89% of marketers set to ramp up analytics spendby
Research from the World Federation of Advertisers (WFA) says investment in analytics for marketing is on the rise, with 89% of marketers expecting to increase budgets to account for data analytics tools in the coming year and 31% to boost them “greatly”.
And the general consensus is that marketers are gradually improving their overall understanding of data, with 31% of marketers describing themselves as advanced or highly advanced in the adoption of data-driven marketing, using multiple data personalisation and segmentation techniques.
The research, conducted in conjunction with The Customer Framework, was based on interviews from 32 companies with a combined global annual marketing spend of $35bn.
It found that those companies that did describe themselves as advanced were generally underpinning their efforts with a range of technology solutions including CRM, analytical systems, data management platforms (DMPs) and rules engines.
However, 56% of respondents felt they were still early in the data marketing journey, any many felt they were still in the initial planning stage having yet to deploy a data-driven marketing strategy.
And it was the strategic side that Nick Broomfield, director and managing partner at The Customer Framework felt was central to businesses benefitting from data-driven marketing:
“To make the most of their investment in data planning, execution and analysis, companies need to develop the right organisational structure to deploy commercial, practical insights combined with a program to improve data-driven marketing capabilities across the organisation.”
Matt Green, Senior Global Marketing Manager at the WFA added: “It’s no secret that data has become important for marketing purposes, though it’s interesting to note that even some of the world’s biggest companies are only at the early stages of delivering data driven marketing strategies.
“Data consumption is set to increase rapidly and with that sophistication – clarifying how data will be used and how consumer privacy will be protected, should be a fundamental component of a brand’s strategy as it advances into data-driven marketing.”
Indeed, data privacy is one of the key issues many marketers are still struggling to get to grips with.
An example of this was found in Capgemini Group releasing findings from a report into personalisation and privacy yesterday that stated consumers worldwide were “strongly dubious” of privacy initiatives in marketing and that 93% of all consumer sentiment on the subject is negative.
And the repercussions of marketers overstepping the mark can often be terminal. According to findings from the Aimia Institute, the data company that oversees customer loyalty schemes including Sainsbury’s Nectar card, over half (57%) of consumers are already taking steps to actively avoid companies, with a variety of methods including unfollowing brands on social channels (69%), closing accounts and subscriptions because individuals don't like the communications they are receiving (69%) and opting out from the majority of company email communications (58%).
Chris is Editor of MyCustomer. He is a practiced editor, having worked as a copywriter for creative agency, Stranger Collective from 2009 to 2011 and subsequently as a journalist covering technology, marketing and customer service from 2011-2014 as editor of Business Cloud News. He joined MyCustomer in 2014.