getting Digital right 2015 DEVELOPING BEST-IN-CLASS MARKETING IN A DIGITAL WORLD

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1 getting Digital right 2015 DEVELOPING BEST-IN-CLASS MARKETING IN A DIGITAL WORLD

2 YOu re EithEr getting Digital right Or getting MarkEting WrOng

3 let s FaCE it digital has become a part of everyday life for most Americans. Smartphones, Tablets, Smart TVs, and Wearables are everywhere and new technology is perpetually on the horizon. Words like multiscreen and programmatic have taken over the conversation. Now marketers face the challenge of keeping abreast of all this while coming up with innovative and efficient ways to execute winning marketing strategies. This report, Millward Brown Digital s 2nd annual Getting Digital Right study, provides an overview of the state of digital. With input from over 400 marketers spanning brands, media companies, and agencies, we summarize their insights and perspectives on getting digital right. We ve outlined the four key components of a winning digital strategy: CrEatE a BEst-in-Class MarkEting research PrOgraM understand the DYnaMiC COnsuMEr achieve OPtiMal allocation & alignment MEasurE & EnhanCE total MarkEting roi

4 Create a Best-in-Class Marketing Research Program Our top focus is to turn a wealth of client data into actionable insights and personalized experiences. -VP, Ecommerce

5 transforming Big Data into intelligent Decisions is the #1 Opportunity for Marketers in 2015 Data rich, but insights poor that is the current plight of the marketer. Despite the opportunities promised by Big Data trends, marketers are still challenged to shift from big to intelligent. Until now, Big Data efforts have centered on knowledge gathering and exploration, but all this is meaningless without the right context and application. Cutting through the noise of Big Data to the measures that matter is what will make a difference and a meaningful business impact. What is the Biggest Opportunity Facing Marketers in 2015? 19% % OF RESPONDENTS WHO INDICATED A GIVEN OPPORTUNITY IS MOST IMPORTANT IN 2015 BRAND MEDIA AGENCY 16% 10% 13% 4% 6% 3% 3% 2% 2% 3% 2% 4% 2% 2% Source: 2015 MILLWARD BROWN DIGITAL "GETTING DIGITAL RIGHT" STUDY USING BIG DATA MULTISCREEN MARKETING BREAKING DOWN MOBILE & SOCIAL SILOS OPTIMIZING ROLE OF VIDEO LOCATION-BASED MARKETING 3 CrEatE a BEst-in-Class MarkEting research PrOgraM

6 CurrEntlY, many marketers don t know how to best leverage the internal and third-party data available to them. Only 14% of marketers feel their team effectively use the consumer, media, and transaction data at their fingertips. Even more surprising, we seem to be moving in the wrong direction: marketers reported a confidence level drop of 25 points since how Confident are You in Your Organization s use of Big Data? 39% BRAND MARKETERS CONFIDENCE IN 40 DATA USAGE WITHIN THEIR ORGANIZATIONS % brought an influx of data to marketers, 10 but without an instruction manual on how to use it to generate value will be the year 5 marketers move towards making Big Data Source: 2015 MILLWARD BROWN DIGITAL actionable and insightful. "GETTING DIGITAL RIGHT" STUDY CrEatE a BEst-in-Class MarkEting research PrOgraM 4

7 A top pain point in our organization is having insufficient knowledge and training on how to use the available data to continually refine marketing programs. -VP, Ad Operations We are constantly educating our clients on how to use and communicate the data they have within their own organization to track ROI and influence media decisions. -VP, Advertising/Media 5 Create a Best-in-Class Marketing Research Program

8 Prioritizing Digital Best Practices is the hallmark of a strong Marketing research Program Brands are particularly unsure about their understanding of digital best practices; only 38% said they felt confident that they were up-to-date. Media companies and agencies felt they had a better grasp, with over 60% of respondents confident in their knowledge. This indicates that brand marketers have the opportunity to lean on their partners and insights experts to help bolster gaps in digital expertise. how confident are you that your organization is up-to-date on Digital Best Practices? 38% 61% 64% Source: 2015 MILLWARD BROWN DIGITAL "GETTING DIGITAL RIGHT" STUDY BRAND AGENCY MEDIA Fewer than half of brand marketers feel confident in their understanding of digital best practices, while over 60% of media and agency marketers are confident. CrEatE a BEst-in-Class MarkEting research PrOgraM 6

9 WHAT THIS MEANS FOR MARKETERS Creating a best-in-class marketing research program means equipping your team with the know-how and fundamentals to plan, measure, track, and optimize your marketing. The key to success is focus. Differentiating between the nice-to-know KPIs and those required to steer the business is a critical first step.

10 understand the DYnaMiC COnsuMEr We need to shift our focus to channels where consumers are most engaged and to what can influence/impact the purchase process. -VP, Marketing 8

11 the Dynamic Consumer Changing the rules of the Marketing game Consumers are embracing digital to power their personal brands, altering the nature of the relationships they build with external brands. The advent of connected devices has increased the complexity of marketing to the right consumer, with the right message, at the right touchpoint, on the right screen, at the right time. Understanding the connected consumer journey is essential to optimizing marketing. Marketers agree Multiscreen marketing is the 2nd-highest opportunity in 2015 Brand marketers ranked Planning across consumer touchpoints, where consumers are interacting with your brands as a top pain-point source: 2015 MillWarD BrOWn Digital getting Digital right study 9 understand the DYnaMiC COnsuMEr

12 a Dynamic insights toolkit for the Dynamic Consumer In 2014, marketers reported the need for advancements in behavioral research tools as mainstays in their insights toolkit. For 2015, the trend shows no sign of slowing. Sixty-seven percent of marketers use behavioral data as an influential component of their research program, and 69% expect it to grow over the next three years. Marketers are adopting behavioral research to understand audiences, their actions, and attitudes as a key to staying competitive. Which research tools are you currently using to influence your marketing decisions? Source: 2015 MILLWARD BROWN DIGITAL "GETTING DIGITAL RIGHT" STUDY CONSUMER BEHAVIOR INSIGHTS 67% AUDIENCE MEASUREMENT BRAND TRACKING MARKETING MIX MODELING CREATIVE TESTING 39% 30% 29% 61% understand the DYnaMiC COnsuMEr 10

13 What this MEans FOr MarkEtErs A deep understanding of the dynamic consumer is essential to unlocking the potential of marketing in an increasingly connected world. Marketers need to ensure they are adopting behavioral research advancements as pillars of their insights toolkit. 11

14 Achieve Optimal Allocation & Alignment Organizational silos prohibit consumer journey planning. -VP, Marketing Our current state is too short-sighted and does not effectively use all channels in sync across devices. -Director, Marketing

15 knowing COnsuMErs and where to reach them is essential to effective marketing. Nearly 50% of brand marketers, and over 65% of media and agency marketers ranked the ability to reach target audiences as a key factor in media budget allocation. However, only about half of media and agency marketers are confident they have an optimized media mix, while even fewer brand marketers do only about 25%. According to brand marketers, a best-in-class media allocation looks like: MARKETING SEARCH MOBILE ADVERTISING & APPLICATIONS EVENTS / CONFERENCES DIRECT MAIL MARKETING 12% 7% 12% SOCIAL SOURCE: 2015 MILLWARD BROWN DIGITAL "GETTING DIGITAL RIGHT" STUDY 4% 3% BEST-IN-CLASS ALLOCATION OF TIME & EFFORT ON MEDIA CHANNELS 13% 18% 14% WEBSITE / CONTENT DEVELOPMENT 17% ONLINE ADVERTISING TRADITIONAL ADVERTISING For most channels, this represents a change from 2014, with Mobile seeing the largest increase and Marketing seeing the greatest decrease. CHANGE IN USAGE MOBILE ADVERTISING & APPLICATIONS SOCIAL SEARCH TRADITIONAL ADVERTISING DIRECT MAIL MARKETING WEBSITE/CONTENT DEVELOPMENT ONLINE ADVERTISING EVENTS/CONFERENCES MARKETING +4% +2% +1% +1% 0% -1% -2% -2% -3% 13 achieve OPtiMal allocation & alignment

16 Breaking Down Barriers of the Digital kind To achieve optimal allocation, marketers need to ensure organizational barriers don t prevent marketing success. While it often feels like digital is firmly entrenched in our lives, there s still room for growth in integrating digital into our marketing organizations. In 2015, only 43% of brand marketers were confident in their organization s integration of digital into their marketing strategy. However, we re moving in the right direction. Since 2014, we ve seen a 10% increase in the volume of organizations integrating digital into their centralized marketing strategies. The solution rests in marketers ability to foster internal alignment. Sharing information, planning, and setting strategies across teams and channels is critical for success. What type of approach do you take in creating marketing strategies? UP FROM 59% IN % 60% Source: 2015 MILLWARD BROWN DIGITAL "GETTING DIGITAL RIGHT" STUDY OF BRAND MARKETERS CREATE INTEGRATED STRATEGIES OF MEDIA AND AGENCY MARKETERS CREATE INTEGRATED STRATEGIES achieve OPtiMal allocation & alignment 14

17 What this MEans FOr MarkEtErs It s no longer a question of whether to include digital in your marketing strategy; instead the questions have shifted to when, where, and how much? But, there is no magic formula. Marketers need to begin by understanding their consumer, the touchpoints they engage with, and the resulting impact on their brand. This is the ultimate indicator of where to allocate resources.

18 Measuring the impact of all aspects of digital is very hard and without being able to show impact/ ROI, we are less likely to invest highly in it. -Director, Consumer Insights Measure & Enhance Total Marketing ROI 16

19 all Marketers agree that an inability to track roi remains a top Pain-Point Demonstrating ROI is the lone universal truth in marketing. Media companies need to prove their value to agencies & brands, agencies need to prove value to their clients, and brand marketers need to prove their impact within their organizations. This makes being able to prove ROI against marketing efforts a top priority. Marketers ranked inability to track roi as their second most-common pain point nearly 50% of marketers indicate an ability to demonstrate roi as a top criterion for determining media budget allocations source: 2015 MillWarD BrOWn Digital getting Digital right study 17 MEasurE & EnhanCE total MarkEting roi

20 the ability to track ROI through various channels continues to grow in importance, though expectations are higher for digital. A majority of marketers would increase investment in digital channels, like Social, if ROI measurement for those channels improves. Would an increase in the ability to track roi increase your spend on media? 79% 78% 74% 47% +25% SINCE % SINCE % SINCE % SINCE 2014 Source: 2015 MILLWARD BROWN DIGITAL "GETTING DIGITAL RIGHT" STUDY MOBILE DIGITAL SOCIAL TRADITIONAL Over 70% of marketers would increase their budget in Digital, Mobile, and Social channels if ROI measurement was improved; only 47% would do so if Traditional advertising ROI were better developed. Social saw the biggest change from 2014, indicating marketers are keen to better understand the impact of Social channels. MEasurE & EnhanCE total MarkEting roi 18

21 WHAT THIS MEANS FOR MARKETERS Marketers need to plan, measure, track, and optimize to ensure they constantly maximize ROI. However, as the industry continues to innovate, marketers need to ensure they save some room for experimentation. Effectiveness measurement will always have a little art to accompany the science. Therefore it s critical for marketers to achieve balance between a relentless pursuit of ROI and creative marketing evolution. 19

22 COnClusiOn & takeaways CrEatE a BEst-in-Class MarkEting research PrOgraM Creating a best-in-class marketing research program means equipping your team with the know-how and fundamentals to plan, measure, track, and optimize your marketing. understand the DYnaMiC COnsuMEr A deep understanding of the dynamic consumer is essential to unlocking the potential of marketing in an increasingly connected world. Marketers need to ensure they are adopting behavioral research advancements as pillars of their insights toolkit. achieve OPtiMal allocation & alignment Digital channels have and will continue to increase their presence in marketers media allocations. But what is the right mix? Unfortunately there is no silver bullet: begin by understanding your audience and their relationship with brand. MEasurE & EnhanCE total MarkEting roi Marketers need to plan, measure, track, and optimize to ensure they are constantly maximizing ROI, but don t go too far. Achieve the right balance between a relentless pursuit of ROI and creative marketing experimentation.

23 about MillWarD BrOWn Digital Millward Brown Digital is the world s leading digital expert in helping clients grow great brands. Millward Brown Digital delivers comprehensive digital solutions to help advertisers, agencies, and publishers increase marketing effectiveness and drive brand growth. Integrated behavioral and attitudinal solutions help marketers identify, understand and engage consumers, plan and optimize media, and increase total brand performance. Millward Brown Digital operates within Millward Brown North America, and is part of Kantar, WPP s data investment management division. For more information, please visit or contact us at

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