EMERGING DIGITAL MARKETING TRENDS

AUSTRALIA & NEW ZEALAND 2013

1
I love it... and the
possibilities seem
ENDLESS!!!
(Just give me a budget) ;)
Contents

Executive Summary 4 Findings in Detail 13

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Part 1.
Summary of key themes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
A Context for Digital Marketing in Australia & New Zealand
A snapshot of the Australian & NZ sectors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Whats in the digital toolkit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
How do marketers feel about working in the digital environment?. . . . . . . . . . . . . . . . 8 Findings in Detail 25
Managing the digital marketing strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Part 2.
What constitutes digital success and how is it measured? . . . . . . . . . . . . . . . . . . . . . . . 9
Current patterns of behaviour in digital marketing
Barriers to the acceleration of digital marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

About Sitecore 48
Research Methodology and Profile of
Participants 11
Sample profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
 1
EXECUTIVE SUMMARY

4
Introduction
Thank you for your interest in
the attitudes and behaviour
of marketers across Australia
and New Zealand.
Sitecore together with First Point Research
and Consulting are pleased to present a
uniquely Australian and New Zealand study
into the marketers relationship with and
understanding of digital marketing.
Digital marketing is a rapidly evolving industry.
Marketers are faced with a diverse and growing
range of channels, a consumer journey with multi-
channel touch points, different technologies to
deliver to each channel and no consistent approach
to the measurement of marketing effectiveness.
With these challenges comes greater scrutiny of
marketing budgets and demands for increased
linkages to sales. With this survey we analyse the
current state of digital marketing and attitudes
to the challenges and opportunities within
the Australian and New Zealand markets.
Its not uncommon to see reports discussing the
trends within this space, however many only
focus on the United States or United Kingdom Read on and find out how your organisation
and presume these countries reflect the stance in and role compares to others in your industry,
Australia and New Zealand. Other reports simply seniority and organisation size.
confirm what is already known that its happening
now and will continue long into the future. With
Robert Holliday
that in mind, we wanted to get to the truth of digital
marketing in Australia and New Zealand, even if Managing Director
that meant some potentially disruptive insights. Sitecore Australia & New Zealand
This research study conducted with
330 marketing managers examines:
Current patterns of behaviours
in digital marketing
The current digital toolkit and
how it is expected to change
Attitudes of marketers
working in a digital world
Managing the digital
marketing strategy
What constitutes digital success
and how it is measured
The barriers to the acceleration
of digital marketing
5
 Summary of key themes

Digital marketing is no longer niche. Digital marketing is now considered mainstream within the marketing repertoire. Marketers
have seen the opportunities presented and are now embracing them. (page 35)

Big companies are waking up to the advantages. Large companies are now leading the investment in digital marketing activities.
While smaller companies were the early adopters of digital marketing,
the big spenders are now catching up and are the most likely to be
investing more in digital over the next 12 months. (page 21)

Senior marketers are building their own skills in digital marketing

but greater emphasis is now needed at the junior-mid levels.
Experienced marketers (15yrs+ in the industry) are more likely to have undertaken
specific training in digital marketing (relative to those with 10yrs or less in the industry)
and this is reflected in their knowledge of the digital tools available to them, application
of more sophisticated digital tools and higher rates of measurement of ROI.
Less experienced marketers are less knowledgeable about digital, are less likely to measure ROI
and are generally less confident about the digital marketing strategies they implement. (page 32)

Web analytics is not being used effectively.

Web analytics are used primarily for periodic reporting and most marketers are frustrated
in their knowledge that they could be used far more effectively. Web analytics is the
number one area marketers would like to see their organisations improve. (page 31)

Big appetite for predictive analytics.

Predictive analytics is largely viewed as the next golden ticket but
most feel ill equipped to move in that direction. (page 31)

Digital ROI is a work in progress.

ROI of digital activity is still evolving and most are still focused on visits to the website
as a primary measure of success. 20% are not measuring ROI at all. (page 40)
6
A snapshot of the Australian & NZ sectors
The majority of the marketing budget is
still being spent offline but within the next
12 months the spend on digital marketing
activities is likely to outstrip offline.
73% intend to spend more on digital
in the next 12 months (only 2%
will spend less on digital); and
Only 11% intend to increase
spend on traditional marketing
(while 33% will spend less).
The top 5 areas of growth all fall
within the scope of digital marketing.
Social media (22% perceive it as
the greatest opportunity for future
growth); emailing to their own database
(14%); personalisation (12%); mobile
(10%) and paid search (8%) are
perceived as the key growth areas.
Two of the top three most
common marketing activities in
late 2013 are digital activities.
Social media & email marketing
to existing customer databases
(both used by more than 80%
of the organisations surveyed)
are currently the most widely
used marketing activities.
The top 5 over-rated marketing channels
are all traditional marketing channels.
Print (38% perceive it as over-rated);
TV (24%); trade shows (16%);
direct mail (15%) & radio (13%).
The most significant differences in the
application of digital marketing activities is
observed across the scale of organisations.
Organisations with turnover of
$20million+ are still more traditional
in their marketing activities while
smaller companies (turnover of
$2million or less) are using digital
marketing more extensively.
The indication however is that larger
companies have now realised they need
to get on board. Large companies
are the most likely to be spending
more on digital in the next 12 months
(75% of high turnover companies
indicate they will invest more money
in digital in the next 12 months,
compared with 50% of companies
with a turnover of $2million or less).
7
 Whats in the digital toolkit?
Whats hot right now?
Web analytics (currently used by 88% of companies).
Email marketing (currently used by 85% of companies).
What are the priorities for the next 12 months?
Predictive analytics (44% planning to use within 12 months).
Content profiling (40% planning to use within 12 months).
Integration to CRM (40% planning to use within 12 months).
Personalisation (40% planning to use within 12 months).
Mobile adapted version of the website (37%
planning to use within 12 months).
What are the knowledge roadblocks?
IP Lookup for sales (22% dont know what this is).
Predictive analytics (16% dont know what this is).
Marketing automation (14% dont know what this is).
Analytics & personalisation are the areas marketers
want to see their organisations improve.
Web analytics (51% want to see their
organisation get better at this).
Predictive analytics (50% want to see their
organisation get better at this).
Personalisation (50% want to see their
organisation get better at this).
8
How do marketers feel about working
in the digital environment?
There is a clear need to deliver enhanced training
to junior and mid-level marketers.
Formal training in digital marketing is heavily skewed to marketers with 15
years or more experience (53% vs 38%). It appears as an industry there is
an assumption that young marketers are obtaining the necessary skills in
their undergraduate courses and this doesnt appear to be the case.
While most feel relatively confident with their digital marketing
skills, younger marketers are much less confident in their
skills, which is not surprising given they are far less likely to be
completing specific training courses in digital marketing.
While 27% of marketers with 15yrs or more experience in marketing
rate their digital skills as excellent, only 13% of marketers with less
than 5 years experience view their digital skills as excellent.
The enhanced training received by senior marketers is reflected not only
in their higher level of digital competency, but also in a competitive edge.
While 33% of senior marketers think their organisation is ahead of most
competitors, only 22% of junior to mid level marketers believe that.
Digital marketing is no longer considered niche. Marketers
feel more confident about it and are embracing the
opportunities presented by the sector.
95% now view digital marketing as mainstream;
83% find digital marketing stimulating and exciting.
Mid-Larger companies have been slower to invest in digital but are
now seeing success and are feeling more confident in the process.
Managing the digital
marketing strategy
There is great variation in the way
the digital marketing function is
managed across organisations.
As might be expected, there are significant
differences between small-medium size
companies compared with larger firms.
While the most common scenario is now to
have a digital marketing team (28% overall),
this increases to 34% amongst large companies
and only 15% amongst smaller companies.
A large proportion still rely on a single
marketing person to handle all marketing
activities (20% overall) but this is more
prevalent in smaller companies (38%) and
far less so in larger companies (10%).
Multiple platforms are common
for managing content activity,
particularly in larger companies.
73% on average are using multiple platforms
and only 17% are using a single platform.
Social media is the area that
marketers are most vigilant about the
activities of their competitors.
47% think their competitors have an
edge over them in social media.
What constitutes digital success
and how is it measured?
While the vast majority (80%) of organisations track ROI on their digital marketing
activities, the big surprise is that 20% are not tracking ROI on digital activities at all.
The largest proportion (46%) use ROI to report back to management.
A small but significant segment (14%) are tracking the ROI but are unsure of how to use it.
The most common measure of digital success is the use of website traffic.
The three most common measures of success are:
Visits to the website (73%);
Conversions/ sales/ new customer acquisitions (57%); and
Leads generated (44%)
Most marketers are in no doubt though about how the boss measures success:
Conversions/ sales/ new customer acquisitions (43%) is cited by the largest
proportion as the key indicator sought by the management team, followed
by having KPIs aligned with the business objectives (14%).
Web analytics could be used far more effectively in most organisations.
They are generally used in periodic marketing meetings (in 48% of
organisations) and few are using them in real time (only 8%).
The most common use of web analytics is in reporting (38% using them
extensively for reporting) and to a lesser extent for insights (22%).
Few are using web analytics for recommendations for content for market automation, or site
or content optimisation (only around 10% are using them regularly for these functions).
9
 Barriers to the acceleration
of digital marketing

Limited financial resources is the most significant barrier to greater

investment in digital marketing. Many participants articulated this in
their open comments, but the survey results reinforce the problem:
51% view a limited marketing budget as a significant barrier.
NO MONEY!
The problem is even worse in Australia (52% cite limited budget
as a significant barrier) relative to New Zealand (42%).

Junior & mid level marketers are far more likely to cite a lack of
digital marketing knowledge as a barrier. Previous results support
this and reinforce a need for more training at junior levels.
33% of younger marketers identify lack of marketing knowledge as
a significant barrier, compared with 18% of senior marketers.

Younger marketers dont feel that clear objectives are being

I DONT KNOW
set for ROI on digital activities. Senior marketers must do HOW TO...!
more to keep their team moving in the same direction.
31% amongst younger marketers identify lack of clear
understanding of ROI as a significant barrier to further investment
in digital, compared with just 12% of senior marketers.
WHAT DO YOU
MEAN BY ROI?

10
2
RESEARCH METHODOLOGY AND
PROFILE OF PARTICIPANTS

11
 Sample profile

17+8+65320x
BUSINESS SECTOR
ROLE & EXPERIENCE
FINANCE/ INSURANCE 20% GOVERNMENT 17%
Marketing (<5 years) 14%

Marketing (5-14 years) 32%

Marketing (15 years +) 15%

EDUCATION 8%
Web development/ IT 20%

Other (Customer service / operations) 18%

OTHERS 25% TECHNOLOGY 6%

MEDIA 5%
LOCATION
MANUFACTURING 5%
HEALTHCARE 3%
RETAIL 3% NON PROFIT 5%
SERVICES 3% SPORT & LEISURE 5%

ANNUAL TURNOVER

88%

12%

<$2MILLION 8% $2- $19MILLION 16%

$20MILLION OR MORE 48% DONT KNOW 28%

12

BASE: CLIENT SIDE SAMPLE (N=330) *responses have been rounded so could add to more than 100%.Fieldwork was conducted via online survey from 1-9 October 2013.
3
FINDINGS IN DETAIL

Part 1.

A Context for Digital Marketing in

Australia & New Zealand

13
 The sentiment amongst marketers is largely positive

It is the place to be! It is growing, evolving and in the next 12-18 Im excited about new platforms
months we will see a lot of dinosaurs leaving traditional methods and possibilities for reaching our
and jumping into the new digital marketing space. Mobile is the tip of target audience which has grown up with
the iceberg, and where a lot of money & efforts will be concentrated on. technology and are first embracers.

Australian marketing is about 10

Digital marketing is fast moving and it takes time and effort to keep up years behind the UK in strategy
with the technology. If you can keep up there are exciting times ahead. and channel optimisation, however, the
need to satisfy and focus on the customer
is always at the forefront of strategic
conversations. If companies dont
Im excited, with Google Glass about to disrupt social media, have a plan in place to implement an
and Pebble leading the charge into smartwatch technology, effective digital marketing plan, including
wearable digital devices will become integrated, more so, into reporting through to optimisation and
every aspect of life. And marketers need to be able to harness these trigger based CRM, then they are already
technologies and provide customers with better brand experiences. 5 years behind their competitors.

14
But there are still plenty of cynics
Digital is simply another advertising/marketing
medium, we use it alongside traditional media
at different weights depending on the campaign
objectives. Its not a silver bullet, it may work in some
cases and not in others... like any other medium!
Its still full of digi-spruikers
conning money out of marketers
by pretending there is something
special about digital. With all these digi-
experts we have not seen any market
share shifts, nor any reduction in
budgets from testing and analytics.
Stop making out its something
it isnt. Digital is just another set
of channels - some work, some dont.
I wish the BS and noise would die.
Digital marketing is just another tool in the tool
kit. Its not always the answer, sometimes it is the
best/sole solution and sometimes it is part of an integrated
strategy. Its probably going to grow in importance
as many more people spend more time online.
15
 A number of challenges have been identified

I think digital marketing is evolving as we It will become a very crowded space so we

speak. Theres little differentiation between need to develop effective new ways to cut
editorial content and sponsored content and I think through the clutter and connect with potential clients.
that this is going to be a problem. Many people want
to buy native advertising, but if there is too much
vendor content, then it will significantly reduce
As a marketing manager I feel overwhelmed at the enormity
the value of such content and their proposition.
of creating and implementing a digital marketing plan
with very little budget. I feel like our organisation has left it all up
to my department and there is no support for us. My working
Digital marketing has much
week is now 80% digital and I am not sure when that turning point
potential but the rapidly
occurred. Over the next 12-18 months I can see that the digital task
evolving nature of it makes long term
will continue to be my teams focus as we strive to harness its many
usage strategies difficult to plan for.
facets. It will be unlikely that we employ digital specialists, so we are
There is always something new, lots
all trying to get up to speed with digital marketing as best we can.
of static about social media, frauds
purporting to be experts, people who
dont understand specific industries,
a disconnect between reality and fact Positive as far as ROI and insight goes, apprehensive as to how long it will last,
which will continue into the future. fear consumers will say enough is enough with the stalking style tactics.
16
Lack of resources is a common theme

There is a lot for our organisation to learn from how digital I love it... and the possibilities seem
marketing can benefit our business. We currently need more ENDLESS!!! (Just give me a budget) ;)
resources to even look at digital within the next 12 - 18 months.

I feel agnostic and

yet resigned to not
Lots of potential for creating great campaigns,
doing anything about it,
however resources are often understated
knowing there is absolutely
and great tools end up being under-utilised.
no budget for such activities.

Exciting opportunities exist. However, as a Government body that sets industry standards and ensures
industry compliance we are greatly restricted in terms of budget in the current economic environment.

17
 Many are concerned about isolating digital activity
from the broader marketing mix

Growing, critical, but part of the greater marketing mix, integrated

campaigns still provide best return. digital alone wont succeed.

Digital marketing will grow I feel that people have very high exceptions of
however it should not be looked digital marketing and that they need to understand
at in isolation in the total marketing mix. it is one platform of a good multi-channel campaign.

Awash with opportunity but must be part of overall business strategy. Requires a huge corporate
cultural shift but those that embrace it and move forward with it will reap the rewards.

18
But the overwhelming tone is of EXCITEMENT & OPTIMISM

I am very excited about the Excited! So much opportunity and if we dont

outlook for the digital marketing
industry. I am only a newbie and not
formally trained, but the last two years
working in this space have convinced
me that this is the career I want.
lose the NBN plans in Australia then well have
exponential growth in digital marketing. Marketers will need
to be creative to stay one step ahead of the media savvy
public. But the challenges and opportunities excite me!

I feel very passionately about digital marketing and would like to partake in more
training courses to keep up to date with new technologies and improvements.

Bring it on...!

19
 Spend on offline activities Smaller firms are leading the way
still outstrips online spend in their investment in digital
by more than 60%

39+61+x
The average
390+610= 39%
ONLINE/DIGITAL MARKETING ACTIVITIES
proportion of the
marketing budget,
610+390= 61%
OFFLINE MARKETING ACTIVITIES
on average, spent on
DIGITAL marketing
100 AVERAGE PROPORTION OF THE MARKETING 39% activities
BUDGET SPENT ONLINE VS OFFLINE
BY COMPANY TURNOVER
Q: Approximately what proportion of your marketing budget
would currently be spent online (ie. on digital marketing
activities) compared with offline marketing activities? 550+450= 55%
< $2MILLION

460+540= 46%
$2-19MILLION

330+670= 33%
$20MILLION OR MORE

20

BASE: CLIENT SIDE SAMPLE (N=330)

The momentum however is And it is larger firms now
clearly towards an increased driving the increased spend

73+20+2+5+0+1+48+33+8 73+27+x
spend on digital marketing in digital and catching up

Indicates they
will increase their
spend on DIGITAL
marketing activities
73% 20% 2% 5% 11% 48% 33% 8% 73%
ONLINE/DIGITAL MARKETING OFFLINE MARKETING BY COMPANY TURNOVER

100 INCREASE SPEND

100 MAINTAIN SPEND 500+500= 50%
< $2MILLION

100 DECREASE SPEND

760+240= 76%
100 DONT KNOW
$2-19MILLION
Q: Looking ahead to the next 12-18 months, what is planned for your digital
marketing budget and your offline marketing budgets?
750+250= 75%
$20MILLION OR MORE

21

BASE: CLIENT SIDE SAMPLE (N=330)

 The use of social media & customer databases feature
heavily in current marketing activities

ONLINE OFFLINE

840+160= 84%
EMAIL TO OWN DATABASE
820+180= 82%
PRINT

810+190= 81%
SOCIAL MEDIA
650+350= 65%
TRADE SHOWS

600+400= 60%
DISPLAY ADS
590+410= 59%
DIRECT MAIL

550+450= 55%
PAID SEARCH
470+530= 47%
RADIO

320+680= 32%
MOBILE
460+540= 46%
TV

310+690= 31% BUSINESS/ WEB ANALYTICS

360+640= 36% OTHER EVENTS

270+730= 27% EMAIL TO EXTERNAL DATABASE

180+820= 18% TELEMARKETING

210+790= 21% VIDEO ADS

180+820= 18% OUT OF HOME

170+830= 17% WEBINARS

Q: Looking at the extensive list below of offline and online
marketing channels, please indicate which channels currently
150+850= 15% AFFILIATE MARKETING
feature within your marketing mix (or the marketing mix of
the organisation you deal with most often). (Multiple answers
120+880= 12% PERSONALISATION
possible)

90+910= 9% PRICE COMPARISON SITES

22

BASE: CLIENT SIDE SAMPLE (N=330)

The top 5 over-rated marketing channels are all OFFLINE

380+620= 38% PRINT

240+760= 24% TV

160+840= 16% TRADE SHOWS

150+850= 15% DIRECT MAIL

130+870= 13% RADIO

110+890= 11% DISPLAY ADS

60+940= 6% SOCIAL MEDIA

60+940= 6% TELEMARKETING

60+940= 6% PAID SEARCH

50+950= 5% EMAIL MARKETING

40+960= 4% OUT OF HOME

40+960= 4%
PRICE COMPARISON SITES

30+970= 3% AFFILIATE MARKETING

Q: Of those channels that currently feature in your marketing mix, which, if any, do you think are
20+980= 2% WEBINARS over-rated and would prefer to see less of your marketing budget spent on?

50+950= 5% OTHERS

23

BASE: CLIENT SIDE SAMPLE (N=330)

 The top 5 growth opportunities are all ONLINE

220+780= 22% SOCIAL MEDIA

140+860= 14% EMAIL TO OWN DATABASE

120+880= 12% PERSONALISATION

100+900= 10% MOBILE

80+920= 8% PAID SEARCH

60+940= 6% TV

30+970= 3% ALL OTHERS

Q: Looking again at the comprehensive list of marketing channels, which ONE channel, do you
perceive offers the greatest opportunity for growth of your organisation (or the organisation you
deal with most often) over the next 12-18 months?

24

BASE: CLIENT SIDE SAMPLE (N=330)

3
FINDINGS IN DETAIL

Part 2.

Current patterns of behaviour

in digital marketing

25
 What is in the digital toolkit and how
is that expected to change?

88+85+63+57+55+53+40+40+38+26+24+18+11
Whats hot right now? WEB ANALYTICS
AND EMAIL
MARKETING
ARE ON FIRE!

88% 85% 63% 57% 55% 53% 40% 40% 38% 26% 24% 18% 11%
WEB ANALYTICS

EMAIL MARKETING

CAMPAIGN MANAGEMENT

SOCIAL MEDIA INTEGRATION

TESTING

MOBILE ADAPTED
VERSION OF WEBSITE

PERSONALISATION

ECOMMERCE SERVICES

INTEGRATION TO CRM/
CUSTOMER REPOSITORIES

CONTENT PROFILING

MARKETING AUTOMATION

PREDICTIVE ANALYTICS

IP LOOKUP
Q: To what extent does your organisation use the following?
26

BASE: CLIENT SIDE SAMPLE (N=330)

Some interesting observations about the different
digital activities being implemented

<5 YEARS MARKETING EXPERIENCE 5-14 YEARS MARKETING EXPERIENCE 15YEARS + MARKETING EXPERIENCE

Web analytics 81% 91% 88%

Email marketing 85% 88% 90%

Campaign management 71% 58% 78%

Social media integration 67% 59% 47%

Testing 52% 46% 57%

Mobile adapted version of the website 48% 41% 55%

Personalisation 54% 37% 55%

Ecommerce services 27% 40% 61%

Integration to CRM 46% 33% 31%

Content profiling 35% 19% 29%

Marketing automation 27% 23% 33%

Predictive analytics 23% 12% 24%

IP Lookup 17% 10% 12%

Q: To what extent does your organisation use the following?

27

BASE: CLIENT SIDE SAMPLE (N=330)

 Whats planned for the Whats not on the radar yet?
next 12 months?

440+560= 44% PREDICTIVE ANALYTICS 380+620= 38% IP LOOKUP

410+590= 41% CONTENT PROFILING 300+700= 30% ECOMMERCE SERVICES

400+600= 40% INTEGRATION TO CRM 270+730= 27% MARKETING AUTOMATION

400+600= 40% PERSONALISATION 220+780= 22% PREDICTIVE ANALYTICS

370+630= 37% MOBILE VERSION OF WEBSITE 180+820= 18% CONTENT PROFILING

350+650= 35% SOCIAL MEDIA INTEGRATION 150+850= 15% INTEGRATION TO CRM

340+660= 34% MARKETING AUTOMATION 140+860= 14% PERSONALISATION

290+710= 29% IP LOOKUP 120+880= 12% TESTING

260+740= 26% CAMPAIGN MANAGEMENT 100+900= 10% CAMPAIGN MANAGEMENT

260+740= 26% TESTING 80+920= 8% MOBILE VERSION OF WEBSITE

210+790= 21% ECOMMERCE SERVICES 60+940= 6% EMAIL MARKETING

90+910= 9% WEB ANALYTICS 60+940= 6% SOCIAL MEDIA INTEGRATION

70+930= 7% EMAIL MARKETING 100 NO INTENT TO USE IN THE NEXT 12 MONTHS

100 PLANNING TO USE IN THE NEXT 12 MONTHS Q: To what extent does your organisation plan
to use the following in the next 12 months?:
Q: What does your organisation plan
to use in the next 12 months?

28

BASE: CLIENT SIDE SAMPLE (N=330)

There are several digital functions not well understood by marketers

220+780= 22% IP LOOKUP

? 160+840= 16% PREDICTIVE ANALYTICS

? 140+860= 14% MARKETING AUTOMATION

? 90+910= 9% TESTING

70+930= 7% INTEGRATION TO CRM

60+940= 6% PERSONALISATION

60+940= 6% MOBILE VERSION OF WEBSITE

40+960= 4% CAMPAIGN MANAGEMENT

50+950= 5% CONTENT PROFILING

30+970= 3% SOCIAL MEDIA INTEGRATION

20+980= 2% EMAIL MARKETING

100 I DONT KNOW WHAT THAT IS

Q: To what extent does your organisation use the following?

29

BASE: CLIENT SIDE SAMPLE (N=330)

 The knowledge gaps lie most significantly with junior-mid level marketers

<5 YEARS MARKETING EXPERIENCE 5-14 YEARS MARKETING EXPERIENCE 15 YEARS + MARKETING EXPERIENCE

IP Lookup 27% 22% 14%

Predictive analytics 13% 22% 4%

Marketing automation 17% 13% 6%

Testing 10% 12% 2%

Content profiling 10% 18% 10%

Integration to CRM 2% 7% 4%

Personalisation 4% 5% 0%

Mobile adapted version of the website 8% 6% 0%

Campaign management 4% 3% 2%

Social media integration 4% 1% 0%

Q: To what extent does your organisation use the following: (I DONT KNOW WHAT THAT IS)

30

BASE: CLIENT SIDE SAMPLE (N=330)

Analytics & personalisation are the areas most want to be doing better

Q: Which of the following, if any, do

you think your organisation should be
doing better? Please select all that
apply. (Multiple responses possible)

100 WHAT COULD YOUR ORGANISATION BE DOING BETTER?

51+50+50+42+38+35+34+33+32+32+32+19+17
WEB ANALYTICS 51%

PREDICTIVE ANALYTICS 50%

PERSONALISATION 50%

SOCIAL MEDIA INTEGRATION 42%

CONTENT PROFILING 38%

MOBILE VERSION OF WEBSITE 35%

EMAIL MARKETING 34%

CAMPAIGN MANAGEMENT 33%

INTEGRATION TO CRM 32%

TESTING 32%

MARKETING AUTOMATION 32%

ECOMMERCE SERVICES 19%

IP LOOKUP 17%
31

BASE: CLIENT SIDE SAMPLE (N=330)

 Attitudes & behaviour of marketers working in a digital world
There is a clear need to deliver enhanced training to those new to the industry

40+60+x
Q: Have you undertaken any training
courses in digital marketing?
40% YES

60% NO

YES, THEY HAVE UNDERTAKEN A TRAINING COURSE SOME OF THE TRAINING UNDERTAKEN INCLUDED..

< 5 YEARS IN MARKETING Undergraduate degrees (units within)

380+620= 38%

Post-graduate degrees
Industry Association courses

5-14 YEARS IN MARKETING

Sitecore training courses

530+470= 53%

ADMA courses
Google Adwords
Google Analytics
15 YEARS+ IN MARKETING

540+460= 54%
SEO/SEM
Short courses (1-2 days)
Seminars
Webinars
In-house training
32

BASE: CLIENT SIDE SAMPLE (N=330)

While most feel quietly The more concentrated training directed
confident about their own at senior marketers is reflected in
skills in digital marketing their own confidence and also lack of
confidence amongst younger marketers

17+83+x
Q: How would you rate your own
knowledge of digital marketing? Marketers that rate
their own digital
marketing skills
170+830= 17% EXCELLENT
as excellent

430+570= 43% GOOD 17%

MARKETING EXPERIENCE

280+720= 28% ADEQUATE

130+870= 13% < 5 YEARS IN MARKETING

110+890= 11% LIMITED

230+770= 23% 5-14 YEARS IN MARKETING

10+990= 1% POOR
270+730= 27% 15 YEARS+ IN MARKETING

33

BASE: CLIENT SIDE SAMPLE (N=330)

 Almost one in four think their Senior marketers feel particularly confident
about their competitive position. The enhanced
organisation is more digitally training received by senior marketers is
competent than their competitors reflected not only in their higher level of digital
competency but also in a competitive edge

24+76+x
240+760= 24% AHEAD OF MOST OF OUR COMPETITORS
Marketers believe they
are ahead of most
300+700= 30% ABOUT THE SAME AS OUR COMPETITORS of their competitors
in terms of digital
180+820= 18% ABOUT 6 MONTHS BEHIND OUR COMPETITORS
24% competency

120+880= 12% ABOUT 12 MONTHS BEHIND OUR COMPETITORS

MARKETING EXPERIENCE

120+880= 12%
MORE THAN 12 MONTHS BEHIND OUR COMPETITORS
220+780= 22% < 5 YEARS IN MARKETING

40+960= 4% I DONT KNOW/ COULDNT SAY

100 DIGITAL COMPETENCY WITHIN THE ORGANISATION

230+770= 23% 5-14 YEARS IN MARKETING

330+670= 33%
Q: Which of the following best describes your impression of
15 YEARS+ IN MARKETING
the digital competence within your organisation?

EDUCATION SECTOR: 19%

GOVERNMENT SECTOR : 30%

34

BASE: CLIENT SIDE SAMPLE (N=330)

Digital marketing is now mainstream. Marketers feel more
confident about it and are embracing the opportunities.

Q: Listed below are a number of statements other people have shared with us about
how they are feeling about digital marketing. Using a scale from 1 to 5 please
indicate the extent to which you agree or disagree with each statement.

I now see digital marketing as part of mainstream marketing

950+50= 95%
I find working on digital marketing activities both stimulating and exciting 830+170= 83%
I feel more confident executing digital marketing
activities than I did 12 months ago 720+280= 72%
Measurement of the impact of digital marketing activities
continues to be a major challenge for the industry 650+350= 65%
I continue to be impressed by the outcomes
achieved by our digital marketing activities 600+400= 60%
I prefer traditional, offline marketing methods as they have a proven ROI
80+600+320= 8%
60% DISAGREE

I avoid getting involved in digital marketing activities when I can

70+830+100= 7% 83% DISAGREE

I dont really get the fuss about digital marketing

70+830+100= 7% 83% DISAGREE

100 STRONGLY AGREE/ AGREE

100 DISAGREE 35

BASE: CLIENT SIDE SAMPLE (N=330)

 Mid-size companies are the Digital success amongst mid-
most likely to be seeing rewards size companies is now translating
from their digital activities to increased confidence

60+40+x 72+28+x
Continue to be Feel more confident
impressed by the executing digital
outcomes achieved marketing activities
by their digital than they did 12
marketing activities months ago
60% 72%
BY COMPANY TURNOVER BY COMPANY TURNOVER

550+450= 55%
< $2MILLION
630+370= 63%
< $2MILLION

690+310= 69%
$2-19MILLION
750+250= 75%
$2-19MILLION

590+410= 59%
$20MILLION OR MORE
700+300= 70%
$20MILLION OR MORE

36

BASE: CLIENT SIDE SAMPLE (N=330)

Managing the digital marketing strategy
There is great variation in approach taken to
managing the digital marketing function

We outsource all digital marketing activities

80+920= 8%
We have a single marketing person who
handles all activities, including digital 200+800= 20% 380+620= 38%
100+900= 10%

We employ a digital manager or equivalent

130+870= 13%
We have a digital marketing team
280+720= 28% 150+850= 15%
340+660= 34%

We have different teams for different digital marketing functions

220+780= 22%
Something else
80+920= 8%
I dont know
40+960= 4%
100 < $20MILLION TURNOVER
100 > $20MILLION TURNOVER

Q: How does your organisation currently manage the digital marketing activities?

37

BASE: CLIENT SIDE SAMPLE (N=330)

 Multiple platforms are common for managing content
activity, particularly in larger companies

10+17+73x
Q: Still thinking about the content
management activities listed previously, do
you use different platforms to manage the 10% I DONT KNOW

17% SINGLE PLATFORM/

different activities or are they all managed ONE SOLUTION
from a single platform/ one solution? 73% DIFFERENT/
MULTIPLE PLATFORMS

BY COMPANY TURNOVER

< $2MILLION
670+330= 67% 210+790= 21%
$2-19MILLION
670+330= 67% 220+770= 22%
$20MILLION OR MORE
770+230= 77% 170+830= 17%
MULTIPLE PLATFORMS ONE SOLUTION

38

BASE: CLIENT SIDE SAMPLE (N=330)

Most marketers feel vulnerable NZ marketers are feeling
about their social media left behind in the area of
strategy & keep a close eye business and web analytics
on competitor activity

37+63+x
Overall feel that
470+530= 47% SOCIAL MEDIA TECHNOLOGY
competitors have an
edge in business/
410+590= 41% APPS
web analytics
37%
390+610= 39% MOBILE

370+630= 37% BUSINESS/ WEB ANALYTICS 350+650= 35%

AUSTRALIA

270+730= 27% EMAIL PLATFORMS

500+500= 50%
NEW ZEALAND

150+850= 15% OTHERS RESPONSES

100 WHERE DO YOUR COMPETITORS HAVE AN EDGE

Q: In which of the following areas, if any, do you feel that your

competitors have an edge over what your organisation is doing
(or the organisation you are dealing with most often)?

39

BASE: CLIENT SIDE SAMPLE (N=330)

 What constitutes digital success and how is it measured?
Most track ROI to report back Smaller companies tend to be
to the executive team But the ones not tracking ROI
20% are NOT TRACKING ROI
on digital activities at all!

20+80+x
Dont track the
500+500= 50%
YES, TO REPORT BACK TO THE EXECUTIVE TEAM
ROI on their digital
marketing activities
380+620= 38%
YES, TO DETERMINE WHERE TO SPEND MORE
FUNDS OR WHERE TO CUT BACK

160+840= 16%
YES, FOR ADDITIONAL FUNDING
20%
140+860= 14%
YES, BUT IM NOT SURE HOW TO USE
THE INFORMATION YET
BY COMPANY TURNOVER

200+800= 20%
NO, WE DONT TRACK THE ROI ON DIGITAL ACTIVITIES
250+750= 25% < $2MILLION

Q: Does your organisation track the ROI on digital marketing activities?

150+850= 15% $2-19MILLION

160+840= 16% $20MILLION OR MORE

40

BASE: CLIENT SIDE SAMPLE (N=330)

Marketers with weak digital Most marketers are still
marketing skills are also far less anchored to website traffic as
likely to be measuring digital ROI an indicator of digital success

20+80+x
On average, do 730+270= 73%
VISITS TO THE WEBSITE

NOT track the ROI

on their digital
570+430= 57%
CONVERSIONS/ SALES/ NEW CUSTOMER ACQUISITIONS

marketing activities 440+560= 44%

LEADS GENERATED

20% 380+620= 38% KPIS ALIGNED WITH BUSINESS OBJECTIVES

380+620= 38% MARKETING OBJECTIVES ACHIEVED

BY DIGITAL MARKETING COMPETENCY

290+710= 29% INCREASED SITE PERFORMANCE

50+950= 5%
EXCELLENT 230+770= 23% HIGHER CUSTOMER SATISFACTION

70+930= 7%
KPIS ALIGNED WITH CUSTOMER LIFECYCLE ACROSS MULTIPLE CHANNELS

120+880= 12%
GOOD 40+960= 4%
SHORTENED TIME FROM CONTENT CREATION TO PUBLISHING

30+970= 3%
WE DONT MEASURE THE IMPACT OF OUR DIGITAL ACTIVITIES

250+750= 25%
ADEQUATE
100 MEASURES OF DIGITAL SUCCESS CURRENTLY USED?

Q: How does your organisation measure the success of digital marketing

540+460= 54%
LIMITED
activities? Please select all that apply (multiple answers possible).

41

BASE: CLIENT SIDE SAMPLE (N=330)

 Marketers are in no doubt about Web analytics could be used more
what the boss is looking for! effectively in most organisations

430+570= 43%
CONVERSIONS/ SALES/ NEW CUSTOMER ACQUISITIONS
480+520= 48% PERIODIC MARKETING MEETINGS

140+860= 14% KPIS ALIGNED WITH BUSINESS OBJECTIVES

80+920= 8% REAL TIME

100+900= 10% LEADS GENERATED

280+720= 28% BOTH OF THESE

90+910= 9% VISITS TO THE WEBSITE

160+840= 16% I DONT KNOW/ COULDNT SAY

60+940= 6% MARKETING OBJECTIVES ACHIEVED

Q: Are the analytics that are gathered used primarily in real time or
for discussion and reviews during periodic marketing meetings?

60+940= 6% HIGHER CUSTOMER SATISFACTION

100+900= 10% OTHER RESPONSES

100 MEASURE MOST VALUED BY MANAGEMENT

Q: Which measurement do you believe is valued most highly by the

management team? Please just choose one of the options below

42

BASE: CLIENT SIDE SAMPLE (N=330)

Use of web analytics

FUNCTIONS USED EXTENSIVELY USED MODERATELY LIMITED/ NO USE

For reporting 38% 41% 16%

For insights 22% 43% 28%

For recommendations about SEO/SEM 17% 35% 38%

For recommendations about content optimisation 12% 34% 40%

For recommendations about conversion optimisation 10% 30% 51%

For recommendations about Site optimisation 10% 37% 45%

For recommendations about which content 5% 19% 62%

should be used for market automation

Q: To what extent does your organisation currently use web analytics for each of the following functions?

43

BASE: CLIENT SIDE SAMPLE (N=330)

 Barriers to the acceleration of digital marketing
Limited financial resources is the most significant barrier
to greater investment in digital marketing

Limited marketing budget

510+490= 51% 520+480= 52%
420+580= 42%

Lack of understanding/ education

about digital marketing 340+660= 34%
Lack of capabilities in digital software 330+670= 33% 300+700= 30%
530+470= 53%

Lack of executive support and buy-in 300+700= 30%

Lack of clear understanding of ROI 290+710= 29%
Reliance on traditional marketing 270+730= 27% 260+740= 26%
330+670= 33%

Difficulty recruiting digital staff 160+840= 16%

A fear of failure 150+850= 15%
Difficulty retaining digital staff 110+890= 11% 100 AUSTRALIA
100 NZ
100 SIGNIFICANT BARRIER

Q: Listed below are a number of factors that have been identified as barriers to
increasing the investment in digital marketing at different organisations. How significant
do you perceive each of these issues as a barrier in your organisation?
44

BASE: CLIENT SIDE SAMPLE (N=330)

Limited budgets are a more Junior & mid level marketers are far more
significant problem for smaller likely to cite a lack of digital marketing
knowledge as a barrier. Previous
companies who would like results support this and reinforce a
to invest more in digital need for more training at junior levels

51+49+x 34+66+x
Overall identify a Overall identify lack
limited marketing of understanding/
budget as a education about
significant barrier to digital marketing as
further investment a significant barrier
51% in digital marketing 34% to further investment
in the area
BY COMPANY TURNOVER BY MARKETING EXPERIENCE

710+290= 71%
< $2MILLION
330+670= 33% < 5 YEARS IN MARKETING

650+350= 65%
$2-19MILLION
350+650= 35% 5-14 YEARS IN MARKETING

430+570= 43%
$20MILLION OR MORE
180+820= 18% 15 YEARS+ IN MARKETING

45

BASE: CLIENT SIDE SAMPLE (N=330)

 Younger marketers do not feel that clear objectives are being
set for ROI on digital activities. Senior marketers must do
more to keep their team moving in the same direction

29+71+x
Overall, identify lack of clear understanding
of ROI as a significant barrier to further
investment in digital marketing.

ROI?
29%
BY MARKETING EXPERIENCE

310+690= 31% < 5 YEARS IN MARKETING

290+710= 29% 5-14 YEARS IN MARKETING

120+880= 12% 15 YEARS+ IN MARKETING

46

BASE: CLIENT SIDE SAMPLE (N=330)

Summary of key themes
Digital marketing is no longer niche.
Big companies are waking up to the advantages.
Senior marketers are building their own skills in digital marketing
but greater emphasis is now needed at the junior-mid levels.
Web analytics is not being used effectively.
Big appetite for predictive analytics.
Digital ROI is a work in progress.
Digital marketing is now considered mainstream within the marketing repertoire.
Marketers have seen the opportunities presented and are now embracing them.
Large companies are now leading the investment in digital marketing activities.
While smaller companies were the early adopters of digital marketing, the big spenders are now
catching up and are the most likely to be investing more in digital over the next 12 months.
Experienced marketers (15yrs+ in the industry) are more likely to have undertaken
specific training in digital marketing (relative to those with 10yrs or less in the industry)
and this is reflected in their knowledge of the digital tools available to them, application
of more sophisticated digital tools and higher rates of measurement of ROI.
Less experienced marketers are less knowledgeable about digital, are less likely to measure
ROI and are generally less confident about the Digital Marketing strategies they implement.
Web analytics are used primarily for periodic reporting and most marketers are frustrated
in their knowledge that they could be used far more effectively. Web analytics is
the number one area marketers would like to see their organisations improve.
Predictive analytics is largely viewed as the next golden ticket
but most feel ill equipped to move in that direction.
ROI of digital activity is still evolving and most are still focused on visits to the
website as a primary measure of success. 20% are not measuring ROI at all.
47
 About Sitecore

Sitecore is the global leader in customer experience management software for delivering the marketing that matters
most highly relevant content and personalised digital experiences that delight customers, increase loyalty and
drive revenue. With Sitecores fully unified, powerful, and easy-to-use software suite, marketers can focus on
engaging customers instead of managing data to deliver experiences that are relevant, immediate, and integrated
across channels. More than 3000 of the worlds leading brands including Nissan Australia,
Network 10, AustralianSuper, Canon, Blackmores, Jenny Craig,
Sydney Airport, AGL, Water Corporation, and TAL.

e. Sales-au@sitecore.net
t. +61 2 8014 8857
Level 4, 50 Pitt Street
SYDNEY NSW 2000
Level 1, 27-31 King St
MELBOURNE VIC 3000

www.sitecore.net

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