More than a third (35%) of senior marketing professionals believe that digital marketing will account for more than 50% of marketing spend by 2019, according to a new report from Accenture. 37% feel it’ll account for 75% or more of all budget.
Accenture’s research is based on survey responses of nearly 600 executives in 11 countries conducted between November 2013 and January 2014.
My immediate question when I saw this headline for the report is what is "digital investment"? Is this just online advertising rather than actual marketing? We have to guard from a lazy “TV 2.0” mindset towards digital where we move ad spend, literally online. Thankfully the report is more broadly focussed on using digital to orientate around a consumer - so all's good!
What's behind the positivity about the future of digital? With the Accenture report stating that:
42% of marketers feel that analytics and working with metrics will become a ‘core competence’ in marketing over the next five years
Is this the result of increased focus on analytics and measured effectiveness? A growing confidence that the proof is in the pudding?
The findings suggest that CMOs are currently finding themselves short - the four key insights from the report from our perspective:
According to Accenture, winning CMOs lead and transform the marketing role from a digital perspective, transforming the enterprise as result.
Do we believe it? The logic is sound but actions speak louder than words. Currently, Procter and Gamble direct only a third of their budget to digital marketing, although they have stated that they intend to increase this as it looks for more efficient marketing strategies, an approach also adopted by SABMiller and Pernod Ricard. Unilever, with brands such as Dove and Marmite, directs a mere 17%, so there’s some distance to go.
It’s a key and important question - here are three great start-points in the report:
Here's a full summary in infographic form:
By Danyl Bosomworth
Dan helped to co-found Smart Insights in 2010 and acted as Marketing Director until leaving in November 2014 to focus on his other role as Managing Director of First 10 Digital. His experience spans brand development and digital marketing, with roles both agency and client side for nearly 20 years. Creative, passionate and focussed, his goal is on commercial success whilst increasing brand equity through effective integration and remembering that marketing is about real people. Dan's interests and recent experience span digital strategy, social media, and eCRM. You can learn more about Dan's background here Linked In.
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