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!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments
cmo-xs-promo

Latest Videos

More Videos

Nice blog!Blog is really informative , valuable.keep updating us with such amazing blogs.influencer agency in Melbourne

Rajat Kumar

Why flipping Status Quo Bias is the key to B2B marketing success

Read more

good this information are very helpful for millions of peoples customer loyalty Consultant is an important part of every business.

Tom Devid

Report: 4 ways to generate customer loyalty

Read more

Great post, thanks for sharing such a informative content.

CodeWare Limited

APAC software company brings on first VP of growth

Read more

This article highlights Gartner’s latest digital experience platforms report and how they are influencing content operations ecosystems. ...

vikram Roy

Gartner 2022 Digital Experience Platforms reveals leading vendor players

Read more

What about this one FormDesigner.pro? I think it's a great platform providing a lot of options, you can collect different data and work w...

Salvador Lopez

Gartner highlights four content marketing platform players as leaders

Read more

Blog Posts

​Why we need to look at the whole brand puzzle, not just play with the pieces

Creating meaningful brands should be a holistic and considered process. However, all too frequently it’s one that is disparate and reactive, where one objective is prioritized at the expense of all others. So, what are the key pieces to the ‘good’ brand puzzle?

Marketing overseas? 4 ways to make your message stick

Companies encounter a variety of challenges when it comes to marketing overseas. Marketing departments often don’t know much about the business and cultural context of the international audiences they are trying to reach. Sometimes they are also unsure about what kind of marketing they should be doing.

Cynthia Dearin

Author, business strategist, advisor

From unconscious to reflective: What level of data user are you?

Using data is a hot topic right now. Leaders are realising data can no longer just be the responsibility of dedicated analysts or staff with ‘data’ in their title or role description.

Dr Selena Fisk

Data expert, author

Sign in