a scale of 0-100, with a rating of 100 being a perfect score, how customer If you think about your organization doing large investments in new projects on top
centric would you say your organization is right now? of your usual investment, such as investing in product innovation, do you think now
is a good or a bad time to make those investments?
By “Customer Centricity” we mean the degree to which your organization puts the
customer at the heart of everything you do.
Slider scale where a respondent allocates 10 points across all items
0 – 100 slider scale
12Other questions in the survey (2/2)
How confident are you that your organization’s
Marketing’s influence in the organization (Slide 7) marketing team… (Slide 8)
Thinking about the next few years, do you think the power and influence of the How confident are you that your organization’s marketing team…
marketing function within your organization will increase, decrease or stay the
same? 1 Not at all confident 5 very confident Don’t know
Increased Decline Stay the same Results shown as top2 and bottom 2 responses
Most exciting developments (Slide 7)
What are the most exciting new developments in the area of marketing that will
have a huge impact over the next few years?
Open ended
Biggest threat to the marketing function (Slide 7)
What is the biggest threat for the marketing function today?
Open ended
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