Digital advertising continues to dominate marketing budgets

By 2022, 87 per cent of total marketing budgets will be going to digital

APAC shoppers are more active on smartphones than ever, digital advertising dominates budgets, and social media is considered to be the most effective form of marketing to acquire new customers.

These are the key findings of the new Reach, Click and Conversions report released by Criteo.

The report, which gathers insights from Australian CMOs and marketers, found 44.8 per cent of total ad spend in Australia is online spend, followed by TV and then print. This reflected an increase from 36.2 per cent in 2014.

Paid display advertising took out the top spot for marketing budget allocation last year, making up 17.6 per cent, closely followed by social media at 16.5 per cent. By 2022, Criteo is expecting to see 87 per cent of total marketing budgets going to digital.

As well as digital increases, the report found TV, outdoor, radio and cinema advertising all rose slightly between 2014 and 2017. In contrast, print has significantly declined every year.

Social media marketing is consistently being rated as one of the most effective channels across all three stages of the customer journey and is one of the most widely used marketing activities. More than six in 10 respondents who have targeted acquisition campaigns are employing social media marketing (64.6 per cent), and marketers perceive social media marketing and SEO as the top two most effective marketing activities in acquiring new customers. Average effectiveness rating were at least four out of five, with social media marketing also perceived as the most effective for conversions and driving repeat purchases.

Conversion rates are five times higher on shopping apps than on mobile web, by 2020 smartphone ownership will overtake that of personal computer, and mobile Internet retailing is set to grow to $13.7 billion by 2022.

Having an integrated marketing campaign continues to be important, with 56.2 per cent of marketers believing having an integrated campaign improves user experience by providing consistent experience across the purchasing journey, and 44.9 per cent of marketers believing having an integrated campaign maximises ROI.

Personalisation also appeared as a key theme across all three stages of the customer journey, with personalisation seen as a key to driving repeat purchases, conversions, and acquisitions.

The report also found metrics, such as new revenue and new customer rate, are widely used to track campaign effectiveness in various stages of customer journey. Based on the most commonly used metrics across all three stages of customer journey, incrementality appears to be important to marketers.

In addition, 62 per cent of marketers surveyed indicated they have targeted campaigns for all three stages of the customer journey, mainly because the objectives, tactics, attribution model, and budget are different for campaigns at each stage.

Meanwhile, high cost and targeting efficacy are the main challenges marketers face at acquisition stage, with the main challenge at conversion stage being a disconnect between online and offline data. With re-engagement stages, the main challenge is lack of integration with CRM databases.

Social media marketing and paid display advertising are used by more than half of marketers at conversion stage. Paid display advertising, social media marketing and email marketing are then widely used to drive repeat purchases.

Just over half of marketers also believe targeted campaigns focusing on driving repeat purchases helps build customer loyalty or brand preference.

The Criteo report gathers insights from Australian CMOs and marketers and analyses local data to show the current state of play in Australia’s digital marketing landscape.

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

 

 

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

Latest Videos

Conversations over a cuppa with CMO: ABC's Leisa Bacon

In this episode of Conversations over a Cuppa with CMO, ABC's director of audiences, Leisa Bacon, shares how she's navigated the COVID-19 crisis, the milestones and adaptability it's ushered in, and what sustained lessons there are for marketers as we start to recover.

More Videos

Remote working has gained a lot of attention in the past few months. And the key driver to the smooth workflow of remote working is obvio...

varun

How to manage social media during Covid-19

Read more

Hi everyone! Hope you are doing well. I just came across your website and I have to say that your work is really appreciative. Your conte...

Rochie Grey

Will 3D printing be good for retail?

Read more

Zero proof spiritsUsa since 2011 www.arkaybeverages.com🤪🤟

Sylvie

How this alcohol-free spirits brand rode the health and wellness wave

Read more

okay this a good newsmaybe i gonna try it

kenzopoker1

CMO's top 8 martech stories for the week - 9 July 2020

Read more

Very insightful. Executive leaders can let middle managers decide on the best course of action for the business and once these plans are ...

Abi TCA

CMOs: Let middle managers lead radical innovation

Read more

Blog Posts

Why CMOs need a clear voice strategy to connect with their customers

Now more than ever, voice presents a clear opportunity to add value to an organisation in many ways. Where operational efficiencies are scrutinised, budgets are tighter and discretionary consumer spend at a low, engaging with an audience is difficult.

Guy Munro

Head of innovation and technology, Paper + Spark

MYOD Dataset: Building a DAM

In my first article in this MYOD [Make Your Organisation Data-Driven] series, I articulated a one-line approach to successfully injecting data into your organisation’s DNA: Using a Dataset -> Skillset -> Mindset framework. This will take your people and processes on a journey to data actualisation.

Kshira Saagar

Group director of data science, Global Fashion Group

Business quiet? Now is the time to review your owned assets

For businesses and advertiser categories currently experiencing a slowdown in consumer activity, now is the optimal time to get started on projects that have been of high importance, but low urgency.

Olia Krivtchoun

CX discipline leader, Spark Foundry

Sign in