Managing digital-marketing-smart-insights-2015

Managing Digital Marketing in 2015
Best practices for integrating digital technology,
marketing and advertising to fuel business growth
Author: Dr Dave Chaffey, SmartInsights.com
Research in collaboration with TFM&A 2015
Published with Expert commentary: February 2015

Managing Digital Marketing 2015
© Smart Insights (Marketing Intelligence) Limited. Please go to www.smartinsights.com to feedback or access our other guides. 2
Contents
Executive summary............................................................................3
Managing Digital Marketing in 2015..................................................3
1. Review Digital Marketing Contribution and Capabilities............9
2. Developing Strategies And Plans For Digital Marketing...........13
3. Managing change with Digital Transformation programmes....19
4. Development of Digital Skills and Managing Change...............22
5. Investing In Digital Marketing In 2015.........................................25
6. Innovation And Optimising Digital Marketing............................30
Appendix...........................................................................................33
Methodology.....................................................................................33

Executive summary
Managing Digital Marketing in 2015
This research from Smart Insights and TFM&A 2015 explores approaches businesses
use to plan and manage their investments in digital marketing. Findings and recommen-
dations are grouped in 6 areas aimed at improving the commercial contribution of digital
marketing for businesses.
1. Digital marketing capabilities and transformation
The majority of companies are still actively working on transformation of their digital
marketing capabilities – less than 20% rating their digital communications, customer
communications or performance improvement process at an advanced level.
When asked about managing digital transformation, again just 20% of businesses had a
transformation programme in place, but with 33% planning to implement a programme
within the next 12 months.
þþ Good practice: Audit your digital marketing capabilities and create a roadmap for
transformation to improve capabilities over the medium to long-term.
2. Digital marketing strategy and planning
In business, it’s recognised that plans help companies to prioritise, set goals and allocate
resources to meet targets. Yet a planned approach often isn’t followed in digital marketing
or marketing:
ýý One half (50%) of businesses surveyed do not have a defined digital plan or
strategy, although they are active in digital marketing.
ýý Nearly half (45%) also don’t have a defined marketing plan in the business to align
digital strategy against.
þþ Good practice: Don’t just execute! Create a long-term digital strategy and plan
aligning with marketing and business priorities.

Executive summary
3. Managing change via digital transformation programmes
Integration of digital channels into marketing activities was identified as a major challenge
in the research – only a quarter of companies (24%) were happy with their level of
integration of digital marketing and traditional communications.
ýý The main barriers to integration are:
1. Lack of integrated strategy and plans (27%)
2. Teams structured in silos (23%)
3. Lack of skills in integrated communications (17%)
þþ Good practice: Use digital transformation programmes to eliminate digital
marketing silos and improve integration through integrated planning and
collaboration during campaigns.
4. Development of digital skills
Across respondents to the survey, nearly 60% of peoples’ time is now devoted to digital
marketing activities, showing the importance of skills development in this area.
Many marketers are now confident in their knowledge of digital channels with nearly
half saying they are confident, with in-depth knowledge or sufficient knowledge for what
they need across different digital marketing techniques. However, there is still hunger for
deeper learning about digital marketing approaches, particularly in Big Data and CRM
(58% want to improve their knowledge), digital strategy (53%), search engine marketing
(51%), content marketing (50%) and social media marketing (47%).
þþ Good practice: Review and develop your personal or employees’ digital skills.
Are you a T or W-shaped marketer?
5. Investing in digital marketing in 2015
þþ The research shows the ongoing importance of the core digital marketing channels
with similar levels of effectiveness compared to 2014. Email marketing was rated as
highly or very effective by 51% of respondents followed by SEO (45%) and AdWords
(34%). Organic use of social media wasn’t far behind with 33%, but with only 21%
believing paid social media was effective.
þþ Many marketers are planning to increase investment across these channels with
Email marketing (59%), SEO (51%) and AdWords (46%) leading the pack.

Executive summary
þþ Good practice: With the diversity of paid, owned and earned media, it’s important
to focus resources and optimisation on core channels that drive value.
6. Innovation and optimising digital marketing
The opportunity to dynamically update and test digital media has always been claimed to
be one of its main benefits compared to traditional media, so we were interested to see
to what extent companies have processes in place to execute this continuously. Around
a quarter to a third of companies have embraced optimisation, with these leaders running
frequent tests or continuously optimising. The percentage of leaders who optimised
individual channels or contact points was 30% for website (desktop experience). 21% for
Mobile (mobile site and/or apps), 29% for landing pages, 35% for email marketing, 29%
for social media marketing, 28% for content marketing and 31% for paid digital media.
þþ Good practice: You can’t compete if you update your website, your
communications approaches every few years... Create a plan for “Always-on”
optimisation of digital media and integrated customer experiences.
Methodology
We surveyed Smart Insights members who are based around the world and previous
attendees of Technology for Marketing & Advertising, a conference based in the UK. The
survey was completed online during November and December 2014.
There were 765 respondents, with the majority (62%) in senior, management roles.
Respondents are typically experienced in marketing, with nearly two thirds having more
than five years experience and over a third having more than 10 years experience.
Further details on the sample frame are available at the end of the report.

Introduction
The need for managing digital transformation
In a Google Think article, A “Post Digital” World, Really? Y&R Chairman and CEO David
Sable argued against those commentators who said that businesses and consumers are
now in a “Post Digital” world. We concur. You will see from the results of this survey that
the reality for many businesses is that despite widespread adoption of digital technology
by their customers and their most advanced competitors, we are still in an era of
managing transformation to improved digital capabilities. Many businesses are limited in
their capabilities and currently lack plans. However, there is a strong appetite to improve
their approach to digital marketing using digital transformation and increased investment
in digital media and technology.
How well do companies manage digital marketing?
At Smart Insights we believe that successful marketers look beyond chasing every
latest technology innovation, following a more strategic, managed approach based
on optimising communications for key customer touchpoints. So, in this research we
wanted to go beyond reviewing the digital marketing tactics deployed and explore the
strategic approaches businesses take to manage the transformation needed to improve
the commercial contribution of digital marketing integrated with all marketing activities.
About Smart Insights
Smart Insights provides actionable marketing resources to help businesses succeed
online. More than 80,000 Basic members use our blog, sample marketing templates
and weekly Digital Marketing Essentials newsletter to follow best practices and keep
up-to-date with the developments that matter in digital marketing.
Thousands of Expert members from over 80 countries use our planning and management
templates, guides and video courses to map, plan and manage their marketing using the
Smart Insights RACE Planning framework.
Here are 10 reasons why Expert members use our resources.

Introduction
RECOMMENDED RESOURCES
Strategy development and planning templates
We have developed a series of tools for Expert members to help them plan:
þþ Digital strategy toolkit. This template contains a full workbook to create a
digital marketing strategy to Reach-Act-Convert and Engage your audience.
þþ 7 Steps Digital Strategy guide and course. Step-by-step guidance.
þþ Example digital marketing plans. An example online marketing plan and
blank template using the Smart Insights RACE Planning framework.
About Technology for Marketing & Advertising (TFM&A)
We teamed up with TFM&A to research and present these findings and recommenda-
tions.
TFM&A is the leading event for the marketing industry in the UK. Now in its 15th year,
TFM&A offers the opportunity to learn from a diverse educational programme hosting
the latest industry topics, source solutions from leading marketing tech suppliers, and
network with other marketing professionals.
To share best practices in managing digital marketing, Dr Dave Chaffey of Smart Insights
will be presenting the research and recommendations in seminar sessions at TFM&A
2015, taking place 25-26 February at Olympia London. To register to attend for free,
click here.
For year round marketing and ecommerce insight, research and downloads, please visit
tfmainsights.com.

Introduction
About the report author
Dr Dave Chaffey is CEO and co-founder of digital marketing
management advice site Smart Insights. He is author of 5
bestselling books on Ecommerce including Digital Marketing:
Strategy, Implementation and Practice and was recognised by the
Chartered Institute of Marketing in 2004 as one of 50 marketing
‘gurus’ worldwide who have helped shape the future of marketing.
Research findings and recommendations
In common with all resources for members in our Smart Insights Digital Marketing Library,
we want this report to be practical and actionable, to make a commercial difference
to your business. So, the results presented from this research are structured around
practical activities companies can use to follow a more strategic, planned approach to
digital marketing.
As always with Smart Insights, each section is based around questions the marketer can
ask to review and so improve his or her approach to managing digital marketing.
We hope you find this research and recommendations useful in reviewing and shaping
your use of digital marketing. If you have any comments or questions, do get in touch.
Dave Chaffey, SmartInsights.com, January 2015

1Review digital marketing capabilities
and implement digital transformation
Does your company have the right capabilities in place to
make the most of digital marketing?
Whether companies are able to deliver on the potential of digital channels to contribute
value depends on whether they have the right capabilities in place across the company
for all the digital touchpoints that need to be managed.
We asked companies to rate their digital capabilities from an initial level, 1 through to an
advanced ‘optimized’ level of 5 by referencing the capability assessment shown on the
next page. Results show that the majority of companies rate their capabilities at lower
levels of 1 to 3 on this scale of 1 to 5.
24%
25%
19%
18%
18%
23%
19%
34%
34%
33%
35%
32%
35%
34%
27%
25%
32%
29%
27%
27%
26%
11%
12%
11%
10%
12%
11%
14%
4%
4%
5%
7%
11%
5%
6%
0% 20% 40% 60% 80% 100%
G. Integrated customer experience
F. Integrated customer communications
E. Data and infrastructure
D. Resourcing and structure
C. Management buy-in
B. Performance Improvement process
A. Strategic approach
1 Lowest
2 Managed
3 Defined
4 Quantified
5 Optimized
Q11 Assessment of digital marketing capabilities in organisation
Assessment of digital marketing capabilities in organisation
www.tfma.co.ukwww.smartinsights.com

5 Investing in digital marketing1 Importance of digital marketing
Since digital marketing involves execution of many marketing processes and activities,
it’s useful to rate different types of capabilities by their current effectiveness. This can
help prioritisation of future improvements. The weakest processes that are important
for future improvement can be identified and prioritised. A roadmap can then be used to
improve capabilities and improvements reviewed against this.
To download a larger version of the capability matrix go to http://bit.ly/smarttransformation
!
KEY STRATEGY RECOMMENDATION 1: BENCHMARK CAPABILITIES
Score your digital capabilities to benchmark and then analyse how you can
improve and to win the case for investment
Assess what your current capabilities are overall and for key digital channels
to communicate to colleagues where you need to improve. The assessment of
capabilities was based on the survey respondents reviewing a capability review
which can be viewed on the Smart Insights Digital Transformation page.
ONE. Initial
TWO. Managed
THREE. Defined
FOUR. Quantified
FIVE. Optimized
No strategy
Prioritised marketing
activities
Defined vision and
strategy
Business-aligned
strategy and roadmap
Agile strategic
approach
No KPIs
Volume-based KPIs
No dashboards
Quality-based KPIs
‘Last click’ attribution
Business dashboards
Value-based KPIs
Weighted attribution
Ad hoc CRO
Lifetime-value KPIs
Continuous CRO
Limited
Verbal support, but
inadequate resourcing
Sponsorship and
increased investment
Active championing and
approriate investment
Integral part of
strategy development
No specific skills
Core skills centralised or
agencies
Centralised hub and
spoke
Dedicated resources
Decentralisation and
reskilling
Balanced blend of
marketing skills
Limited / no
customer database
Separate data, tools
and IT services
Partially integrated
systems and data
Integrated systems
and 360o
data sources
Flexible approach to
optimize resources
Not integrated
Core push activities
synchronised
Integrated inbound
approach
Integrated, Personalised,
Paid-Owned-Earned
media
Media optimized for ROI
and to maximize CLV
Website not integrated
Desktop and mobile
support, not personalized
Partially personalized
desktop and mobile
experience
Integrated, Personalized web,
mobile, email and social media
communications
Full contexual
personalized experiences
and recommendations
A. Strategic
Approach
B. Performance
Improvement
Process
C. Management
Buy-in
D. Resourcing
and
Structure
E. Data
and
Infrastructure
F. Integrated
Customer
Communications
G. Integrated
Customer
Experience
“Laggard”
“Developing
capability”
“Competent average
capability”
“Above-sector average
capability”
“Market leading
capability”
Digital
Capability
Refine your Digital Marketing Strategy
with Smart Insights member toolkits.
Check out our hub page http://bit.ly/smartstrategy for
our free blog articles and planning template.
Join our Expert members to download digital marketing planning
templates and our 7 Step guides to digital strategy.
Take your digital marketing to the next level with our
capability assessment. Use our visual checklist to audit
how well your business or clients are exploiting their digital
marketing and then plan how to take it to the next level.
AIMING FOR DIGITAL
MARKETING EXCELLENCE

“
EXPERT VIEW – AUDITING DIGITAL CAPABILITIES
Daniel Rowles, Digital Marketing Consultant and Trainer, Target Internet
I think the best practice of auditing digital capability is of huge significance
and this is inline with other findings around a lack of strategy and internal skills.
Organisations are just waking up to the need to step back and look at their digital
capability and assess what it is that is holding them back, and what they need
to change in order to make effective digital possible. The emergence of Digital
Transformation as a key issue that organisations are thinking about is great news.
Understanding the gap between where we are now and where we need to be is
essential.
Its surprising how many organisations are still dealing with the basics, but I
think this reflects back to need for digital capability auditing and the need for
organisational transformation. Without the fundamental building blocks in place
that will give the right environment for digital, no progress can be made. Many
marketers are spending their time battling with IT infrastructure issues or getting
management buy in, and this prevents the advancement of their digital marketing.
Adoption of digital transformation programmes
Organisations who recognise the importance of digital media and technologies in the
future and seek to accelerate the rate of change to integrating digital marketing into their
business create digital transformation programmes.
To find out the commitment to digital transformation we asked a new question in this
years survey asking about use of Digital Transformation programmes.
The results, shown on the next page, show that over one quarter (30%) of businesses
already have a transformation programme in place, with many businesses still looking to
launch their digital transformation programme.

11%
19%
33%
37%
We have had a digital transformation process
in place for more than 2 years
We are planning to introduce a programme
within the next 12 months
We have no plans to run a digital
transformation programme
We have just started a digital transformation
programme (within the last 2 years)
Assessment of digital marketing capabilities in organisation
Adoption of digital transformation programmes in business
A significant proportion of organisations have no intention to implement a programme
because they feel it is inappropriate for their type of business, for example, startups and
smaller businesses or businesses who are online pureplays.
Smart Insights Benchmarking Tools
We have developed a series of strategic tools to help companies review their
digital marketing and make the case for more investment in digital marketing:
þþ Digital marketing audit / benchmark
A detailed spreadsheet based technique for assessing a company in 6 key
areas. Best suited to larger organisations.
Ecommerce option (PRICE framework) available from Chris Jones.
þþ Competitor benchmarking tools
A recommended process and tools for comparing performance.
þþ Business case template
Improvement needed can be justified through this template and the companion Ebook.

Developing Strategies And Plans
For Digital Marketing2Developing Strategies And Plans
For Digital Marketing
Is digital marketing based on a planned approach?
We believe that to gain the most from digital platforms, a structured, planned approach
based on a solid strategy will give the best results. Plans help businesses to prioritise,
set goals and resource at the right level to hit targets. That’s well known for business and
marketing plans. We wondered whether businesses take a planned approach to digital
marketing too. Without structured plans, there is a danger you will be subject to “shiny
object syndrome”, always chasing your tail, as Jeff Bezos of Amazon has referred to.
We found that a majority of organisations responding to the survey do use a planned
approach to digital marketing, but many still don’t.
34%
16%
50%
Yes - it's integrated into our
marketing strategy
Yes - it's deﬁned in a separate
document
No - we are doing digital
marketing, but no deﬁned strategy
Q9 Does your organisation have a clearly defined
digital marketing strategy?
Does your organisation have a clearly defined
digital marketing strategy?
!
KEY STRATEGY RECOMMENDATION 3: CREATE A DIGITAL PLAN
Create a specific digital marketing plan aligned with marketing strategy
To provide focus and direction for the future, create a detailed digital marketing
plan defining the digital channel strategy for each major market / proposition.

2 Developing strategies
Shockingly, nearly half of businesses do not have a digital strategy, but they are doing
digital marketing.
“
EXPERT VIEW – OVERCOMING INTERNAL ROADBLOCKS
Kieran Flanagan, Marketing Director, EMEA, HubSpot
The biggest road block for most businesses is usually themselves. To be more
accurate, that person in the company who owns the budget/resources and doesn’t
understand digital. There are too many CMOs, CEOs or other variations of senior
management who still don’t fully understand digital. They usually have a team
beneath them trying to push digital forward, but they won’t hand over the keys to
let them make the necessary changes.
One way this can be bridged is with continued education. Education around
digital marketing has never been better. There are so many places marketers can
go to upskill themselves on digital.
They other way is of course with results. Marketers who want to push digital forward
within their company need to demonstrate positive results before they’ll get the
necessary budget/resources need to make this happen. What I tell marketers in
this position is to initially look for quick wins. What is the quickest way you can
demonstrate success to your manager/CMO/CEO. How do you provide them with
that moment where they start to see the value in what you are proposing.
Equally, it’s important to avoid creating a silo of digital resources and practice through
digital transformation. So we see a digital plan as a short-term tool to define your digital
future and help transform your business until it becomes an integrated part of planning
for business as usual.
We have developed a series of tools to help Expert members plan:
digital marketing strategy to Reach-Act-Convert and Engage your audience over
the next year or in a 90 day planning period.

BEST PRACTICE TIP 1
Ensure your plan and deployment of digital resources is integrated
Although you may initially need a separate digital plan to help you create a strategy
and get buy-in for investment in digital channels, it’s important to keep it well
integrated. That means supporting common business goals and consistent with
brand and communication strategy. The long-term aim should be to integrate your
digital plan into your marketing communications plan.
Integration requires a clear marketing or business strategy and plan also. The survey
results suggests that lack of a marketing plan in a substantial proportion of organisations
may make it difficult to align a digital plan against!
55.19%
44.81% Yes
No
Q8 Does your organisation have a clearly defined marketing
strategy, e.g. an annual marketing plan, against which you can
align your investments in digital technology and media?
This shows the necessity for digital marketing managers to work with their colleagues to
agree how digital marketing can support and integrate with marketing.
As we would expect, leading companies who rate their digital capability at level 4 or 5 for
strategic approach as shown in the first chart in this report are more likely to base this
on a defined strategy. 90 percent of leading companies have a digital marketing strategy
Does your organisation have a clearly defined marketing
strategy, e.g. an annual marketing plan, against which you can
align your investments in digital technology and media?

(integrated in 70 percent of companies, defined in a separate document in 20 percent of
companies). Of other companies, 75% of ‘digital laggards’ don’t have a digital marketing
strategy.
What should the planning horizon for digital planning be?
Traditionally, business and marketing planning in many larger businesses has been
long-term. Long-term planning enables consistent strategies to be followed in line with
forecast changes in the marketplace and resources allocated. We recommend that,
although digital media change rapidly, the long-term transformation needed by digital
means that you won’t be able to transform the organisation in 3, 6 or even 12 months.
In our previous 2014 research we found that many businesses do not have a long-term
planning horizon with less than one fifth looking beyond the current year.
How far ahead do you plan when considering how digital technologies
will contribute to your marketing?
2%
46%
32%
37%
20%
0% 10% 20% 30% 40%
>3 year and strategic initiatives defined
2-3 year vision and strategic initiatives defined
Annual plans maximum
Campaign and quarterly plans maximum
mainly day-today, week-to-week operations
How far ahead do you plan when considering how digital
technologies will contribute to your marketing?
BEST PRACTICE TIP 2
Create a hierarchy of plans for different timescales and activities
To help develop a more coherent approach to marketing planning, we suggest
you develop a hierarchy of plans as shown in the diagram below. Annual business
and marketing objectives can cascade into goals, objectives and KPIs for different

“
EXPERT VIEW – DELIVERING RELEVANCE
Jim Sterne, Founder, eMetrics Summit & Digital Analytics Association
The most important factor for digital strategy in 2015 is flexibility. Your target
audience is changing all the time. Younger people are come into your market
and the rest are getting inexorably older. Everybody uses different technologies
for content consumption than they did just last year. Trends, memes, themes,
and cultural norms shift constantly. You have to keep up to keep your message
relevant.
The only way to do that successfully is to keep your finger on the pulse of your
customers’ behavior and opinion. Track what they do and ask them how they
feel... all the time. Bringing these two data streams together is your only hope for
delivering the right messages to the right people at the right time, segment by
segment.
Managing these two data streams in tandem is the significant challenge. Focusing
too much on one or the other, in terms of budget, tools or report weighting, can
blur the results and tarnish your decision making.
Yes, that means you need two teams, the quantitative group and the qualitative
group, and the wisdom to merge the fruits of their intellectual labors.

How should digital marketing and traditional marketing be
integrated?
There is a risk that separate digital marketing plans and teams lead to silos for digital
marketing, so it’s important to think about how you manage integration.
The research shows marketers are making solid progress towards integration, although
relatively few describe their approach as fully integrated.
“Only a quarter of companies (24%) were happy with their level of integration of digital
marketing and traditional communications”.
Q12
12%
24%
40%
17%
7%
0% 10% 20% 30% 40%
Not integrated. Our use of digital marketing is ad
hoc and not integrated.
Limited integration. We use digital marketing, but it
isn't well integrated into overall strategy.
Actively trying to integrate the two. We are making
solid progress in integrating digital and traditional
marketing.
Fully-integrated. Digital marketing is integrated
within the wider marketing plan but we're not
optimising.
Optimising. Full integration and processes are
reviewed for optimisation.
How well integrated are your digital and traditional marketing activities?
How well integrated are your digital and
traditional marketing activities?

The research showed that the lack of a planned approach is most damaging to
integration. Creation of separate teams for digital marketing and traditional marketing
also presents problems for integration, showing the importance of developing processes
and developing skills that involve collaboration across silos.
Q12 Which single factor most limits integration of digital marketing channe
27%
13%
23%
17%
8%
12%
0% 10% 20% 30%
Lack of integrated
strategy and plans
Lack of process for making
the business case
Teams structured
in silos
Lack of skills in integrated
brand communications
Uncertainty in our commitment
to digital channels
Other
Which single factor most limits integration of
digital marketing channels?
BEST PRACTICE TIP 3
Allocate and ringfence time for collaboration
The ‘other’ choice was high when asked about integration, with many citing time,
budget and resource. This suggests there was poor realisation that time needs to
be allocated by management for collaboration.

3Managing change through digital
transformation programmes
How many digital marketing specialists do companies
employ?
Although it’s often said that digital marketing will become part of “modern marketing”, the
reality in companies is that specialist resources and agencies are required to manage
specific digital marketing techniques. To find the importance of this we asked how many
specialist digital marketing roles are used in companies. Across companies there were
an average of:
þþ 11.5 staff in the marketing organisation
þþ 3.3 staff who were digital marketing specialists
So, that’s an average of between one quarter and one third of marketing roles (28.3%)
held by digital marketing specialists in organisations.
Which resources are used for digital marketing?
With the growing importance of digital marketing in driving leads and sales, a key
resourcing question is which digital marketing activities should be managed internally
and which can be outsourced. There is an argument that some digital marketing activities
should be managed internally since they are so vital to the brand or since the “devil is in
the detail”. For example, digital marketing activities such as search, content, email and
social media marketing typically required a deep understanding of the customer and
micro-management of communications to gain the best results for a brand.
Results from our research in 2014 suggests that in companies of the types surveyed,
managing digital marketing activities in-house is widely used, particularly for social
media, email marketing and SEO.

3 Resourcing digital marketing
0% 25% 50% 75% 100%
SEO (Search Engine
Optimisation)
Paid Search Marketing
(Google AdWords)
Social Media Marketing
(earned incl content marketing)
Social Media Marketing
(paid media)
Display advertising
Online PR
Email marketing
Content marketing asset creation
Blogging
Mainly in-house Mixture Mainly
outsourced
We don't invest in
this activity or N/A
18%
14%
13%
13%
16%
19%
15%
20%
16%
21%
23%
7
12%
20%
14%
5
10
6
15%
29%
9%
38%
34%
27%
10%
17%
25%
46%
35%
71%
37%
30%
40%
70%
54%
53%
This chart also shows that significant numbers are failing to exploit the full range of tools
available. This is particularly true for the paid media options.
BEST PRACTICE TIP 4
Review opportunities for using paid media to meet online goals
Options such as Google AdWords and paid ads in social networks give
opportunities to create incremental awareness and increase conversion through
the use of remarketing.
Popularity of resourcing options for digital marketing

Are we resourcing sufficiently in different digital marketing
activities?
With the range of digital channels available, there is also the challenge of investing the
optimal amount in different digital marketing activities. This is not straightforward given
the challenges of:
ýý Attributing sales to the right channels / customer touchpoints using analytics
ýý Fragmented decision-making on digital marketing investment
ýý The pace with which new digital marketing channels are introduced
Results show a common perception amongst people working in marketing that
insufficient time is spent on planning, measurement and optimisation (respondents could
choose multiple answers). This is potentially a management failing since managers are
responsible for ringfencing time for these activities.How do you rate your company's relative investment in these
digital marketing activities (choose all that apply)
Q15
53%
46%
43%
40%
40%
38%
0% 10% 20% 30% 40% 50%
Insufficient time invested in measurement,
testing and optimisation for maximising ROI.
Insufficient time spent
on planning.
Insufficient investment in paid media within organisation?
(e.g. Display ads, paid search, sponsorships).
Insufficient investment in earned media within organisation?
(e.g. PR, Influencer outreach, building brand advocates).
Insufficient investment in owned media within organisation?
(e.g. desktop and mobile site and apps, Facebook,
LinkedIn, Twitter, etc).
Insufficient joined up thinking
leading to poor integration.
How do you rate your company’s relative investment in these
digital marketing activities (choose all that apply)

Although best practice advice usually recommends a planned approach to digital
marketing using the dynamic benefits of digital technology to optimise campaigns and
creative, many felt that organisations weren’t devoting enough time to this. Around 40%
believed that insufficient time was spent on planning and optimisation to improve ROI.
Structuring digital teams and job descriptions
We have developed a series of templates to help define the best ways to manage
digital marketing. These are:
þþ Digital marketing team structure toolkit
þþ Digital marketing job descriptions and roles template
þþ Business case template

4
Development of skills and talent within marketing employees will help companies
compete through a better quality of digital marketing. Given this, we wanted to explore
the personal challenges for marketers of keeping up-to-date and the skills requirements.
Across respondents to the survey nearly 60% of peoples’ time is now devoted to digital
marketing activities, showing the importance of skills development in this area.
We asked about specific personal needs for skills development. Many marketers are now
confident in their knowledge of digital channels with nearly half (46%) saying they are
confident, with in-depth knowledge or sufficient knowledge for what they need across
different digital marketing techniques. However, there is still hunger for new learning,
particularly in Big Data and CRM (62% want to improve their knowledge), content
marketing (55%), digital strategy (52%) and social media marketing (48%).
PR
PPC)
26%
13%
19%
32%
16%
20%
27%
22%
22%
33%
15%
32%
25%
25%
50%
58%
42%
53%
39%
51%
47%
2%
8%
6%
0%
13%
3%
2%
0% 20% 40% 60% 80% 100%
Assessment of personal knowledge of digital marketing
Content
marketing
CRM and
Big Data
Design (web, mobile,
multichannel)
Digital
strategy
PR
Search Engine Marketing
(SEO and PPC)
Social media
marketing
I'm conﬁdent and have
in-depth knowledge
I know the basics and
that's all I need
I need to improve my
depth of knowledge
Not relevant to me
Q2
www.t-f-m.co.ukwww.smartinsights.com
Development of Digital Skills
PR
PPC)
26%
13%
19%
32%
16%
20%
27%
22%
22%
33%
15%
32%
25%
25%
50%
58%
42%
53%
39%
51%
47%
2%
8%
6%
0%
13%
3%
2%
0% 20% 40% 60% 80% 100%
Content
marketing
CRM and
Big Data
Design (web, mobile,
multichannel)
Digital
strategy
PR
Search Engine Marketing
(SEO and PPC)
Social media
marketing
I'm conﬁdent and have
in-depth knowledge
I know the basics and
that's all I need
I need to improve my
depth of knowledge
Not relevant to me
Q2
www.t-f-m.co.ukwww.smartinsights.com

4 Skill development
“
EXPERT VIEW – CRM AND BIG DATA SKILLS
Nick Baggott, Trainer and Consultant, Director, Navigate Consulting
“The survey shows that the digital skills that most marketers feel they need to
improve most revolve around CRM and Big Data. I am not surprised by this.
The most engaging digital channels are personalised around the needs and
behaviours of individual users. Marketers will have experienced this on sites like
Amazon and Netflix and are wondering how they could achieve the same degree
of personalisation and relevance with their own digital content. They will also
be aware that display ads, search and social media are also becoming more
personalised.
So marketers need to up their game in terms of CRM, because it will help them to
develop more engaging and personalised content in their owned channels, but
also so that they can understand how to be more effective in using the paid and
earned media channels like Google and Facebook.
Marketing is becoming more of a science than an art. Analytics skills are crucial
to your ability to target and develop engaging content. Sophisticated testing
and measurement are crucial if you want to justify marketing budgets and really
understand what is working. The technology costs are reducing, the software is
becoming easier to use, so CRM is now affordable, achievable and has never
been more crucial to marketing success.”
Given the range of potential techniques to master there has been much talk within digital
marketing of the necessity for marketers to broaden their skill-sets and to embrace and
learn broadly, while focusing on key areas – to become a T-Shaped Marketer.
The T-Shaped Marketer is a marketer that has broad knowledge covering a wide range
of digital tactics with in-depth knowledge in 1 or 2 specific areas as shown by the chart
on the next page*
.
“
EXPERT VIEW – CUSTOMER UNDERSTANDING IS CRUCIAL
Geraint Holliman – Director of Strategy and Head of Content Marketing at
DIRECTIONGROUP
The most important skills for any marketer are around customer understanding.
Too often I find that marketers simply do not understand how their customers
actually buy their product and the role that digital channels play in that process.
If you don’t understand how your customer, thinks, feels and behaves then you
have very little chance of delivering engaging and compelling communication,
whether digital or not.
* Smart Insights: Are you a T-Shaped Marketer?

4 Skill development
This representation of the T-Shaped marketer shows content marketing at the heart of
the skill set. When we discussed this on our blog, some suggested that a “W-Shaped”
marketer is closer to the mark with several core competencies required, for example an
analytical approach should be a common feature in addition to SEO, Content or UX, for
example.
“
EXPERT VIEW – THE MOST IMPORTANT DIGITAL SKILLS?
Philip Sheldrake, Author, the Business of Influence
When considering the most important skills of the digital marketer?, it’s a tension
between getting the most for the organisation and for the individual. Ideally, this
tension will be the focus of ongoing alignment, and the skills acquired will then
best serve the individual’s career progression and the marketing strategy the
organisation is executing.
So the answer is, depends. One thing is certain however, the best marketers
invest hours every week without fail in their continuous professional development.
TFM&A Insights Content Skills Assessment Tool
Luke Bilton, Director of Digital and Content for UBM Live has developed this free
tool to score content marketing competence available from TFM&A Insights.
þþ Download Content Marketing Skills Assessment Tool

Investing In Digital Marketing
In 20155Investing In Digital Marketing
In 201
Which are the most effective digital marketing channels to
invest in?
To choose the right level of investment in digital marketing requires an assessment of
which channels will produce significant volumes of leads and sales at an acceptable cost
per acquisition (CPA) for new customers. Reviewing your marketing channels through
comparing these two factors shows which channels warrant most investment.
The most effective channels as rated by our respondents for their expected performance
in 2015 are shown in the chart below.
Highest-rated digital media channels for 2015 (lead and sale volume)Q16b
45%
34%
33%
19%
23%
51%
21%
0% 20% 40% 60%
Search Engine
Optimisation (SEO)
(AdWords)
Social media
(organic)
Display
advertising
Online PR
Email
marketing
Social media
(paid ads)
Top Online Marketing Channels in 2015

5 Investing in digital marketing
“
EXPERT VIEW – MEASURING CHANNEL SUCCESS
Kieran Flanagan, Marketing Director, EMEA, HubSpot
The question for me is how are marketers measuring the success of these
channels. Often marketers will try measure all channels by the same metrics. They
look at leads or sales generated by each channel and then rank them in order of
conversions they generate. Measuring in this way will mean channels like social
will always be below Adwords and SEO, and will probably not look that attractive.
Measuring against the right metrics is such an important part of making good
decisions on what channels to invest time and energy in. Paid social media could
look bad when measured against direct leads and sales attributed to it, but may
look great when you look at multi-attribution reports for those same metrics.
The assessments by marketers of channel effectiveness are consistent with the patterns
reported for driving visits across websites reported by SimilarWeb - use this tool for
comparing to competitors. Search and direct visits are the main traffic drivers, with Social
media marketing and display also low. Email is included within the referrals category in
this example - so this can’t be compared to the reported data from marketers in our study.
Within the retail sector, the volume of search is even higher - the example data below
shows sources of visits for US retail site visitors.

Here is the full reporting of media effectiveness from rating each on a 5 point scale.
Channel cost effectiveness in 2015Q18
7%
12%
11%
17%
13%
4%
16%
14%
19%
22%
25%
19%
13%
21%
23%
23%
26%
23%
28%
22%
18%
28%
21%
22%
13%
19%
30%
16%
22%
10%
15%
5%
9%
26%
8%
6%
15%
4%
18%
12%
6%
21%
Search Engine
Optimisation (SEO)
(AdWords)
Social media
(organic)
Display
advertising
Online PR
Email
marketing
Social media
(paid ads)
1 Lowest 2 Low-medium 3 Medium 4 Medium-high 5 Highest 5 Don’t use or N/A
0% 20%10% 30% 40% 50% 70%60% 100%90%80%
Channel cost effectiveness in 2015

Channel rating for volume of leads or sales expected by businessesQ16a
0% 20%10% 30% 40% 50% 70%60% 100%90%80%
10%
17%
16%
21%
16%
8%
20%
15%
18%
23%
26%
23%
13%
20%
25%
18%
24%
18%
28%
24%
21%
27%
22%
21%
15%
16%
28%
13%
18%
12%
12%
4%
7%
24%
8%
5%
13%
4%
16%
9%
4%
18%
Search Engine
Optimisation (SEO)
(AdWords)
Social media
(organic)
Display
advertising
Online PR
Email
marketing
Social media
(paid ads)
1 Lowest 2 Low-medium 3 Medium 4 Medium-high 5 Highest 5 Don’t use or N/A
Channel rating for volume of leads or
sales expected by businesses
BEST PRACTICE TIP 5
Review channel volume against ROI to select the best mix
You can plot volume of leads and sales for different digital media on the horizontal
axis against cost-effectiveness on a vertical axis. You should review specific ad
network placements such as AdWords remarketing or paid social media marketing
techniques. See our Content Distribution Matrix infographic for an example.
The research shows the ongoing importance of the core digital marketing channels with
Email marketing rated highly or very effective by 52% of respondents followed by SEO
(45%) and Adwords (34%). Organic use of social media wasn’t far behind with 33%, but
with only 21% believing paid social media was effective.

Investment changes in Digital Advertising in 2015Q20
7%
6%
5%
5%
4%
4%
25%
26%
25%
24%
26%
34%
39%
30%
38%
51%
35%
25%
29%
37%
33%
20%
35%
36%
0% 20% 40%
Facebook
advertising
Twitter
advertising
LinkedIn
advertising
Google AdWords Display
Network including Remarketing
Mobile display
advertising
Other Ad
Networks
Increase
Stay the same
Decrease
Don't use or N/A
Investment changes in Digital Advertising in 2015
We also asked how allocation of investment in digital channels would vary in 2015 which
is an alternative view on the most effective techniques. Many marketers are planning to
increase investment across these channels with Email marketing (59%), SEO (51%) and
AdWords (46%) leading the pack.
Investment changes in digital media in 2015Q19
3%
6%
3%
9%
5%
3%
4%
39%
33%
38%
40%
41%
33%
32%
51%
46%
53%
33%
41%
59%
43%
7%
14%
6%
18%
13%
6%
20%
0% 20% 40% 60%
Search Engine
Optimisation (SEO)
Paid Search
Marketing (AdWords)
Social
media (organic)
Display
advertising
Online PR
Email
marketing
Social media
(paid ads)
Increase
Stay the same
Decrease
Don't use or N/A
Investment changes in digital media in 2015

Finally, we also reviewed the breakdown of intended Paid and Earned media investment.
Paid media
There are a substantial proportion of businesses that don’t use each of the paid media
options shown in the next chart. However, a large proportion of businesses are looking
to increase investment in paid media, particularly for advertising in social media, a
significant trend for 2015.
Use of data for targeting
We also looked at innovation in using data for targeting. Learning about data, CRM and
Marketing Automation was seen as a great interest in 2015. The results show that, overall
businesses are long way from the 360 degree customer view and personalised customer
lifecycle marketing that many have discussed for a long time.Data-driven marketing - how well are you able to target your audience?
46%
48%
44%
19%
29%
30%
0% 10% 20% 30% 40% 50%
Disclosed profile (e.g. age or gender)
Behavioural segment (e.g. preference or intent based
on Recency, Frequency or Monetary value of
Customer value (current)
Customer value (future e.g. predictive modelling)
Channel preference
Social media interactions or sentiment
Q14
Data-driven marketing -
how well are you able to target your audience?

“
EXPERT VIEW – ENCOURAGING MEASUREMENT OF EFFECTIVENESS
Philip Sheldrake, Author, the Business of Influence
It’s striking that marketers can respond to survey questions about effectiveness
and admit simultaneously a paucity in measurement capability.
If they measure at all, the majority of marketing teams measure outputs in my
experience, not outcomes. It’s far easier to measure outputs, but easy and useful
aren’t the same thing. If you measure simply what you can rather than what you
should, subsequent conclusions will be entirely a function of output measurability
than anything resembling strategic effectiveness.
How to encourage measurement of effectiveness? We must appeal to emotions
and character in order to have logic prevail. Every line manager understands the
emotional pressures of reporting to a higher up, and having answers is part and
parcel of good relations with the boss. Talk about the emotional power that comes
from confidence in good measurement and evaluation.
On the character front, distinguish between management (doing things right) and
leadership (doing the right things). Many managers aspire to lead, and that starts
with knowing the right things to do. Investing in understanding what works and
“
EXPERT VIEW – A SOCIAL MEDIA BACKLASH?
International Social Media Speaker, Writer and Advisor, Debsylee.com
From my own experience many are still struggling to get to grips with how to use
social media effectively. The analogy I tend to use is that it’s like passing your
driving test; knowing the theory and ‘how to’ is just the start. Once you get behind
the wheel of a car then you start to understand that a large part of it is about
preempting and anticipating the actions of other road users (or your social media
audience, if you will). Email marketing, SEO and Adwords are areas that many
have become proficient at, but the truth is that social media is lagging behind in
terms of popularity because we’re still trying to use old and laboured techniques
that just don’t work on the various platforms. They don’t inspire audiences, and so
they are largely ignored.
The implications are that some businesses will undoubtedly abandon the platforms
and others will continue to utilise them by actively progressing their involvement,
with some making real headway. At that point, expect to see a resurgence in
interest and curiosity!
I’d only advise businesses to walk away from social media when user numbers
start to tail off, and there is no sign of that happening any time soon.

“
Michelle Carville, Social Media Consultant, Trainer and author
I wouldn’t say there’s a backlash – but social is much more about broadening the
touch points a consumer has with a brand or business, rather than direct sales.
With Adwords and in many cases, SEO, there is a very clear view on exactly how
much £1 spent on Google Adwords or SEO effort returns to the bottom line.
Social is rather more complex to pin down – and therefore, that is probably driving
the believe that it’s far less effective. What’s interesting is content marketing and
social are far more about growing a relationship with a brand or business – and
therefore, the quality of the consumer when they do come on board has been
proven to be far higher than a simple direct response consumer coming via
adwords.
It’s still early days on looking at the impact of strengthening relationships and
loyalty prior to direct consumer purchase – and so I think as marketers we’ll be
“
Gerraint Holliman, Director of Strategy and Head of Content Marketing at
DIRECTIONGROUP
‘Most marketers see social media as a communications medium in the same way
as they would see advertising or direct marketing: one-way, interruptive, broadcast
messaging.
Until marketers wake up to the fact that the beauty of social media is that digital
channels enable customers to speak back to you then it will continue its downward
spiral into redundancy.’

Earned media
Within earned media we reviewed a range of content marketing techniques in our 2014
report (omitted in 2015 for brevity). Across these content formats the majority of marketers
said they would increase investment in these tactics.
How will investment in these earned media approaches change (2014)?

6Innovation And Optimising
Digital Marketing
Are marketers managing digital marketing activities
continuously?
The opportunity to dynamically update and test digital media has always been claimed
to be one of its main benefits compared to traditional media, so we were interested to
see to what extent companies have processes in place to manage this continuously.
The concept of Always-on marketing has emerged to show a change in emphasis
from burst marketing campaigns to generate awareness and response to investment in
marketing activities which continuously drive and meet changing demand for products
and services as consumers search and review products and services, what Google has
called the Zero Moment of Truth (ZMOT).
For Always-on marketing to be effective, efforts should be made to increase the
effectiveness of different digital channels through testing, review and optimisation. We
explored the use of digital marketing optimisation through a question which reviews the
use of testing across channels. The response to this question shows a core group of
respondents have moved beyond intermittent to more regular structured testing and
optimisation programmes.
A relatively small proportion (around a quarter to a third of companies) have embraced
optimisation with these leaders running frequent tests or continuously optimising. The
percentage of leaders who optimised individual channels using continuous optimisation
or structured tests were. There was no significant increase from 2014.
þþ Website (Desktop experience) 30%
þþ Mobile (Mobile site and/or apps) 21%
þþ Landing pages 29%
þþ Email marketing 35%
þþ Social media marketing 29%
þþ Content marketing 28%
þþ Paid digital media 30%
The next page shows a full breakdown of planned structured optimisation tests for 2015.

6 Innovation and optimisation
Always-on marketing and Digital Agility -
use of structured optimisation tests to improve results
Q17
13%
22%
17%
11%
16%
18%
21%
24%
25%
26%
21%
28%
24%
21%
28%
19%
23%
27%
22%
25%
17%
13%
11%
16%
22%
17%
16%
12%
17%
10%
13%
13%
12%
12%
11%
4%
12%
6%
6%
6%
6%
18%
Website (Desktop
experience)
Mobile (Mobile site
and/or apps)
Landing
pages
Email
marketing
Social media
marketing
Content
marketing
Paid digital
media
1 No Optimisation
2 Some limited
3 Intermittent optimisation projects
4 Frequent tests
5 Continuous optimisation
5 Don’t use or N/A
0% 20%10% 30% 40% 50% 70%60% 100%90%80%
Always-on marketing and Digital Agility -
use of structured optimisation tests to improve results
“
EXPERT VIEW – TOWARDS AGILE MARKETING
Joe Edwards, Consultant, Brand Joe
The term lean / agile marketing seem to be appearing more and more, which
“Measurement, testing and optimisation” underpin these. I would argue that
perhaps it’s not actually about more investment at all, it’s about re-aligning existing
budgets and re-setting objectives.
In a lean world it’s about minimum viable product, if we start thinking like that in
marketing we’d not need more budget for testing, it would just be built-in, we’d
reap the rewards of our marketing efforts, enough to build the next program,
where more investment would be a natural by-product of the previous activity,
perhaps a holy grail ... but if it’s more budget we need then, it’s business case we
need to provide, what are your expected outcomes from further investment, can
you project or build KPIs around what additional conversions you would hope to
achieve.

“
EXPERT VIEW – TOWARDS AGILE MARKETING
Joe Edwards, Consultant, Brand Joe
In a lean world, it’s about minimum viable product, if we start thinking like that in
marketing we’d not need more budget for testing, it would just be built-in, we’d
reap the rewards of our marketing efforts enough to build the next program, where
more investment would be a natural by-product of the previous activity. Perhaps
a holy grail ... but if it’s more budget we need then, it’s business case we need
to provide. What are your expected outcomes from further investment, can you
project or build KPIs around what additional conversions you would hope to
achieve?
It seems that many marketers are frustrated by the barriers to innovation in digital
marketing. How could this be changed? We wondered which factors are limiting
innovation. The main factors limiting innovation are shown below (Surveyed in 2014).
It is expected that budget limitations may restrict innovation, but lack of process to
encourage innovation and trial can be addressed.
6 Innovation And Optimising Digital Marketing

BEST PRACTICE TIP 6
Identify flexible processes that encourage trial and innovation
Finding methods to encourage trial and innovation of new digital media
technologies and media should be explored by managers given the rate at which
digital media change. This gives both opportunities through gaining cut-through
via new media and content formats and counters the threats through changes to
algorithms affecting visibility in search and social media marketing..
We have developed a series of tools for Expert members to help them plan:
digital marketing strategy to Reach-Act-Convert and Engage your audience.
þþ 7 Steps Digital Strategy guide and course. Step-by-step guidance.
We hope you have found this report useful to compare against your approaches to digital
marketing and inform your investments.
Do let us know if you have any comments via @SmartInsights or our Contact Us.

Appendix
Methodology
Appendix
Methodology
The survey was completed online during November and December 2014. In this section
we summarise the characteristics of respondents to the survey.
Respondent profiles
We surveyed Smart Insights Expert members who are based around the world and
previous attendees of Technology for Marketing and Advertising, which is a conference
based in the UK, so the emphasis is on UK attendees.
Since this research explores how digital marketing is managed, our research focuses
on the views of marketing managers, digital marketing managers and company owners.
0% 5% 10% 15% 20% COUNT PERCENT
Non Board Director
Ecomerce Manager
Student
Board Director / CEO
Consultant
Marketing Executive
Other option
Digital Marketing
Head of Department
Digital Marketing Manager
Owner / Proprietor
Managing Director
ANSWERS
765100%
148
112
104
84
62
56
50
49
44
21
20
15
19%
15%
15%
11%
8%
7%
7%
6%
6%
3%
3%
2%
SKIPS
00%
Which of these best describes your role? (Mandatory)

7 Appendix
Our respondents are typically experienced in marketing, with nearly two thirds having
more than five years experience and over a third having more than 10 years experience.
Types of business
Businesses respondents represented a wide range of sectors and sizes including Retail,
Financial services, Consumer brands, travel and public sector/education.
Size of company was assessed based on the resources devoted to marketing in terms
of spend on marketing services and media. Spend on marketing services was skewed
towards smaller businesses, but with 52% of respondents planning to invest more than
£50,000 on external marketing services and media in 2015.
We also wanted to assess the relative importance of digital marketing in terms of dedicated
resources for digital marketing. To do this we asked how many people worked in the
marketing team overall and how many were focused primarily on digital. We explore this
further in the section on resourcing (section 3).
COUNT PERCENT
ANSWERS
76099%
187
133
111
92
79
71
45
42
25%
18%
15%
12%
10%
9%
6%
6%
SKIPS
51%
0% 12.5% 25%
£500,000 to £1million
£300,000 - £500,000
£1 million+
£100,000 - £300,000
£50,000 - £100,000
Don't Know
£10,000-50,000
£0-£10,000
How much does your business plan to invest in marketing
services and media for 2015? (excluding salary)

Managing digital-marketing-smart-insights-2015

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