View the slides from our recent webinar, detailing insights from our report, "The 2019 State of Digital Marketing", presented by Omar Akhtar and Ted Moser. View the full report here: http://bit.ly/altimeter-2019-digital-marketing
1. Proprietary and confidential. Do not distribute.Proprietary and confidential. Do not distribute.
The 2019 State of Digital Marketing
WEBINAR
OMAR AKHTAR
RESEARCH DIRECTOR,
ALTIMETER, A PROPHET COMPANY
TED MOSER
SENIOR PARTNER
PROPHET
2. 2
Prophet helps clients generate uncommon growth in a digital age
INNOVATION
& EXPERIENCE
BRAND
& ACTIVATION
ORGANIZATION
& CULTURE
MARKETING
& SALES
DIGITAL TRANSFORMATION OF…Focused on:
Fueled by:
Research
Benchmarking
Strategy
Enablement
Design
Making
Technology
Data
Activation
Change
Insights
Analytics
Interdisciplinary Support
3. 3
2019 State of Digital Marketing – Key Areas of Focus
Intent: Why are digital marketers investing?
Practices: What are digital marketers doing and learning?
Enablement: How are digital marketers scaling?
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Research methodology
• Data is from Altimeter’s 2019 State of Digital Marketing benchmark survey,
which surveyed 500 senior digital marketing executives in
North America, Europe (France, UK and Germany) and China
• Majority of respondents were from five industry verticals,
technology, finance, manufacturing, healthcare and retail
• Respondents were from companies with at least 1,000 employees
• Results were also segmented by type of company (B2B vs B2C) and by marketing goal
5. 5
What use cases are driving Digital Marketing activity?
• Brand-building • Always-on
inbound nurture
• Sales force
productivity growth
• Digital applications
& services
• Market-shaping • Long-tail customer
acquisition
• Channel partner
enablement
• Customer service
• Product & solution
launch / ramp
• Account-based marketing /
key account management
• E–commerce • Simulation marketing
(VR/AR)
• Product & service
Upsell / cross sell
• Customer engagement
and loyalty development
• Location-based
immersive experiences
• Customer experience
monitoring
Brand & product
marketing
Customer relationship
development
Routes to market
enablement
Operational
marketing
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Top Digital Marketing Use Cases
5%
13%
20%
26%
37%
Increase business/revenue with existing customers
Increase awareness and positive sentiment around new
products
To deliver a high quality, unified customer experience
across all digital channels
Increase the number of new leads/customer prospects
Increase brand awareness and brand health
What is the primary goal for your digital
marketing strategy?
• North-American marketers were even more likely
to report brand awareness as their top goal
(40%), whereasChinese respondents listed
increasing leads (36%) over brand awareness
(31%) as their top priority.
• Finance industry indicated that delivering a great
customer experience was their top goal (26%). By
contrast, healthcare rated customer experience
as their lowest priority (7%) and over- indexed on
brand awareness.
7. Investments in excellence can aim at different impact drivers
Improvement Opportunities
Process
Excellence
Touchpoint
Quality
Planning
• Digital marketing
strategies
• Campaign
concepts
and planning
• KPIs and
impact
attribution
Insights
• Journey
& paths
• Moments
that matter
• Account types /
buyer segments
• Recognition,
assignment
& scoring
Best moves
• If-then
thresholds
• Best move
strategies
• Move
analytics/
ML integration
Content
• Role of content
by persona
and stage
• Messages &
customization
• Content formats &
experiences
• Content
analytics/
ML integration
Media Mix
• Channel
strategies
• Digital
channel mix
• Sales force/
GTM partner
collaboration
• Channel
analytics/
ML integration
OUTBOUND
• Email
• Ads
• Social
• Tele–sales
• Sales touch
• Partner touch
INBOUND
• Search
• Chat
• Social
• Web
• AI assistant
• Mobile
IN–USE
• Hosted
applications
• Mobile
apps
• Digital service
dashboards
• IOT
Systems
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Top digital marketing initiatives in the next year
11%
12%
18%
30%
39%
41%
48%
50%
51%
Support the sales teams with more data and content
Invest in new digital marketing channels such as IoT, Beacons
or AR/VR
Restructure organization to follow a new digital marketing goal
or strategy
Increase the production of marketing content
Use better techniques and technology to measure the impact
of digital marketing
Integrate multiple software systems to share customer data
Hire more creative skills to scale content in new interactive
formats
Invest in technology that enables real-time delivery and
personalization of data
Use more data to create customized content that serves the
customer journey
Which of the following initiatives
are your top priorities in the next 12 months?
Real time personalization
Content creation
Data strategy
Better organization
Investing in new channels/innovation
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Top Digital Marketing Challenges
19%
33%
46%
46%
47%
54%
55%
Aligning multiple teams around a unified strategy
Producing customized content based on customer data
Getting investment/support from executive leadership
Purchasing or integrating the right software
Proving the business impact of digital marketing
Scaling marketing innovation across business units and
geographies
Hiring the right skills/people
Q: What are the top challenges for your digital marketing
organization?
• The difficulty of hiring the right people was felt
more acutely by marketers in Europe (61%)
• Manufacturing cited scaling innovation (61%)
and proving the impact of digital marketing
(60%) as their top challenges
• Respondents that listed “brand awareness” as
the top goal for their digital marketing efforts
were also more likely to struggle with getting
executive investment and support (62%)
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Top Digital Marketing Metrics
17%
26%
44%
47%
48%
55%
61%
Net Promoter Score
Digital engagement (content
interactions/shares/likes/downloads)
Customer acquisition
Leads Generated/Converted
Brand Awareness/Brand Health
Direct revenue (e-commerce or sales)
Customer Loyalty/Customer Lifetime Value
Q4:What are the primary metrics you use to
measure digital marketing success?
• In China, the focus on CLV was even more pronounced,
with 75% of respondents citing it as the top metric for
their digital marketing efforts. I
• In NorthAmerica, direct revenue (63%) was rated slightly
ahead of CLV.
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2019 State of Digital Marketing
Intent: Why are digital marketers investing?
Practices: What are digital marketers doing and learning?
Enablement: How are digital marketers scaling?
12. Prophet Proprietary and confidential. Do not distribute. 12
Shifts in Segmentation Techniques
2%
61%
64%
68%
78%
We do not currently use customer
segmentation for digital marketing
Based on their psychographic profiles (based on
attitudes/beliefs/values)
Based on their propensity to buy a certain
product
Based on their demographic data
Based on their online/digital behavior
How do you currently segment your target
customers?
• 80% of North-American marketers said they used
demographic data to segment their target
customers, compared to only 53% of marketers in
Europe and 47% in China.
• Respondents who cited brand awareness as the top
goal were more likely to use demographic data
(76%) than were those who focused on product
awareness (58%) and CLV (38%) as their biggest
priorities.
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Benchmarking Mature Digital Marketing Practices
1%
5%
32%
62%
No, we have not, and have no plan to
do so
No, but we plan to do so in the next
6 months
We are currently in the process of
building the digital customer journey
Yes, we have fully mapped the
digital customer journey across all
digital touchpoints
Q: Have you mapped a digital customer journey
and clickstream that charts customer interactions
on every digital channel?
1%
6%
31%
62%
No, we have not, and have no plan to
create one
No, but we are currently in the process
of creating the framework
Yes, we have created a content
customization framework, but it is
only used on one or two channels
Yes, we have created a content
customization framework that is
currently being used on all digital
channels
Q: Have you created a content customization
framework that specifies what type of content should
be delivered to each customer segment?
1%
5%
29%
65%
No, we have not, and have
no plan to do so
No, but we are currently in
the process of creating the
testing framework and
process
Yes, we have identified
testing and learning
opportunities, but they are
limited to one or two…
Yes, we have identified
testing and learning
opportunities in multiple
points along the digital…
Q: Have you identified opportunities in
your digital marketing operations to test
content formats, offers or messaging?
• Sixty percent of North-American marketers reported their companies have mapped a multi-channel digital customer journey, compared to only 48% in
Europe and 56% in China.
• 73% of North-American marketers reported identifying such opportunities, compared to 54% and 52% of marketers in Europe and China respectively.
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Most effective digital marketing channels
14%
15%
27%
28%
42%
48%
56%
69%
Email
Mobile app
Online video
Native ads
Paid search
Display advertising
Company website
Social media (organic + advertising)
Q: Which channels are the most effective or deliver the
best ROI for your digital marketing strategy?
• China was the only region where respondents rated their
companies’ websites as more effective than social media.
• A reliance on social media was particularly pronounced in
the technology industry, where 80% of respondents rated it
as their top channel.
• Despite its low rating overall, email was ranked highly (33%)
by marketers at companies where CLV is the top goal for
their digital marketing efforts. In contrast, marketers at
companies that focused on brand awareness rated email at
the bottom of the list (8%).
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Real-time personalization capabilities
19%
16%
16%
16%
11%
45%
46%
44%
42%
40%
36%
37%
40%
42%
49%
Display advertising
Social media (organic + advertising)
Email
Mobile app
Company website
Q: Please rate your ability to do real-time personalization in each of the following
channels.
Low - Currently do not do personalization Medium - In process of implementing personalization
High - Executing personalization at optimal levels
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Top data sources for personalization
0%
40%
57%
58%
58%
69%
72%
We do not create data-based content
Third-party databases
Customer service/call-center records
Customer surveys/research
CRM systems
Social media metrics
Website analytics
Q: What are the primary data sources you use to deliver
personalized messages and content on your digital
marketing channels?
• Chinese respondents were more likely to use CRM systems
(61%) or call- center records (61%) to personalize content
• Marketers at healthcare companies also reported high rates
of CRM and call- center data use (70% for both) along with
web analytics (75%)
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2019 State of Digital Marketing
Intent: Why are digital marketers investing?
Practices: What are digital marketers doing and learning?
Enablement: How are digital marketers scaling?
18. Investments in enablement can drive excellence
Team empowerment
• Organization
• Process
• Skills
• Culture
Platform effectiveness
• Technology platform(s)
strategy & governance
• Data strategy & governance
19. Prophet Proprietary and confidential. Do not distribute. 19
Primary marketing technology platforms and challenges
0.6%
1.6%
2.2%
4%
5%
18%
20%
22%
26%
Other (Please specify)
Hubspot
SAS
Marketo
SAP
IBM
Oracle Marketing Cloud
Adobe Marketing Cloud
Salesforce Marketing…
Q: Which one of the following martech platforms is the primary
software for your digital marketing strategy?
4%
11%
17%
17%
20%
31%
Lack of customer support and
resources
Not utilizing the full
features/capability of the…
Lack of skills to operate
Budget
Long time to see a return on
investment
Integration
Q: What are the biggest challenges in
effectively using marketing technology?
• Salesforce and Adobe were neck-in-neck in NorthAmerica (27% and 26%, respectively), but Salesforce and IBM were well ahead in Europe.And marketers
in China ratedOracle (29%) ahead of everyone else.
• Marketers that cited brand awareness as their top goal for digital marketing were more likely to use Adobe (33%) than Salesforce (25%). Meanwhile, IBM
(38%) was the top choice for marketers who focus on CLV. Oracle and Salesforce (24%) tied for top choice for marketers who cited customer experience as
their top goal.
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Adoption of new technologies and innovations
22%
27%
11%
9%
11%
6%
41%
35%
39%
38%
35%
37%
37%
37%
50%
53%
55%
57%
Augmented Reality/Virtual Reality
Beacons
Internet of Things
Machine learning/AI for content personalization/product
recommendation
Voice/smart assistant
Digital screens
Q: Please indicate whether you currently use or plan to use the following new
technologies.
Not currently using Plan to use in the next 18 months Currently using
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Top Digital Marketing Skills
6%
8%
26%
28%
28%
29%
29%
31%
36%
38%
41%
Paid media/programmatic advertising
SEO/SEM expertise
Social media listening, publishing and advertising
Program/project management
Graphic design
Content editing and writing
Coding/development
Video production and editing
User Experience design
Marketing automation/software expertise
Data analysis
Q: What are the most desired skills for your digital marketing
hires in 2019-2020?
• China was the only region where data analysis
wasn’t the most desired skill in new hires.
Instead, User Experience (UX) design skills were
far more in-demand (52%).
• UX design was also a top choice for hiring
marketers in the retail industry (40%)— an e-
commerce heavy vertical — and in healthcare
(42%).
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Looking forward
Questions?
Omar Akhtar
oakhtar@
altimetergroup.com
Ted Moser
tmoser@prophet.com
Next
Report?
Organizational
Models for
Digital Marketing
Want
to Improve?
Prophet and Altimeter
help clients to gain a
Digital Marketing Advantage
through
systematic capability
development
23. 23
Prophet supports systematic digital marketing excellence
BEST PRACTICE ADOPTION by opportunityBEST PRACTICE RESULTS by opportunity
DIAGNOSTIC &
ROAD MAP
IN-MARKET
PILOTS
COMPETE
EXCEL
OUTPERFORM
LAG
Best Practice Adoption
Best
Practice
Results
AGILE
IMPROVEMENT
C0-
EXECUTION
TRAINING &
MENTORING
COE &
COMMUNITY
TRANSFORMATION MANAGEMENT & OPTIMIZATION
INVESTMENT
& RETURNS
AGILE PMO
& COMMS
GOVERNANCE
& (RE)FOCUS
STRATEGIC FOCUS & OPERATING MODEL
OPERATING
MODEL DESIGN
OPPORTUNITY
PRIORITIZATION
BUSINESS CASE
FOR INVESTMENT
Advantage by opportunity…
24. Thank you
OMAR AKHTAR
RESEARCH DIRECTOR,
ALTIMETER, A PROPHET COMPANY
oakhtar@altimtergroup.com
TED MOSER
SENIOR PARTNER
PROPHET
tmoser@prophet.com
25. Prophet Proprietary and confidential. Do not distribute. 25
http://bit.ly/altimeter-2019-digital-marketing
To learn more, download the full report