BlueKai Data Impact Report
Exploring Trends and Impact of Data Driven Marketing
July 2013
Introduction In an effort to better understand the impact of data driven-marketing across traditional and emerging channels, BlueKai has launched a semi-annual survey to understand the growing trends in data management as well as its impact to marketing effectiveness and bottom-line ROI. The goal of this ongoing research is to identify the ways in which data is having an impact on all cross-channel marketing activity and to quantify that impact in a way that has not been quantified previously. We want to help you, the marketer, understand the value of data powering all your marketing actions.
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EXPLORING TRENDS AND IMPACT OF DATA DRIVEN MARKETING
Background Advertising is changing rapidly as marketers increasingly embrace “big data” into their strategy. More and more, this data (aka audience intelligence) needs to traverse the borders of offline, online, mobile, search and social platforms. Marketing practitioners are starting to incorporate and expand the use of “data” into their core DNA, though many are only scratching the surface. A simple way of looking at it is that marketers are using “what they know” to power “what they do”. Marketers continue to seek ways in which a thoughtful data strategy can produce higher efficiency and stronger performance. Along the way they are able to deliver more central and deeper audience segmentation, targeting efficiencies and a way to tell a consistent story to across the entire customer journey; across various marketing touchpoints. Simply put – they can drive more revenue. For this report, BlueKai surveyed 133 marketing executives to better understand what incorporating data into marketing means and to uncover measured ROI from data-driven programs. We also uncovered what types of data are used for marketing as well as ways and channels in which data intelligence is used to drive a more relevant ad or content experience. The survey results were also contrasted against a similar BlueKai commissioned survey from December, 2012, reflecting trends in data-driven marketing.
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Key Findings Marketers indicated increased budget towards data-driven programs signifying a growing adoption of data-driven marketing as mainstream practice. Marketers generally see the impact of data through uplift in conversions and acquisitions and the ability to deliver more targeted messages, though few are able to quantify exactly how much. A large majority of marketers recognize the importance of data in marketing and many are putting this into practice against data-driven display and email targeting programs. Meanwhile, there is growing interest in taking data intelligence further. Site optimization and attribution are emerging use cases behind email, re-targeting, prospecting and creative optimization. In line with the desire to increase data usage beyond banner advertising, marketers admit that cross-channel and platform opportunities are top of mind. Specifically, the channels that are most important to them include analytics, email, search and social. Display advertising is ranked lower against these broader marketing disciplines. Mobile is top of mind for advertisers but remains untapped in both targeting and data usage. The mobile channel continues to grow in “time spent� but lags in share of marketing budgets.
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EXPLORING TRENDS AND IMPACT OF DATA DRIVEN MARKETING
Who did we talk to?
I work for a:
• 54% in marketing management • 11% media planning
41%
• 15% in analytics 28% 25%
11%
Marketer
Agency
Publisher Technology Provider n=133 Source: BlueKai
The survey was administered online during the month of June, 2013. Over 66% were brand and agency marketers and 11% publishers. More than half are in marketing management, 11% who are responsible for media planning or buying and 15% in analytics. More than half of those who took the survey were Director level or above.
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Is data of primary importance for segmentation and targeting of your marketing efforts? (examples of data: CRM data, audience data, site data, campaign results data.) 91% said yes:
29%
Strongly Agree
Agree
62%
n=130 Source: BlueKai
How much of your digital marketing efforts are driven by data? 0-25% of budget 11.4%
75-100% of budget 33.3%
22%
25-50% of budget
33.3% 50-75% of budget n=132 Source: BlueKai
67% of respondents answered that more than half their digital efforts are driven by data, showing a growing maturity in data usage for digital marketing. This is not surprising given emphasis on email marketing, re-targeting and 3rd party data targeting efforts across digital. 6
EXPLORING TRENDS AND IMPACT OF DATA DRIVEN MARKETING
Does your marketing integrate some or all of your 1st party data? (1st party means data that I collect via direct relationships with the consumer like website traffic, forms, offline registration, CRM, etc.)
87% of respondents rely on 1st party data for marketing; broken out by the following types of data... Website data CRM/registration data Other first party data we use: • market research • content marketing measurement data, etc.
Email data 83%
79% 72%
67%
45% 28%
Digital campaign data
Mobile site or app data
Search data n=132 Source: BlueKai
Other types of 1st party data include: Market Research, content marketing measurement data, as well as data from shows and seminars.
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Does your marketer integrate some 3rd party data? (external customer data that you acquire from a 3rd party).
72% rely on 3rd party data for marketing, broken out by the following:
Other 3rd party data we use: • consumer trends • conference attendee lists • media data, etc.
3rd party targeting data
3rd party mailing lists 62%
3rd party co-op data 49%
33%
n=132 Source: BlueKai
Others include climate surveys, consumer trends, conference attendee lists, media data, 3rd party augmented data like D&B.
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EXPLORING TRENDS AND IMPACT OF DATA DRIVEN MARKETING
Please identify the areas of your marketing execution that are directly influenced by the use of data and audience information.
72% 72% Email delivery Retargeting 60%
Display targeting 51%
Creative optimization
49%
Site customization 41% Attribution Lookalike modeling Other 2%
26% 22%
Data activation is growing to areas beyond email and display targeting n=121 Source: BlueKai
When asked about primary uses for audience data, the top use cases are email delivery (71%), re-targeting (59%), display targeting (51%) and creative optimization (48%). Emerging use cases for data include site customization, lookalike modeling and attribution, reflecting an interest to push audience data intelligence beyond email and ad targeting. BLUEKAI DATA IMPACT REPORT
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When considering cross-channel/platform opportunities, which channels are MOST relevant for your company?
Analytics Email Search Social Top 4 from 2012 report: • Search • Social • Analytics • Mobile
Video Mobile Site Personalization Display (banner) Offline (direct mail, print ads, etc.) 0
.5
1
1.5
2
2.5
3
3.5
4
4.5
5
n=120 Source: BlueKai
While many marketers are actively leveraging data for display targeting and email, over 64% surveyed says that a horizontal approach (the ability to take data intelligence to various marketing execution layers) is more important than going deep into one practice like ‘ad targeting’. This is a slight increase (+2%) since our last survey. When considering cross channel/platform opportunities, analytics, email and search were highest on the list with video and mobile are close behind. This is similar to responses from our December 2012 report, though “social” lost its place in the top 3 ranking. Display ranks in the bottom 3, reflecting its lower priority against other marketing focuses.
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EXPLORING TRENDS AND IMPACT OF DATA DRIVEN MARKETING
What percentage of your marketing efforts are aimed at mobile users?
3.3%
75-100% of budget
50-75% of budget 14.2%
0-25% of budget
51.7% 30.8% 25-50% of budget
n=120 Source: BlueKai
Mobile remains untapped with over 50% of those surveyed saying they spend 0-25% of budget to all their efforts in mobile marketing. When asked how data has improved conversion rates for mobile, 60% don’t know, and 8% claims it increases conversion rates by more than 10%. This is reflective of a channel that has yet to see full marketing adoption, data-driven practices and standard ways to measure marketing success.
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What is the impact of data to your marketing? 78% say increase in Performance: conversion and acquisition. How much?
• 10% says it increase conversion rates and sales by 5-10% • 73% does not know
71% say the ability to deliver of more relevant messaging to more finely segmented audiences
68% say an increase in Interaction: clicks and traffic generated. How much?
63% say an increase in efficiency in media buying and planning. How much?
21% says it has increased clicks and traffic by 5-10%
32% says they drive more than 10% increase in media efficiency
Marketers are in general agreement that data integration drives positive impact across various marketing metrics. The responses indicate that data is essential and when measured, show a general uplift in performance, interaction, media efficiency and message relevance.
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EXPLORING TRENDS AND IMPACT OF DATA DRIVEN MARKETING
What percentage of your overall marketing budget is allocated towards data-driven (e.g. analytics, media, audience segmentation, offline data, etc) initiatives in 2013?
227% increase in those who spend more than 1/5 of budget on data-driven marketing.
36% 33% 2013 26% 22%
21%
22%
2012
18%
18%
10%
1% Less than 5%
5-10%
11-20%
21-30%
More than 30%
n=112 Source: BlueKai
Marketers are allocating more budgets towards data-driven practices since our last report. ~36% now reported spending more than a fifth of their marketing dollars on data marketing, up 25% from December, 2012. We can hypothesize that more budget will shift into data-driven programs as marketers continue to adopt new use cases and set the right measurements in place to truly show data impact to marketing ROI. Over 90% of respondents want to integrate more data and audience information into their marketing initiative over the next 6-12 months. We also see almost 20% increase in the number of people who responded “yes� to using a data management platform in their marketing efforts. 61% said they do use a data platform now, while an additional 16% said they have plans to do so in the next 12 months. BLUEKAI DATA IMPACT REPORT
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Sponsored by BlueKai Designed from the ground up for advertisers, agencies and publishers, the BlueKai Data Management Platform is the industry’s most comprehensive solution for collecting, managing, segmenting, sharing, and analyzing private audience data from a single integrated interface. For more information about how your organization can drive maximum return from your audience assets, visit
www.bluekai.com/platform to find out how BlueKai can help.
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EXPLORING TRENDS AND IMPACT OF DATA DRIVEN MARKETING