Despite a growing shift of resources and budget to the development of digital marketing strategy, platforms and channels, the actual skill levels to effectively manage and execute digital marketing programs are absent outside of digital teams. The Digital IQ Index is Digital Chameleon's report on digital capabilities within media, marketing and agency industry in Australia.

1. How prepared are Brand, Agency and
Media organisations to meet digital
marketing challenges?
What are the differences between
Brand, Agency and Media organisations
in terms of digital marketing
preparedness?
How do Brand, Agency and Media
organisations stack up in terms of
Online Advertising, Social Media,
Content Marketing and
Data & Analytics expertise?

2. 1 DIGITAL IQ INDEX™ 2014
Executive Summary:
Despite a growing shift of resources and budget to the development of digital marketing
strategy, platforms and channels, the actual skill levels to effectively manage and execute
digital marketing programs are absent outside of digital teams.
Consequently, investments in this area are failing to return optimum ROI. Traditional reliance on the part of brand
marketers on external parties to bridge this gap isn’t proving effective — because these external stakeholders are just
as unprepared as the brands. There is a positive lift in skills relating to Owned Media, but this growth in skills is still
overshadowed by a large majority who are not proficient in this area. Finally, there are large gaps in both the pioneer
discipline of Online Advertising (indicating that this discipline is constantly re-inventing itself) and in the relative
newcomer Data & Analytics, which requires an entirely new skill set based on data manipulation and analysis.
Four major insights were uncovered by the 2014 Digital IQ Index™
THE SKILLS PARITY OF BRAND, AGENCY AND MEDIA
There is virtually no daylight between brands,agencies and media in terms of skill levels. All three sectors
are effectively unprepared to manage and execute digital marketing campaigns. If agencies are unable
to provide more value in this area, brands will have no option but to develop internal expertise quickly to
remain competitive and will force a re-examination of the brand-agency-media relationship.
DIGITALKNOWLEDGE STILLRESIDES IN SPECIALISTTEAMS
There is a significant gap of knowledge between general sales & marketing teams and digital
specialists.Individuals who scored well were generally from digital teams,and that knowledge wasn’t
distributed outside of those teams.Digital knowledge still resides in a very small percentage of media,
brand and agency staff, at the same time that digital is becoming a central focus of marketing. As
digital becomes more complex, there is a danger that the gap between the digital have’s and have-
not’s will accelerate.
GROWING STRENGTH IN OWNED MEDIA CATEGORIES
Significant portions of both brand and agency teams were found to have proficiency in both Social
Media and Content Marketing (Media respondents were not assessed on either of these disciplines).
Thismayrepresentanintersectionofclassicbelow-the-linemarketingresponsibilities,agenerational
familiarity with online content and community, and a drive to reduce costs. One concern is that this
expertise tended to exhibit itself in a core part of the team and not as a general skill set (Specialists
versus Generalists).
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1
3
4
OLDER AND EMERGENT SECTORS REQUIRE ADDITIONAL FOCUS
Despite arguably being the first widespread digital marketing skill set, proficiency in Online
Advertising remains, almost twenty years after the first banner ad appeared, to be woefully low. This
lack of proficiency extends across all three sectors, including Media, whose business model is most
tightly associated with it. One reason for this lack of knowledge might be the continual reinvention
of this discipline, with constant evolutions involving developments like programmatic buying and
online video requiring skills updating. Not surprisingly, both brands and agencies are also failing to
cover the skills gap in the newest digital discipline of Data & Analytics.

3. 2 DIGITAL IQ INDEX™ 2014
Objective:
Provide stakeholders in the Australian marketing
community with insights into the current levels of digital
marketing capabilities among working sales and marketing
professionals.
Digital Chameleon launched
the Digital IQ Index™ in No-
vember 2012. The first Index
focused on the results of 350 partic-
ipants to a Learning Needs Assess-
ment, in which respondents were
queried about their own levels of con-
fidence around a number of standard
digital skills areas, ranging from dis-
play (online) advertising to social me-
dia. In addition they were surveyed
as to their attitudes towards digital
trends and learning modalities.
This assessment is taken by all partic-
ipants in Digital Chameleon programs.
The 2012 Index revealed a definitive dig-
ital skills gap that existed among brand
marketing,mediaandagencyteams.
The results of that report may be
accessed at: www.digitalchameleon.
com.au/white-papers.html.
The 2014 Index builds on the initial
findings and provides deeper per-
spective on the digital skills levels at
the sector level (ie. brand marketer,
media, agency).
Methodology:
The Digital IQ Index™ 2014 focuses on actual skills
self-reporting survey methodology, the 2014 Index relies on
actual results from a standard skills assessment tool.
The Digital Skills Assessment
(DSA) is made up of 32 ques-
tions and is accessed online by learn-
ers in Digital Chameleon programs.
These questions capture familiarity
with common concepts, processes
and definitions used in basic digital
marketing planning and execution.
Four major digital marketing dis-
ciplines were reflected in the DSA,
including Online Advertising, So-
cial Media, Content Marketing and
Data & Analytics. Eight questions
related to each of these four disci-
plines were asked of the respondents.
There were a total of 625 respon-
dents, who took the DSA during FY
2013 and 2014. There were 361 media
respondents, 131 brand respondents
and 133 agency respondents. The
Brands group represented both prod-
ucts and services. The Agency group
included creative, media buying and
full-service firms. The Media group
included magazine and newspaper
teams. Team sizes ranged from 20-
180 people.
Please Note: Media respondents were only assessed
on Online Advertising (this being the only immediately
relevant discipline for this sector), while agency and
brand marketer respondents were assessed across all
four of the digital skill sets (Online Advertising, Social
Media, Content Marketing, Data & Analytics).
37% OF MARKETING
GENERALISTS FEEL
HIGHLY PROFICIENT
OF DIGITAL
MARKETERS
FEEL HIGHLY
PROFICIENT
48%
66%Of all marketers state
companies won’t succeed
unless they have a digital
marketing approach
Source: Digital Distress:
What Keeps Marketers Up at Night? Adobe
Less than half of
digital marketers feel
digital
marketing
Generalists are
even less
DID YOU KNOW:
WHY ARE WE
SHARING THIS?
Digital Chameleon is a learning &
development business that engages
with companies to help mainstream
digital marketing literacy across
entire teams. Digital Chameleon uses
a standard assessment as part of
its methodology to measure digital
literacy among these teams.The data
in the Digital IQ Index comes from
these assessments. Our intent was
not to produce research, but to share
what we’ve learned through our normal
course of business training media and
marketing professionals in Australia.

4. 3 DIGITAL IQ INDEX™ 2014
In summary, the 2014 Digital IQ Index™ confirms that the digital skills gap
is more than self-perceived. It empirically exists, as demonstrated by the
results of the Digital Skills Assessment used to capture the data. Digital literacy
amongst brands, agencies and media is as low (if not lower) than the self-re-
ported concerns highlighted in the 2012 Digital IQ Index™.
For organisations that are prepared to fill their digital skills gaps, this will
be a period of opportunity and growth. For those that are not, the next few
years will become much more competitive and challenging and, potentially,
brand-ending.
DID YOU KNOW:
According to the Accenture CMO
Insights Survey, only 7% of CMOs
believe their performance in digital
is leading edge and 64% of CMOs
believe their external partners are
weak on execution and delivery.
things like optimizing
never develop a full
understanding of
or what inspires a
Seeing such capability
building as an investment
may change the logic of
using third parties.”
Source: Measuring the full impact of digital
capital, McKinsey & Company
Digital IQ Index™ Timeline
Summary
2012 Surveyed sales and marketing professionals on how digitally literate
they considered themselves to be around core digital disciplines (online
advertising, social media, content marketing and data & analytics)
2014Determinedhowknowledgeablebrand,agencyandmediaprofessionals
actually were around core digital disciplines (online advertising, social media,
content marketing and data & analytics) through a formal assessment
2015 Will track actual increases in digital proficiency around core digital
disciplinesbysalesandmarketingprofessionalsviaapre-andpost-assessment
methodology
About Digital
Chameleon
Digital Chameleon helps clients mainstream digital
knowledge and capabilities across their teams. Digital Chameleon works
with companies worldwide to integrate digital into the DNA of their
businesses via its “Seven Stages of Digital Transformation” process.
This scalable, tailored, metrics-driven approach to digital learning closes the
talent gap and provides clients with a demonstrable return on investment.
Digital Chameleon’s learning solutions have been endorsed by the
Media Federation of Australia and the Digital + Direct Marketing
Association Asia.
To learn more about Digital Chameleon,
please visit us at: www.digitalchameleon.com.au
+61 2 9997 7002

5. 4 DIGITAL IQ INDEX™ 2014
NUMBERS ROUNDED UP TO NEAREST INTEGER
Results by sector:
Respondents were grouped into one
of four quartiles: Uninformed (unable
to engage), Partially Informed (barely
able to engage), Proficient (proficien-
cy in basic concepts), and Highly Pro-
ficient (highly proficient around topic).
Respondents residing in the first
two quartiles (Uninformed, Partially
Informed) were deemed as lacking
sufficient knowledge to engage in digi-
tal marketing decision-making around
that discipline. Those in the second
two quartiles (Proficient and Highly
Proficient) were deemed as having the
skills and knowledge to make effective
decisionsaroundthatparticulardigital
marketing discipline.
BRANDS:
INCLUDES
PRODUCTS AND
SERVICES
AGENCIES:
INCLUDES MULTINATIONAL,
REGIONAL, CREATIVE,
AND MEDIA
MEDIA:
INCLUDES
MAGAZINES AND
NEWSPAPERS
BRANDS 131 participants
53%
unable to engage
effectively around the topic
11%
unable to engage
effectively around the topic
20%
unable to engage
effectively around the topic
48%
unable to engage
effectively around the topic
41%
barely able to engage
effectively around the topic
48%
barely able to engage
effectively around the topic
47%
barely able to engage
effectively around the topic
41%
barely able to engage
effectively around the topic
6%
proficient in basic topic
concepts
34%
proficient in basic topic
concepts
28%
proficient in basic
topic concepts
11%
proficient in basic
topic concepts
0%
highly proficient
around topic
7%
highly proficient
around topic
5%
highly proficient
around topic
0%
highly proficient
around topic
ONLINE ADVERTISING
SOCIAL MEDIA
CONTENT MARKETING
DATA & ANALYTICS

6. 5 DIGITAL IQ INDEX™ 2014
AGENCIES 133 participants
MEDIA 361 participants
47%
unable to engage
effectively around the topic
29%
unable to engage effectively
around the topic
15%
unable to engage
effectively around the topic
11%
unable to engage
effectively around the topic
59%
unable to engage
effectively around the topic
46%
barely able to engage
effectively around the topic
60%
barely able to engage
effectively around the topic
42%
barely able to engage
effectively around the topic
56%
barely able to engage
effectively around the topic
37%
barely able to engage
effectively around the topic
5%
proficient in basic topic
concepts
11%
proficient in basic topic
concepts
38%
proficient in basic
topic concepts
25%
proficient in basic
topic concepts
4%
proficient in basic topic
concepts
2%
highly proficient
around topic
0%
highly proficient
around topic
5%
highly proficient
around topic
8%
highly proficient
around topic
0%
highly proficient
around topic
ONLINE ADVERTISING
ONLINE ADVERTISING
SOCIAL MEDIA
CONTENT MARKETING
DATA & ANALYTICS
NUMBERS ROUNDED UP TO NEAREST INTEGER

7. 6 DIGITAL IQ INDEX™ 2014
COMBINED Brands and Agencies: 264 participants
COMBINED Brands, Agencies and Media: 625 participants
50%
unable to engage
effectively around the topic
38%
unable to engage effectively
around the topic
13%
unable to engage
effectively around the topic
16%
unable to engage
effectively around the topic
54%
unable to engage
effectively around the topic
44%
barely able to engage
effectively around the topic
53%
barely able to engage
effectively around the topic
45%
barely able to engage
effectively around the topic
51%
barely able to engage
effectively around the topic
39%
barely able to engage
effectively around the topic
6%
proficient in basic topic
concepts
9%
proficient in basic topic
concepts
36%
proficient in basic
topic concepts
26%
proficient in basic
topic concepts
7%
proficient in basic topic
concepts
0%
highly proficient
around topic
0%
highly proficient
around topic
6%
highly proficient
around topic
7%
highly proficient
around topic
0%
highly proficient
around topic
ONLINE ADVERTISING
ONLINE ADVERTISING
SOCIAL MEDIA
CONTENT MARKETING
DATA & ANALYTICS
NUMBERS ROUNDED UP TO NEAREST INTEGER

8. 7 DIGITAL IQ INDEX™ 2014
1st quartile 2nd quartile
UNABLE TO ENGAGE
EFFECTIVELY AROUND
THE TOPIC
BARELY ABLE TO
ENGAGE
EFFECTIVELY
AROUND
THE TOPIC
PROFICIENT
IN BASIC TOPIC
CONCEPTS
HIGHLY
PROFICIENT
AROUND TOPIC
THRESHOLD OF
DIGITAL COMPETENCY
LEGEND
ONLINE ADVERTISING
BRANDS 131 participants
AGENCIES 133 participants
94%
below threshold
of digital competency
93%
below threshold
of digital competency
MEDIA 361 participants
89%
below threshold
of digital competency
Results by discipline:
3rd quartile 4th quartile

9. 8 DIGITAL IQ INDEX™ 2014
SOCIAL MEDIA
CONTENT MARKETING
BRANDS 131 participants
BRANDS 131 participants
AGENCIES 133 participants
AGENCIES 133 participants
NUMBERS ROUNDED UP TO NEAREST INTEGER
59%
below threshold
of digital competency
57%
below threshold
of digital competency
67%
below threshold
of digital competency
67%
below threshold
of digital competency

10. 9 DIGITAL IQ INDEX™ 2014
NUMBERS ROUNDED UP TO NEAREST INTEGER
DATA AND ANALYTICS
BRANDS 131 participants
AGENCIES 133 participants
89%
below threshold
of digital competency
96%
below threshold
of digital competency