Digital marketers spend less than 5 per cent on optimising

New Adobe Digital Marketing Optimisation study outlines the lack of investment into marketing optimisation strategies despite strong returns from such activities

More than half of digital marketers spend less than five per cent of their budget on optimisation activities despite growing signs these lift customer conversion rates, a new report claims.

Adobe’s new 2013 Digital Marketing Optimisation Survey found 86 per cent of all respondents allocate 15 per cent of less of their marketing budget to optimisation activities from search to content, and 53 per cent allocate under five per cent.

At the other end of the scale, just three per cent of companies allocate at least half their marketing budget to optimisation efforts. All results represented a dip on 2012 survey comparisons. The latest survey report was based on responses from 1800 digital marketers across the US, Europe and Asia.

While optimisation remains low on the list of priorities for digital marketers, its effects are significant, Adobe’s survey claimed. Companies who invested more than 25 per cent of their marketing budget on such activities were found to be twice as likely to enjoy higher levels of conversion rates. The average site conversion rate sits at below one per cent, but rose to five per cent or more for the 39 per cent of those who spend more than a quarter of their budget on this area, Adobe claimed.

Among the challenges stopping digital marketers from conducting optimisation activities are access to best-of-breed technology, the right processes in place within the organisation, and the right skill set across the marketing team.

The survey also found nearly half of respondents don’t see testing as a priority at their company, while 11 per cent said testing had been adopted as a form of decision-making company-wide. This was despite proven conversion rate improvements when testing was core to activities. Among the difficulties cited are budget constraints, resource availability, knowing how to test effectively and determining the significance of test results.

“Companies should start with small wins and grow from there,” the report authors advised. “It’s about optimising every interaction and every conversion event that move the customer to the end goal. In fact, failed tests are just as impactful in the lessons learned.”

The survey also looked at the importance of targeted and unique content and found 51 per cent of companies have their promotional or marketing content chosen by marketing executives. According to 87 per cent of marketers, less than half their onsite visitors are receiving targeted content at present, including 65 per cent who say they receive less than 20 per cent.

More than half say personalisation is very or somewhat important to the long-term goals of their organisation, and about one-fifth automate personalisation of content to site visitors based on their profile or behaviour. This was up five per cent year-on-year.

For those that have personalised content, 15 per cent claimed to get a “very positive” reaction from customers, and 42 per cent said “somewhat positive”. In addition, two-thirds of respondents who target content to more than 65 per cent of site visitors achieve conversion rates of more than two per cent.

Social media tactics also got a mention, with social sharing through sites such as Twitter and Facebook noted as “very effective” or “somewhat effective” by 83 per cent of those surveyed.

Mobile also proved its significance as a game-changer when it comes to personalising content and targeting customers. Thirty per cent of digital marketers consider mobile apps very effective at increasing conversion rates, and mobile tactics for increasing conversion rates with strong scores included check-in rewards, advertising promotions using QR code or bar-coded coupons and mobile apps.

However mobile conversion rates were still below one per cent for 57 per cent of companies involved in the research.

“Many companies choose to focus on form over function, not realising that a mobile site needs to address customers’ needs and facilitate the key functional requirements of the main site,” the authors noted.

More on digital marketing tactics:

Follow CMO on Twitter: @CMOAustralia or take part in the CMO Australia conversation on LinkedIn: CMO Australia.

Join the newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

Maintaining trust in a sceptical world: The power of brand trust

The faith people have in brands creates opportunity for those brands to become trusted advisors. In turn, this builds success by increasing the brand’s profile, letting it broaden its product offering and driving stronger customer loyalty.

Dan Ratner

managing director, uberbrand

When growth stalls: How to boost growth in large organisations

The push to start new businesses continues. In Q1 2017, the number of seed and angel deals increased by 1.4 per cent compared to Q1 2016.

Con Frantzeskos

CEO, Penso

Why we need diversity in marketing

​When we read articles about the need for increased diversity in marketing land, it is often through the lens of gender.

Jodie Sangster

CEO, ADMA

Interesting insight, well explained and the examples are just apt.Thanks for sharing!

FreshMindIdeas

The politics of branding - Brand science - CMO Australia

Read more

When the world that we live in floods with gigabytes of content every day, we have to learn to be selective about it. Such educational we...

Paulina Cameron

ADMA launches education program to tackle viewability, ad fraud and brand safety

Read more

Hi, i am an Aistralian ALK patient, been on xalkori dec 13 to oct 15 and achieved remission of disease, since been on Ceritinib until no...

gary packer

Pfizer Australia adopts AI-powered digital analyst tool for sales and marketing decision making

Read more

Hi James, shouldn't marketers also be focusing on collecting and utilizing up to date first-party profiling data on customers so that mes...

Tom

3 ways customer data can increase online sales conversion

Read more

Wouldn't reconnecting with younger consumers be in direct contravention of the code on alcohol advertising?

Tim Palmer

Vodka Cruiser reconnects with younger consumers via category-first Facebook Live campaign

Read more

Latest Podcast

Getting Intimate with CX Ep 5: Tammy Marshall, founder, The B Hive

How much of customer experience is having the foresight to know what those individuals might like, versus asking them? In Episode 5 of this new podcast series, BrandHook MD, Pip Stocks, talks with Tammy Marshall about the importance of asking your customers questions, how consistency plays a role in engagement, but how the unexpected adds extra value.

More podcasts

Sign in