integrated marketing survey report - 2013

www.ignitionone.com 1

INTEGRATED MARKETING SURVEY 2013

A Progress Report on the Integration of Digital Marketing

Integrated Marketing Survey2

What’s stopping brands from having integrated

digital marketing strategies? Are they seeing the

benefits or is it all too complicated? We decided to

go straight to the source and ask marketers what

was really going on.

Many of the results are not that surprising. The

respondents know the advantages of integrating

digital marketing strategies and many of them are

working towards integration, but find their

resources and education lacking. Many of them are

still wary of attribution and are yet to see the true

benefits that a customized attribution method can

offer.

In the end marketers want simplicity where there is

now complexity. It has been a slow process but we

are moving toward convincing all marketers the

benefits of an integrated approach.

Forward

Businesses tend to err on the side of caution,

and this seems to especially be true for

marketing departments. The current

economic climate has encouraged brands to be

more cautious about their marketing budgets and

have put particular emphasis on marketers being

able to prove efficiency and ROI.

Marketers see the data breadcrumbs that

consumers scatter across the Internet, allowing

potential customers to be pre-qualified based on

their behavior. But with so much data to be

interpreted (at IgnitionOne, we process over 120

different variables through our self-learning

Engagement Scoring Engine) and so many choices

to be made (from the creative to serve, to the

media type, to the device), it isn’t surprising how

complicated things have become.

Enter: Integrated Marketing. Since its inception by

the American Association of Advertising Agencies

in 1989, Integrated Marketing has been synonymous

with marketing efficiency. In our experience at

IgnitionOne, however, we are still seeing marketing

departments split into silos and unable to integrate

their digital marketing efforts.

Will Margiloff

CEO

IgnitionOne


49% manage all of their online media channels

in-house

Executive Summary

The integration of marketing strategies has

become increasingly inevitable. The rise of

digital marketing has accelerated the

process as marketers more often have the ability to

accurately measure the impact of their marketing

activity and how one channel affects another.

But what is the real situation inside brands’

marketing departments today? Have they moved

any closer towards an integrated digital marketing

strategy or are marketers only paying lip-service to

the concept?

The industry is not there yet, but is working on it.

Integrated digital marketing might not be an

industry-wide standard yet, but brands are

definitely starting to restructure how they manage

their marketing channels and teams to better

position them to deliver integrated digital

marketing strategies:

49% still have separate channel owners, but

they communicate often and share goals

96% are working closer with IT to achieve

marketing goals


38% say the technology to build an integrated

digital marketing strategy is too complicated

24% say their teams are not set up to support

an integrated digital marketing strategy

58% use last-click as their attribution model and

only 18% of organizations use a sophisticated

cross-channel attribution model

24% don’t track how one form of paid media

affects another

We still have some educating to do.

The practicalities of integrating digital marketing

are still daunting, requiring new technology

systems and restructuring of resources to deliver a

truly integrated strategy.

And we’re not really taking advantage of the known

benefits. For many marketers, the digital landscape

has provided a complete and accurate picture of

how their marketing strategy is working and how

different marketing disciplines affect each other

for the first time.

But last-click attribution still remains popular,

despite its widely recognized inefficiencies. More

complex, multi-touch models are only being

utilized by the minority.

$!@#$%^&*$!@#$%^&*

$!@#$%^&*$!@#$%^&*

$!@

#$

%^&

*$

!@#

$%

^&*

$!@

#$

%^&

*$!@

#$%^&*

$!@

#$

%^&

*$

!@#

$%

^&*

$!@

#$

%^&

*

$!@

#$

%^&

*$

!@#

$%

^&* $!@#$%^&*

$!@#$%^&* $!@#$%^&*$!@#$%^&*

$!@#$%^&*$!@#$%^&*


Digital marketing is on the upswing and mobile

and social channels are leading the way.

An overwhelming majority of those surveyed are

looking to increase their digital advertising budget

allocation within the next 12 months and 22% of

those marketers are looking to increase the budget

by 20% or more.

The biggest growth areas are mobile display and

mobile search, followed by social ads, which is

hardly surprising as audiences move toward tablets

(sales increased 75% year-over-year according to

TechCrunch). Over 70% of marketers are planning

to invest in mobile advertising in the next 12

months.

46% of marketers are planning to increase

budget allocation 11%-20% to digital advertising

in the next 12 months

36% of marketers predict their organization will

increase investment in mobile search in the next

12 months


increase investment in mobile display in the next

12 months


increase investment in social ads in the next 12

months

82% of organizations surveyed personalize the

user experience for visitors to their site


How Media Channels are Managed

Managed with separate channel

owners and separate teams

No divisions among channels

Managed with separate channel

owners but communicate often

and share goals

20% 30% 40%

11%

49%

41%

50% 60%10%0%

Managing Marketing Channels

IgnitionOne has long been a proponent for

integrated digital marketing, where all of an

organization’s resources, goals technology, data

and measurement are aligned in order to achieve

higher levels of efficiency and performance.

However, the practicalities of combining diverse

media channels means that getting there has been

a slow process. That said, we are finally starting to

see light at the end of the tunnel.

While the majority of marketing departments

report that channels are still managed separately,

49% of our respondents disclosed that disciplines

are now in constant communication, working

closely together with shared goals and projects.


The growth of integrated digital marketing is

further strengthened by the increase in brands

bringing the management of their marketing

channels in-house. Close to half of the brands who

responded to our survey said that they were

managing their digital media channels in-house.

However, 42% are still using a combination of in-

house and service providers or a mix of service

providers to manage their channels, indicating that

there is still a long way to go before integrated

digital marketing is considered the norm.

As marketers continue to recognize the need for

truly integrated digital marketing, we will see more

marketers managing digital channels through a

single, centralized platform, while the number of

those using multiple service providers and a

combination of in-house and service providers to

manage their digital efforts will dwindle. This is

because the latter two scenarios will have difficulty

accurately measuring the effects of their digital

marketing efforts, while the former scenario will

allow marketers to accumulate all of their attribution

data into one central location, allowing for accurate

and actionable insights.


Who Manages Media Channels

All media channels are

managed in-house

A mix of external providers

and in-house

A mix of external providers

One external provider

49%

23%

20%

9%

Aligned with recent trends, 96% of respondents

said that in the last two years, their marketing and

IT departments have begun to collaborate more

frequently to achieve marketing goals. At such a

high percentage, it will be interesting to gauge the

level of involvement that IT has within the marketing

department to drive marketing-based goals over

the next several years rather than just the number

of companies integrating departments. As

successful marketing continues to require the

assistance of technology, we will see the two teams

intermingle and communicate even more often.


Managing Technology

Not surprisingly, digital marketing will

continue to grow throughout 2014 with an

overwhelming 96% stating that they will be

increasing digital marketing allocation over the

next 12 months.

Media Channels for Investment Over the Next 12 Months

Ret

arge

ting

Dis

play

Em

ail

Mob

ile S

earc

hM

obile

Dis

play

Soci

al A

ds

FBX

SEO

Paid

Sea

rch

Con

tent

mar

keting

Vid

eo

Dis

play

Adv

ertisi

ng

Web

site

Per

sona

lizat

ion

Marketers also expect that mobile and social will

remain a critical part of the marketing mix with 37%

of marketers increasing their investment in mobile

display and mobile search and 32% increasing their

investment in FBX over the next 12 months.

10%

20%

30%

40%


Interestingly, as consumers move more of their

interactions with brands online and demand to be

treated as individuals, only 11% of respondents are

planning to invest in website personalization over

the next 12 months.

Those who state that they are already utilizing

marketing automation most likely are referring to

traditionally customized experiences such as email

automation. However, there are many options

within marketing automation available that assist

in driving conversions and enhancing the user

experience. Marketing automation tactics, such as

content personalization, dynamic interaction

served across paid media and automated email

campaigns are increasingly becoming more

important for marketers attempting to tailor the

online shopping experience. These efforts are

rewarded with enhanced lead generation and

stronger conversion rates. Over time, marketing

automation should span more areas of marketers’

digital efforts and should consume a greater portion

of marketers’ budgets.

REQUEST A QUOTE NOW!


56%

The Challenges to Integration

If brands readily acknowledge the efficiencies

and impact bought by integrated digital

marketing, why then is the implementation

process so slow? Only 6% of our respondents

thought that their digital strategies were already

integrated.

35% of respondents indicated that the technology

required to achieve a truly integrated digital

marketing strategy was too complicated. There are

also structural issues at play: 24% said that their

team wasn’t set up to run an integrated digital

marketing strategy and 15% stated that disparate

data was the problem. The digital marketing

community continues to struggle in convincing

marketers that their efforts should be managed

and optimized holistically in order to maximize

rewards, regardless of the time commitment or

expense in implementation.

Despite that more than 9 out of 10 organizations

are not yet using a centralized approach to their

integrated digital marketing efforts, it is promising

to highlight that 90% of the respondents surveyed

indicated that there is some degree of

interconnectivity and communication among

channel owners within marketing department. This

means that marketing departments recognize the

The challenge of data was also featured when our

respondents were asked about their attribution

strategy. A huge 24% of marketers said they did not

have an attribution strategy in place and did not

measure how one type of online media affected

another - ignoring one of the huge advantages that

online advertising offers marketers.

Technology is too complicated1

2

3

4

5

Teams are not set up for it

Data is not centralized

Too expensive

Too time consuming

Top Five Perceived Challenges to an Integrated Digital Marketing Strategy:

interdependence among digital channels and

acknowledge that no point solution works alone to

drive a conversion, which is also a testament to the

need for sophisticated cross-channel attribution.


How Does Your Organization Treat Attribution?

Last-click attribution model

Sophisticated cross-channel

attribution strategy Don’t track how one form of

paid media affects another18.2%

57.6%

24.2%

While this industry has been successful in gaining

momentum around attribution, it appears that only

a small number of marketing organizations have

implemented a plan for appropriately attributing

credit across channels. A surprising 58% of

respondents indicated that their marketing

department still uses last-click attribution and 24%

don’t even track how paid media interact and affect

one another. Only 18% of the organizations

surveyed reported having a sophisticated cross-

channel attribution model to measure their digital

efforts, indicating that the majority of marketing

departments are not yet able to efficiently measure

digital marketing successes. This is very surprising

given the clear benefits around advanced attribution

models. As integrated marketing becomes a force

of change in organizations, a more sophisticated

outlook on attribution will emerge and marketers

won’t be able to survive without proper cross-

channel attribution.


Conclusion

Marketers are beginning to grasp the

importance of cross-channel attribution,

have been adopting marketing automation

as an important solution for conversions and have

been enhancing budget and time devoted to digital

marketing. However, marketers lack urgency in

implementing truly integrated digital marketing, as

well as cross-channel attribution, which is affecting

their budgeting decisions. We are approaching the

day when marketers will have no alternative but to

integrate their marketing in order to stay

competitive, but in the meantime, those practicing

integrated marketing are ahead of the curve and

leading their respective industries.


About IgnitionOne

IgnitionOne® is a global leader in cloud-based

digital marketing technology providing a world-

class proprietary platform and expert services to

improve digital marketing performance.

IgnitionOne’s integrated Digital Marketing SuiteSM

(DMS) empowers marketers to centralize, manage

and optimize digital media across Search, Display,

Social and Mobile, and understand cross channels

attribution, while helping to optimize conversions

on a marketer’s website through Marketing

Automation. At the core of the DMS is the

proprietary Engagement Scoring Algorithm which

determines the value of a user in order to automate

the delivery of the right message, at the right time,

at the right cost, to a marketer’s users on and off

their website.

IgnitionOne currently scores over 300 million users

monthly in 55 countries and powers over more

than $30 billion in revenue each year for leading

brands, including General Motors, DIRECTV, Ann

Taylor, La Quinta, and Fiat, as well as advertising

agencies such as 360i, GroupM and iProspect.

For more information, please visit www.ignitionone.com

or follow the company on Twitter @IgnitionOne

or read our blog at www.digitalmarketingsuite.com


Appendix: Respondent Profile

Location Job Title

North America

South and Latin America Europe

MENA

23%12%

8%

56%

Asia C-Level

Team Member1% 1%

5%

Manager

Director

VP/SVP/EVP

21%

47%

26%


Current Monthly Digital Marketing Spend (‘000 US$)

250-500

500-1,000

1,000+ Less than 100

100-250

51%

14%

7%

10%

18%

integrated marketing survey report - 2013

Documents