According to a new Marin Software study, conducted by Forrester Research, marketers are using online advertising to drive revenue outcomes, but face challenges without ample visibility into key performance metrics. The study suggests that advanced ad management programs can help advertisers scale ad programs, enable insight into data, offload operational headaches and improve program performance.
Key findings of the study show that advertisers value online advertising because it’s flexible, targetable and drives immediate revenue outcomes. 83% of respondents are already held accountable for revenue outcomes; 79% say that driving revenue is a primary objective for online initiatives. 74% look to technology to ameliorate problems.
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Editor’s Note: This week, Marketing Daily brings you exclusive coverage of the Brand Keys 2013 Customer Loyalty Engagement Index (CLEI). Each day, expect a full report on key product/services categories from among the 54 surveyed for this year’s study, including automotive, electronics, retail and technology. This second installment covers electronics, telecommunications and entertainment.
Move over, Apple — there’s a new brand dominating loyalty in the world of consumer electronics.
Samsung, which has scored well in previous years, is now the leader in most of the categories in which it competes (as measured by Brand Keys’ 2013 Consumer Loyalty Engagement Index). The Korean electronics giant comes out on top of the laptop computer (tied with Apple), flat-screen TV and smartphone categories, and was number two among home printers and tablets.
“This is a big turnaround,” Robert Passikoff, Brand Keys founder and president, tells Marketing Daily. “Samsung was always strong, but this is a bit of a switchover. It was a surprise. I guess it shouldn’t have been. I’ve been watching their advertising, and I thought it was really good.”
Myers Media Business
Total digital advertising and marketing investments are forecast to increase to $160 billion in 2020 from $36 billion in 2012, according to a new report issued by Jack Myers Media Business Report. With average annual compounded increases of 25.4% between 2013 and 2015, and 17.7% annual increases between 2016 and 2020, every media and marketing category is positioned to benefit from digital growth, except yellow pages directories. Digital advertising and marketing growth is forecast by Myers at 25.9% in 2013, compounding 25.3% growth in 2012. While legacy media categories such as network television and magazines are positioned for significant increases in revenues that enable them to compensate for declines in traditional ad revenues, the primary beneficiaries from digital expansion are social marketing, online originated video content, mobile and apps advertising, and interactive TV advertising. Myers’ search marketing forecasts have been published separately.
Click here for Jack Myers Video Report on Marketers Shifting Billions in Promotional Spending to Digital. The full Myers forecast covering 52 legacy and digital media and marketing categories from 2010 to 2020 is available to subscribers at www.jackmyers.com.
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LONDON/WASHINGTON: Marketing budgets have increased for the first time in more than six months at the worldwide level, according to Warc’s latest Global Marketing Index. The Global Marketing Index, which draws on data from a panel of 1,225 executives, revealed that the monthly index for global marketing budgets stood at 50.4 points in January, on a scale where scores over 50 points indicated a positive trend.
As well as constituting the first growth witnessed on this measure since May 2012, this result marked only the fourth such expansion during the last 16 months.
The Americas enjoyed an increase from 50.2 points to 53.9 points in January month on month. Budgets, however, were being trimmed in Asia Pacific, on 48.1 points, and Europe, on 46.2 points.
“Positive budget setting in the Americas has lifted the index for global marketing budgets into growth territory for the first time since May,” said Suzy Young, Warc’s data editor, said.
A broad swath of marketing executives expects interactive advertising to continue its strong growth, this year. According to AdMedia Partners and its 19th annual survey of industry leaders, nearly one-half (45%) of respondents believe digital advertising will grow by 10% to 15% in 2013. The median growth rate remained consistent in the last two years at 13%, reports AdMedia, which surveys executives in the fields of advertising, marketing services, digital marketing, marketing technology, media technology, media or digital media.
Industry heads remain bullish about mobile’s prospects. In fact, four in 10 respondents (40%) say they expect to see an increase of at least 20% in mobile. Plus, the majority (53%) expect video ad spending to grow between 10% to 20%, while over one-half (55%) anticipate social ad spending to grow between 10% and 20%.
For its research, the company surveyed more than 7,400 domestic and international executives late last year — 52% of whom identified themselves as being in the “services/marketing or media technology” fields; 16% of whom said they were in the “content” business; while 32% checked the “multiple/other business” box.
This infographic is based on IDC’s 2012 IT Buyer Experience study. It shows how buying teams are structured, how long decisions take, top influencers, and key expectations of vendors. IT sellers can align their sales and marketing activities to these behaviors to help expedite the sales cycle.
For additional resources on the study, including a webinar, click here
This IDC study is part of IDC’s annual top 10 predictions series and focuses on the outlook for the chief marketing officer (CMO) job role. The theme of the study is that the CMO of the future will have to be a “master of data” — capable of collecting and analyzing the streams of data that buyers create as they travel through digital and social pathways. It is IDC’s contention that, in general, this is going to be a difficult journey for many CMOs and their teams as they lack the technical resources to master these skills. As such, a CMO and CIO liaison will need to form, and hiring of technical marketers will ramp up.
According to IDC Group Vice President Rich Vancil, “The challenge for the CMO is dealing with self-educated buyers. These are the smart, resourceful, and socially connected consumers who do their own research before ever entering the formal channels of a vendor’s marketing and selling apparatus. In the wake of all of their self-education is a stream of data that the CMO will have to understand. How much do these buyers know”? Where have they been in their education quest? Where are they going next? What is their sentiment about our products or services?”
“And so the CMO has to become a master of data. The ability to do so is not just a ‘bet the marketing department’ issue: it’s a ‘bet the company’ issue. And for those who do not believe that, just look at the number of companies and industries already transformed by the Internet. And then multiply that rate of change by 5 times or more — and I think you are looking at the very near future.”
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Listen to the webinar: IDC- 2013 Chief Marketing Officer Predictions: Today’s CMO Becomes Master of Data
As a result of higher seasonal ad spending, the fourth quarter is typically the strongest of the year for display advertising. But the latest report from Macquarie Securities analyzing home page ad trends suggests that display advertising at the end of 2012 improved in the prior quarter and year-earlier period, too. Overall, more than half (56%) of home page ads running across Yahoo, AOL, MSN and YouTube were oversized/custom units, compared to 45% in the third quarter and 43% in the fourth quarter of 2011. Macquarie uses these units as a proxy for display ad health because they tend to command higher CPMs than traditional ad sizes.
The report noted an increase in purely brand-focused (versus direct-response) advertising in Q4, at 67% of ads — up from 58% in Q3, and 59% a year ago. In terms of industry categories, media and financial services led the way, accounting for 18% and 14% of home page ads, respectively. Holiday promotions in auto, telecom, consumer electronics and retail also drove much year-end advertising.