Report: Marketers ramp up tech spend but experience still driving budget decisions

Latest survey of senior marketers by Econsultancy/Teradata finds data to be a key way of making strategic decisions, but is less relied on for budgeting

Experience is still playing a larger role than data with marketers when it comes to making budget decisions, a new report claims.

The joint Econsultancy and Teradata report, Enterprise Priorities in digital marketingfound 40 per cent of the 402 senior marketing respondents are using data and experimentation to make strategic decisions, yet the figure drops to 23 per cent when it comes to budgeting decisions. Instead, competitive analysis (27 per cent) and experience and instinct (26 per cent) are the most common ways of making budgeting decisions.

The findings are strikingly similar to a recent report produced by the Economist Intelligence Unit, Gut and gigabytes: Capitalising on the art and science in decision making, which found 68 per cent of Australian executives either rely on their own intuition, to the advice and experience of others, to make big decision.

The Econsultancy/Teradata report also looked at the state of technology investment and found 36 per cent of companies are currently evaluating marketing attribution systems, while 48 per cent expect to do so over the next 12-24 months. This was followed by marketing cloud and application management systems (32 per cent under evaluation), and audience management systems (28 per cent).

When asked about the priority of technologies currently in use, data management platforms came up trumps as the top priority for 29 per cent of respondents, and a high priority for a further 43 per cent. This was followed by audience management system (23 per cent and 50 per cent, respectively), marketing cloud and application management systems (23 per cent and 34 per cent), and content management systems (23 per cent and 43 per cent).

“An overarching takeaway is that everything is a priority; every technology has at least half of the respondents describing them as ‘high’ or ‘top’ priorities,” the report authors noted.

What was clear across the report was the focus being placed by marketers on customer engagement. Sixty-two per cent of respondents viewed customer satisfaction as the top reason to invest more in technology, and 49 per cent said becoming more customer-centric was their top two priority.

Personalisation was rated by one-third of respondents to be a top priority, yet while 86 per cent are practising some form of personalisation, fewer than 20 per cent are executing on this day-to-day and in a real-time way. Just shy of half of marketers said the top benefit of personalisation programs is improving customer experience.

Over the next year, 51 per cent of marketers are focusing on personalising the customer lifecycle, and segment-level and real-time personalisation are core overall areas of focus.

“Strategic direction is only as powerful as the investment that supports it,” commented Darryl McDonald, president, Teradata Marketing Applications.

“We’ve been talking about personalisation for years. Now, through digital marketing, custom analytics and marketing as a service the appetite is real, and true personalisation is the future. Only a customer-centric strategy that combines technology and data can deliver sustainable opportunities for businesses to drive top-line growth through continuously more personalised data-driven marketing strategies.”

Respondents said digital investments are expected to reach 40 to 50 per cent of marketing budgets by 2019. At present, digital advertising is the largest single channel budget at 17 per cent, followed by search (16 per cent) and content (15 per cent).

The Econsultancy/Teradata report was based on a survey undertaken in July of 402 senior marketers from global organisations with more than US$500 million in revenue.

Signup to CMO’s email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

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

Customer experience crisis: Proactively mitigating the risk of broken promises

Last Friday, three weeks after United Airline’s spectacular customer experience disaster, customers received a letter from the company’s CEO, Oscar Munoz.

Very rarely have I come across views so true. There are so many gems in this article, reflective of reality, onec can read it again and a...

Shyam Mishra

ANZ digital chief: Tackle the ‘frozen middle’ of your organisation or face irrelevancy

Read more

STOP STEALING BUISNESS CLASS TOILETS from A380, new 787's and A330's!!!!Thats what you call customer experience ONE toilet for all Busine...

Joe

Qantas CMO: What it's taking to evolve our customer experience

Read more

Dare i suggest that a "CEO" role in a peak industry body like Think Brink is not really much of a leap from CMO because it is also a mark...

Sventana

CMO to CEO: Think Brick chief reveals what it takes to make the jump

Read more

Grate post, thanks for the post.No matter what your business is, if you do no not rank among the top most search results of Google, Yahoo...

Rahul

Image intelligence:10 must-see infographics for marketers

Read more

Thank you Shane Blandford for carrying my Smarketing vision into KM !

Peter Strohkorb

​CMO Interview: Why aligning sales and marketing drives innovation at Konica Minolta

Read more

Latest Podcast

More podcasts

Sign in