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 CMO newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

Cannes 2017: The Machines Are Here

It’s day 4 in Cannes and among the ever-growing divergent panels, presentations and workshops spanning from one end of the Croisette to the other, there has been a very real emergence of how artificial intelligence (AI) and machine learning needs to fit into the marketing ecosystem of today and tomorrow.

Aden Hepburn

Executive creative director and managing director, VML Australia

Is your content marketing missing the mark?

Does it ever seem like the content you create falls flat on its face or that the leads you’re generating aren’t worth following up?

Dan Ratner

managing director, uberbrand

​ Creating a purpose-driven brand

So you want to be a brand with purpose. But what does it actually mean to build a brand with real meaning?

Paul Chappell

Partner and managing director, Brand + Story

It is interesting. Rebrand is very good. Perhaps they should change the logo to something more modern. For example as it is - https://www...

David Hill

Grace Group undergoes first rebrand in 30 years to unify and contemporise

Read more

Hey Guys, just one small typo that changes a part of the story :“That was a really big step forward for our company because we didn’t hav...

Damian Young

Chobani tastes success with data analytics platform

Read more

This is amazing! Congratulations to Cochlear for continuing to lead innovation in every way!

Chris

How this marketing ops leader is lifting the automation ante at Cochlear

Read more

Interesting case! It seems like universities can also benefit from marketing automation. I've started using getresponse some time ago and...

Aaren

How marketing automation is helping drive CX change at Adelaide University

Read more

Always great to see and read these success stories and the growth of gamification. This story is very warming and can act as an inspirati...

James Doyle

5 tips to boost engagement with gamification from Donut King

Read more

Latest Podcast

More podcasts

Sign in