The State of Always-On Marketing Study - THE STATE OF ALWAYS-ON MARKETING STUDY

The State of Always-On
                       Marketing Study

So you think your
marketing is Always-On?

“     Razorfish defines
      Always-On Marketing
      as data-driven,
                                      IT’S TIME TO GET REAL AND MAKE PLATFORMS,
                                      ANALYTICS, CHANNELS AND EXPERIENCES WORK
                                      TOGETHER TO ACHIEVE TANGIBLE RESULTS
                                      Written By Mark Taylor, VP, Data-Driven Marketing and
      content-led                     Brian Colwell, Ph.D. Associate Director, Data Sciences
      experiences,                    In digital, experiences enable business success. The experience is what attracts
      delivered across                and engages customers moment-to-moment and drives your business toward
                                      your goals. Knowing that successful experiences depend on platforms, analytics
      channels and devices

                                      and channels working together in an integrated way, Razorfish, a global interac-
      in real time.                   tive marketing and technology company, and Adobe, the world’s only end-to-end
                                      digital marketing solutions provider, wanted to find out how effectively companies
                                      are delivering marketing services to their customers in real time. Last year, the two
                                      companies surveyed 685 C-level marketing, technology and business execu-
                                      tives about how they use marketing technology with services to deliver targeted
                                      experiences to the Always-On consumer. The result is The State of Always-On
                                      Marketing Study.

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                            1
Razorfish defines Always-On Marketing (AOM) as data-driven, content-led expe-
                                                  riences, delivered across channels and devices in real time. The study uncovered
                                                  some striking contrasts between AOM perception and reality. One of the most
                                                  startling was that, contrary to executives’ self-assessments, very few businesses
                                                  are equipped to compete in real time, and most struggle with the most basic

                                                  technology and marketing programs.

     Very few businesses                          This article will help you evaluate your AOM readiness and close the gap be-
                                                  tween where you are now and where you want to be, by bringing together plat-
     are equipped to
                                                  forms, analytics and channel management to drive meaningful experiences and,
     compete in real time,                        ultimately, successful AOM.
     and most struggle
                                                  Figure 1: PACE framework identifies business’ ability to support each AOM dimension,
     with the most                                from platform through to experience.
     basic technology
     and marketing                                                      1P
                                                                             LATFORMS                                   3C

                                                                       How data/content is                            How insights are translated
                                                                 collected, aggregated and used                      into levers that inform which
                                                                                                                 channels to engage which customers
                                                                   The unified brand experience
                                                                   that customers engage with                    Data converted into customer insights
                                                                         across channels                               to fuel business decisions

                                                                     XPER E N CES                                     2A
                                                                                                                         N A LY T I C S

Figure 2: PACE IndexTM, a Razorfish proprietary
evaluation framework for Always-On Marketing.                                                        PACE
                                                                                                    INDEX   TM

Our study utilizes the PACE Index™,
a proprietary tool developed by
Razorfish, which evaluates a compa-
ny’s perceived state of digital market-
ing readiness across four marketing
                                                       PLATFORMS                    ANALYTICS                     CHANNELS                   EXPERIENCES
dimensions: platforms, analytics,
channels and experiences. It ag-
gregates responses from 18 survey
                                                     Data Collection and             Customer           Customer Identification/          Cross-Channel Content
questions (see Methodology) into a                        Execution                 Measurement             Measurement                          Delivery
single scale ranging from a possible                    (6 Questions)               (1 Question)            (4 Questions)                     (2 Questions)

low of one to a high of 100. A com-
                                                         Digital Data                   Insight/                 Customer Needs           Insights Applied Across
pany’s PACE IndexTM score serves as                       Strategy                     Analysis                      Delivery                 Digital Channels
an initial metric that aids in developing               (1 Question)                 (1 Question)                  (1 Question)                 (1 Question)

a blueprint to activate Always-On
Marketing.                                                                                                                                     Development
                                                                                                                                               (1 Question)

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                                                                       2
AOM Today
Real-time is reality, not theory.                        Consumers are now more connected and expect more meaningful brand experi-
What’s driving the need to become                        ences — in real time — than ever before. Companies recognize this and want to
an Always-On marketer? The pace                          respond with real-time experiences and solutions. However, our proprietary re-
of change and intensity of disruption                    search found that they struggle with even the most basic technology and market-
is accelerating, fueled by an increase                   ing programs. Surprisingly, only 13 percent of businesses can target a recognized
in socially connected people who are                     segment and measure results — indicating that most companies lack the ability
today’s mainstream. These consum-                        to tie together the various elements of their business required to take action on
ers access brands multiple times per                     their data and use technology to execute effective targeted experiences.
day — and spend more time online,
                                                         The solution is AOM. An Always-On approach ensures that content is not only
on more devices and in more locations
                                                         well planned, but also continually optimized with the ability to respond to con-
than ever before.
                                                         sumer interactions with brands.
»» In 2013, the average time spent with
                                                         Our study summarizes diverse information about companies’ self-reported
   digital media per day surpassed TV
                                                         effectiveness at marketing through their digital channels. What we found is
   viewing time for the first time in the
                                                         that making the shift from campaign to real-time experiences is clearly difficult,
                                                         and marketing executives are unrealistic about their AOM capabilities. We also
»» More than 75 percent of people in                     discovered that the gap between perceived AOM strength and actual ability is
   most developed markets, and even                      significant. The survey revealed that less than 5 percent of the marketing popula-
   more in emerging markets, use social                  tion is capable of delivering AOM.
                                                         Using insights gained from interviewing hundreds of top executives, we can now
»» More than half of U.S. mobile sub-                    help organizations coordinate and integrate their marketing efforts across chan-
   scribers owned smartphones in                         nels. Using an integrated approach, brands can much more readily build a strong
   2013. In Western Europe, smart-                       services and technology foundation to enable successful AOM.
   phone penetration is expected to
   jump from 34 percent in 2011 to 67
   percent by 2016.3

Consequently, marketers need to
embrace the reality that consumers
are demanding information in real time
and enact change. Executives that
Razorfish and Adobe speak to recog-
nize this shift and the need to operate
in real time — they know they need
to leverage available technology and
rethink how they are organizing their
total ecosystem.

1 “Digital Set to Surpass TV in Time Spent with U.S.
Media,”, August 1, 2013.
2 “Social Networking Reaches Nearly One in Four
Around the World,”, June 18, 2013.
3 “The Real-Time Marketing Drumbeat Gets Louder, as
Agencies, Brands Sign On,”, May 7, 2013.

    THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                                           3
Our Findings
                                      A major executive disconnect exists between segmentation
                                      development and digital execution.
                                      Fifty-eight percent of all executives interviewed consider themselves strong at tar-
                                      geting experiences to segmented groups. So, we expected to find evidence that
                                      most execs are maneuvering their technology and marketing programs to pull
                                      off a holistic digital marketing program. That is not the case — only 38 percent
                                      of those interviewed are capable of targeting a new customer versus a returning

                                      Most lack the ability to use critical behavioral data.
                                      Seventy-six percent of marketers are failing to use behavioral data in segmen-
                                      tation analysis and targeting execution. While the vast majority of them are
                                      only utilizing CRM, demographic and historic sales data, marketers are missing
                                      out on high-frequency, real-time data that is only made possible by integrating
                                      behavioral data.

                                      Segmentation and measurement isn’t informing digital execution.
                                      While execs consider themselves strong at targeting experiences to segmented
                                      groups, only 13 percent are delivering segmented experiences and measuring
                                      the results. So, even those who believe they have strong targeting capabilities (58
                                      percent) may not be able to quantify that perceived value.

                                      Very few are capable of delivering real-time analytics and
                                      Less than 5 percent are actually able to manage experiences in an Always-On
                                      manner. And, of the 24 percent who are using behavioral data, less than 20
                                      percent have the capabilities — technology, creative execution/processes and
                                      integrated data— to deliver a targeted experience to a recognized customer
                                      across channels.

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                            4
                                      We wanted to know the characteristics of the subgroup of leading companies
                                      that have adopted digital marketing technology, so we used a statistical model to
                                      determine an organization’s likelihood of being a leader. We define a leader as a
                                      business that has fully implemented or made improvements toward implementa-
                                      tion of digital technology to support data-driven marketing.

                                      Figure 3: Predicted probabilities of being a “Leader.”

    We define a leader as             Industry                                   U.S.    Germany     France   Canada   U.K.
                                      Automotive                                 32%           29%    10%      29%     13%
    a business that has               Financial Services                         29%           12%    19%      13%     12%
    fully implemented or              Leisure, Travel and Hospitality            35%           38%    11%      20%     22%
                                      Business to Business (B2B)                 32%           28%    12%      14%     29%
    made improvements                 Retail and Consumer Packaged Goods         46%           40%    23%      51%     34%

    toward implementation             Telecom, Media and Entertainment
                                      Company Size (Annual Revenue $USD)
                                                                                 43%           28%    25%      33%     41%

    of digital technology             500 Million to 4.9 Billion                 28%           23%    8%       19%     14%
                                      5 Billion or Greater                       51%           34%    32%      33%     28%
    to support data-driven

                                      Size matters.
                                      Unsurprisingly, company size is considered a significant factor in predicting lead-
                                      ership in digital marketing performance. For example, when larger companies in
                                      the U.S. enjoy annual sales in excess of $5 billion, they have a 51 percent chance
                                      of being a leader. By comparison, being a larger company in France increases the
                                      chance that a company will be a leader by three times (3X), and in the U.K. by 1.7
                                      times (1.7X).

                                      Some industries have ground to make up.
                                      Companies in both the retail and consumer packaged goods, and telecom, media
                                      and entertainment industries generally stand out as leaders more than those
                                      belonging to other industry verticals. Conversely, with the exception of France,
                                      companies in the financial industry tend to have the lowest probability of leader-
                                      ship status within their respective countries.

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                                 5
                                      Although the lowest possible PACE Index™ score is one and the highest possible
                                      score is 100, actual scores from our sample range from a low of six to a high of
                                      100. The PACE Index™ generally increases when survey responses reflect posi-
                                      tive perceptions of a company’s digital maturity. However, a true AOM framework
                                      is an integrated marketing approach that is vulnerable to areas of relative weak-
                                      ness. Therefore, when a company’s perceptions across the four PACE elements
                                      — platforms, analytics, channels and experiences — are uneven, the score is
                                      slightly weighted toward the lower perceptions.

                                      Perceptions of AOM performance vary significantly by country.
                                      Given differing levels of technology-driven marketing adoption for Razorfish and
                                      Adobe clients across national markets, we expected to see a relatively high PACE
                                      Index™ score for U.S. companies in particular. However, the U.S. market has a
                                      fairly normal distribution around its median score of just 54. Surprisingly, France has
                                      a higher median score (63), with nearly half of French companies scoring 61–80.
                                      Germany mirrors the U.S. median score, but German companies have a much
                                      higher degree of score uniformity — 63 percent of companies rate themselves in the
                                      41–60 range, while only 40 percent of U.S. companies report the same. In contrast
                                      to German companies, Canada (median 63) and the U.K. (median 62) both exhibit a
                                      lower degree of uniformity around their average index scores.

                                      Figure 4: PACE Index™ demonstrates differences across countries (% of respondents).

                                                         United States                                   France
                                                           Mean=54                                       Mean=63

                                                23%                      25%
                                                                                  11%                                       11%
                                         2%                                               2%      5%

                                        0-20    21-40       41-60        61-80   81-100   0-20   21-40    41-60    61-80   81-100

                                                          Germany                                        Canada
                                                          Mean=55                                        Mean=63


                                                                                                          35%      37%
                                                10%                                                                         16%
                                        0%                                        4%      1%
                                        0-20    21-40       41-60        61-80   81-100   0-20   21-40    41-60    61-80   81-100

                                                        United Kingdom

                                                             31%         33%
                                        0-20    21-40       41-60        61-80   81-100

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                                       6
Executives in these countries are clearly assessing themselves according to diver-
                                      gent and perhaps localized standards of digital readiness. As a consequence, a
                                      CMO in one market may have an incomplete assessment of the true state of AOM
                                      possibilities. If this is the case, companies in countries where AOM is less common
                                      may lack knowledge of what’s currently possible and as a result may overestimate
                                      their AOM readiness in light of what’s possible in the industry as a whole.

                                      The gap between perceived strength and actual ability is wide.

                                      Figure 5: Percentage of senior executives who claim they are strong at optimizing their
                                      customer experiences and have the ability to distinguish a customer segment.

                                                                                                       50%          53%

                                                 USA                     DE                      FR    CA            UK

                                      Upon further analysis, we discovered significant disconnects in France and
                                      Germany. Less than half of executives in France (36 percent) and Germany (43
                                      percent) who consider themselves strong at delivering targeted experiences actu-
                                      ally have the ability to do so. Depending on geography, markets face different con-
                                      straints, and disconnects like those illustrated in Figure 5 prove that execs don’t
                                      have nearly as much control as they think. Perception and piecemeal evaluation
                                      is not enough to drive AOM readiness. If you think you’re ahead, you could be at
                                      a competitive disadvantage by failing to embrace available possibilities to execute
                                      and manage your PACE ecosystem for healthy AOM. To become AOM-ready, a
                                      quantifiable PACE assessment is essential.

                                      Use of technology for competitive advantage varies by country.
                                      When we employed a statistical model to explore the relationship between
                                      company size and technology adoption — while holding industry verticals con-
                                      stant — we saw that the U.S., U.K. and Canada all show statistically significant
                                      differences in their scores when they have more than $5 billion in annual revenue
                                      and use technology to support data-driven marketing. In the U.S., this represents
                                      a 64 percent difference in their PACE Index™ score.1 However, using the same
                                      criteria, France and Germany don’t show any statistically significant difference in
                                      their index score.

                                      1 Statistical significance is set at the 95% confidence level.

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                                   7
Figure 6: PACE IndexTM scores for company size and use of technology to support data-
                                      driven marketing.

                                                 PACE IndexTM Scores, Controlling for Technology and Business Size

                                                                    >$5B and               >$5B and
                                                                    Not Implemented        Have Implemented

                                                  71                                   74
                                                                   63             66                   66

                                         United States       Germany              France               Canada      United Kingdom

                                      Companies in the U.S., Canada and U.K. that have adopted technology perceive
                                      themselves a more “ready,” according to their PACE Index™ scores. Figure 6
                                      shows that companies in the U.S., Canada and U.K. have a greater understanding
                                      of what AOM requires. In these markets, greater awareness of what is possible may
                                      lead to a greater sense of readiness on the part of CMOs after adopting the requi-
                                      site technology for AOM. Conversely, CMOs in these markets who have not adopt-
                                      ed technology for AOM may experience a suppressed sense of readiness because
                                      they are more aware of their vulnerabilities in the modern digital marketplace.

                                      While there are certainly many factors at play in these findings, differences be-
                                      tween the American and European systems of digital privacy laws could provide
                                      one explanation. For example, under the European regulations affecting France
                                      and Germany in particular, digital businesses are more constrained when it
                                      comes to performing basic data collection and profiling of individual customers.
                                      The U.S. and Canada, on the other hand, have no equivalent to Europe’s general
                                      data protection law (other than medical and financial records), and the U.K. has
                                      adopted a more pragmatic self-regulation position that arguably enables greater
                                      flexibility to maneuver in the real-time marketing context. So, the U.S., U.K. and
                                      Canada appear to have a greater advantage when creating a cohesive way to
                                      action data for better AOM.

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                                       8
Get Real If You Want
Tangible Results
                                      At this point you’re likely feeling really excited… or highly inadequate. The point is
                                      to not procrastinate any longer if you’re behind, or to take advantage and move
                                      ahead if you’re already a leader. Since technology roadmaps typically have about
                                      an 18-month horizon, businesses need to adapt fast to maximize their full set of
                                      investments. It’s not enough to perceive that you are using these capabilities. You
                                      have to quantify your actual ability in order to deliver AOM in a meaningful way.

                                      1. EMBRACE NEW EVALUATION TECHNIQUES TO

                                      BECOME AOM-READY.
    You have to                       A business-wide self-evaluation is crucial to determine where you are, and how
                                      you can improve in each part of the PACE framework so that you can drive suc-
    quantify your actual              cessful AOM and, ultimately, deliver more meaningful experiences.
    ability in order to
                                      Conventional discovery engagements take too long to determine how to take
    deliver AOM in a                  advantage of organization and technology investments. AOM requires a radical

    meaningful way.                   change to these old-fashioned approaches in order to understand how your
                                      business aligns tools with strategy, so that you can quickly generate insight from
                                      marketing tools and identify how to drive higher return from these investments.

                                      This is best accomplished by using a new breed of rapid evaluation solution of-
                                      ferings like Razorfish BoostSM, which is an example of an industrialized approach
                                      developed exclusively in partnership with a technology partner (Adobe) for this
                                      very purpose.

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                              9
Figure 7: The Razorfish BoostSM process.

  1. EVALUATION              2. OPTIMIZED SOLUTION DESIGN                        3. VALUE DELIVERY ROADMAP
  Alignment to your          Alignment with your colleagues on the               Roadmap for prioritized services and technology with detailed
  vision, key                solutions that will amplify your existing           marketing action plan.
  business drivers           investments, augmenting service
  and stakeholder            offerings with product capabilities.
  input on issues
  and goals.                                                                                                                                            SITE TARGETING AND
                                                                                                                                                           TESTING PLANS
                                                                                                                                   TARGETING OFFER             LTV

                                                                                                                    SEGMENTATION   TAG MANAGEMENT          CROSS-TEAM
                                                                       SERVICE                                       ENABLEMENT                          REPORT DELIVERY
                                                                      MATURITY                        LAST ACTION   SEGMENTATION       TAGGING
                                                                                   DATA COLLECTION   REMESSAGING       DESIGN        REMEDIATION           ATTRIBUTION

                                                                                    MEASUREMENT       DASHBOARD      DATA AUDIT    SITE REPORTING        CROSS-CHANNEL
      GOALS                      PLATFORMS                                                             DESIGNS                                             REPORTING         ROI
              CAPABILITIES       ANALYTICS               QUICK WINS       Low                  PHASE 1                        PHASE 2                      PHASE 3
                                  CHANNELS               ROADMAP                                                                                                             INVESTMENT
       OBSTACLES                                                     PRODUCT


                                                      Leveraging more than 10 years of best-in-class evaluations, these new codified
                                                      methodologies provide the diagnostic first step you need to quantify your AOM
                                                      readiness, and get up and running in weeks, rather than months. Razorfish BoostSM
                                                      quantifies and aligns your AOM performance issues to the PACE area for resolu-
                                                      tion — taking into account your specific business goals and marketing objectives
                                                      to deliver a customized recipe of products and services to drive value immediately,
                                                      and shows you where to make smart investments over the next two to three years.

                                                      Figure 8: Razorfish BoostSM client results comparing PACE IndexTM scores by industry,
                                                      country and company size (blinded).

                                                                                                                    All Up PACE            Financial                  Client PACE
                                                                                                                       Index™              Services,                 Index™ Score
                                                                                                                    Respondents         Country & Size                  (Blinded)
                                                      PACE Index™ Score                                                  59                        60                         58
                                                      (P)latform                                                         58                        62                         58
                                                      Data Collection and Excecution                                     61                        58                         46
                                                      Digital Data Strategy                                              56                        64                         71
                                                      (A)nalytics                                                        60                        61                         66
                                                      Defined Customer Measurement                                       58                        52                         57
                                                      Insights Analysis                                                  61                        74                         76
                                                      (C)hannel                                                          65                        76                         57
                                                      Customer Identification & Measurement                              66                        72                         73
                                                      Organizational Capability to Deliver on                            65                        79                         43
                                                      Customer Needs
                                                      (E)xperience                                                       54                        54                         49
                                                      Cross-Channel Content Delivery Enablement                          50                        51                         48
                                                      Customer Insight Used Across Digital Channels                      61                        64                         54
                                                      Content Development                                                50                        48                         46

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                                                                                        10
                                      ORGANIZATION TOGETHER.
                                      Once you have identified opportunities to improve your AOM capabilities, you
                                      can quickly establish your digital marketing blueprint. You will also need to think
                                      about both the internal corporate governance, process and leadership required
                                      to realize data-driven marketing, in addition to the regulatory big picture (chang-
                                      ing national legal oversight). Your unique blueprint will help siloed teams ensure
                                      you focus dollars efficiently, while providing customers with an experience that is

                                      optimized to meet their needs.

    Not only does                     Working in an integrated way requires clear relationships and fluid governance
                                      with technology vendors and agency partnerships. Businesses have a strong de-
    incremental success
                                      sire to connect with the technology community, but limited resources to system-
    finance incremental               atically evaluate new partners, leaving the door open for competitors to leapfrog
    technology and                    their AOM capabilities. We therefore recommend a lead partner that does not just
                                      work well with internal and external marketing staff, but also has the technical
    service phases, but               ability to provide objective evaluation of technology and media partners.
    this also develops
    political capital across          3. COMPETE HARDER, MOMENT-TO-MOMENT.
                                      It’s hard work, but the potential payoff is worth it. Figure 9 illustrates a real
    the business with                 Razorfish client example of how targeted AOM experiences are built in iterative
    an evidence-driven,               phases: Phase 1 and Phase 2 show targeting payment and ROI revenue projec-
                                      tions. The black line in this typical targeting roadmap indicates very pedestrian

                                      growth if the client continues business as usual, void of net-new AOM dollars for
    approach.                         technology and services.

                                      Figure 9: Cumulative net cash flows ($ ’000), blinded client example.

                                                                                           Payback in 3 months
                                        $2,000.00     Payback in 8 weeks
                                                                                                                 Phase 2
                                       ($1,000.00)                   Phase 1

                                      Phase 1 demonstrates an easy eight-week setup of basic analytics and targeting
                                      activities, where investment would put the client into the “red” temporarily for their
                                      $200K investment, with breakeven at eight weeks, followed by 1.5 times (1.5X)
                                      ROI. Phase 2 represents a more involved technology investment with a longer
                                      setup and investment, but it pays off with an even higher incremental ROI — eight
                                      times (8X) — paying for itself in just three months.

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                              11
Can you truly quantify your                A more advanced version of this Razorfish solution allows our clients to deliver a
AOM Capabilities?                          uniquely tailored message to their target audience every time. We’ve seen a four
Given the common gap between per-          times (4X) increase in ROI and a two times (2X) increase in vendor co-op media
ceived digital marketing readiness and     investment YoY. With early success, we extended the program to new platforms in
the reality of executing AOM, consider     first-to-market fashion:
how well your marketing technology
                                           »» Within video, we can personalize a data overlay with products viewed on-site
investments are aligned to reach the
                                              (40+ percent increase in video completion rates with this overlay).
Always-On customer. Start by figuring
out how you’d respond to these four        »» Within social, we target .com visitors and personalize messaging to increase
questions:                                    traffic on Facebook and Twitter (50 percent lift in engagement rates).

»» How confident are you that the          »» We were the first advertiser to test cross-device retargeting (mobile-to-mobile
   data you capture provides a unified,       and desktop-to-mobile) with dynamic, last-action product creative in 2013.
   cross-channel view of each customer’s
                                           What does this mean? Brands that continue this cycle programmatically in
   brand interactions and experiences?
                                           Razorfish are seeing triple-digit growth and, in some cases, upwards of 23
»» When you receive insights on cus-       times (23X) the fully loaded (agency fees and technology costs) ROAS. The
   tomer behavior, how empowered           payback from each previous phase essentially allows a continual “crawl, walk,
   do you feel to carry those insights     run” investment cycle. Not only does incremental success finance incremental
   forward into concrete action plans?     technology and service phases, but this also develops political capital across
                                           the business with an evidence-driven, customer-centric approach.
»» Are your technology solutions and
   skill sets both available and suffi-    Brandon Geary, SVP Strategy, contributed to this study.
   ciently synchronized to address each
   customer’s particular needs, regard-
   less of channel or device type?

»» Are you delivering the relevant cus-
   tomer-facing experiences in each
   moment better than your competi-
   tors are?

You have the opportunity to help your
organization get real and close the gap
between perception and reality. Prepare
your organization now by integrating the
technology, governance and leadership
required to get ahead in AOM.

   THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                             12
Learn More
                                      LEARN ABOUT SERVICE OFFERINGS AND TECHNOLOGIES TO
                                      DEVELOP YOUR AOM STRATEGIC ROADMAP

                                      RAZORFISH BOOSTSM
                                      Razorfish BoostSM is a strategic evaluation that rapidly identifies the roadmap
                                      you need to extract the most value from your Adobe Marketing Cloud solutions.
                                      Boost arms you with an actionable plan to fill the gaps between your marketing
                                      goals and identified roadblocks using Adobe products and Razorfish marketing
                                      services for positive investment return. There are three primary deliverables:

                                      »» PACE Index™ benchmark: an evaluation of how your company is performing
                                         compared to your industry in order to determine areas where there is potential
                                         to achieve competitive advantage.

                                      »» 100-day plan with detailed steps and associated scope for projects that
                                         con-figure technology and modify or launch associated marketing programs.

                                      »» An 18-month roadmap that shows what additional technology configurations
                                         and marketing programs are needed.

                                      ADOBE MARKETING CLOUD
                                      Adobe Marketing Cloud is the most comprehensive and integrated set of digital
                                      marketing solutions available. It includes a complete set of analytics, social, ad-
                                      vertising, targeting, Web experience management and cross-channel campaign
                                      management solutions along with a unique set of shared capabilities that helps
                                      customers go from data to insights to action more efficiently and effectively than
                                      ever. Visit to learn more.

                                      Razorfish, the only digital agency to receive back-to-back rankings in Advertising
                                      Age’s 2011 and 2012 A-List, creates experiences that build businesses. As one of
                                      the largest interactive marketing and technology companies in the world, Razorfish
                                      helps its clients build better brands by delivering business results through customer
                                      experiences. Razorfish combines the best thought leadership of the consulting world
                                      with the leading capabilities of the marketing services industry to support our clients’
                                      business needs, such as launching new products, repositioning a brand or participat-
                                      ing in the social world. Razorfish has offices in markets across the United States, and
                                      in Australia, Brazil, China, France, Germany, Japan and the United Kingdom. Clients
                                      include Mercedes, Unilever and McDonald’s. Razorfish is part of Publicis Groupe. Visit
                             for more information. Follow Razorfish on Twitter @razorfish.

                                      Adobe is changing the world through digital experiences. For more information,

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                               13
Supplemental Material
                                      In August 2013, Razorfish and Adobe jointly commissioned a reputable third-party
                                      vendor to collect data from companies on perceptions and adoption of digital mar-
                                      keting technologies. The questionnaire consisted of 46 questions, and addressed
                                      perceived marketing challenges, digital marketing maturity and specific technolog-
                                      ical capabilities.

                                      There were 685 CMOs, or similarly situated budget-setting marketing executives
                                      from five countries and six industry verticals (Figure 10), who participated in the
                                      study. Each respondent represents a single company whose annual revenue
                                      exceeds $500 million U.S. dollars.

                                      Figure 10: The State of Always-On Marketing Study sample counts by country and

                                                                           U.S.   Germany   France   Canada   U.K.        N=
                                      Automotive                           21       34       22       18      20         115
                                      Financial Services                   24       32       14       22      21         113
                                      Leisure , Travel and Hospitality     22       33       22       20      20         117
                                      Business to Business (B2B)           25       25       21       21      19         111
                                      Retail and Consumer Packaged Goods   22       31       23       19      20         115
                                      Telecom, Media and Entertainment     24       31       19       21      19         114
                                      Country N=                           138     186       121      121     119        685

                                      National differences can affect results for either methodological or substantive
                                      reasons. Methodologically, respondents may interpret and answer the same set
                                      of questions differently, purely based on differences in cultural norms and con-
                                      versational conventions. Of these two sources of concern, past cross-national
                                      research on survey response bias does not reveal marked differences in response
                                      patterns among the countries included in the present study.

                                      Substantive factors may include, but are not limited to, market size, regulatory
                                      constraints, digital technology adoption, international affiliations and general
                                      macro-economic vitality. Figure 11 highlights a few of these unaccounted for
                                      cross-national differences that can be reasonably expected to shape our results.

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                               14
Figure 11: Technographic differences that demonstrate cross-national differences.

                                                                      U.S.      Germany      France      Canada           U.K.
                                      Mobile Broadband %              75%         41%          52%         50%            72%
                                      Penetration (ITU Estimates)

                                      Smartphone % Penetration        56%         40%          42%         56%            62%
                                      (Google Estimates)

                                      % of smartphone owners that     46%         32%          26%         27%            39%
                                      have made a purchase on
                                      device (Google Estimates)

                                      Per Capita Spend On e-Retail   286.44      207.77       196.36       59.45      442.43
                                      (USD) in 2007 (Kshetri
                                      Bebenroth, Williamson 2010)

                                      Figures from the United Nations International Technology Union show that mobile
                                      broadband penetration in 2012 was much higher in the U.S. and U.K. than it was in
                                      other countries. Inclination to shop on a mobile device (Google, Our Mobile Planet)
                                      and the amount spent on ecommerce per capita (Kshetri, Bebenroth, Williamson
                                      2010) are also higher in the U.S. and U.K. It is not clear how differences such as
                                      these might impact perceptions, since perceptions of how “well” one is doing are
                                      typically benchmarked against others. Across countries, the benchmarks that might
                                      inform respondent perceptions are not the same.

                                      The limited number of countries in the dataset prevents us from statistically
                                      confirming or ruling out either substantive or methodological factors as possible
                                      explanations for any observed cross-national differences.

                                      FIGURE 2
                                      Predicted probabilities were obtained with a Poisson regression model using ro-
                                      bust standard errors to overcome the mean — variance equivalence assumption.
                                      Poisson model results were compared with those from negative binomial models
                                      with very little differences in coefficient output. Poisson model results were adopt-
                                      ed based on superior model fit statistics; however, both methodologies produce
                                      roughly the same probability estimates.

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                                    15
                                      This study utilizes the PACE Index™, which evaluates a company’s perceived
                                      state of digital marketing readiness across four marketing dimensions: platforms,
                                      analytics, channels and experiences. It aggregates responses from 18 survey
                                      questions (see below) into a single scale ranging from a possible low of one to a
                                      high of 100. A company’s PACE Index™ score serves as an initial metric that aids
                                      in developing a blueprint to activate Always-On Marketing.

                                                                              INDEX   TM

                                          PLATFORMS            ANALYTICS                    CHANNELS            EXPERIENCES

                                        Data Collection and     Customer          Customer Identification/   Cross-Channel Content
                                             Execution         Measurement            Measurement                   Delivery
                                           (6 Questions)       (1 Question)           (4 Questions)              (2 Questions)

                                            Digital Data          Insight/                 Customer Needs    Insights Applied Across
                                             Strategy            Analysis                      Delivery          Digital Channels
                                           (1 Question)        (1 Question)                  (1 Question)          (1 Question)

                                                                                                                 (1 Question)

THE STATE OF ALWAYS-ON MARKETING STUDY | 2014                                                                                          16

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