Marketing Platforms 2015

Transcription

1 Market Data / Supplier Selection / Event Presentations / User Experience Benchmarking / Best Practice / Template Files / Trends & Innovation Marketing Platforms 2015 Buyer s Guide Report licensed by Oracle Marketing Cloud This is a complimentary copy of the Econsultancy Marketing Platforms Buyer s Guide. In order to download the full version of the report, which contains profiles of all 24 vendors, please visit the Econsultancy website:

2 Marketing Platforms 2015 Buyer s Guide Published November 2014 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright Econsultancy.com Ltd 2014 Econsultancy London 4th Floor, Wells Point 79 Wells Street London W1T 3QN United Kingdom Telephone: help@econsultancy.com Econsultancy New York 350 7th Avenue, Suite 307 New York, NY United States Telephone:

3 Contents 1. Introduction About Econsultancy Executive Summary The Market Market trends Proven ROI and increased value in sales lead to growth of Cross-channel marketing takes to the next level The influence of mobile cannot be ignored Marketers yet to take full advantage of automation Personalisation and integration are the future of Return on investment benefits of best-practice marketing Strengths, Weaknesses, Opportunities and Threats (SWOT) Strengths Weaknesses Opportunities Threats Costs and Pricing Models Fully managed service ASP Off the shelf in-house Tips and Pitfalls Introduction What type of model is most suitable for your company? What kind of ESP are you looking for? Do you fully understand your own role and potential internal barriers to effective delivery? Market Positioning Charts Explanation for Chart 1: Target market Marketing Platforms 2015 Buyer s Guide Page 3

4 7.2. Market positioning overview: Target market Explanation for Chart 2: Technology focus Market positioning overview: Technology focus Supplier Marketplace and Profiles Oracle Marketing Cloud Marketing Platforms 2015 Buyer s Guide Page 4

5 1. Introduction Econsultancy s buyer s guides are the ideal starting place for anybody researching new suppliers in interactive market sectors. They contain in-depth vendor profiles; to help you quickly evaluate suppliers and service providers, as well as market analysis to help you put things into perspective. Vendors are selected for the report based on a combination of factors, not limited to but including: Analysis of capabilities (services / products) Clients Experience (qualifications / trade bodies / case studies / client lists) Expertise (by sector / topic) UK/US status (a UK/US office is preferred, occasional exceptions are made) Ability to take on and fulfil new projects Recommendations from trusted sources (or anecdotal evidence to the contrary) Google visibility Business model (a high % of turnover should be related to these services) Company website Econsultancy does not explicitly recommend any of the suppliers featured in these guides, principally because it is impossible for us to work with all of them to form a first-hand opinion. But we do believe based on an intensive and careful selection process that the chosen vendors represent quality. Buyer s guides are updated on an annual basis, so the information contained within is recent and thus valid. Send any questions or comments to Linus Gregoriadis, Econsultancy s Research Director (linus.gregoriadis@econsultancy.com). We welcome feedback. Note: The information in Section 8 is provided by the suppliers featured in this buyer s guide. We do our best to ensure every profile is complete and accurate, although it is not possible for Econsultancy to verify every detail. The information in Section 8 has been used to inform the market positioning overview (Section 7). Marketing Platforms 2015 Buyer s Guide Page 5

6 1.1. About Econsultancy Econsultancy s mission is to help its customers achieve excellence in digital business, marketing and ecommerce through research, training and events. Founded in 1999, Econsultancy has offices in New York, London and Singapore. Econsultancy is used by over 600,000 professionals every month. Subscribers get access to research, market data, best practice guides, case studies and elearning all focused on helping individuals and enterprises get better at digital. The subscription is supported by digital transformation services including digital capability programmes, training courses, skills assessments and audits. We train and develop thousands of professionals each year as well as running events and networking that bring the Econsultancy community together around the world. Subscribe to Econsultancy today to accelerate your journey to digital excellence. Call us to find out more: New York: London: Singapore: Other related Econsultancy reports Econsultancy / Adestra Marketing Industry Census Bridging the Gap in Marketing The Marketing Speed Imperative Marketing Request for Proposal (RFP) Marketing Digital Marketing Template Files Marketing Automation Buyer s Guide Marketing Platforms 2015 Buyer s Guide Page 6

7 2. Executive Summary The 2015 edition of the Econsultancy Marketing Platforms Buyer s Guide is the ninth version since its inception in The guide looks at industry trends with profiles from 24 leading service providers and advice for buyers looking for a new technology partner. This research, which has a global focus, is for marketers who want to select an service provider appropriate for their organisation. The vendors detailed in this report range from broad marketing technology platforms which include , to vendors which focus on a specific area of marketing. Prospective buyers will need to differentiate between the different types of vendors and determine what information they require in order to develop a shortlist. While buyers can use the Tips and Pitfalls section of this report (Section 6) to create this shortlist, the Marketing Request for Proposal report provides a robust template and set of guidance notes to aid this process. The marketing industry has seen a variety of changes over recent years, as vendors are being consolidated into bigger marketing technology platforms, or repositioning themselves as specialists. The driving force for this is the growing complexity of the role marketers have to take on in their organisations. The expectations of marketers have shifted from building large lists and delivering batchand-blast campaigns, to personalised campaigns that take into account the broader customer journey. In addition, s role within marketing extends beyond just direct messaging and is one of the keys to creating a superior customer experience, a major point of differentiation in this current age of customer centricity. Organisations with the appropriate culture, skill set and, of course, technology will be in the best position to navigate this change and unlock the power of . Trends within this market include: Proven ROI and increased value in sales lead to growth of Cross-channel marketing takes to the next level The influence of mobile cannot be ignored Marketers yet to take full advantage of automation Personalisation and integration are the future of This buyer s guide contains profiles of the following 24 service providers: Adestra, Adobe Campaign, Bronto, Campaignmaster, Communicator Corp, dotmailer, DST Global Insight Group, ebay Enterprise, center, Emarsys, Epsilon, Experian Marketing Services, Lyris, Oracle Marketing Cloud, Pancentric Digital, Pure360, RedEye, Salesforce, SDL, Silverpop (an IBM company), SmartFocus, StrongView, Teradata and Traction Digital. Report licensed by Oracle Marketing Cloud This is a complimentary copy of the Econsultancy Marketing Platforms Buyer s Guide. In order to download the full version of the report, which contains profiles of all 24 vendors, please visit the Econsultancy website: Marketing Platforms 2015 Buyer s Guide Page 7

8 3. The Market 3.1. Market trends Proven ROI and increased value in sales lead to growth of Despite being one of the earliest digital tools available to marketers, remains a fundamental part of the modern marketer s toolkit. In fact, rather than ceding way to emerging technologies and newer channels, marketing is helping companies make efficient use of their marketing spend and putting marketers in a better position to positively impact the bottom line. While has consistently performed well in terms of ROI, the past year has seen it outperform all other digital marketing channels. More than two-thirds (68%) of marketers rated as excellent or good at delivering a return on investment, based on results from the Econsultancy/Adestra Marketing Industry Census 2014, leapfrogging organic search for the first time since According to Parry Malm, President of Howling Mad Marketing, marketers are beginning to respond towards accordingly: It s quite simple: brands have realised that marketing delivers more ROI than many other online channels. The trendiness of social has worn off, and marketers are realising that while social delivers solid brand value and some response, remains the best push channel for doing that minor detail that sort of matters making money. Not only is more likely to provide a better ROI than other digital channels, but it has become a better driver of revenue. On average, 23% of sales are being attributed to the channel, up from 18% the previous year. 1 This What proportion of your total marketing budget does marketing account for? is with companies only spending an average of 16% of their marketing budget on their marketing efforts. More than half (52%) are allocating no more than 10% to . Despite the improvement in the channel s performance, a significant number of companies feel they can still do better. Less than half (42%) rate their performance as excellent or good, suggesting most marketers feel their efforts in this area have room for improvement. In response to the clear opportunity that exists within , marketers are seeking to upgrade their capabilities with more technical requirements, as Stephen Derbyshire, Head of Digital Marketing at CACI explains: Organisations consistently rate as the channel with the best ROI and the channel most likely to drive consumers to action, so spend is increasing Marketing Platforms 2015 Buyer s Guide Page 8

9 Most companies also rate their current marketing programmes as average or poor but have ambitions to deliver highly personalised / automated programmes. This is driving them to upgrade their marketing technology capabilities. Marketers are increasingly aware that a siloed approach to places a cap on the effectiveness of the channel. While an infusion of new technology may be necessary, it is of equal importance that companies adopt a more cohesive approach with their campaigns. What the vendors say is used by nearly everyone. People begin and end their days with it. They carry it with them wherever they go on their smartphones. It s one-to-one. It can be automated. It s fairly trackable. People overwhelmingly prefer to get commercial messages via than any other channel. And it has the highest ROI of all marketing channels. Chad White, Lead Research Analyst at Salesforce ExactTarget Marketing Cloud and author of Marketing Rules Both blue chips and SMEs reap the ROI benefits of marketing. Blue chips by nature will have larger databases and will naturally spend more due to their list size and therefore the ability to segment their databases for better targeting. Though we are seeing significant growth in spend from the top end of the SMEs and midmarket organisations as technologies become more readily available for them to carry out the same levels of segmentation and automation. Tink Taylor, Founder, dotmailer is now recognised as being one of the key channels to deliver results. This has resulted in a desire to increase the strategy and along with this a requirement to invest in the technology that helps to achieve this objective. Kath Pay, Marketing Consultant, Speaker and Trainer, Plan to Engage Cross-channel marketing takes to the next level s usefulness and measurability may be key strengths of the channel, but its value will be increasingly determined by how it is being used in conjunction with other channels. In order to truly unify experiences for customers across multiple channels and platforms, organisations must be prepared to use the address beyond the inbox. The Econsultancy Cross-Channel Marketing Report , published in association with Oracle Marketing Cloud, details how the ability to identify users across various digital activities is a crucial competence in executing effective cross-channel marketing. However, s role as a unique identifier across the web is not only a significant part of stitching together an individual s digital activities; it also allows companies to use the medium to tailor messaging on other channels Marketing Platforms 2015 Buyer s Guide Page 9

10 What is the main reason preventing your company from delivering orchestrated cross-channel marketing activities? Source: Econsultancy / Oracle Marketing Cloud Cross-Channel Marketing Report 2014 A pertinent example of this is Custom Audience targeting 3, which allows marketers to send targeted messaging on third-party platforms by uploading existing lists. The method offers a more efficient alternative to demographic ad buys and, with an appropriate degree of sophistication, can create the type of one-to-one communication marketers long for. 4 Whether companies are seeking to develop orchestrated marketing activities on their own platforms or targeted campaigns on third-platform channels, a strategic approach is a necessity. However, according to the Cross-Channel Marketing report, having no clearly defined strategy is a common reason why companies are not delivering cross-channel marketing activities. That being said, a difference in spend is being seen, as companies begin to shift their expectations of what the channel can do for them. However, not all companies have the same requirements for . Martin Boswell, Products Director at Pancentric Digital, reports seeing interesting spending behaviour among different sectors: Companies are investing slightly less in pure marketing than they have done, however they re spending much more on integrating their digital channels. The exception to this rule is ecommerce and retail. They are actually spending more as marketing continues to generate strong ROI. The reality for marketers in all sectors is that can be so much more than a direct response channel. However, in order for these opportunities to become viable, organisations must continue Marketing Platforms 2015 Buyer s Guide Page 10

11 to experiment with utilising in different ways and by developing appropriate technical capabilities. What the vendors say The need to integrate marketing with all other messaging channels such as mobile, social and display advertising is driving marketers to evolve their long-term strategies. As a result, the market is expanding at a faster rate than anyone would have imagined. Today, customers don t just want a personalised and engaging brand experience, they expect it. The marketers that understand and acknowledge customer preferences to deliver messages at the right time, the right place and in the right context, will grow the most rapidly in this cross-channel marketing world. Chris Lynch, Director, Product Marketing, Oracle Marketing Cloud as a channel still delivers very high ROI. It is also the glue that binds together multichannel strategies. Stuart Dawson, CEO, Pure360 The biggest factor we re seeing is how our customers customers are changing their buying habits. Our clients are reporting their customers are now overwhelmingly engaging on multiple devices across multiple channels. This requires a new strategy for that is aligned to the marketer s content strategy and overall digital strategy. David Schweer, Senior Product Marketing Manager, SDL The influence of mobile cannot be ignored One of the key engines behind the emergence of cross-channel marketing is the influence of mobile. Smartphone adoption is slated to reach 100% in the UK by , which leaves little to no room for organisations to ignore or deprioritise it. Mobile is here and its effect on how consumers engage with brands must be recognised and accounted for. Mobile s impact on is particularly important. While popular theory suggests smartphone users opt to use messaging apps and platforms over , the reality is much different. apps are among the most used on mobile devices and more than half of all s are opened on smartphones and tablets. However, the ability we now have as consumers to read on the move does not necessarily translate to better performance, as Jill Brittlebank, Leader, Channel Performance at ebay Enterprise explains: The always-on consumer is here to stay more s are read on mobiles and tablets than on traditional laptops and desktops. This presents a challenge way beyond the hygiene factors of responsive templates and mobile-specific calls to action. Delivering messages and message content that reflect the context in which the message may be read, from times when the consumer is in inbox admin mode on the morning commute, for example, through to sofa-surfing for entertainment is key. Our interests and priorities as consumers wax and wane through the day and week, so delivering the most appropriate content at any point all the while in competition for attention with social messaging, WhatsApp and a myriad other calls on their attention is the next big challenge for the marketer. Marketers seem to be in the process of getting to grips with this challenge. Of the marketers that responded to the Census, 47% said they are optimising for mobile devices, an increase of 22 percentage points from the previous year. That being said, most companies are not 5 Marketing Platforms 2015 Buyer s Guide Page 11

12 thinking mobile first (only 8% laid claim to such a distinction) and while the virtues of such an approach can be challenged 6, it is undeniable that mobile needs to be given serious consideration. Marketers who are ahead of the curve see mobile as more than just another format or platform to create for, as Jennifer Watkiss, Head of Marketing Communications at Adestra, explains: There is still a strong focus on mobile, though it s moving beyond designing specifically for devices, and more toward designing for a good user journey across all channels and devices. At Econsultancy s London Digital Cream roundtable-based event for client-side marketers, a professional services organisation spoke of how including personalised dynamic content improved campaign performance. For event-based s, recipients were only shown events within a set radius of the location data gathered from mobile devices. The increase in conversion rates was extremely favourable and the company has gone on to experiment further with similar practices for different campaigns. 7 The challenge for marketers embracing mobile will be to maximise the increased contextual relevancy to their advantage. Taking data and insights about consumers and using them to enhance the delivery and creation of content across all platforms is the typical ambition of a modern marketer. This ambition becomes more powerful and profitable through the intimate experience that can only be produced via mobile. What the vendors say We identified last year that customers are really seeing the value in unlocking their data and as a result they re happy to invest in upfront integration with existing systems. This has continued over the last year and as a result of this we ve noticed that more clients are adopting a mobile strategy rather than investing in alone, providing a true cross-channel experience to their customers. Michael Barber, Head of Marketing Services, Communicator With widespread use of smartphones, people now expect a similarly easy, usable experience regardless of device. Marketers should now know that a high percentage of the readers of their marketing messages are going to be reading on a mobile device, so they should adapt accordingly. In addition, there has been a behavioural shift toward more cross-channel shopping and even device-hopping within a single shopping event. Marketers should pay attention to things like how their shoppers are using the shopping cart, for example, and recognise when people are simply using it as a device to store a product to purchase later on a different device. Georges Berzgal, Managing Director, Bronto Europe Mobile continues to be a vitally important channel in the marketing mix and where recipients are increasingly opening and reading content, but organisations should not get bogged down with focusing on a single device approach. Instead, focus should be placed on content and relevancy. Marketers need to tap into the moments of truth, which motivate us as consumers and ensure they are capitalising on them at the right time. Christopher Kollat, Country Manager UK&I, Marketing Applications, Teradata Marketing Platforms 2015 Buyer s Guide Page 12

13 Marketers yet to take full advantage of automation For marketers seeking to make the most of opportunities that come with having a consumer base that is always online, marketing automation continues to be an avenue of great potential. However, for many companies that potential is closer to aspirational than attainable. Marketing automation is not something new for digital marketers and most have at least been made aware of what it is and what it can do. The vast majority (89%) of marketers have access to at least basic marketing automation capabilities via their providers, according to Do you send out automated s based on the following triggers or behaviour? the Econsultancy Marketing Industry Census 8 in association with Adestra. However, apart from subscription or sign-up to website (59%) and automated response to website visit/sign-up (46%), no more than 27% of companies are using any given trigger to send automated s. The lack of variety in the usage of automation could be a significant factor in only 4% of companies stating their automation activities are very successful. Yet, marketers seem to be highly aware of the benefits that come with doing automation. 9 Tink Taylor, Founder of dotmailer, agrees that marketers seem to be informed on marketing automation but suggests that technology issues have been a preventative force: Marketers have been very aware of the strategies they need to deploy to enable them to reap the benefits in terms of ROI for some time. However, until now the technologies available to them have either taken up too much time to use or have been too expensive to set up and deploy. Now that better technologies exist we are starting to see marketers truly put into practice all the things that they have always wanted to do. Ironically, given that one of the key benefits of marketing automation is that it saves marketers time, another issue for organisations wanting to increase their use of marketing automation is a lack of time. Close to half (45%) of companies said one of their top three challenges in trying to implement marketing automation was finding time to make it happen. However, based on results from the Census, it appears that companies will be making a concerted effort to find time for marketing automation going forward. Of all the different marketing areas, marketing automation was identified as the second most popular area marketers want to really focus on. While the current use of automation may be basic for many, its importance in the future of marketing communications cannot be overstated. As campaigns grow in complexity due to Marketing Platforms 2015 Buyer s Guide Page 13

14 the emergence of contextually relevant messaging, automation will play an essential role in its delivery. As a result, the capabilities companies will need to remain competitive in the future must be worked on and developed today. What the vendors say Marketing automation is set for growth, as well as more tooling within neighbouring software areas like CRM or inbound marketing tools. This will be the main growth from the software perspective Jordie van Rijn, Marketing Consultant and Founder of vendorselection.com There are opportunities in using all available behavioural and profile data to deeply personalise across channels, and automating browse and basket recovery to optimise revenue. Marketers who stay focused on these will reap the loyalty and revenue rewards from achieving individual treatment for every customer. Andrew Fullerton, VP Sales, Emarsys Personalisation and integration are the future of As the digital landscape continues to evolve, so too does the role of marketing within it. What was once a medium for batch-and-blast broadcast messaging can now be a contextually relevant form of communication between a brand and consumer for organisations with the tools to do so. However, with many trying to reshape the future of the inbox 10, and consumer expectations continuing to change, it begs the question: what will look like in the future? Unsurprisingly, it seems that marketing will rarely operate in a silo based on recent research. In fact, 85% of marketers believe that will be fully integrated with other marketing channels in five years time. However, more than half of these companies know there is more work to be done in this area, with 53% stating they are not integrating with other channels to their satisfaction. 11 Part of this puzzle is determining what this integration will look like going forward. While some marketers believe there will be one single technology platform for all marketing, including , others do not think this will be possible within the next five years. This, along with current technological capabilities and aspirations, will shape how organisations approach their investment in integration. As marketing technology becomes more important to an organisation s activities, Anthony Wilkey, VP Client Strategy at SmartFocus, notes seeing companies increasing their investment in another key tenet of the future of We are seeing businesses invest in personalisation and analytics technology in order to optimise their performance. Combining the breadth of data of what you know about your customer with the ability to engage them in real time with personalised content is what will give marketers the edge. That s how marketers can make each count. With consumers expecting increasingly idiosyncratic experiences across every platform, personalisation s impact will in grow in significance as it relates to campaigns. Marketers seem to have embraced this in theory, as 78% of company respondents in the Census proclaimed that all communication will be completely personalised in five years time. However, despite the advancement in technology, successful content will continue to be typified by the actual creation of quality content, the area where marketers spend most of their time. While integration, personalisation and automation will enable companies to segment Marketing Platforms 2015 Buyer s Guide Page 14

15 What the experts say their customers into further refined groups, creative must match up with the technical infrastructure. s that provide the best customer experience are not only timely and relevant, but are also engaging and encourage customers to take the next step in their journey with the organisation. Marketers are getting smarter about . They are sending fewer s, cleaning out their databases and sending campaigns to more targeted segments. Companies are beginning to think in a customer-centric way that is about more than just it s about customer-centric communications. So while by itself is still effective, when combined with other channels such as social and mobile it becomes that much stronger. One of the complexities of marketing is that it is constantly evolving, which drives opportunities for services and technological advancements. Some of the areas we see this happening in include management of customer data (moving away from list management to customer data management), deliverability tactics to reach the top of the (right) inbox, as well as managing customer preferences and permissions. Kerry Reilly, Director of Product Marketing Adobe Campaign Today s consumers communicate in real time, on their terms, across an abundance of channels and touchpoints in the physical and virtual worlds; making relationship-building efforts for brands more complicated than ever before. These digital-savvy consumers also expect more personalised and engaging relationships with their brands of choice. To address the needs of the changing marketplace, today s marketers need (among other things) the freedom and flexibility to use any type of data, how and when they want to, to drive real-time consumer engagement and the ability to easily create highly personalised and optimised campaigns that serve as a hub for multichannel engagement. Charles Pendleton, VP Product Marketing, Digital Marketing Solutions, Epsilon 3.2. Return on investment benefits of best-practice marketing Effective marketing can offer businesses advantages ranging from highly tangible revenue increases to softer benefits such as improved brand perceptions. An marketing strategy based on best practice can help you Drive sales and build revenue. Effective communication can help to maximise customer lifetime value. Communicating the right information at the right time will help drive sales. can help you acquire new customers (provided lists are used with care). Create opportunities for cross-selling and up-selling. Drive traffic to website (the right kind of traffic). Drive offline sales and increase footfall in the physical store. Generate conversions and repeat sales. Reduce costs. marketing is both cost-efficient and fast. marketing campaigns are relatively quick to produce. The right messages at the right time will help you retain customers retention is much cheaper than acquisition. Marketing Platforms 2015 Buyer s Guide Page 15

16 is much cheaper than traditional direct marketing. Increase customer satisfaction and loyalty. Relevant and tailored information will score you points with consumers. A happier customer is less likely to defect to a rival. Build an emotional connection with your audience. affords excellent opportunities to remind customers of the benefits of your proposition and the value they are getting. Companies can exploit data (e.g. CRM and web analytics) to identify and meet needs of customer. Improving customer intelligence. Learn from customer feedback. is a highly measurable channel. campaigns can be personalised and highly targeted for individual customers or behaviours. Integration with web analytics software can help this process. Boost brand awareness and credibility. Effective integration of messaging and creative into broader marketing strategies is essential for successful businesses. A holistic customer experience and brand experience will enhance perceptions of your company and improve recall. Build relationships by engaging users in an efficient and entertaining way. There is an opportunity to exploit rich media to engage more effectively with customers, provided that this is done in a non-intrusive way. Marketing Platforms 2015 Buyer s Guide Page 16

17 4. Strengths, Weaknesses, Opportunities and Threats (SWOT) This section contains a SWOT analysis of the marketing market from the perspective of vendors. It also serves as a summary of some of the points made above Strengths s biggest strength is that it works, and that it is easy to demonstrate its effectiveness. Its cost-effective nature and ability to deliver a tangible ROI explains why the industry is exhibiting strong growth. is quick to implement, and the results are inherently measurable with established metrics (such as open rates, clickthrough rates and engagement) in place. Consequently, the results of a campaign can be seen and measured almost immediately. Consumers are open to receiving corporate messages as it is a long-established way for companies to contact their customers. This means that is less intrusive than other media, such as social or mobile channels (for example, SMS). The interface of an is simple, familiar and easy to use; clicking a link is simple for the user, which is part of the reason why is so effective. Best practice rules are firmly in place, and there are plenty of different resources where companies can read about marketing tips and how-to guides. Compared to other channels, getting senior management buy-in is seen as less of a problem, given that is firmly part of the marketing mix and the benefits are clear. Most platforms are able to integrate data from a wide variety of channels, which means it is simple to employ as part of a wider campaign. The ability to bring together lots of different sources of data provides intelligence which marketers can used to create highly relevant, personalised campaigns. will remain popular because of the asynchronicity of the medium. If we choose as consumers, we can get on with things without constant interruption. Video, mobile, and location-based services are all promising areas that will continue to boost growth in the industry. What the vendors say (strengths) marketing continues to be the leader in the cross-channel market. What is affecting this rate of growth is proven success of marketing. It has been around for years and with proven results. There is no other digital channel with the ROI of . has become more accessible with tools and technology and that technology is becoming affordable. Kerry Reilly, Director of Product Marketing, Adobe Campaign technology sets and vendor offerings have now matured with even entry-level products supporting features such as: segmentation, triggering, dynamic content, social media integration and delivery optimisation. This allows brands with limited budgets to leverage these capabilities. The focus for bigger brands is on integrating with their web, social and mobile channel activities to deliver a seamless, multichannel experience. Andrew Campbell, CRM Consultant and Trainer Marketing Platforms 2015 Buyer s Guide Page 17

18 What the vendors say (strengths) The strength of marketing is the deep integration of into the wider omnichannel digital marketing landscape; for example it is now possible to deep-link directly to a locally installed native app on a smartphone. marketing ROI continues to go from strength to strength and we believe we can safely say that marketing is more important now than ever for brands to effectively and profitably communicate with their customers. The continued growth in ROI shows that maintaining budget within marketing will show continued growth of return. Murdo Ross, Head of Solution Design, DST Global Insight Group 4.2. Weaknesses Because is seen as highly cost-effective, the channel may not receive as much budget as other areas, due to the perception that it is free. However, marketers need to invest in the channel to avoid the consequences of a badlyexecuted campaign, which can damage the brand. Unlike other disciplines such as social media or search, is not backed by a particular brand (such as Google or Facebook), which means it does not feature in the media as much as other channels. Consequently, other channels may receive more attention than , even though marketing has been shown to deliver strong ROI. Spam is an ongoing problem and increasingly, providers are introducing technology to filter the inbox, which may mean some corporate s get less visibility. The introduction of inbox filters such as Gmail s Promotions and Social tabs may reduce the visibility of corporate newsletters and campaigns. The battle for the inbox is getting more difficult and there is a greater emphasis on relevance and personalisation. Privacy is a cause for concern; privacy breaches are regularly reported, which are damaging to the marketing industry as a whole and erode customer trust. Although companies are becoming more familiar with best practice, a lack of strategy still holds back a significant proportion of brands. The perception that is easy and long-established may prevent some marketers from dedicating enough time to the discipline to make it work. Although social media is not competing with (but is complementing it) the results of the Econsultancy / Adestra annual Census indicate that marketers need to work harder to integrate the two channels. A lack of skills is still a hindrance for marketers. Over a third of marketers (36%) report that the lack of skills and training is a major barrier to effective marketing. This is an issue that has existed over the last five years. Although this has dropped an additional 1% from last year, there needs to be more investment to readdress the skills gap. The quality of the database remains a major barrier to effective marketing, as highlighted by the Census. More than half of the respondents to the survey (55%) reported this to be a problem. Marketing Platforms 2015 Buyer s Guide Page 18

19 What the vendors say (weaknesses) s greatest challenge is that it s so easy to generate a return from it. This causes some organisations to undervalue it and fail to invest in driving relevant communications to their customers. The return will be lower than what could have been achieved, but it will still be attractive in the short term at least. In the long run, the failure to be relevant will always cause customers to disengage. Jon Maddison, Managing Director, Lyris EMEA One of the main weaknesses is the perception of , it simply isn t changed as quickly as the technology is is still too often seen as a cheap and cheerful tool. The focus on being more customer-centric is driving the technology forward and placing at the epicentre of a lot of marketing automation strategies. Matthew Kelleher, Chief Commercial Officer, RedEye A significant challenge for marketers is connecting the dots and stitching the consumer engagement and experience across all devices, all channels and experiences to understand that true contextual state to then enable the relevant response. Katrina Conn, VP of Marketing Services, StrongView 4.3. Opportunities Companies are still not making the most of as the channel is currently under-utilised. A significant proportion of companies are still not taking a strategic approach to . There is a clear opportunity to reap benefit from the channel through better targeting, personalisation and improving relevance. The increasing volume of additional customer data and insight can be integrated into to optimise campaigns. Using this data will increase the effectiveness of , resulting in higher clickthrough rates and improved conversion. The growth of tablet and mobile devices provides marketers with the ability to reach the customer wherever they are, on the move. The growing popularity of mobile devices signifies the rise of the always-on, connected customer, and provides opportunities for marketers to engage deeply with their target consumer. The growth of location-based services and integration of geo-data (such as check-ins) is an opportunity to provide highly relevant, targeted messaging to consumers. For example, this could include targeted offers and discounts when consumers check-in to an offline branch or a retail store. marketing no longer operates in its own silo, but is a fundamental component of an overall campaign. will be even more effective when it is used in tandem with other channels, including mobile and social media. There is a need for greater integration between and social media, as just 28% of marketers use social media integration, according to the Census. With the development of multichannel marketing, there is an opportunity for technology providers to offer solutions that combine with other platforms such as mobile and social. Marketing automation is another key opportunity, as research indicates an increasing number of marketers are using automated campaigns. Triggered s in response to customer behaviour and engagement are also an area of growth as few marketers are currently making use of this technique. Marketing Platforms 2015 Buyer s Guide Page 19

20 What the vendors say (opportunities) As modern marketers embrace a cross-channel marketing strategy with as a core component, we re seeing growth in marketing across a variety of industries. Traditionally and this holds true today as well we ve seen tremendous growth in retail, travel and consumer electronics. In these industries, providing a seamless cross-channel experience presents both a huge challenge and an opportunity. Marketers across these industries will benefit from investing in simple digital tools that enable them to send personalised messages to their audiences without requiring technical assistance. Chris Lynch, Director, Product Marketing, Oracle Marketing Cloud We re seeing a lot more investment in integrations, as organisations focus on using all the data available to them to increase relevance and personalisation for their contacts and subscribers. Jennifer Watkiss, Head of Marketing Communications, Adestra An interesting trend that we see picking up pace and attention is centring on the relationship between apps and . The challenge - but also the opportunity - for marketers lies in the ability to create effective and complimentary and app programmes. With consumers engaging with an average of 30 apps per mobile device at any one time, we are all increasingly app-savvy. Therefore, with more engagement between brands and consumers happening through apps, the onus is on marketers to understand how they can best use this channel. There s no doubt its early days for this trend but it s one that we think is going to have a significant impact on the marketing sector. Guy Hanson, Director of Consulting, Professional Services, EMEA, Return Path 4.4. Threats is highly cost-effective, and delivers excellent results. This means that some companies may not see a need to invest further budget into to deliver even better results. Restricted budgets may threaten the future growth of the marketing industry. The growth of mobile represents both an opportunity and a challenge. There is a danger that s will become increasingly inaccessible, if marketers are slow to adopt best practices and optimise their campaigns for different devices. The quality of the database is still a major barrier to effective marketing, according to the Econsultancy / Adestra Census. The lack of skills threatens to jeopardise the future of the industry. Companies must take steps to encourage more talent to enter the industry. Investment in education programmes and training will help to readdress the lack of specific skills. As the customer begins to engage across many different channels, companies must develop an understanding of how to collect data and insight across multiple touchpoints. There also needs to be greater understanding of how data can be used to create highly relevant, targeted and effective marketing campaigns. The lack of testing (which is only regularly carried out by 31% of marketers, according to the latest Census) is holding back marketers. The changing inbox represents a key challenge for marketers, as priority and segmented inboxes and grey-mail filters may reduce the visibility of corporate s. marketers will need to take a strategic approach to , focusing on engagement so messaging is highly relevant and adds value for customers. Privacy is a significant threat to the credibility of the industry. marketing companies must address the issue of data breaches, to avoid such incidents occurring in the future, which erode customer trust. Marketing Platforms 2015 Buyer s Guide Page 20

21 What the vendors say (threats and challenges) As many marketing organisations move to a more data-driven and automated approach to their marketing, they are discovering they may not have the right skill sets, technology partners and production and internal collaboration processes in place. As a result, we expect a significant amount of change in /ecrm marketing departments in the coming months. Loren McDonald, VP of Industry Relations, Silverpop, an IBM company The EU is working on new privacy and data protection. This, combined with high-profile data breaches and leaks making consumers wary, is likely to make it harder for brands to capture and use data to improve the value of marketing. There is essentially a catch-22. Consumers are wary and concerned about what the brands known about them, yet are frustrated and annoyed at brands providing inappropriate offers. Tim Watson, Consultant, Zettasphere The greatest strength is also its weakness; most marketers are sending s and most consumers have accounts. It s great for marketers because their audience is so large but it becomes a challenge to get them to open and click through your . Kerry Reilly, Director of Product Marketing, Adobe Campaign Marketing Platforms 2015 Buyer s Guide Page 21

22 5. Costs and Pricing Models There are a range of different pricing methods and models which vary according to vendor and customer requirements. Fees will often be on a per basis, but they also come in the form of licensing fees and consultancy charges for extra services which may not be included in the core package. Try to ensure that there are no hidden charges which you were not made aware of. The costs and pricing will be dictated by the type of model used for the provision of services. Broadly speaking, there are three different models to choose from: 1. Fully managed service a contract with a company to develop and send your campaigns for you which may include strategy, creative, build, data management and broadcast. 2. ASP (Application Service Provider) contract with a company to use its web-based application interface, where you have control of data, creative and broadcast timings. 3. In-house (off-the-shelf software solution) build, purchase or license software you install and maintain on your servers using your bandwidth, giving you total control of the system. According to the Marketing Industry Census, 67% of responding companies are spending more than 5,000 per year on marketing (see chart below). This is an increase of five percentage points from Just under a third (32%) of companies are spending at least 25,000 annually, while the amount of respondents spending over 100,000 on marketing has increased from 10% in 2013 to 12% in How much does your organisation spend on marketing per year? Source: Econsultancy / Adestra Marketing Industry Census Marketing Platforms 2015 Buyer s Guide Page 22

23 5.1. Fully managed service 5.2. ASP There are a number of benefits to fully outsourcing marketing. It enables you to concentrate on strategy and is recommended if you have little knowledge of marketing and have a number of campaigns to get out in a short space of time. It will also enable you to understand marketing more fully and allow you to understand some of the pitfalls you may come across before you consider an internal solution. Pricing varies depending on your requirements, but a price per for delivery is common, starting from as little as 0.1 pence per . The charge often depends on volume and the length of the contract. An advantage of the pay-as-you-go/cost-per- option is that it allows clients to easily allocate individual costs back to specific campaigns. It is common for providers to charge a set-up fee plus a CPM charge (cost per 1,000 s), or a set-up fee plus a fixed monthly fee based on a maximum number of s. The CPM is likely to vary depending on the volume of s you are sending (i.e. more s = decreased CPM charge). Additional charges, over and above set-up fees and CPM may include hosting, data validation, list cleansing, training, creative and strategy fees. The ASP (application service provider) model presents you with the tools necessary to deliver campaigns whilst removing the back-end integration and technicalities of delivery. The application is usually delivered via a web browser, allowing you to avoid direct software, hardware and bandwidth costs. Upgrades are usually part of the monthly/annual fee as are some bespoke functionality additions. The charge for ASP solutions will normally involve a setup fee and a monthly access fee, then a charge for the number of s sent in a given period Off the shelf in-house These solutions vary greatly in terms of cost and functionality, which is why it is so important to understand what your goals are. As with other models, it is important to take into account factors over and above the cost of the software, such as the hardware and bandwidth required, and the impact on internal resources such as IT and marketing. The cost per is generally nothing (in terms of direct costs), i.e. it doesn t cost you extra to send more s after you have made the initial software licence purchase. Marketing Platforms 2015 Buyer s Guide Page 23

24 6. Tips and Pitfalls 6.1. Introduction In order to identify the right ESP, it is important to understand that different companies have different areas of focus. While some will offer you an excellent deal for delivering large volumes of , others will have expertise in a certain area such as behavioural response marketing or newsletters (or both). So, in order to get the right fit with your own organisation, the first step is to identify exactly what services, solutions and expertise you need. The detailed company profiles and market positioning charts contained in this guide will help you to find the right match. This section contains some key considerations to keep in mind and some pitfalls to avoid. Our Marketing Request for Proposal 12 template can also help you during your procurement process What type of model is most suitable for your company? One of the first steps as a buyer is to establish what type of model is most appropriate for your budget and the needs of your company. As discussed in the previous section of this report, there are three main types of models: fullymanaged service, ASP and off-the-shelf/in-house. Your decision about which model you choose will be influenced by a number of factors, including integration and resources. (Cost is also a key factor and was covered in Section 5 of this report.) In terms of integration, an in-house solution may be easier to integrate with data sources such as your CRM system. To manage an system internally, it is important to have skilled resources in-house to manage your system. The people you employ need to understand databases, content production and deliverability issues. A good software provider will give excellent support in all of these areas. Here are some additional thoughts to help you establish which type of solution is most suitable. An outsourced solution may be suitable if: You feel comfortable having someone else manage the majority of the process for you. You don t want to invest in additional staff, software, hardware and bandwidth. You don t mind paying fees on a campaign-by-campaign basis. You want someone else to manage the technical side of the application, including upgrades, bug issues and other maintenance. You don t have time to build relationships with ISPs which is very important for deliverability Marketing Platforms 2015 Buyer s Guide Page 24

25 You want someone else to worry about authentication technologies (e.g. SenderID, Yahoo Domain keys or Goodmail). An ASP solution is a good choice for you if: You want someone else to manage the IT side of the application, including upgrades, bug issues and other maintenance. You don t want to invest in additional hardware or bandwidth. You don t mind paying an ongoing fee. You re comfortable with the added administration. An in-house solution may be suitable if: You have a strong internal IT team with time to learn and develop the application, handle internal support, upgrades and other maintenance. You want to keep your data in-house and can handle security issues. You have or will invest in the necessary hardware and bandwidth to handle increasing volumes. You have a team in place with good knowledge of marketing and permission marketing. You want to make a larger initial investment and minimise or eliminate ongoing fees. The following table (taken from a white paper by Silverpop: Selecting an Enterprise-Level Marketing Vendor 13 ) summarises the advantages and disadvantages of different solutions: 6.3. What kind of ESP are you looking for? Prior to selecting a vendor, it is important to have a clear understanding of the current programme and what the company hopes to achieve, including long-term goals and objectives. When selecting an marketing vendor, it is important to think long-term and consider which features will serve your needs as the business grows. Changing your marketing vendor will involve high switching costs, not only incorporating the cost of the software, but also the time and resources to manage this. Some features may be relevant and trendy today, but it is important to Marketing Platforms 2015 Buyer s Guide Page 25

26 select a vendor that has a robust understanding of the basics and fundamentals of marketing. It is crucial to give the potential solutions provider as much information as possible, including details about the features that you are looking for within your organisation, and to ask questions. The more information you provide, the more detailed the ESP can be, and this gives them the ability to tailor the programme according to your specific needs. Suppliers come in different shapes and forms and it is useful to have an idea of the supplier s background as an organisation. It is important to not only look at whether the vendor has the required features, but also at how well they are implemented within the campaign. Another aspect worth considering is terms of services specified by the ESP and whether they are appropriate for your specific organisation. Do you want a global ESP with experience in many markets and languages or would you prefer to work with a smaller company, which operates only in the UK? Would you prefer a vendor which focuses purely on services or are you happy with a supplier which offers as part of a broader portfolio of services? Are you seeking a vendor with expertise in a specific area, such as newsletters or rich media solutions? Are you confident that the suppliers you are talking to have experience (and references/testimonials) which are relevant to your own unique business issues? How will the ESP interact and co-operate with other agencies you use, both online and offline? How confident are you about the ESP s data centre and is this sufficiently secure and backed up? Does the ESP have expertise in a particular sector or do they work across different industries? The following table summarises some of the key questions to ask a potential supplier before selection: Key questions to ask a potential supplier How quickly does the vendor upgrade its software and services in response to your needs and new industry requirements? How would you describe the quality of new upgrades and releases? Are transitions smooth with regards to leadtime and preparation? How has the vendor improved marketing productivity? How did the vendor improve on or solve an existing dilemma or problem? Does the vendor offer any useful feature you did not know you needed? How does the vendor handle itself when something goes wrong? Are problems escalated appropriately? Did the vendor integrate your applications? How well did it work? Were the ongoing costs and support what you expected? Was the vendor willing to go the extra mile when you had unexpected needs? Was pricing in line with your initial quote and expectations? How is the vendor s uptime? What type of back-up infrastructure does the ESP have for downtime? Marketing Platforms 2015 Buyer s Guide Page 26

27 Key questions to ask a potential supplier How is data backed up and recovered? What is the vendor s policy regarding the collection of addresses? Who manages and owns the unsubscribe process? Can this be managed in-house? What type of performance monitoring and analytics does the vendor offer? What channels does the ESP use for customer support? What is the vendor s acceptable response time as set out in their SLA? Source: Selecting an Enterprise-Level Marketing Vendor, Silverpop Whitepaper Choosing an ESP is like selecting a spouse, Sarah Hodges, Vendor Selection 6.4. Do you fully understand your own role and potential internal barriers to effective delivery? It is important to recognise that campaigns will require effective input from your own organisation to be successful, as well as the expertise and competence of your chosen vendor. The extent to which internal input will be critical to the campaign s success will vary depending on whether or not you outsource your ing requirements. Again, it is important to ask yourself the following questions. What features do you require, and what features will you need six months from now? Whose buy-in do you need to make sure that marketing is integrated within wider organisational marketing strategies as effectively as possible? Do you have an understanding of internal branding guidelines and access to creative resources to make the campaign a success? Who will be responsible for managing the project internally and making sure that deadlines are met? Is it clear how success and ROI will be measured? How will data be captured and do you have the organisational capability to exploit the insights made possible by sophisticated tracking techniques? What internal resources are available and what knowledge of marketing do these employees have? Is there a requirement for the same or similar campaigns in other locations, European or worldwide? Who is the project sponsor and who has ultimate sign-off? What is the deadline for delivery and who controls that deadline? Also see our Marketing Business Case 14 for more information on securing support and budget within your organisation. Silverpop s white paper entitled contains more tips and pitfalls on selecting an appropriate vendor, as well as a guide to writing an RFP. Econsultancy s Marketing Request for Proposal 15 template can also help during the buying process Marketing Platforms 2015 Buyer s Guide Page 27

28 7. Market Positioning Charts 7.1. Explanation for Chart 1: Target market Most related business comes from providing services Where we are going Most -related business comes from selling product Marketing communications product focus Where we are now Broad marketing tech suite The vertical axis charts to what extent the service provider offers an platform and services as part of a wider portfolio of services. The horizontal axis charts to what degree the ESP provides a full scope of marketing technology as opposed to a product focused on a specific area of services. Marketing Platforms 2015 Buyer s Guide Page 28

29 7.2. Market positioning overview: Target market Most related business comes from providing services Most -related business comes from selling product Marketing communications product focus Broad marketing tech suite Marketing Platforms 2015 Buyer s Guide Page 29

30 7.3. Explanation for Chart 2: Technology focus Sector agnostic Where we are going Sector specialists Where we are now SME / SMB focus Mainly blue chip / enterprise customers The vertical axis charts the degree to which the ESP specialises and has clients in a specific group of sectors, as opposed to having clients from a broad range of industries. The horizontal axis charts the extent to which the supplier is focused purely on SMEs as opposed to targeting enterprise clients. Marketing Platforms 2015 Buyer s Guide Page 30

31 7.4. Market positioning overview: Technology focus Sector agnostic Sector specialists SME / SMB focus Mainly blue chip / enterprise customers Marketing Platforms 2015 Buyer s Guide Page 31

32 8. Supplier Marketplace and Profiles 8.1. Oracle Marketing Cloud Product Name Oracle Marketing Cloud Company Proposition The only Modern Marketing solution that integrates cross-channel, content, and social marketing with data management for the enterprise. Brief Company History On December 20, 2013, Oracle announced that it had entered into an agreement to acquire Responsys, the leading provider of enterprise-scale cloud-based business to consumer (B2C) marketing software. This announcement follows the similar integration of Eloqua into the Oracle Marketing Cloud in Responsys is used by the most respected B2C brands across the globe to manage and orchestrate marketing interactions with their customers across , mobile, social, display and the web. More than 450 companies across a wide range of industries rely on Responsys to drive more revenue and improve the customer experience at every interaction. The addition of Responsys will extend Oracle's Customer Experience Cloud, which includes the Oracle Sales Cloud, Oracle Commerce Cloud, Oracle Service Cloud, Oracle Social Cloud and the Oracle Marketing Cloud. By bringing together Responsys and Oracle, for the first time CMOs across industries will be equipped to drive exceptional customer experiences across marketing interactions and throughout the customer lifecycle from a single platform. USP What sets you apart from competitors? With Oracle Marketing Cloud, the CMO can deploy a complete platform that finds, nurtures, and retains the most ideal and profitable customers to grow the business. Our experts serve leading brands around the world with winning best practices and services. We pride ourselves upon delivering content in context by planning, producing, and delivering engaging content across multiple personas and channels throughout the customer lifecycle. With millions of variables in customers, content, and touch points we help marketers utilise comprehensive data to drive precise orchestration for their marketing strategies. Connect to hundreds of integrated marketing apps in the cloud, we tear down the silos so marketers can adapt and scale their campaigns on a single system of record. CLIENTS LinkedIn Vodafone JCrew Luftansa Airlines Comcast Airbnb Whole Foods Crew Clothing New Look SECTOR SPECIALISATION 1. Retail 2. Travel/Hospitality 3. Financial Services/Insurance 4. Technology 5. Consumer Services HEAD OFFICE ADDRESS Oracle 475 Sansome St #15 San Francisco, CA OTHER OFFICE LOCATIONS Americas (Chicago, New York, Denver, Seattle) EMEA (UK, Denmark, Germany, Sweden) Asia Pacific (Melbourne, Sydney, Tokyo, India) South America (Brazil) UK / EUROPEAN CONTACT Nicola Cooper Senior Manager, Field + Online Marketing, EMEA nicola.cooper@oracle.com US CONTACT Oracle Responsys Head office Marketing Platforms 2015 Buyer s Guide Page 32