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The CMO Survey - Highights and Insights Report - Feb 2018
About The CMO Survey
2
Mission
- To collect and disseminate the opinions of top marketers in order to predict the future of markets, track
marketing excellence, and improve the value of marketing in firms and society.
- The survey is an objective source of information about marketing and a non-commercial service
dedicated to the field of marketing.
Survey operation
- Founded in August 2008, The CMO Survey is administered twice a year via an Internet survey.
Questions repeat to observe trends over time and new questions are added to tap into marketing trends
- The February 2018 survey is the 20th administration of The CMO Survey.
Sponsoring organizations
- Sponsors support The CMO Survey with intellectual and financial resources.
- Survey data and participant lists are held in confidence and not provided to survey sponsors or any
other parties.
Survey Methodology
3
Survey sample
- 2796 top U.S. marketers at for-profit companies
- 362 responded for a 12.95% response rate
Survey administration
- Email contact with four follow-up reminders
- Survey in field from January 9-30, 2018
- 98.3% of respondents VP-level or above
Results interpretation
- M = sample average; SD = sample standard deviation
- B2B = Business-to-Business firms; B2C = Business-to-Consumer firms
Two other reports are available at cmosurvey.org/results
- The Topline Report: Results reported at the aggregate level
- Results by Firm and Industry Characteristics: Results reported within sectors, size, and Internet sales
Survey Topics
4
Topic 1: Marketplace Dynamics………………………………........ 5-15
Topic 2: Firm Growth Strategies……………………………........... 16-24
Topic 3: Marketing Spending…………………………………......... 25-39
Topic 4: Financial and Marketing Performance…………………... 40-43
Topic 5: Social Media Marketing…………………………............... 44-57
Topic 6: Mobile Marketing…………………………………………... 58-63
Topic 7: Marketing Jobs…………………………………………….. 64-70
Topic 8: Marketing Organization…………………………............... 71-73
Topic 9: Marketing Leadership……………………………………... 74-78
Topic 10: Marketing Analytics………………………………………... 79-91
Topic 11: The CMO Survey Award for Marketing Excellence…….. 92-94
Topic 1:
Marketplace Dynamics
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketer outlook on the U.S. economy
remains positive
6
47.7
56.5
57.8
55.6
63.3
52.2
63.4
58.4
62.7
65.7 66.1 66.4
69.9 69.7
64.4 63.7 63.2
65.8
68.9
40
50
60
70
80
Feb
09
Aug
09
Feb
10
Aug
10
Feb
11
Aug
11
Feb
12
Aug
12
Feb
13
Aug
13
Feb
14
Aug
14
Feb
15
Aug
15
Feb
16
Aug
16
Feb
17
Aug
17
Feb
18
Figure 1.1. How optimistic are you about the overall U.S. economy on a 0-100
scale with 0 being least optimistic and 100 most optimistic?
B2B Product 68.1
B2B Services 68.4
B2C Product 68.5
B2C Services 72.6
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketer economic optimism accelerates
over the last quarter
7
Figure 1.2. Are you more or less optimistic about the overall U.S. economy compared to last quarter?
30.6%
34.9%
42.5%
34.7%
51.2%
0%
20%
40%
60%
80%
100%
Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
More Optimistic
More Optimistic
51.2%
Less
Optimistic
11.8%
No Change
37.1%
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketer economic outlook varies by
industry
8
Figure 1.3. Are you more or less optimistic about the overall U.S. economy compared to last quarter?
More Optimistic
51.2%
Less
Optimistic
11.8%
No Change
37.1%
Top 3 Industry Sectors
Transportation
Consumer Services
Banking/Finance/Insurance
Top 3 Industry Sectors
Energy
Communications/Media
Tech/Software/Biotech
Top 3 Industry Sectors
Mining/Construction
Education
Healthcare
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Customer outcomes generally expected to
improve; price shows largest increase
9
Figure 1.4. Forecasted customer outcomes in next 12 months (% of respondents)
71% 69%
66%
50%
46%
31%
73% 70%
63%
53%
48%
37%
0%
20%
40%
60%
80%
100%
Increased
acquisition of
new customers
Increased
customer
purchase volume
Increased purchase
of related products
and services
Increased
customer
retention
Increased entry of
new customers
into the market
Increased
customer price
per unit
August 2017 February 2018
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Customer outcomes generally expected to
improve
10
Table 1.1. Forecasted customer outcomes by industry
Industry
Acquisition of
new
customers
Customer
purchase
volume
Purchase of
related
products &
services
Customer
retention
Entry of new
customers
into market
Price per unit
Overall 72.6% 70.4% 63.4% 52.7% 47.5% 37.1%
Banking/Finance/Insurance 68.8% 71.0% 71.9% 50.0% 53.1% 40.6%
Communications/Media 71.4% 47.6% 76.2% 42.9% 57.1% 23.8%
Consumer Packaged Goods 80.0% 76.0% 68.0% 40.0% 56.0% 40.0%
Consumer Services 63.6% 81.8% 45.5% 45.5% 54.5% 36.4%
Education 83.3% 66.7% 66.7% 83.3% 66.7% 16.7%
Energy 80.0% 60.0% 40.0% 60.0% 80.0% 40.0%
Healthcare 78.6% 75.0% 60.7% 60.7% 39.3% 39.3%
Manufacturing 69.0% 69.8% 45.2% 51.2% 23.8% 44.2%
Mining/Construction 50.0% 100.0% 0.0% 50.0% 50.0% 50.0%
Service Consulting 64.9% 66.7% 61.4% 49.1% 43.9% 26.3%
Retail/Wholesale 73.1% 69.2% 57.7% 46.2% 42.3% 50.0%
Tech/Software/Biotech 79.5% 79.5% 81.8% 68.2% 61.4% 40.9%
Transportation 92.3% 69.2% 76.9% 53.8% 53.8% 30.8%
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
11
Customer priorities expected to shift to
service
Figure 1.5. Customers’ top priority in next 12 months (% of respondents)
25%
24% 24%
16%
12%
27%
22%
19%
17%
15%
25%
28%
19%
16%
12%
0%
5%
10%
15%
20%
25%
30%
Superior product quality Excellent service Trusting relationship Low price Superior innovation
February 2017 August 2017 February 2018
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
12
Sector differences in customer priorities
Table 1.2. Customers’ top priority in next 12 months (% of respondents)
Customer Priority
Overall
Average
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Excellent Service 27.5% 26.2% 31.0% 12.5% 40.4%
Superior Product Quality 25.2% 31.1% 21.0% 30.4% 14.9%
Trusting Relationship 19.0% 14.6% 22.0% 16.1% 25.5%
Low Price 16.0% 15.5% 13.0% 23.2% 14.9%
Superior Innovation 12.4% 12.6% 13.0% 17.9% 4.3%
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Fewer companies using channel partners to
go to market
13
Figure 1.6. Percent of companies using channel partners to reach market
(% of respondents)*
* Question asked irregularly. Full time series available shown.
B2B Product 59.7%
B2B Services 44.5%
B2C Product 69.6%
B2C Services 43.6%
70.7%
55.5% 54.1%
0%
20%
40%
60%
80%
100%
February 2013 February 2017 February 2018
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Channel partner purchase volume
expected to improve in next year
14
Figure 1.7. Forecasted channel partner outcomes in next 12 months (% of respondents)*
* Question asked irregularly. Full time series available shown.
64%
44%
23% 22%
67%
50%
26%
31%
70%
50%
23%
32%
0%
20%
40%
60%
80%
100%
Increased partner
purchase volume
Increased partner purchase of
related products
and services
Increased partner power
in relationship
Increased partner
price per unit
August 2013 February 2017 February 2018
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Most channel partner indicators forecasted
to improve
15
Table 1.3. Forecasted channel partner outcomes in next 12 months (% of respondents)*
* Question asked irregularly. Full time series available shown.
Partner Outcome
Overall
Average
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Increased partner purchase
volume
70.1% 80.7% 64.9% 57.1% 72.2%
Increased partner purchase of
related products and services
50.3% 64.3% 37.8% 48.6% 35.3%
Increased partner price per unit 32.0% 40.4% 27.0% 25.7% 27.8%
Increased partner power in
relationship
23.3% 14.0% 25.0% 34.3% 27.8%
The CMO Survey - Highights and Insights Report - Feb 2018
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Existing markets and offerings continue to
dominate growth spending
17
Existing
Products/
Services
New
Products/
Services
Existing
Markets
Market
Penetration
Strategy
Product/Service
Development
Strategy
New
Markets
Market
Development
Strategy
Diversification
Strategy
* % of spending for each growth strategy
Growth Strategy Aug-2017 Feb-2018
Market
Penetration
Strategy
53.2% 52.3%
Product/Service
Development
Strategy
22.3% 22.6%
Market
Development
Strategy
15.0% 14.5%
Diversification
Strategy
9.5% 10.6%
Spending on growth in past 12 months*Types of growth strategies
Table 2.1. Investment in varying types of growth
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Existing markets and offerings continue to
dominate growth spending
18
* % of spending for each growth strategy
Growth Strategy Feb-2018
B2B
Product
B2B
Services
B2B
Product
B2B
Services
Market
Penetration
Strategy
52.3% 48.6% 48.1% 63.6% 54.8%
Product/Service
Development
Strategy
22.6% 25.1% 23.3% 20.7% 17.1%
Market
Development
Strategy
14.5% 15.3% 17.6% 10.4% 11.7%
Diversification
Strategy
10.6% 11.0% 11.0% 5.3% 16.5%
Table 2.2. Spending on growth in past 12 months by sector*
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Having the right talent is most important for
driving future organic growth
19
9.8% 11.0%
20.8%
23.1%
35.3%
0%
10%
20%
30%
40%
50%
Having the
right data
Having the right technology Having all stakeholders
aligned
Having the right operating
model
Having the
right talent
Figure 2.1. What is most important for driving future organic growth in your organization?
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Company sales through Internet remain
modest at 12.8%
20
B2B Product 8.1%
B2B Services 11.8%
B2C Product 17.8%
B2C Services 18.6%
9.2% 8.9% 9.9% 11.3% 12.4% 10.3% 11.3% 10.3% 11.8% 11.8% 12.8%
0%
25%
50%
75%
100%
Feb-12 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 2.2. Percent of company sales through the Internet
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Education and consumer services lead
Internet sales
21
13.9%
16.1% 15.0%
22.2%
36.2%
2.1%
7.1%
5.3%
3.3%
12.2%
15.7% 15.3% 16.8%
0%
10%
20%
30%
40%
50%
Figure 2.3. Percent of company sales from the Internet by industry
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing budget spent on domestic
markets remain dominant
22
77.6%
79.4%
77.5%
79.4%
85.4%
81.0%
83.0%
81.2%
84.4%
80.5%
85.0%
50%
60%
70%
80%
90%
100%
Feb-12 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 2.4. Percent of marketing budget spent on domestic markets
B2B Product 83.4%
B2B Services 85.2%
B2C Product 81.8%
B2C Services 92.5%
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Western Europe leads sales for current
international markets
23
Western
Europe:
42.2%Canada:
16.7%
China:
15.6%
Japan:
1.1%
Mexico:
4.4%
Northern
Europe:
4.4%
Brazil:
1.1%
Australia & New
Zealand: 1.1%
Central
America:
1.1%
Indonesia
& SE Asia:
3.3%
Eastern
Europe:
4.4% Korea:
1.1%
*South American Countries excludes Brazil
South American
Countries*: 3.3%
Figure 2.5. Which international market is currently your largest (in terms of sales)?
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
China and Western Europe present largest
future growth opportunities
24
Western
Europe:
11.7%Canada:
4.9%
China: 17.5%
Japan: 1.0%
Mexico:
1.0%
Northern
Europe:
11.7%
Middle East:
4.9%
Brazil:
9.7%
Australia & New
Zealand: 3.9%
Central
America:
1.9%
Indonesia &
SE Asia: 5.8%
Eastern
Europe:
2.9%
South American
Countries*: 6.8%
South
Africa: 3.9%
India:
8.7%
Russia: 1.9%
*South American Countries excludes Brazil
Figure 2.6. Which international market that you are currently not in is your biggest opportunity for the future?
Korea:
1.9%
The CMO Survey - Highights and Insights Report - Feb 2018
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing budgets expected to grow
26
7.1%
8.9%
0%
2%
4%
6%
8%
10%
12%
Actual change in marketing budget
in prior 12 months
Expected change in marketing budget
in next 12 months
Figure 3.1. Percent change in marketing budgets
Prior 12 months Next 12 months
B2B Product 6.2% 9.3%
B2B Services 7.2% 8.5%
B2C Product 6.5% 9.0%
B2C Services 9.9% 8.9%
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing budget growth over time
27
0.5%
1.1%
5.9%
9.2%
6.7%
9.1%
8.1%
6.4%
6.1%
4.3%
6.7%
5.1%
8.7%
5.5%
6.9%
7.2%
10.9%
8.9%
8.9%
0%
2%
4%
6%
8%
10%
12%
Feb
09
Aug
09
Feb
10
Aug
10
Feb
11
Aug
11
Feb
12
Aug
12
Feb
13
Aug
13
Feb
14
Aug
14
Feb
15
Aug
15
Feb
16
Aug
16
Feb
17
Aug
17
Feb
18
Figure 3.2. Expected percent change in marketing budgets in next 12 months
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Most industries expect growth in marketing
budgets
28
8.1%
12.6%
5.1%
10.9%
2.5%
21.4%
13.0%
4.3%
-2.5%
9.0%
7.2%
12.4%
5.6%
-5%
0%
5%
10%
15%
20%
25%
Figure 3.3. Expected percent change in marketing budgets in next 12 months by industry
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Growth in digital marketing spend greatly
outpaces traditional advertising
2929
*Refers to media advertising not using the Internet.
1.3%
-0.8%
-1.9%
-2.7%
-2.1%
-0.1%
-3.6%
-1.1%
-2.1%
-3.2%
-1.3%
0.6%
-2.0%
-1.7%
11.2%
12.8%
11.5%
10.2% 10.1%
8.2%
10.8%
14.7%
12.2%
13.2% 9.9%
14.6%
13.0%
15.1%
-5%
0%
5%
10%
15%
20%
Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Traditional Advertising Spend Digital Marketing Spend
Figure 3.4. Percent change in traditional advertising* vs. digital marketing spend in next 12 months
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Digital marketing dominates marketing
spend across all economic sectors
30
*Refers to media advertising not using the Internet.
15.1%
12.5%
17.9% 18.2%
-1.0%
-2.0%
-2.9%
-1.2%
-5%
0%
5%
10%
15%
20%
B2B Product B2B Services B2C Product B2C Services
Digital marketing spending Traditional advertising spending
Figure 3.5. Percent change in traditional advertising* vs. digital marketing spend in next 12 months
by sector
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Brand building and CRM spending expected
to grow in next year
31
7.9% 7.5%
8.0%
7.1% 7.4%
7.9%
6.9%
7.5%
4.3%
5.6% 5.4% 5.0%
6.3%
9.7%
6.8%
8.4%
0%
5%
10%
15%
20%
Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Customer Relationship Management Brand Building
Figure 3.6. Percent change in CRM and brand spending expected in next 12 months
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing budgets represent 11.1% of
firm budgets
32
*Question asked in Feb-11 for the first time.
8.1%
10.0% 10.4%
11.4%
10.6%
9.4%
10.9% 10.9%
10.1%
11.4%
12.1%
11.3% 11.1% 11.4% 11.1%
0%
4%
8%
12%
16%
20%
Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 3.7. Marketing budget as percent of firm budget*
B2B Product 9.2%
B2B Services 8.9%
B2C Product 16.0%
B2C Services 14.9%
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing spending is 7.9% of company
revenues
33
*Question asked in Feb-12 for the first time.
8.5%
11.0%
7.9% 7.8%
9.3%
8.3% 8.3%
6.6%
8.4%
7.5%
8.1%
6.9%
7.9%
0%
3%
6%
9%
12%
15%
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 3.8. Marketing spending as percent of company revenues*
B2B Product 6.3%
B2B Services 6.9%
B2C Product 9.6%
B2C Services 11.8%
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Consumer Services lead marketing spend
as percent of revenues by industry
34
9.2% 9.0% 9.1%
18.9%
12.0%
8.3%
9.0%
2.4% 3.0%
7.5%
4.4%
9.7%
8.5%
0%
4%
8%
12%
16%
20%
24%
Figure 3.9. Marketing spending as percent of company revenues by industry
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Investments in capability development
remain top marketing knowledge priority
35
Marketing Knowledge
Investments
Overall Average
(SD)
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Developing knowledge about
how to do marketing*
6.5% (9.2%) 5.0% (6.8%) 7.7% (9.8%) 6.2% (10.7%) 7.4% (10.2%)
Marketing research and
intelligence
3.9% (8.3%) 5.5% (8.7%) 3.4% (7.6%) 3.6% (9.7%) 1.8%(6.7%)
Marketing consulting services 3.3% (11.3%) 3.6% (11.8%) 2.2% (9.2%) 0.9% (11.6%) 8.7% (13.5%)
Marketing training** 1.9% (4.8%) 2.1% (5.0%) 2.1% (5.2%) 1.2% (3.8%) 1.9% (4.5%)
*Developing knowledge about how to do marketing refers to the development of new marketing capabilities.
**Marketing training involves transferring existing marketing knowledge to employees.
Table 3.1. Percent change in marketing knowledge investments expected in next 12 months by sector
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Investments in capability development
remain top marketing knowledge priority
36
Table 3.2. Knowledge investments in next 12 months by industry
Industry Sector
Marketing consulting
services
Marketing research
and intelligence
Developing
knowledge about how
to do marketing*
Marketing training**
Overall 3.3% 3.9% 6.5% 1.9%
Banking/Finance/Insurance 2.9% 4.5% 7.0% 2.7%
Communications/Media 4.5% 3.9% 8.5% 3.8%
Consumer Packaged Goods -1.1% 2.2% 5.4% 0.6%
Consumer Services 4.4% 0.6% 8.9% 2.5%
Education 10.2% -1.3% 3.8% 0.0%
Energy 7.5% 3.8% 7.5% 0.0%
Healthcare 1.7% 2.9% 5.1% 1.4%
Manufacturing 1.5% 5.3% 6.3% 1.6%
Mining/Construction 0.0% 0.5% 0.0% 0.0%
Service Consulting 1.7% 1.9% 6.3% 2.6%
Retail/Wholesale 8.1% 7.1% 6.6% 2.7%
Tech/Software/Biotech 4.1% 6.1% 7.7% 1.4%
Transportation 8.3% 4.0% 6.7% 1.2%
*Developing knowledge about how to do marketing refers to the development of new marketing capabilities.
**Marketing training involves transferring existing marketing knowledge to employees.
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing knowledge investments over time
37
*All data available for this question are shown.
**Developing knowledge about how to do marketing refers to the development of new marketing capabilities.
***Marketing training involves transferring existing marketing knowledge to employees.
1.7% 1.8%
2.7%
2.5%
3.3%
6.2%
4.9% 5.3%
3.4% 3.9%
4.6%
3.1%
6.6%
7.3%
6.5%
3.7%
2.4%
2.6%
2.3% 1.9%
0%
2%
4%
6%
8%
10%
Feb-13 Feb-14 Feb-17 Aug-17 Feb-18
Marketing consulting services
Marketing research and intelligence
Developing knowledge about how to do
marketing**
Marketing training***
Figure 3.10. Percent change in marketing knowledge investments expected in next 12 months*
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Overall marketing budget spend averages
4.2% for training and development
38
Table 3.3a. Industry sector differences
Industry sector Average
Banking/Finance/Insurance 4.0
Communications/Media 4.5
Consumer Packaged Goods 1.7
Consumer Services 2.9
Education 1.0
Energy 0.3
Healthcare 6.6
Manufacturing 5.5
Mining/Construction 1.5
Retail/Wholesale 3.1
Service/Consulting 5.0
Tech/Software/Biotech 3.9
Transportation 5.3
Sector Average
B2B Product 5.3
B2B Services 3.6
B2C Product 3.2
B2C Services 4.6
Table 3.3b. Economic sector differences
Table 3.3c. Firm Internet sales differences
Firm sales Average
0% of sales 4.3
1-10% of sales 4.6
>10% of sales 3.6
Table 3.3. Percentage of marketing budget devoted to training and development
(Overall Average = 4.2%, SD = 5.8, 95% percent confidence interval: 3.5%-5.0%)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Overall marketing budget spend on training
and development increases over time
39
Figure 3.11. Percentage of marketing budget devoted to training and development
3.4%
2.7%
3.8%
4.2%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Feb-14 Aug-14 Feb-17 Feb-18
The CMO Survey - Highights and Insights Report - Feb 2018
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Sales and Marketing ROI growth rates
positive but flat
41
3.8% 3.7%
3.3%
3.8%
4.2% 4.2%
3.1%
2.9%
2.4%
3.1%
3.6%
3.3%
2.8% 2.8%
2.4%
3.1%
2.8% 2.8%
0%
1%
2%
3%
4%
5%
Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Sales revenues Profits Marketing ROI
Figure 4.1. Percent change in performance on financial metrics in prior 12 months
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
All key customer and brand growth
indicators positive but tick down
42
2.9%
3.5%
2.4%
3.1%
3.1%
2.3%
1.7%
1.5%
1.8%
1.5%
1.9%
1.6%
2.8%
3.3%
3.2%
3.8%
3.4%
2.8%
0%
1%
2%
3%
4%
5%
Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Customer acquisition Customer retention Brand value
Figure 4.2. Percent change in performance on customer and brand metrics in prior 12 months
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Firm performance metrics by economic
sector
43
Performance Indicator
Overall Average
(SD)
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Sales 4.2% (5.1%) 4.2% (5.3%) 4.6% (4.6%) 3.1% (5.4%) 4.7% (5.2%)
Profits 3.3% (5.2%) 2.4% (5.2%) 4.5% (4.4%) 1.5% (5.9%) 4.5% (4.8%)
Marketing ROI 2.9% (4.2%) 2.3% (4.3%) 3.5% (3.9%) 2.2% (5.0%) 3.4% (3.5%)
Customer acquisition 2.3% (4.4%) 1.9% (4.6%) 2.9% (3.9%) 2.0% (4.6%) 2.1% (5.0%)
Customer retention 1.6% (4.2%) 0.7% (4.1%) 2.7% (4.2%) 1.0% (4.2%) 2.2% (4.0%)
Brand value 2.8% (3.7%) 2.3% (4.0%) 3.8% (3.5%) 2.0% (3.3%) 2.8% (3.4%)
Table 4.1. Percent change in financial and marketing performance in prior 12 months
Topic 5:
Social Media Marketing
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
45
3.5%
5.6% 5.9% 5.6%
7.1% 7.4% 7.6%
8.4%
6.6%
7.4%
9.4%
9.9%
10.6% 10.6%
11.7%
10.5%
9.8%
12.0%
0%
5%
10%
15%
20%
Aug
09
Feb
10
Aug
10
Feb
11
Aug
11
Feb
12
Aug
12
Feb
13
Aug
13
Feb
14
Aug
14
Feb
15
Aug
15
Feb
16
Aug
16
Feb
17
Aug
17
Feb
18
Social media spend shows 243% growth
since 2009
Figure 5.1. Current social media spending as percent of marketing budget
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketers expected to expand social media
spend by 71% in next 5 years
46
12.0%
15.3%
20.5%
0%
5%
10%
15%
20%
25%
Current Levels Over Next 12 Months In Next 5 Years
Figure 5.2. Social media spending as percent of marketing budgets
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
B2C Services lead social media spend with
pace of growth slowing in next year
47
Social Media Spend Overall
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Current social media spending 12.1% 9.3% 13.2% 13.5% 13.5%
Social media spending in the
next 12 months
15.3% 11.8% 16.8% 16.4% 17.8%
Social media spending in the
next 5 years
20.5% 17.6% 20.9% 21.8% 24.6%
Table 5.1. Changes in social media spending across sectors
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Integration of social media and marketing
strategy shows limited progress
48
3.8 3.8 3.8 3.9 3.8 3.9 3.9
4.2 4.2
3.9
4.1 4.0 4.1
1
2
3
4
5
6
7
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 5.3. How effectively is social media linked to your firm’s marketing strategy?
(1 = Not integrated, 7 = Very integrated)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Integration of customer information in
omnichannel settings remains weak
49
*Question asked in Feb-11 for the first time.
3.8 3.8 3.8 3.8 3.9 3.8 3.9
3.7 3.6
3.4
3.2
3.4
3.3
3.4
1
2
3
4
5
6
7
Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 5.4. How effectively does your company integrate customer information across purchasing,
communication, and social media channels? (1 = Not at all effectively, 7 = Very effectively)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Use of outside social media agencies slows
50
17.4%
18.9%
21.7%
20.0%
20.7%
16.6%
18.7% 18.5%
0%
5%
10%
15%
20%
25%
Feb-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 5.5. Percent of company’s social media activities performed
by outside agencies
B2B Product 19.2%
B2B Services 10.3%
B2C Product 32.8%
B2C Services 17.5%
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Top reason firms use social media:
Brand building and brand awareness
51
45.6%
32.6%
28.7% 28.7% 29.0%
21.8%
16.6%
13.5%
10.2%
8.3%
0%
10%
20%
30%
40%
50%
Brand
awareness
and brand
building
Acquiring new
customers
Introducing
new products
and services
Retaining
current
customers
Brand
promotions
(e.g.,
contests,
coupons)
Improving
employee
engagement
Marketing
research
Identifying
new customer
groups you
currently don't
target
Identifying
new product
and service
opportunities
Improving
current
products or
services
Figure 5.6. How does your firm use social media? (Check all that apply)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Top reason firms use social media:
Brand building and brand awareness
52
Social Media Use Type % Using
B2B
Product
B2B
Services
B2C
Product
B2C
Services
Brand awareness and brand building 45.6% 43.7% 47.9% 46.4% 43.6%
Acquiring new customers 32.6% 26.9% 34.5% 33.3% 40.0%
Introducing new products and services 28.7% 27.7% 28.6% 40.6% 16.4%
Retaining current customer 28.7% 20.2% 35.3% 33.3% 27.3%
Brand promotions (e.g., contests, coupons) 29.0% 29.4% 26.9% 40.6% 18.2%
Improving employee engagement 21.8% 19.3% 31.9% 13.0% 16.4%
Marketing research 16.6% 13.4% 16.8% 20.3% 18.2%
Identifying new customer groups you currently don't target 13.5% 9.2% 16.0% 13.0% 18.2%
Identifying new product and service opportunities 10.2% 7.6% 14.3% 10.1% 7.3%
Improving current products or services 8.3% 6.7% 6.7% 14.5% 7.3%
Table 5.2. How does your firm use social media by sector? (Check all that apply)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Social media perceived to make modest
contributions to company performance
53
* Question asked in Feb-16 for the first time.
3.2 3.1 3.2 3.3 3.3
1
2
3
4
5
6
7
Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 5.7. To what degree does the use of social media contribute to your company's performance?
(1 = Not at all, 7 = Very highly)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Social networking ranks as the most
impactful social media platform
54
Social Media Platform Average
Social networking (e.g., Facebook, LinkedIn) 1.6
Blogging 1.9
Video sharing (e.g., YouTube) 2.1
Product reviews 2.0
Photosharing (e.g., Instagram, Snapchat) 2.2
Microblogging (e.g., Twitter) 2.4
Podcasting 2.5
Product design or co-creation (e.g., NikeID) 3.0
Forums (e.g., Google groups) 2.4
Social bookmarking (e.g., Digg) 2.0
Virtual reality (e.g., Second life) 0
Table 5.3. Rank the top three (1=best) of the following social media according to the impact your
company’s performance – Sorted by 1st priority
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Social networking ranks as the most
impactful social media platform
55
Social Media Platform
B2B
Products
B2B
Services
B2C
Product
B2C
Services
Social networking (e.g., Facebook, LinkedIn) 1.8 1.5 1.5 1.6
Blogging 1.9 1.7 2.3 2.0
Video sharing (e.g., YouTube) 1.8 2.3 2.4 2.1
Product reviews 2.1 2.3 1.9 2.0
Photosharing (e.g., Instagram, Snapchat) 2.2 2.6 2.0 1.8
Microblogging (e.g., Twitter) 2.1 2.4 2.5 3.0
Podcasting 2.0 3.0 --- 2.7
Product design or co-creation (e.g., NikeID) 3.0 --- --- ---
Forums (e.g., Google groups) 2.6 2.0 2.5 ---
Social bookmarking (e.g., Digg) -- --- 2.0 ---
Virtual reality (e.g., Second life) --- --- --- ---
Table 5.4. Rank the top three (1=best) of the following social media according to impact your company’s
performance – Sorted by 1st priority and sector
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Impact of social media remains difficult to
prove
56
45.0% 45.0% 41.5%
47.9% 44.1% 43.3% 45.0%
34.4%
40.4% 41.8% 43.5%
40.6%
35.7% 38.2% 38.6%
42.3%
14.6% 13.2% 15.0% 11.5%
20.3% 18.4% 16.3%
23.3%
0%
25%
50%
75%
100%
Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Unable to show the impact yet
Good qualitative sense of the impact, but not a quantitative impact
Prove the impact quantitatively
Figure 5.8.. Which best describes how you show the impact of social media on your business?
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Firms improve in ability to prove the
quantitative impact of social media
57
14.6%
13.2%
15.0%
11.5%
20.3%
18.4%
16.3%
23.3%
0%
5%
10%
15%
20%
25%
Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Prove the impact quantitatively
Figure 5.9.. Which best describes how you show the impact of social media on your business?
The CMO Survey - Highights and Insights Report - Feb 2018
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing spend on mobile expected to
increase 93% in three years
59
7.0%
13.5%
0%
5%
10%
15%
20%
Current Levels Next 3 Years
Current 3 years
B2B Product 5.6% 11.8%
B2B Services 3.6% 8.2%
B2C Product 10.9% 18.2%
B2C Services 13.6% 24.7%
Figure 6.1. Percent of marketing budget spending on mobile
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Percent of marketing budget on mobile
trends upwards over three years
60
3.2%
6.0% 5.9%
3.8%
3.7%
6.0%
7.0%
0%
2%
4%
6%
8%
10%
Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 6.2. Percent of current marketing budget spend on mobile over time
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Mobile contributions to company
performance show little improvement
61
2.4 2.5
2.7 2.6 2.7
0
1
2
3
4
5
6
7
Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 6.3. To what degree does the use of mobile marketing contribute to your company's performance?
(1 = Not at all, 7 = Very highly)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
62
Mobile impact on customer, brand, and
financial outcomes remains weak
2.9
3.7
3.3
3.5
3.0
2.8
0
1
2
3
4
5
6
7
Customer
acquisition
Customer
engagement
Customer
retention
Delivering your
brand message
Sales Profits
Figure 6.4. Rate the performance of your company’s mobile marketing activities
(1 = Poor, 7 = Excellent)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Companies remain focused on marketing
fundamentals despite digital trends
63
81.7%
18.3%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
No
Yes
Figure 6.5. In general, do you think that the opportunity to pursue digital marketing opportunities has drawn
your company’s attention away from marketing strategy fundamentals?
The CMO Survey - Highights and Insights Report - Feb 2018
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Planned marketing hires reach highest level
since 2012
65
5.2%
6.5%
5.4% 5.5%
4.7%
3.8%
3.5%
6.6%
5.1%
5.4%
3.7%
6.4%
7.3%
0%
2%
4%
6%
8%
10%
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 7.1. Percent change in marketing hires planned in next 12 months
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing hiring changes by firm and
industry characteristics
Table 7.1a. Industry differences
Industry Average
Banking/Finance/Insurance 3.1%
Communications/Media 8.4%
Consumer Packaged Goods 9.2%
Consumer Services 6.4%
Education 5.0%
Energy 19.2%
Healthcare 10.3%
Manufacturing 6.3%
Mining/Construction* 0.0%
Retail/Wholesale 3.3%
Service/Consulting 9.9%
Tech/Software/Biotech 5.1%
Transportation 7.1%
Sector Average
B2B Product 7.1%
B2B Services 8.0%
B2C Product 6.2%
B2C Services 7.2%
Table 7.1b. Economic sector differences
Table 7.1c. Firm Internet sales differences
Firm sales Average
0% of sales 7.0%
1-10% of sales 6.4%
>10% of sales 10.2%
66
Table 7.1. Percent change in marketing hires in next 12 months (Overall Average = 7.3%, SD = 14.5%)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketers seek talent with MarTech
platform experience and creativity
67
19.4%
Creativity
12.9%
Curiosity
17.1%
Natural Leadership Abilities10.0%
Emotional Intelligence
21.8%
MarTech Platform
Experience
13.5%
Data Science
Background
5.3%
Financial Acumen
Figure 7.2. When thinking about future marketing talent needs, what skills would you prioritize in the
hiring process?
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketers seek talent with MarTech
platform experience and creativity
68
Talent 1 2 3 4 5 6 7
MarTech Platform
Experience
21.8% 11.8% 14.1% 7.1% 7.1% 15.3% 22.4%
Creativity 19.4% 23.5% 22.4% 14.1% 11.2% 7.6% 1.8%
Natural Leadership
Abilities
17.1% 10.0% 15.3% 14.7% 22.4% 11.8% 8.2%
Data Science
Background
13.5% 14.7% 11.2% 10.0% 14.1% 15.9% 20.0%
Curiosity 12.9% 19.4% 11.2% 20.0% 11.2% 14.7% 10.6%
Emotional
Intelligence
10.0% 14.1% 15.3% 19.4% 18.2% 13.5% 9.4%
Financial
Acumen
5.3% 6.5% 10.6% 14.1% 15.3% 20.6% 27.1%
Table 7.2. When thinking about future marketing talent needs, what skills would you prioritize in the
hiring process? (Rank in order of importance, where 1 = most important, 7 = least)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing outsourcing expected to increase
by 5% in next year
69
3.1%
4.3% 4.5%
2.5%
1.6%
3.6%
4.1%
5.1% 5.0%
0%
2%
4%
6%
8%
10%
Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 7.3. Percent change in outsourcing of marketing planned in next 12 months
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing outsourcing changes by firm and
sector characteristics
70
Table 7.2a. Industry sector differences Table 7.2b. Economic sector differences
Table 7.2c. Firm Internet sales differences
Industry Average
Banking/Finance/Insurance 9.2%
Communications/Media 0.4%
Consumer Packaged Goods 3.7%
Consumer Services 6.4%
Education 5.0%
Energy 10.0%
Healthcare 5.0%
Manufacturing 5.5%
Mining/Construction 5.0%
Retail/Wholesale 1.9%
Service/Consulting 5.0%
Tech/Software/Biotech 5.7%
Transportation 6.4%
Sector Average
B2B Product 4.4%
B2B Services 3.7%
B2C Product 5.5%
B2C Services 8.5%
Firm sales Average
0% of sales 5.6%
1-10% of sales 4.4%
>10% of sales 5.5%
Table 7.3. Percent change in marketing outsourcing in next 12 months (Overall Average = 5.0%, SD = 9.1%)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing outsourcing expected to
increase 4.1% in next year
Percentage change in outsourcing of marketing in next 12 months (Overall mean = 4.1%, SD = 11.5)
Table 7.1a. Industry sector differences
Sector Mean
Banking/Finance/Insurance 7.4%
Communications/Media 5.3%
Consumer Packaged Goods 0.5%
Consumer Services 4.0%
Education 10.0%
Healthcare 5.5%
Manufacturing 0.9%
Mining/Construction 12.5%
Retail/Wholesale 7.1%
Service/Consulting 0.1%
Tech Software Biotech 2.6%
Transportation 5.0%
Sector Mean
B2B Product 3.6%
B2B Services 6.0%
B2C Product 2.3%
B2C Services 2.6%
Table 7.1b. Firm sector differences
Table 7.1c. Firm Internet sales differences
Firm sales Mean
0% of sales 3.4%
1-10% of sales 5.8%
>10% of sales 2.7%
60
Energy and Pharmaceuticals are not displayed due to too few respondents
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Product / service organizational structure
remains dominant
72
26.5% 26.7%
30.2% 31.9% 29.9% 28.1%
73.5% 73.3%
69.8% 68.1%
71.1% 71.9%
0%
20%
40%
60%
80%
100%
Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18
Customer Groups Product/Service Groups
Figure 8.1. Organizational structure in companies
% customer groups
Overall 28.1%
B2B Product 36.5%
B2B Services 33.9%
B2C Product 17.1%
B2C Services 8.0%
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Across all sectors, companies invest internally
to develop new marketing capabilities
73
Sector Average
B2B
Product
B2B
Services
B2C
Product
B2C
Services
We build new marketing capabilities
ourselves by training current or hiring
new employees with the skills
56.2% 54.3% 60.8% 49.6% 57.9%
We partner with other marketing
agencies to learn new marketing skills
14.1% 13.8% 13.2% 17.4% 12.7%
We partner with other consultancies to
learn new marketing skills
14.0% 15.5% 12.5% 13.8% 14.9%
We partner with other companies to
learn new marketing skills
12.2% 13.5% 10.6% 13.5% 11.0%
We buy other companies to acquire new
marketing skills
3.5% 2.9% 2.9% 5.6% 3.5%
Table 8.1. How does your company approach the development of new marketing capabilities?
Allocate 100 points to indicate the emphasis you place on each approach.
The CMO Survey - Highights and Insights Report - Feb 2018
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing leads more activities in
companies
75
Activity Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18**
Brand 82.1% 87.5% 89.4% 86.5% 88.7% 91.4%
Digital marketing2 76.9% 79.0%
Advertising 82.7% 82.1% 79.2% 76.3% 75.8% 81.7%
Social media 79.5% 83.9% 75.7% 76.8% 71.0% 75.3%
Public relations 64.1% 64.9% 65.5% 70.0% 69.4% 64.0%
Promotion 76.3% 76.2% 73.3% 69.1% 66.7% 69.4%
Positioning 80.1% 75.6% 67.8% 67.6% 67.7% 66.1%
Marketing research 70.5% 70.2% 67.1% 59.9% 67.2% 64.5%
Lead generation 55.8% 62.5% 60.8% 58.5% 56.5% 61.3%
Marketing analytics 75.0% 79.2% 69.0% 57.5% 65.6% 67.7%
Competitive intelligence 55.1% 56.5% 54.5% 42.0% 50.0% 54.8%
Customer experience3 51.1%
CRM 39.1% 37.5% 42.0% 41.1% 43.0% 39.8%
Market entry strategies 55.8% 46.4% 43.5% 35.3% 34.4% 39.8%
Revenue growth1 - - 38.4% 34.3% 29.0% 37.1%
New products 37.8% 36.3% 40.0% 32.4% 36.6% 33.3%
Pricing 30.8% 32.1% 33.7% 26.6% 27.4% 25.8%
Innovation 23.1% 28.6% 29.8% 26.6% 31.7% 30.1%
e-commerce1 - - 35.7% 23.7% 32.8% 26.3%
Market selection 30.1% 29.8% 32.9% 23.7% 19.9% 24.2%
Sales 32.1% 25.0% 24.7% 21.3% 22.6% 27.4%
Customer service 19.9% 17.3% 18.0% 12.6% 21.5% 21.0%
Distribution 12.2% 9.5% 10.2% 5.8% 10.2% 10.2%
Stock market performance 3.8% 1.8% 2.7% 0.5% 0.5% 3.8%
1 Question was added in Aug-16.
2 Question was added in Aug-17.
3 Question was added in Feb-18.
**Red reflects a decrease and Green reflects
an increase of more than 2 percent between
Aug-17 and Feb-18..
Table 9.1. Percentage of
companies in which
marketing leads activity
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Number of marketer direct reports shows
improvement while indirect reports decline
76
8.6
6.9
5.5
6.8 6.5
5.0 6.0 6.3
24.6
16.1 16.2
18.6
15.7
24.6
29.0
17.5
0
10
20
30
40
50
Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Feb-17 Aug-17 Feb-18
Number of direct reports Number of indirect reports
Figure 9.1. Number of people reporting to top marketer
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing leader tenure has risen over time
77
3.0 3.0
4.0 4.0
4.4
4.0
6.5
7.0 7.0 7.0
9.0
8.0
0
1
2
3
4
5
6
7
8
9
10
Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18
Current Any Role
*Median levels are displayed.
Figure 9.2. How many years have you been with this firm in your current role? In any role?*
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketers unlikely to use brands to take a
stance on politically-charged issues
78
82.6%
64.3%
76.9%
86.7%
100.0%
50.0%
66.7%
88.2% 88.5%
100.0%
84.4%
69.2%
80.0%
100.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Figure 9.3. Do you believe it is appropriate for your brand to take a stance on politically-charged issues?
(% responding “No”)
The CMO Survey - Highights and Insights Report - Feb 2018
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing analytics spend shows fluctuation
but no consistent increases over past 5 years
80
5.7%
5.0%
6.0%
5.5%
7.1% 7.1%
6.4%
6.7% 6.7% 6.5%
4.6%
5.5%
5.8%
0%
3%
6%
9%
Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 10.1. Percent of current marketing budget spend on marketing analytics over time
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Spending on marketing analytics forecasted
to increase 198% in three years
81
+198% projected growth
5.8%
17.3%
0%
5%
10%
15%
20%
25%
Current Levels In Next 3 Years
Figure 10.2. Percent of marketing budget spent on marketing analytics
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Analytics spend expected to increase
across sectors in next three years
82
4% 5% 7% 6% 4% 3%
7% 6%
3%
6% 6% 6% 7%
22%
14% 11%
17%
5%
14%
21%
28%
63%
13%
16% 14% 12%
0%
20%
40%
60%
80%
Current Next 3 Years
Figure 10.3. Current and 3-year predicted marketing analytics spend by industry
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Spending on marketing analytics varies by
firm characteristics and economic sector
83
Revenue Current
In Next
3 years
<$25M 5.1% 16.9%
$26-99M 5.5% 14.6%
$100-499M 5.8% 17.5%
$500-999M 4.1% 14.1%
$1-9.9B 7.5% 19.3%
$10+B 6.5% 14.7%
Table 10.1c. Firm size differences
Table 10.1b. Firm Internet sales differences
Internet Sales Current
In Next
3 years
0% 4.9% 13.1%
1-10% 6.7% 21.8%
>10% 6.1% 19.5%
Table 10.1a. Economic sector differences
Sector Current
In Next
3 years
B2B Product 6.4% 20.4%
B2B Services 5.9% 15.3%
B2C Product 5.1% 18.5%
B2C Services 5.3% 14.2%
Table 10.1. Spend on marketing analytics
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Companies use more marketing analytics in
decisions: B2C companies biggest users
84
30.4%
29.0%
32.5% 32.3%
29.0%
31.0%
35.3% 34.7%
31.6%
37.5%
42.1%
0%
10%
20%
30%
40%
50%
Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Figure 10.4. Use of marketing analytics in decision making
B2B Product 37.5%
B2B Services 35.2%
B2C Product 53.8%
B2C Services 55.7%
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Contribution of marketing analytics to firm
performance improves slightly
85
*This question was asked in Aug-12 for the first time.
3.7
3.5
3.7 3.7
3.2
3.7 3.8 3.8 3.7
3.9
4.1
1
2
3
4
5
6
7
Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Mean Contribution Level
Figure 10.5. To what degree does the use of marketing analytics contribute to your company's
performance? (1 = Not at all, 7 = Very highly)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Marketing analytics contributions by sector
and firm characteristics
86
Table 10.2a. Industry sector differences
Industry Average
Banking/Finance/Insurance 3.7
Communications/Media 4.4
Consumer Packaged Goods 4.6
Consumer Services 5.1
Education 5.3
Energy 3.8
Healthcare 4.5
Manufacturing 3.6
Mining/Construction 3.0
Retail/Wholesale 4.1
Service/Consulting 3.6
Tech Software Biotech 4.3
Transportation 4.3
Sector Average
B2B Product 3.7
B2B Services 3.9
B2C Product 4.6
B2C Services 4.7
Table 10.2b. Economic sector differences
Table 10.2c. Firm Internet sales differences
Firm sales Average
0% of sales 3.8
1-10% of sales 3.9
>10% of sales 4.7
Table 10.2. To what degree does the use of marketing analytics contribute to your company's
performance? (1=Not at all, 7=Very highly)
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Use of quantitative tools to demonstrate
marketing impact shows improvement
87
36.3% 36% 37.3%
42%
35.9% 37%
34.3%
37%
39.5%
50.0%
31.7%
29%
33.0% 34%
29.4% 31% 32.8%
35%
38.2%
40.6%
0%
10%
20%
30%
40%
50%
60%
70%
Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18
Short Term Long Term
Figure 10.6. Use of quantitative tools to demonstrate the impact of marketing
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
How firms show the impact of marketing
spend varies by sector and Internet sales
88
Table 10.3a. Industry sector differences
Industry Quantitatively Qualitatively
Banking/Finance/Insurance 53.3% 40.0%
Communications/Media 60.0% 13.3%
Consumer Packaged Goods 58.8% 17.6%
Consumer Services 71.4% 28.6%
Education 33.3% 33.3%
Energy 25.0% 50.0%
Healthcare 54.5% 31.8%
Manufacturing 33.3% 40.7%
Mining/Construction 0.0% 50.0%
Retail/Wholesale 41.2% 52.9%
Service/Consulting 40.0% 45.0%
Tech Software Biotech 73.3% 13.3%
Transportation 50.0% 50.0%
Sector Quantitatively Qualitatively
B2B Product 32.8% 47.8%
B2B Services 54.8% 28.8%
B2C Product 63.2% 21.1%
B2C Services 60.0% 33.3%
Table 10.3b. Economic sector differences
Table 10.3c. Firm Internet sales differences
Firm sales Quantitatively Qualitatively
0% of sales 48.3% 32.2%
1-10% of sales 47.7% 38.5%
>10% of sales 56.0% 34.0%
Table 10.3. Which best describes how your company shows the short-term impact of marketing
spend on your business?
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
Top management team plays important role
in success of marketing analytics
89
13.2%
9.3%
7.8% 8.3%
19.1%
23.0%
19.1%
13.3%
8.9% 8.9%
12.3%
17.2%
22.7%
16.7%
0%
5%
10%
15%
20%
25%
Not at All Not Important Somwhat Not
Important
Neutral Somewhat
Important
Important Very Important
How important is the top management team in driving the use of marketing analytics in your company?
How important is the top management team in ensuring the use of marketing analytics impacts company performance?
Figure 10.7. Importance of top management team on marketing analytics use and performance
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
AI and machine learning impact modest but
expected to grow over three years
90
Figure 10.8. To what extent is your company implementing artificial
intelligence or machine learning into its marketing toolkit?
(1=Not at all, 7=Very highly)
Overall Current In three years
B2B Product 1.7 2.9
B2B Services 1.9 3.1
B2C Product 2.1 3.5
B2C Services 2.2 3.3
1.9
3.1
1
2
3
4
5
6
7
Current Three Years
Extent of AI Implementation
Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics
1.5
2.2
1
2
3
4
5
6
7
Current Three Years
Extent of Blockchain Implementation
Blockchain technologies slow to play a role
in marketing
91
Figure 10.9. To what extent are blockchain technologies affecting your
company’s marketing strategies? (1=Not at all, 7=Very highly)
Overall Current In three years
B2B Product 1.6 2.2
B2B Services 1.5 2.3
B2C Product 1.5 2.1
B2C Services 1.4 2.0
The CMO Survey - Highights and Insights Report - Feb 2018
The 2018 CMO Survey Award for
Marketing Excellence – Apple Inc.
93
Which company across all industries sets the standard for excellence in marketing?
Apple has won this award for ten
consecutive years. Christine Moorman
discussed this accomplishment in
2012 (read here) and revisited Apple’s
success recently (read here).
Apple Inc.
Which company in your industry sets the standard for excellence in marketing
(in alphabetical order)?
The 2018 CMO Survey Award for Marketing
Excellence – Industry Winners
94
Consumer Services
Consumer Goods
Communications / Media
Consumer Packaged Goods
Technology / Retail
Technology
Preview
95
Next survey: July 2018
Participate: Sign up here
Media: Press release and coverage
Feedback: Send comments to moorman@duke.edu

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The CMO Survey - Highights and Insights Report - Feb 2018

  • 2. About The CMO Survey 2 Mission - To collect and disseminate the opinions of top marketers in order to predict the future of markets, track marketing excellence, and improve the value of marketing in firms and society. - The survey is an objective source of information about marketing and a non-commercial service dedicated to the field of marketing. Survey operation - Founded in August 2008, The CMO Survey is administered twice a year via an Internet survey. Questions repeat to observe trends over time and new questions are added to tap into marketing trends - The February 2018 survey is the 20th administration of The CMO Survey. Sponsoring organizations - Sponsors support The CMO Survey with intellectual and financial resources. - Survey data and participant lists are held in confidence and not provided to survey sponsors or any other parties.
  • 3. Survey Methodology 3 Survey sample - 2796 top U.S. marketers at for-profit companies - 362 responded for a 12.95% response rate Survey administration - Email contact with four follow-up reminders - Survey in field from January 9-30, 2018 - 98.3% of respondents VP-level or above Results interpretation - M = sample average; SD = sample standard deviation - B2B = Business-to-Business firms; B2C = Business-to-Consumer firms Two other reports are available at cmosurvey.org/results - The Topline Report: Results reported at the aggregate level - Results by Firm and Industry Characteristics: Results reported within sectors, size, and Internet sales
  • 4. Survey Topics 4 Topic 1: Marketplace Dynamics………………………………........ 5-15 Topic 2: Firm Growth Strategies……………………………........... 16-24 Topic 3: Marketing Spending…………………………………......... 25-39 Topic 4: Financial and Marketing Performance…………………... 40-43 Topic 5: Social Media Marketing…………………………............... 44-57 Topic 6: Mobile Marketing…………………………………………... 58-63 Topic 7: Marketing Jobs…………………………………………….. 64-70 Topic 8: Marketing Organization…………………………............... 71-73 Topic 9: Marketing Leadership……………………………………... 74-78 Topic 10: Marketing Analytics………………………………………... 79-91 Topic 11: The CMO Survey Award for Marketing Excellence…….. 92-94
  • 6. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketer outlook on the U.S. economy remains positive 6 47.7 56.5 57.8 55.6 63.3 52.2 63.4 58.4 62.7 65.7 66.1 66.4 69.9 69.7 64.4 63.7 63.2 65.8 68.9 40 50 60 70 80 Feb 09 Aug 09 Feb 10 Aug 10 Feb 11 Aug 11 Feb 12 Aug 12 Feb 13 Aug 13 Feb 14 Aug 14 Feb 15 Aug 15 Feb 16 Aug 16 Feb 17 Aug 17 Feb 18 Figure 1.1. How optimistic are you about the overall U.S. economy on a 0-100 scale with 0 being least optimistic and 100 most optimistic? B2B Product 68.1 B2B Services 68.4 B2C Product 68.5 B2C Services 72.6
  • 7. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketer economic optimism accelerates over the last quarter 7 Figure 1.2. Are you more or less optimistic about the overall U.S. economy compared to last quarter? 30.6% 34.9% 42.5% 34.7% 51.2% 0% 20% 40% 60% 80% 100% Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 More Optimistic More Optimistic 51.2% Less Optimistic 11.8% No Change 37.1%
  • 8. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketer economic outlook varies by industry 8 Figure 1.3. Are you more or less optimistic about the overall U.S. economy compared to last quarter? More Optimistic 51.2% Less Optimistic 11.8% No Change 37.1% Top 3 Industry Sectors Transportation Consumer Services Banking/Finance/Insurance Top 3 Industry Sectors Energy Communications/Media Tech/Software/Biotech Top 3 Industry Sectors Mining/Construction Education Healthcare
  • 9. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Customer outcomes generally expected to improve; price shows largest increase 9 Figure 1.4. Forecasted customer outcomes in next 12 months (% of respondents) 71% 69% 66% 50% 46% 31% 73% 70% 63% 53% 48% 37% 0% 20% 40% 60% 80% 100% Increased acquisition of new customers Increased customer purchase volume Increased purchase of related products and services Increased customer retention Increased entry of new customers into the market Increased customer price per unit August 2017 February 2018
  • 10. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Customer outcomes generally expected to improve 10 Table 1.1. Forecasted customer outcomes by industry Industry Acquisition of new customers Customer purchase volume Purchase of related products & services Customer retention Entry of new customers into market Price per unit Overall 72.6% 70.4% 63.4% 52.7% 47.5% 37.1% Banking/Finance/Insurance 68.8% 71.0% 71.9% 50.0% 53.1% 40.6% Communications/Media 71.4% 47.6% 76.2% 42.9% 57.1% 23.8% Consumer Packaged Goods 80.0% 76.0% 68.0% 40.0% 56.0% 40.0% Consumer Services 63.6% 81.8% 45.5% 45.5% 54.5% 36.4% Education 83.3% 66.7% 66.7% 83.3% 66.7% 16.7% Energy 80.0% 60.0% 40.0% 60.0% 80.0% 40.0% Healthcare 78.6% 75.0% 60.7% 60.7% 39.3% 39.3% Manufacturing 69.0% 69.8% 45.2% 51.2% 23.8% 44.2% Mining/Construction 50.0% 100.0% 0.0% 50.0% 50.0% 50.0% Service Consulting 64.9% 66.7% 61.4% 49.1% 43.9% 26.3% Retail/Wholesale 73.1% 69.2% 57.7% 46.2% 42.3% 50.0% Tech/Software/Biotech 79.5% 79.5% 81.8% 68.2% 61.4% 40.9% Transportation 92.3% 69.2% 76.9% 53.8% 53.8% 30.8%
  • 11. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 11 Customer priorities expected to shift to service Figure 1.5. Customers’ top priority in next 12 months (% of respondents) 25% 24% 24% 16% 12% 27% 22% 19% 17% 15% 25% 28% 19% 16% 12% 0% 5% 10% 15% 20% 25% 30% Superior product quality Excellent service Trusting relationship Low price Superior innovation February 2017 August 2017 February 2018
  • 12. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 12 Sector differences in customer priorities Table 1.2. Customers’ top priority in next 12 months (% of respondents) Customer Priority Overall Average B2B Product B2B Services B2C Product B2C Services Excellent Service 27.5% 26.2% 31.0% 12.5% 40.4% Superior Product Quality 25.2% 31.1% 21.0% 30.4% 14.9% Trusting Relationship 19.0% 14.6% 22.0% 16.1% 25.5% Low Price 16.0% 15.5% 13.0% 23.2% 14.9% Superior Innovation 12.4% 12.6% 13.0% 17.9% 4.3%
  • 13. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Fewer companies using channel partners to go to market 13 Figure 1.6. Percent of companies using channel partners to reach market (% of respondents)* * Question asked irregularly. Full time series available shown. B2B Product 59.7% B2B Services 44.5% B2C Product 69.6% B2C Services 43.6% 70.7% 55.5% 54.1% 0% 20% 40% 60% 80% 100% February 2013 February 2017 February 2018
  • 14. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Channel partner purchase volume expected to improve in next year 14 Figure 1.7. Forecasted channel partner outcomes in next 12 months (% of respondents)* * Question asked irregularly. Full time series available shown. 64% 44% 23% 22% 67% 50% 26% 31% 70% 50% 23% 32% 0% 20% 40% 60% 80% 100% Increased partner purchase volume Increased partner purchase of related products and services Increased partner power in relationship Increased partner price per unit August 2013 February 2017 February 2018
  • 15. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Most channel partner indicators forecasted to improve 15 Table 1.3. Forecasted channel partner outcomes in next 12 months (% of respondents)* * Question asked irregularly. Full time series available shown. Partner Outcome Overall Average B2B Product B2B Services B2C Product B2C Services Increased partner purchase volume 70.1% 80.7% 64.9% 57.1% 72.2% Increased partner purchase of related products and services 50.3% 64.3% 37.8% 48.6% 35.3% Increased partner price per unit 32.0% 40.4% 27.0% 25.7% 27.8% Increased partner power in relationship 23.3% 14.0% 25.0% 34.3% 27.8%
  • 17. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Existing markets and offerings continue to dominate growth spending 17 Existing Products/ Services New Products/ Services Existing Markets Market Penetration Strategy Product/Service Development Strategy New Markets Market Development Strategy Diversification Strategy * % of spending for each growth strategy Growth Strategy Aug-2017 Feb-2018 Market Penetration Strategy 53.2% 52.3% Product/Service Development Strategy 22.3% 22.6% Market Development Strategy 15.0% 14.5% Diversification Strategy 9.5% 10.6% Spending on growth in past 12 months*Types of growth strategies Table 2.1. Investment in varying types of growth
  • 18. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Existing markets and offerings continue to dominate growth spending 18 * % of spending for each growth strategy Growth Strategy Feb-2018 B2B Product B2B Services B2B Product B2B Services Market Penetration Strategy 52.3% 48.6% 48.1% 63.6% 54.8% Product/Service Development Strategy 22.6% 25.1% 23.3% 20.7% 17.1% Market Development Strategy 14.5% 15.3% 17.6% 10.4% 11.7% Diversification Strategy 10.6% 11.0% 11.0% 5.3% 16.5% Table 2.2. Spending on growth in past 12 months by sector*
  • 19. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Having the right talent is most important for driving future organic growth 19 9.8% 11.0% 20.8% 23.1% 35.3% 0% 10% 20% 30% 40% 50% Having the right data Having the right technology Having all stakeholders aligned Having the right operating model Having the right talent Figure 2.1. What is most important for driving future organic growth in your organization?
  • 20. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Company sales through Internet remain modest at 12.8% 20 B2B Product 8.1% B2B Services 11.8% B2C Product 17.8% B2C Services 18.6% 9.2% 8.9% 9.9% 11.3% 12.4% 10.3% 11.3% 10.3% 11.8% 11.8% 12.8% 0% 25% 50% 75% 100% Feb-12 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 2.2. Percent of company sales through the Internet
  • 21. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Education and consumer services lead Internet sales 21 13.9% 16.1% 15.0% 22.2% 36.2% 2.1% 7.1% 5.3% 3.3% 12.2% 15.7% 15.3% 16.8% 0% 10% 20% 30% 40% 50% Figure 2.3. Percent of company sales from the Internet by industry
  • 22. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing budget spent on domestic markets remain dominant 22 77.6% 79.4% 77.5% 79.4% 85.4% 81.0% 83.0% 81.2% 84.4% 80.5% 85.0% 50% 60% 70% 80% 90% 100% Feb-12 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 2.4. Percent of marketing budget spent on domestic markets B2B Product 83.4% B2B Services 85.2% B2C Product 81.8% B2C Services 92.5%
  • 23. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Western Europe leads sales for current international markets 23 Western Europe: 42.2%Canada: 16.7% China: 15.6% Japan: 1.1% Mexico: 4.4% Northern Europe: 4.4% Brazil: 1.1% Australia & New Zealand: 1.1% Central America: 1.1% Indonesia & SE Asia: 3.3% Eastern Europe: 4.4% Korea: 1.1% *South American Countries excludes Brazil South American Countries*: 3.3% Figure 2.5. Which international market is currently your largest (in terms of sales)?
  • 24. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics China and Western Europe present largest future growth opportunities 24 Western Europe: 11.7%Canada: 4.9% China: 17.5% Japan: 1.0% Mexico: 1.0% Northern Europe: 11.7% Middle East: 4.9% Brazil: 9.7% Australia & New Zealand: 3.9% Central America: 1.9% Indonesia & SE Asia: 5.8% Eastern Europe: 2.9% South American Countries*: 6.8% South Africa: 3.9% India: 8.7% Russia: 1.9% *South American Countries excludes Brazil Figure 2.6. Which international market that you are currently not in is your biggest opportunity for the future? Korea: 1.9%
  • 26. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing budgets expected to grow 26 7.1% 8.9% 0% 2% 4% 6% 8% 10% 12% Actual change in marketing budget in prior 12 months Expected change in marketing budget in next 12 months Figure 3.1. Percent change in marketing budgets Prior 12 months Next 12 months B2B Product 6.2% 9.3% B2B Services 7.2% 8.5% B2C Product 6.5% 9.0% B2C Services 9.9% 8.9%
  • 27. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing budget growth over time 27 0.5% 1.1% 5.9% 9.2% 6.7% 9.1% 8.1% 6.4% 6.1% 4.3% 6.7% 5.1% 8.7% 5.5% 6.9% 7.2% 10.9% 8.9% 8.9% 0% 2% 4% 6% 8% 10% 12% Feb 09 Aug 09 Feb 10 Aug 10 Feb 11 Aug 11 Feb 12 Aug 12 Feb 13 Aug 13 Feb 14 Aug 14 Feb 15 Aug 15 Feb 16 Aug 16 Feb 17 Aug 17 Feb 18 Figure 3.2. Expected percent change in marketing budgets in next 12 months
  • 28. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Most industries expect growth in marketing budgets 28 8.1% 12.6% 5.1% 10.9% 2.5% 21.4% 13.0% 4.3% -2.5% 9.0% 7.2% 12.4% 5.6% -5% 0% 5% 10% 15% 20% 25% Figure 3.3. Expected percent change in marketing budgets in next 12 months by industry
  • 29. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Growth in digital marketing spend greatly outpaces traditional advertising 2929 *Refers to media advertising not using the Internet. 1.3% -0.8% -1.9% -2.7% -2.1% -0.1% -3.6% -1.1% -2.1% -3.2% -1.3% 0.6% -2.0% -1.7% 11.2% 12.8% 11.5% 10.2% 10.1% 8.2% 10.8% 14.7% 12.2% 13.2% 9.9% 14.6% 13.0% 15.1% -5% 0% 5% 10% 15% 20% Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Traditional Advertising Spend Digital Marketing Spend Figure 3.4. Percent change in traditional advertising* vs. digital marketing spend in next 12 months
  • 30. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Digital marketing dominates marketing spend across all economic sectors 30 *Refers to media advertising not using the Internet. 15.1% 12.5% 17.9% 18.2% -1.0% -2.0% -2.9% -1.2% -5% 0% 5% 10% 15% 20% B2B Product B2B Services B2C Product B2C Services Digital marketing spending Traditional advertising spending Figure 3.5. Percent change in traditional advertising* vs. digital marketing spend in next 12 months by sector
  • 31. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Brand building and CRM spending expected to grow in next year 31 7.9% 7.5% 8.0% 7.1% 7.4% 7.9% 6.9% 7.5% 4.3% 5.6% 5.4% 5.0% 6.3% 9.7% 6.8% 8.4% 0% 5% 10% 15% 20% Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Customer Relationship Management Brand Building Figure 3.6. Percent change in CRM and brand spending expected in next 12 months
  • 32. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing budgets represent 11.1% of firm budgets 32 *Question asked in Feb-11 for the first time. 8.1% 10.0% 10.4% 11.4% 10.6% 9.4% 10.9% 10.9% 10.1% 11.4% 12.1% 11.3% 11.1% 11.4% 11.1% 0% 4% 8% 12% 16% 20% Feb-11 Aug-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 3.7. Marketing budget as percent of firm budget* B2B Product 9.2% B2B Services 8.9% B2C Product 16.0% B2C Services 14.9%
  • 33. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing spending is 7.9% of company revenues 33 *Question asked in Feb-12 for the first time. 8.5% 11.0% 7.9% 7.8% 9.3% 8.3% 8.3% 6.6% 8.4% 7.5% 8.1% 6.9% 7.9% 0% 3% 6% 9% 12% 15% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 3.8. Marketing spending as percent of company revenues* B2B Product 6.3% B2B Services 6.9% B2C Product 9.6% B2C Services 11.8%
  • 34. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Consumer Services lead marketing spend as percent of revenues by industry 34 9.2% 9.0% 9.1% 18.9% 12.0% 8.3% 9.0% 2.4% 3.0% 7.5% 4.4% 9.7% 8.5% 0% 4% 8% 12% 16% 20% 24% Figure 3.9. Marketing spending as percent of company revenues by industry
  • 35. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Investments in capability development remain top marketing knowledge priority 35 Marketing Knowledge Investments Overall Average (SD) B2B Product B2B Services B2C Product B2C Services Developing knowledge about how to do marketing* 6.5% (9.2%) 5.0% (6.8%) 7.7% (9.8%) 6.2% (10.7%) 7.4% (10.2%) Marketing research and intelligence 3.9% (8.3%) 5.5% (8.7%) 3.4% (7.6%) 3.6% (9.7%) 1.8%(6.7%) Marketing consulting services 3.3% (11.3%) 3.6% (11.8%) 2.2% (9.2%) 0.9% (11.6%) 8.7% (13.5%) Marketing training** 1.9% (4.8%) 2.1% (5.0%) 2.1% (5.2%) 1.2% (3.8%) 1.9% (4.5%) *Developing knowledge about how to do marketing refers to the development of new marketing capabilities. **Marketing training involves transferring existing marketing knowledge to employees. Table 3.1. Percent change in marketing knowledge investments expected in next 12 months by sector
  • 36. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Investments in capability development remain top marketing knowledge priority 36 Table 3.2. Knowledge investments in next 12 months by industry Industry Sector Marketing consulting services Marketing research and intelligence Developing knowledge about how to do marketing* Marketing training** Overall 3.3% 3.9% 6.5% 1.9% Banking/Finance/Insurance 2.9% 4.5% 7.0% 2.7% Communications/Media 4.5% 3.9% 8.5% 3.8% Consumer Packaged Goods -1.1% 2.2% 5.4% 0.6% Consumer Services 4.4% 0.6% 8.9% 2.5% Education 10.2% -1.3% 3.8% 0.0% Energy 7.5% 3.8% 7.5% 0.0% Healthcare 1.7% 2.9% 5.1% 1.4% Manufacturing 1.5% 5.3% 6.3% 1.6% Mining/Construction 0.0% 0.5% 0.0% 0.0% Service Consulting 1.7% 1.9% 6.3% 2.6% Retail/Wholesale 8.1% 7.1% 6.6% 2.7% Tech/Software/Biotech 4.1% 6.1% 7.7% 1.4% Transportation 8.3% 4.0% 6.7% 1.2% *Developing knowledge about how to do marketing refers to the development of new marketing capabilities. **Marketing training involves transferring existing marketing knowledge to employees.
  • 37. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing knowledge investments over time 37 *All data available for this question are shown. **Developing knowledge about how to do marketing refers to the development of new marketing capabilities. ***Marketing training involves transferring existing marketing knowledge to employees. 1.7% 1.8% 2.7% 2.5% 3.3% 6.2% 4.9% 5.3% 3.4% 3.9% 4.6% 3.1% 6.6% 7.3% 6.5% 3.7% 2.4% 2.6% 2.3% 1.9% 0% 2% 4% 6% 8% 10% Feb-13 Feb-14 Feb-17 Aug-17 Feb-18 Marketing consulting services Marketing research and intelligence Developing knowledge about how to do marketing** Marketing training*** Figure 3.10. Percent change in marketing knowledge investments expected in next 12 months*
  • 38. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Overall marketing budget spend averages 4.2% for training and development 38 Table 3.3a. Industry sector differences Industry sector Average Banking/Finance/Insurance 4.0 Communications/Media 4.5 Consumer Packaged Goods 1.7 Consumer Services 2.9 Education 1.0 Energy 0.3 Healthcare 6.6 Manufacturing 5.5 Mining/Construction 1.5 Retail/Wholesale 3.1 Service/Consulting 5.0 Tech/Software/Biotech 3.9 Transportation 5.3 Sector Average B2B Product 5.3 B2B Services 3.6 B2C Product 3.2 B2C Services 4.6 Table 3.3b. Economic sector differences Table 3.3c. Firm Internet sales differences Firm sales Average 0% of sales 4.3 1-10% of sales 4.6 >10% of sales 3.6 Table 3.3. Percentage of marketing budget devoted to training and development (Overall Average = 4.2%, SD = 5.8, 95% percent confidence interval: 3.5%-5.0%)
  • 39. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Overall marketing budget spend on training and development increases over time 39 Figure 3.11. Percentage of marketing budget devoted to training and development 3.4% 2.7% 3.8% 4.2% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Feb-14 Aug-14 Feb-17 Feb-18
  • 41. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Sales and Marketing ROI growth rates positive but flat 41 3.8% 3.7% 3.3% 3.8% 4.2% 4.2% 3.1% 2.9% 2.4% 3.1% 3.6% 3.3% 2.8% 2.8% 2.4% 3.1% 2.8% 2.8% 0% 1% 2% 3% 4% 5% Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Sales revenues Profits Marketing ROI Figure 4.1. Percent change in performance on financial metrics in prior 12 months
  • 42. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics All key customer and brand growth indicators positive but tick down 42 2.9% 3.5% 2.4% 3.1% 3.1% 2.3% 1.7% 1.5% 1.8% 1.5% 1.9% 1.6% 2.8% 3.3% 3.2% 3.8% 3.4% 2.8% 0% 1% 2% 3% 4% 5% Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Customer acquisition Customer retention Brand value Figure 4.2. Percent change in performance on customer and brand metrics in prior 12 months
  • 43. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Firm performance metrics by economic sector 43 Performance Indicator Overall Average (SD) B2B Product B2B Services B2C Product B2C Services Sales 4.2% (5.1%) 4.2% (5.3%) 4.6% (4.6%) 3.1% (5.4%) 4.7% (5.2%) Profits 3.3% (5.2%) 2.4% (5.2%) 4.5% (4.4%) 1.5% (5.9%) 4.5% (4.8%) Marketing ROI 2.9% (4.2%) 2.3% (4.3%) 3.5% (3.9%) 2.2% (5.0%) 3.4% (3.5%) Customer acquisition 2.3% (4.4%) 1.9% (4.6%) 2.9% (3.9%) 2.0% (4.6%) 2.1% (5.0%) Customer retention 1.6% (4.2%) 0.7% (4.1%) 2.7% (4.2%) 1.0% (4.2%) 2.2% (4.0%) Brand value 2.8% (3.7%) 2.3% (4.0%) 3.8% (3.5%) 2.0% (3.3%) 2.8% (3.4%) Table 4.1. Percent change in financial and marketing performance in prior 12 months
  • 45. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 45 3.5% 5.6% 5.9% 5.6% 7.1% 7.4% 7.6% 8.4% 6.6% 7.4% 9.4% 9.9% 10.6% 10.6% 11.7% 10.5% 9.8% 12.0% 0% 5% 10% 15% 20% Aug 09 Feb 10 Aug 10 Feb 11 Aug 11 Feb 12 Aug 12 Feb 13 Aug 13 Feb 14 Aug 14 Feb 15 Aug 15 Feb 16 Aug 16 Feb 17 Aug 17 Feb 18 Social media spend shows 243% growth since 2009 Figure 5.1. Current social media spending as percent of marketing budget
  • 46. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketers expected to expand social media spend by 71% in next 5 years 46 12.0% 15.3% 20.5% 0% 5% 10% 15% 20% 25% Current Levels Over Next 12 Months In Next 5 Years Figure 5.2. Social media spending as percent of marketing budgets
  • 47. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics B2C Services lead social media spend with pace of growth slowing in next year 47 Social Media Spend Overall B2B Product B2B Services B2C Product B2C Services Current social media spending 12.1% 9.3% 13.2% 13.5% 13.5% Social media spending in the next 12 months 15.3% 11.8% 16.8% 16.4% 17.8% Social media spending in the next 5 years 20.5% 17.6% 20.9% 21.8% 24.6% Table 5.1. Changes in social media spending across sectors
  • 48. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Integration of social media and marketing strategy shows limited progress 48 3.8 3.8 3.8 3.9 3.8 3.9 3.9 4.2 4.2 3.9 4.1 4.0 4.1 1 2 3 4 5 6 7 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 5.3. How effectively is social media linked to your firm’s marketing strategy? (1 = Not integrated, 7 = Very integrated)
  • 49. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Integration of customer information in omnichannel settings remains weak 49 *Question asked in Feb-11 for the first time. 3.8 3.8 3.8 3.8 3.9 3.8 3.9 3.7 3.6 3.4 3.2 3.4 3.3 3.4 1 2 3 4 5 6 7 Feb-11 Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 5.4. How effectively does your company integrate customer information across purchasing, communication, and social media channels? (1 = Not at all effectively, 7 = Very effectively)
  • 50. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Use of outside social media agencies slows 50 17.4% 18.9% 21.7% 20.0% 20.7% 16.6% 18.7% 18.5% 0% 5% 10% 15% 20% 25% Feb-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 5.5. Percent of company’s social media activities performed by outside agencies B2B Product 19.2% B2B Services 10.3% B2C Product 32.8% B2C Services 17.5%
  • 51. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Top reason firms use social media: Brand building and brand awareness 51 45.6% 32.6% 28.7% 28.7% 29.0% 21.8% 16.6% 13.5% 10.2% 8.3% 0% 10% 20% 30% 40% 50% Brand awareness and brand building Acquiring new customers Introducing new products and services Retaining current customers Brand promotions (e.g., contests, coupons) Improving employee engagement Marketing research Identifying new customer groups you currently don't target Identifying new product and service opportunities Improving current products or services Figure 5.6. How does your firm use social media? (Check all that apply)
  • 52. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Top reason firms use social media: Brand building and brand awareness 52 Social Media Use Type % Using B2B Product B2B Services B2C Product B2C Services Brand awareness and brand building 45.6% 43.7% 47.9% 46.4% 43.6% Acquiring new customers 32.6% 26.9% 34.5% 33.3% 40.0% Introducing new products and services 28.7% 27.7% 28.6% 40.6% 16.4% Retaining current customer 28.7% 20.2% 35.3% 33.3% 27.3% Brand promotions (e.g., contests, coupons) 29.0% 29.4% 26.9% 40.6% 18.2% Improving employee engagement 21.8% 19.3% 31.9% 13.0% 16.4% Marketing research 16.6% 13.4% 16.8% 20.3% 18.2% Identifying new customer groups you currently don't target 13.5% 9.2% 16.0% 13.0% 18.2% Identifying new product and service opportunities 10.2% 7.6% 14.3% 10.1% 7.3% Improving current products or services 8.3% 6.7% 6.7% 14.5% 7.3% Table 5.2. How does your firm use social media by sector? (Check all that apply)
  • 53. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Social media perceived to make modest contributions to company performance 53 * Question asked in Feb-16 for the first time. 3.2 3.1 3.2 3.3 3.3 1 2 3 4 5 6 7 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 5.7. To what degree does the use of social media contribute to your company's performance? (1 = Not at all, 7 = Very highly)
  • 54. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Social networking ranks as the most impactful social media platform 54 Social Media Platform Average Social networking (e.g., Facebook, LinkedIn) 1.6 Blogging 1.9 Video sharing (e.g., YouTube) 2.1 Product reviews 2.0 Photosharing (e.g., Instagram, Snapchat) 2.2 Microblogging (e.g., Twitter) 2.4 Podcasting 2.5 Product design or co-creation (e.g., NikeID) 3.0 Forums (e.g., Google groups) 2.4 Social bookmarking (e.g., Digg) 2.0 Virtual reality (e.g., Second life) 0 Table 5.3. Rank the top three (1=best) of the following social media according to the impact your company’s performance – Sorted by 1st priority
  • 55. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Social networking ranks as the most impactful social media platform 55 Social Media Platform B2B Products B2B Services B2C Product B2C Services Social networking (e.g., Facebook, LinkedIn) 1.8 1.5 1.5 1.6 Blogging 1.9 1.7 2.3 2.0 Video sharing (e.g., YouTube) 1.8 2.3 2.4 2.1 Product reviews 2.1 2.3 1.9 2.0 Photosharing (e.g., Instagram, Snapchat) 2.2 2.6 2.0 1.8 Microblogging (e.g., Twitter) 2.1 2.4 2.5 3.0 Podcasting 2.0 3.0 --- 2.7 Product design or co-creation (e.g., NikeID) 3.0 --- --- --- Forums (e.g., Google groups) 2.6 2.0 2.5 --- Social bookmarking (e.g., Digg) -- --- 2.0 --- Virtual reality (e.g., Second life) --- --- --- --- Table 5.4. Rank the top three (1=best) of the following social media according to impact your company’s performance – Sorted by 1st priority and sector
  • 56. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Impact of social media remains difficult to prove 56 45.0% 45.0% 41.5% 47.9% 44.1% 43.3% 45.0% 34.4% 40.4% 41.8% 43.5% 40.6% 35.7% 38.2% 38.6% 42.3% 14.6% 13.2% 15.0% 11.5% 20.3% 18.4% 16.3% 23.3% 0% 25% 50% 75% 100% Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Unable to show the impact yet Good qualitative sense of the impact, but not a quantitative impact Prove the impact quantitatively Figure 5.8.. Which best describes how you show the impact of social media on your business?
  • 57. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Firms improve in ability to prove the quantitative impact of social media 57 14.6% 13.2% 15.0% 11.5% 20.3% 18.4% 16.3% 23.3% 0% 5% 10% 15% 20% 25% Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Prove the impact quantitatively Figure 5.9.. Which best describes how you show the impact of social media on your business?
  • 59. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing spend on mobile expected to increase 93% in three years 59 7.0% 13.5% 0% 5% 10% 15% 20% Current Levels Next 3 Years Current 3 years B2B Product 5.6% 11.8% B2B Services 3.6% 8.2% B2C Product 10.9% 18.2% B2C Services 13.6% 24.7% Figure 6.1. Percent of marketing budget spending on mobile
  • 60. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Percent of marketing budget on mobile trends upwards over three years 60 3.2% 6.0% 5.9% 3.8% 3.7% 6.0% 7.0% 0% 2% 4% 6% 8% 10% Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 6.2. Percent of current marketing budget spend on mobile over time
  • 61. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Mobile contributions to company performance show little improvement 61 2.4 2.5 2.7 2.6 2.7 0 1 2 3 4 5 6 7 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 6.3. To what degree does the use of mobile marketing contribute to your company's performance? (1 = Not at all, 7 = Very highly)
  • 62. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 62 Mobile impact on customer, brand, and financial outcomes remains weak 2.9 3.7 3.3 3.5 3.0 2.8 0 1 2 3 4 5 6 7 Customer acquisition Customer engagement Customer retention Delivering your brand message Sales Profits Figure 6.4. Rate the performance of your company’s mobile marketing activities (1 = Poor, 7 = Excellent)
  • 63. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Companies remain focused on marketing fundamentals despite digital trends 63 81.7% 18.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% No Yes Figure 6.5. In general, do you think that the opportunity to pursue digital marketing opportunities has drawn your company’s attention away from marketing strategy fundamentals?
  • 65. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Planned marketing hires reach highest level since 2012 65 5.2% 6.5% 5.4% 5.5% 4.7% 3.8% 3.5% 6.6% 5.1% 5.4% 3.7% 6.4% 7.3% 0% 2% 4% 6% 8% 10% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 7.1. Percent change in marketing hires planned in next 12 months
  • 66. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing hiring changes by firm and industry characteristics Table 7.1a. Industry differences Industry Average Banking/Finance/Insurance 3.1% Communications/Media 8.4% Consumer Packaged Goods 9.2% Consumer Services 6.4% Education 5.0% Energy 19.2% Healthcare 10.3% Manufacturing 6.3% Mining/Construction* 0.0% Retail/Wholesale 3.3% Service/Consulting 9.9% Tech/Software/Biotech 5.1% Transportation 7.1% Sector Average B2B Product 7.1% B2B Services 8.0% B2C Product 6.2% B2C Services 7.2% Table 7.1b. Economic sector differences Table 7.1c. Firm Internet sales differences Firm sales Average 0% of sales 7.0% 1-10% of sales 6.4% >10% of sales 10.2% 66 Table 7.1. Percent change in marketing hires in next 12 months (Overall Average = 7.3%, SD = 14.5%)
  • 67. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketers seek talent with MarTech platform experience and creativity 67 19.4% Creativity 12.9% Curiosity 17.1% Natural Leadership Abilities10.0% Emotional Intelligence 21.8% MarTech Platform Experience 13.5% Data Science Background 5.3% Financial Acumen Figure 7.2. When thinking about future marketing talent needs, what skills would you prioritize in the hiring process?
  • 68. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketers seek talent with MarTech platform experience and creativity 68 Talent 1 2 3 4 5 6 7 MarTech Platform Experience 21.8% 11.8% 14.1% 7.1% 7.1% 15.3% 22.4% Creativity 19.4% 23.5% 22.4% 14.1% 11.2% 7.6% 1.8% Natural Leadership Abilities 17.1% 10.0% 15.3% 14.7% 22.4% 11.8% 8.2% Data Science Background 13.5% 14.7% 11.2% 10.0% 14.1% 15.9% 20.0% Curiosity 12.9% 19.4% 11.2% 20.0% 11.2% 14.7% 10.6% Emotional Intelligence 10.0% 14.1% 15.3% 19.4% 18.2% 13.5% 9.4% Financial Acumen 5.3% 6.5% 10.6% 14.1% 15.3% 20.6% 27.1% Table 7.2. When thinking about future marketing talent needs, what skills would you prioritize in the hiring process? (Rank in order of importance, where 1 = most important, 7 = least)
  • 69. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing outsourcing expected to increase by 5% in next year 69 3.1% 4.3% 4.5% 2.5% 1.6% 3.6% 4.1% 5.1% 5.0% 0% 2% 4% 6% 8% 10% Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 7.3. Percent change in outsourcing of marketing planned in next 12 months
  • 70. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing outsourcing changes by firm and sector characteristics 70 Table 7.2a. Industry sector differences Table 7.2b. Economic sector differences Table 7.2c. Firm Internet sales differences Industry Average Banking/Finance/Insurance 9.2% Communications/Media 0.4% Consumer Packaged Goods 3.7% Consumer Services 6.4% Education 5.0% Energy 10.0% Healthcare 5.0% Manufacturing 5.5% Mining/Construction 5.0% Retail/Wholesale 1.9% Service/Consulting 5.0% Tech/Software/Biotech 5.7% Transportation 6.4% Sector Average B2B Product 4.4% B2B Services 3.7% B2C Product 5.5% B2C Services 8.5% Firm sales Average 0% of sales 5.6% 1-10% of sales 4.4% >10% of sales 5.5% Table 7.3. Percent change in marketing outsourcing in next 12 months (Overall Average = 5.0%, SD = 9.1%)
  • 71. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing outsourcing expected to increase 4.1% in next year Percentage change in outsourcing of marketing in next 12 months (Overall mean = 4.1%, SD = 11.5) Table 7.1a. Industry sector differences Sector Mean Banking/Finance/Insurance 7.4% Communications/Media 5.3% Consumer Packaged Goods 0.5% Consumer Services 4.0% Education 10.0% Healthcare 5.5% Manufacturing 0.9% Mining/Construction 12.5% Retail/Wholesale 7.1% Service/Consulting 0.1% Tech Software Biotech 2.6% Transportation 5.0% Sector Mean B2B Product 3.6% B2B Services 6.0% B2C Product 2.3% B2C Services 2.6% Table 7.1b. Firm sector differences Table 7.1c. Firm Internet sales differences Firm sales Mean 0% of sales 3.4% 1-10% of sales 5.8% >10% of sales 2.7% 60 Energy and Pharmaceuticals are not displayed due to too few respondents
  • 72. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Product / service organizational structure remains dominant 72 26.5% 26.7% 30.2% 31.9% 29.9% 28.1% 73.5% 73.3% 69.8% 68.1% 71.1% 71.9% 0% 20% 40% 60% 80% 100% Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Customer Groups Product/Service Groups Figure 8.1. Organizational structure in companies % customer groups Overall 28.1% B2B Product 36.5% B2B Services 33.9% B2C Product 17.1% B2C Services 8.0%
  • 73. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Across all sectors, companies invest internally to develop new marketing capabilities 73 Sector Average B2B Product B2B Services B2C Product B2C Services We build new marketing capabilities ourselves by training current or hiring new employees with the skills 56.2% 54.3% 60.8% 49.6% 57.9% We partner with other marketing agencies to learn new marketing skills 14.1% 13.8% 13.2% 17.4% 12.7% We partner with other consultancies to learn new marketing skills 14.0% 15.5% 12.5% 13.8% 14.9% We partner with other companies to learn new marketing skills 12.2% 13.5% 10.6% 13.5% 11.0% We buy other companies to acquire new marketing skills 3.5% 2.9% 2.9% 5.6% 3.5% Table 8.1. How does your company approach the development of new marketing capabilities? Allocate 100 points to indicate the emphasis you place on each approach.
  • 75. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing leads more activities in companies 75 Activity Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18** Brand 82.1% 87.5% 89.4% 86.5% 88.7% 91.4% Digital marketing2 76.9% 79.0% Advertising 82.7% 82.1% 79.2% 76.3% 75.8% 81.7% Social media 79.5% 83.9% 75.7% 76.8% 71.0% 75.3% Public relations 64.1% 64.9% 65.5% 70.0% 69.4% 64.0% Promotion 76.3% 76.2% 73.3% 69.1% 66.7% 69.4% Positioning 80.1% 75.6% 67.8% 67.6% 67.7% 66.1% Marketing research 70.5% 70.2% 67.1% 59.9% 67.2% 64.5% Lead generation 55.8% 62.5% 60.8% 58.5% 56.5% 61.3% Marketing analytics 75.0% 79.2% 69.0% 57.5% 65.6% 67.7% Competitive intelligence 55.1% 56.5% 54.5% 42.0% 50.0% 54.8% Customer experience3 51.1% CRM 39.1% 37.5% 42.0% 41.1% 43.0% 39.8% Market entry strategies 55.8% 46.4% 43.5% 35.3% 34.4% 39.8% Revenue growth1 - - 38.4% 34.3% 29.0% 37.1% New products 37.8% 36.3% 40.0% 32.4% 36.6% 33.3% Pricing 30.8% 32.1% 33.7% 26.6% 27.4% 25.8% Innovation 23.1% 28.6% 29.8% 26.6% 31.7% 30.1% e-commerce1 - - 35.7% 23.7% 32.8% 26.3% Market selection 30.1% 29.8% 32.9% 23.7% 19.9% 24.2% Sales 32.1% 25.0% 24.7% 21.3% 22.6% 27.4% Customer service 19.9% 17.3% 18.0% 12.6% 21.5% 21.0% Distribution 12.2% 9.5% 10.2% 5.8% 10.2% 10.2% Stock market performance 3.8% 1.8% 2.7% 0.5% 0.5% 3.8% 1 Question was added in Aug-16. 2 Question was added in Aug-17. 3 Question was added in Feb-18. **Red reflects a decrease and Green reflects an increase of more than 2 percent between Aug-17 and Feb-18.. Table 9.1. Percentage of companies in which marketing leads activity
  • 76. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Number of marketer direct reports shows improvement while indirect reports decline 76 8.6 6.9 5.5 6.8 6.5 5.0 6.0 6.3 24.6 16.1 16.2 18.6 15.7 24.6 29.0 17.5 0 10 20 30 40 50 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Feb-17 Aug-17 Feb-18 Number of direct reports Number of indirect reports Figure 9.1. Number of people reporting to top marketer
  • 77. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing leader tenure has risen over time 77 3.0 3.0 4.0 4.0 4.4 4.0 6.5 7.0 7.0 7.0 9.0 8.0 0 1 2 3 4 5 6 7 8 9 10 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Current Any Role *Median levels are displayed. Figure 9.2. How many years have you been with this firm in your current role? In any role?*
  • 78. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketers unlikely to use brands to take a stance on politically-charged issues 78 82.6% 64.3% 76.9% 86.7% 100.0% 50.0% 66.7% 88.2% 88.5% 100.0% 84.4% 69.2% 80.0% 100.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Figure 9.3. Do you believe it is appropriate for your brand to take a stance on politically-charged issues? (% responding “No”)
  • 80. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing analytics spend shows fluctuation but no consistent increases over past 5 years 80 5.7% 5.0% 6.0% 5.5% 7.1% 7.1% 6.4% 6.7% 6.7% 6.5% 4.6% 5.5% 5.8% 0% 3% 6% 9% Feb-12 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 10.1. Percent of current marketing budget spend on marketing analytics over time
  • 81. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Spending on marketing analytics forecasted to increase 198% in three years 81 +198% projected growth 5.8% 17.3% 0% 5% 10% 15% 20% 25% Current Levels In Next 3 Years Figure 10.2. Percent of marketing budget spent on marketing analytics
  • 82. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Analytics spend expected to increase across sectors in next three years 82 4% 5% 7% 6% 4% 3% 7% 6% 3% 6% 6% 6% 7% 22% 14% 11% 17% 5% 14% 21% 28% 63% 13% 16% 14% 12% 0% 20% 40% 60% 80% Current Next 3 Years Figure 10.3. Current and 3-year predicted marketing analytics spend by industry
  • 83. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Spending on marketing analytics varies by firm characteristics and economic sector 83 Revenue Current In Next 3 years <$25M 5.1% 16.9% $26-99M 5.5% 14.6% $100-499M 5.8% 17.5% $500-999M 4.1% 14.1% $1-9.9B 7.5% 19.3% $10+B 6.5% 14.7% Table 10.1c. Firm size differences Table 10.1b. Firm Internet sales differences Internet Sales Current In Next 3 years 0% 4.9% 13.1% 1-10% 6.7% 21.8% >10% 6.1% 19.5% Table 10.1a. Economic sector differences Sector Current In Next 3 years B2B Product 6.4% 20.4% B2B Services 5.9% 15.3% B2C Product 5.1% 18.5% B2C Services 5.3% 14.2% Table 10.1. Spend on marketing analytics
  • 84. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Companies use more marketing analytics in decisions: B2C companies biggest users 84 30.4% 29.0% 32.5% 32.3% 29.0% 31.0% 35.3% 34.7% 31.6% 37.5% 42.1% 0% 10% 20% 30% 40% 50% Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Figure 10.4. Use of marketing analytics in decision making B2B Product 37.5% B2B Services 35.2% B2C Product 53.8% B2C Services 55.7%
  • 85. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Contribution of marketing analytics to firm performance improves slightly 85 *This question was asked in Aug-12 for the first time. 3.7 3.5 3.7 3.7 3.2 3.7 3.8 3.8 3.7 3.9 4.1 1 2 3 4 5 6 7 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Mean Contribution Level Figure 10.5. To what degree does the use of marketing analytics contribute to your company's performance? (1 = Not at all, 7 = Very highly)
  • 86. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Marketing analytics contributions by sector and firm characteristics 86 Table 10.2a. Industry sector differences Industry Average Banking/Finance/Insurance 3.7 Communications/Media 4.4 Consumer Packaged Goods 4.6 Consumer Services 5.1 Education 5.3 Energy 3.8 Healthcare 4.5 Manufacturing 3.6 Mining/Construction 3.0 Retail/Wholesale 4.1 Service/Consulting 3.6 Tech Software Biotech 4.3 Transportation 4.3 Sector Average B2B Product 3.7 B2B Services 3.9 B2C Product 4.6 B2C Services 4.7 Table 10.2b. Economic sector differences Table 10.2c. Firm Internet sales differences Firm sales Average 0% of sales 3.8 1-10% of sales 3.9 >10% of sales 4.7 Table 10.2. To what degree does the use of marketing analytics contribute to your company's performance? (1=Not at all, 7=Very highly)
  • 87. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Use of quantitative tools to demonstrate marketing impact shows improvement 87 36.3% 36% 37.3% 42% 35.9% 37% 34.3% 37% 39.5% 50.0% 31.7% 29% 33.0% 34% 29.4% 31% 32.8% 35% 38.2% 40.6% 0% 10% 20% 30% 40% 50% 60% 70% Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Short Term Long Term Figure 10.6. Use of quantitative tools to demonstrate the impact of marketing
  • 88. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics How firms show the impact of marketing spend varies by sector and Internet sales 88 Table 10.3a. Industry sector differences Industry Quantitatively Qualitatively Banking/Finance/Insurance 53.3% 40.0% Communications/Media 60.0% 13.3% Consumer Packaged Goods 58.8% 17.6% Consumer Services 71.4% 28.6% Education 33.3% 33.3% Energy 25.0% 50.0% Healthcare 54.5% 31.8% Manufacturing 33.3% 40.7% Mining/Construction 0.0% 50.0% Retail/Wholesale 41.2% 52.9% Service/Consulting 40.0% 45.0% Tech Software Biotech 73.3% 13.3% Transportation 50.0% 50.0% Sector Quantitatively Qualitatively B2B Product 32.8% 47.8% B2B Services 54.8% 28.8% B2C Product 63.2% 21.1% B2C Services 60.0% 33.3% Table 10.3b. Economic sector differences Table 10.3c. Firm Internet sales differences Firm sales Quantitatively Qualitatively 0% of sales 48.3% 32.2% 1-10% of sales 47.7% 38.5% >10% of sales 56.0% 34.0% Table 10.3. Which best describes how your company shows the short-term impact of marketing spend on your business?
  • 89. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics Top management team plays important role in success of marketing analytics 89 13.2% 9.3% 7.8% 8.3% 19.1% 23.0% 19.1% 13.3% 8.9% 8.9% 12.3% 17.2% 22.7% 16.7% 0% 5% 10% 15% 20% 25% Not at All Not Important Somwhat Not Important Neutral Somewhat Important Important Very Important How important is the top management team in driving the use of marketing analytics in your company? How important is the top management team in ensuring the use of marketing analytics impacts company performance? Figure 10.7. Importance of top management team on marketing analytics use and performance
  • 90. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics AI and machine learning impact modest but expected to grow over three years 90 Figure 10.8. To what extent is your company implementing artificial intelligence or machine learning into its marketing toolkit? (1=Not at all, 7=Very highly) Overall Current In three years B2B Product 1.7 2.9 B2B Services 1.9 3.1 B2C Product 2.1 3.5 B2C Services 2.2 3.3 1.9 3.1 1 2 3 4 5 6 7 Current Three Years Extent of AI Implementation
  • 91. Marketplace Growth Spending Performance Social Media Mobile Jobs Organization Leadership Analytics 1.5 2.2 1 2 3 4 5 6 7 Current Three Years Extent of Blockchain Implementation Blockchain technologies slow to play a role in marketing 91 Figure 10.9. To what extent are blockchain technologies affecting your company’s marketing strategies? (1=Not at all, 7=Very highly) Overall Current In three years B2B Product 1.6 2.2 B2B Services 1.5 2.3 B2C Product 1.5 2.1 B2C Services 1.4 2.0
  • 93. The 2018 CMO Survey Award for Marketing Excellence – Apple Inc. 93 Which company across all industries sets the standard for excellence in marketing? Apple has won this award for ten consecutive years. Christine Moorman discussed this accomplishment in 2012 (read here) and revisited Apple’s success recently (read here). Apple Inc.
  • 94. Which company in your industry sets the standard for excellence in marketing (in alphabetical order)? The 2018 CMO Survey Award for Marketing Excellence – Industry Winners 94 Consumer Services Consumer Goods Communications / Media Consumer Packaged Goods Technology / Retail Technology
  • 95. Preview 95 Next survey: July 2018 Participate: Sign up here Media: Press release and coverage Feedback: Send comments to moorman@duke.edu