Compared to some previous study, this years CMO Council’s „State of Marketing“ (sponsored by NetBase and Infor) shows that confidence to be a trusted source for the C-level is back with marketers. The online study that asked 525 global marketers in the first quarter 2014 shows that 69% of senior marketers see themselves as a trusted, strategic member of the C-suite and/or are increasing their credibility with the main business decision makers inside their companies. Furthermore, 81% of senior marketers responded that they’re confident to meet management expectations and goals for top-line revenue growth and market share in the next 12 months.
„The level of confidence and optimism is very high. We are seeing the CMO role being elevated to a much larger degree.“ Donovan Neale-May, Executive Director, CMO Council
From a budget perspective, the main areas of marketing spending growth for this year will be social advertising (71%), online video (71%), social engagement campaigns (69%), retargeting (67%) and search engine marketing (66%). However, mobile will go down in the attention of marketing spendings this year. Only 62% said they plan to increases and just 25% project increases of over 5% for 2014. 45% said they expect no change for mobile banners. The report makes no commments on reasons for this stagnating mobile budget growth. In general, 54% of marketers plan to increase their marketing budgets over the next 12 months, 27% will keep budgets stable. The most funding will go into new products and program launches (54%), corporate branding and identity building (53%), lead generation and qualification (50%), and customer retention and monetization (44%).
When asked to identify where marketers will allocate marketing budget across
From an operational and process point of view 12% of the responding marketers said they will invest in product marketing, 12% said in strategy and branding, almost 7% in marketing and planning, 7% in sales and lead management, and 5% in market research, among other areas. It seems that programmatic buying has still not reached the marketing department. Only 1% sees programmatic advertising technology systems an interesting topic to invest in. Maybe they just do not have the right arguments for their C-Suite on programmatic yet.
The senior management expects from their CMOs over the next 12 months to drive top-line growth (56%), grow or retain market share (52%), better define the brand and value proposition (44%), and further customer insights and analytics (37%). As the leading areas of responsibility the marketers see for themselves strategic planning and forecasting (74%), branding (71%), digital (68%), budgeting and mix modeling (68%) and market research (67%). from a C-level perspective the marketers state that their main tasks from the business leaders are driving top-line growth (56%); growing or retaining market share (52%); better defining the brand and value proposition (44%); and furthering customer insights and analytics (37%).
The challenge for marketers as of the cloud technology evolution is to connect with other departments inside the company. Interesting to see from the report to which people marketers are reaching out these days for partnerships. The marketers responded that the CFO (58%), CIO (53%) and chief sales officer (51%) are their main three touchpoints inside the organization to form partnerships with.
The report also states that 55% of marketers want to hire in 2014. Their main focus of reecruiting people or getting knowledge will be on customer analytics (40%), social media (36%) and content development (27%). Interestingly enough, a trend that we also experience with our clients is that B2B marketers (60%) are very active finding new staff. Their main interest is in people on topics like customer analytics (33%), product marketing support (33%), content development (32%) and social media (32%).
Adobe’s CMO.com did a great job in summarizing the leading social networks for business in one nice infographic alongside their CMO Guide to The Social Landscape. The marketing technology company checked each of the platforms according to four criteria: brand awareness, customer communication, SEO and traffic generation.
Obviously and not surprising, the leading platforms are Twitter, Facebook, LinkedIn and YouTube. From our experience not all marketers are aware of the importance to change the contents for each platform and not just run them in different timings. The target-groups on the various platforms may be quite different, thus their interests in content and context as well as their wants and needs might vary extremely – although they might be the same people sometimes.
YouTube will probably become the leading platform when the whole world is more driven by Millennials and their input. Although you might be thinking about funny videos, going viral now, most of the business content can be manuals, employer branding stuff, or even product explanation videos. The opportunities are massive and it is time for marketers to realize.
In the B2B space, Slideshare might be a new platform for marketers. The chances are big here as well, as companies and brands get the option to show presentations from various standpoints. Especially, if the company is addressing different stakeholders in a purchase process, it is sometimes good to open up some thoughts before the meeting, so stakeholders can prepare. And, how often did presentations before meetings not go through as of company email file restrictions…?!
Obviously, Google+, Instagram, Pinterest play a role from a corporate brand perspective. And Google+ especially from a SEO and content marketing point of view. However, we are still at the beginning and every case needs to be evaluated on its own.
Any important platform you are missing in the top 8 social networks?
After three years, the guys at MDG Advertising have updated their last infographic on ROI on your social media „The ROI of Social Media: Is Social Media Marketing Effective?“ This new version will be helpful to challenge your business objctives, your metrics and the understanding of how to leevrage your social media reccruiting efforts. The good thing about this infographic is that it shows 45% of social media marketers can build new partnerships through social media. Furthermore, an astonishing 72% of respondents claim that Social Media has helped “closing business.” And, 6% more respondents state they used successfully Social Media to recruit people for their business.
These are their 3 main factors of measuring from MDG Advertising which can be used as a guideline to foster your social media program.
Social Media Understanding
Look beyond the sales numbers and cost structure. Do your brand monitoring first, not for one month but for at least three in a row and on a daily basis. Then, try to figure out how your brand perception and recognition has changed latey (with or without latest social media efforts). Which significant issues have changed your brand perception? Which tools have help identify the changing brand perception?
Most companies and their leaders start and change their social media program when the trial-and-error mode has proven the fail of the social media strategy. You better start defining your business objectives first, and one thing is for sure. You do not start, just because your competitors are active in social media platforms. Maybe you want to have a look at your brand perception and web conversations first, then you ask what engagement do your customers show in the various channels. Does all this engagement make an impact on sales? And how is your brand perceived along the social web clutter?
According to the infographic, CMOs use the following metrics to measure their social marketing efforts. It shows that as in earlier years, quantity comes first, however I would suggest you better go with quality. How says what and when, and how does this affect other consumers of your brand.
68% Site traffic
63% Number of members
43% Number of page views
You have good different thoughts about it? How does your company or brand measure the ROI on Social Media? Share them with us, or just have a look at the infographic, and maybe some ideas on the ROI of Social Media will come up then.
Some weeks ago, we spoke about a study that described what B2B decision makers expect to read on vendor websites. Now, a new study of 352 buyers (predominantly large businesses) from The CMO Council and NetLine shows that the majority of organizations (94%) favors to curate and circulate relevant content in their organization before finally deciding to purchase B2B solutions and services. For years, marketers thought B2B buyers and influencers alike are simply using vendor-related content from time to time.
The study makes clear that there is no real sharing structure to be made out from company to company. However, there are three main patterns that the study highlights in their results:
– From the Middle Out (35%): Execution-level executives search and find content about vendors/products and make the purchase. Senior management gets educated thorugh them why the decision was made.
– From the Bottom Up (30%): Junior or mid-level employees find vendor-related content and share their discoveries with senior management. Then they make the final decision.
– From the Top Down (29%): Senior managers find the content, then share it with lower-level managers for analysis and final purchase.
The same as with the sharing patterns, there are three key personas within the businesses who act according to their own behaviors, expectations and needs.
– Researchers: Primarily focused on new industry reports/research to inform them of advancements in solutions, trends affecting the markets, and opportunities for improvement.
– Influencers: Interested in both thought leadership found in trusted third-party channels and vendor-branded technology specifications, data sheets, and use cases. Their special interest is in summarized content, i.e. infographics, videos, and blog comments.
– Decision-Makers: Want to stay informed through broad research reports and analyst commentary. However, they expect to have access to detailed data to enable better decision-making at the tail end of the purchasing funnel.
The study reveals some further interesting insights. The vendor selection is major to moderate influenced by online content, find 88% of the B2B buyers and more than a third (38%) find that online content provides strategic insights and shapes the purchase decision. The content that is valued the most is research reports and studies (65%), technical spec and data sheets (50%), analyst reports (46%), whitepapers (35%) and posts on trade publishing sites (30%). The power of Google and the vendor website comes out as well: When more than two third state they start their vendor-related content sourcing with search engines and portals, it shows that the best training the marketers is to read the two B2B studies and draw some conclusion out of it for the future of your own content, PR and marketing acitivites. And if you cannot find a solution, we are happy to help…
The study „Reducing Customer Struggle 2013“ conducted by Econsultancy shows that marketers now attribute 19% of their total website traffic to mobile devices. Delivering positive customer experience is for 40% of respondents a bigger challenge that on the Web. Herein, bad navigation, small screen sizes and difficulty completing forms were seen as the most serious mobile challenges.
Experiencing a poor custmer experience results for 89% of respondents in working with a competitor. But it seems marketers start understanding the omni-channel customer as they are turning to big data and digital analytics in order to better provide a better mobile experience. And some seem to be real experts in the mobile field: 7% of businesses indicate they have an “excellent” understanding of the overall online customer experience.
The integration of online and offline is still a struggle for most businesses. Most marketers know that information about offline locations, contact details and opening hours on their website is key. But when it comes to establishing a social presence for offline products or services and mobile or local search engine optimization, 93% of the repondents could not get the visibility into individual customer engagement via digital channels.
Seeing their lack in understanding the modern mobile culture, 73% of companies surveyed plan to increase investment in online channels this year. Not surprisingly as mobile is making its way to generate results even in mobile advertising. 6.9bn USD in mobile subscriptions globally seem to be an argument and make 72% invest more in mobile channels. 53% will increase their invest in social. Interesting though that the value of social listening is for most seen ineffective but still they agree social gives insight into what is working and what is not. The looser seems to be offline. More than two-thirds of marketers indicated they either plan to decrease or maintain the same level of investment in offline channels such as stores, shops and branches.
Sometimes surveys bring out the final truth about the status in which chief marketing officers (CMOs) find themselves in. One of the latest reports by Accenture, titled „Turbulence for the CMO: Charting a Path to the Samless Customer Experience“ was done with 405 senior marketers from 10 countries. It makes clear that almost 4 in 10 CMOs think they don’t have the right set up to manage their business challenges in front of them. They are missing the right tools, resources and people.
The annual survey shows a decline in 5% in preparedness compared to 2011. Especially, the digital transformation is lacking behind. Compared to 2011 10% find it challenging to improve their workforce’s responsiveness to digital shifts. Furthermore, CMOs also stated that they find it difficult to keep up the efficiency of marketing operations (8% increase!).
Some deeper findings indicate what CMOs main interest in the business will be. The most interesting observation in the results is that digital orientation has the biggest gap between importance and performance among the five marketing capabilities.
The top priority for them is profitable growth (87%) and operational efficiency (85%). The good point for agencies and consultants is that CMOs have this as a bigger objective that cutting their marketing budgets (58%). From a long-term perspective, consumer expectations for specific experiences have the biggest impact on marketing strategy (65%).
And I am sure, you will detect some more interesting findings in their infographic.
A recent study by Curata identified the main drivers of content marketing activities in B2B companies. The findings are based on Curata’s poll of 465 B2B marketing professionals in October 2012 from business owners, VPs of Marketing, CMOs, managers, marketing consultants and agencies.
The study explains that content marketing continues to become more and more important for B2B marketers. However, the drivers for content strategies are shifting towards thought leadership and market education.
The results show that 87% of responding B2B marketing professionals use content marketing for business goals targets (5% increase to 2011). Content marketing gets followed by SEO (67%) and event marketing (60%) as further leading channels in marketing strategies in 2012.
Further findings of the study show that although engaging customers (81%) has top priority for their content marketing efforts, thought leadership and educating the market are increasing in their importance for the business. More than half of B2B marketers (56%) state thought leadership as a key objective (13% increase to 2011). Also, educating the market (47%) increased by 3% to last year. Just 24% see SEO as a key objective (still a 5% increase to last year). Former top marketing tactics (print/TV/radio) went down from 32% to 26% this year.
Lead generation is still one of the key marketing goals for B2B marketers according to the survey. Most B2B marketers (82%) see driving sales and leads as their top marketing goal. Establishing thought leadership (42%), increasing brand awareness (40%), or increasing Web traffic (32%) follow in the next places. Content curation is also getting traction as the next step in content marketing. 57% of B2B marketers see it as an important evolution step. However, content curation is in it’s infancy when only 34% of curating content marketers have done it since six months or less. Quite scary I found that a staggering 43% of B2B marketers don’t measure the efficiency of their content marketing efforts. I found interesting that the topic brand advocates was not on the spot in terms of content marketing in this study.
Interview: „Social Business = Creating a smarter workforce & a proven solution to business challenges“
One-on-one interview with Ed Brill
Ed Brill is Director, Social Business and Collaboration Solutions, at IBM. Brill is responsible for the product and market strategy for IBM’s messaging, collaboration, communications, and productivity products, including Lotus Notes and Domino, IBM SmartCloud Notes, IBM Sametime, Lotus Symphony, IBM Docs, and other related social business solutions. Brill’s focus is on extending and growing the success of these solutions through customer engagement, partner ecosystem development, and harnessing the breadth and depth of the IBM organization.
The Strategy Web spoke with him about the relevance and future of Social Business.
Why is Social Business not only a buzzword?
Leaders in every industry are leveraging Social Business technology to disrupt their industries and create competitive advantage. They are improving productivity and unleashing innovation by tapping into the collective intelligence inside and outside their organizations. With social, they’re creating a smarter workforce and proving that social business isn’t just a buzzword, it’s a proven solution to business challenges.
According to Forrester Research, the market opportunity for social enterprise apps is expected to grow at a rate of 61 percent through 2016. According to IBM’s CEO Study, today only 16 percent of CEOs are using social business platforms to connect with customers, but that number is poised to spike to 57 percent within the next three to five years.
What does it take to make a business „social“?
Organizations have quickly learned that a Social Business is more than just having a Facebook page and a Twitter account. In a Social Business, every department in the organization has embedded social capabilities into their traditional business processes to fundamentally impact how work gets done to create business value. A Social Business utilizes social software technology to communicate with its rich ecosystem of clients, business partners and employees.
Social business is a strategic approach to shaping a business culture, highly dependent upon transparency and trust from executive leadership and corporate strategy, including business process design, risk management, leadership development, financial controls and use of business analytics. Becoming a Social Business can help an organization deepen customer relationships, generate new ideas and innovate faster, identify expertise, enable a more effective workforce and ultimately drive its bottom line.
What does it mean to change the culture of a company?
Changing an organizations culture to embrace social must start from the top. Senior leadership must buy in and promote a culture of sharing, transparency and trust. Recent studies by IBM see this shift, today’s C-Suite recognizes the potential of social. Consider this, according to IBM’s 2012 CEO Study, today only 16 percent of CEOs are using social business platforms to connect with customers, but that number is poised to spike to 57 percent within the next three to five years. Similarly. IBM’s 2011 CIO Survey of 3,000 global leaders indicated that more than 55% of companies identified social networking as having a strategic significance to their company’s growth. And finally, 2011 IBM CMO Study reports that CMOs are using social platforms to communicate with their customers, 56 percent view it as a key communication channel. These senior leaders are the key to social business adoption and there’s a real shift occurring, social business is now a business imperative.
What role is the flexible workspace playing in the process?
Companies are able to build virtual teams out of expertise and leadership, regardless of their physical location or title on the organization chart. Today’s workforce expects to be able to share, post, update and communicate with colleagues, customers, and ecosystem using social tools to get real work done. Through those tools, employees who work remotely, use flexible „hot desks“ in company offices, or open floorplans can leverage tools for instant e-meetings, video and audio tools, and embedded applications to process knowledge and activities faster and deliver more value to the organization.
What’s your advice for companies to become a „social business“?
Companies around the world are now focused on becoming Social Businesses, Forrester Research estimates that the market opportunity for social software is expected to increase 60% annually. But perhaps the most daunting part of becoming a social business is how to start the journey. That’s where creating a Social Business Agenda plays a vital role. In order to become successful in social business, an organization needs to create its own personalized Agenda that addresses the company’s culture, trust
between management and employees and the organization and its constituencies, engagement behind and outside of the firewall, risk management, and of course, measurement. The sponsorship for such an activity can be driven by leadership, lines of business, or other organizational catalyst roles.
2011 was a great year for Social Business!
Social Business got the right attention and awareness. And those companies which thought that „social trend“ might go away, found themselves in business meetings, workshops, seminars, webinars with me, or conferences where people gave me the honor to be the moderator. After all, the feedback was such that I can definitely summarize the 2011 Social Business success with the opening statement.
What happened in terms of Social Business in 2011 and what is the outlook for web marketers in 2012…?
Well, first of all companies spend more time and resources understanding the challenge Social Media and Social Networking from a business perspective. We got the proof that European bosses don’t have to be persuaded to see the benefits of Twitter, that Social Media is a big internal topic, and that Social Business is critical to future business success.
Job offerings spread around Europe, although sometimes clients asked me whether the offering is correct from a capabilities point of view. Often these openings were meant to be Social Business, in terms of a team-orientated or community-centric positions, but ended up being a „one-man-show-responsibility“: the Social Media Manager – although we all know about the importance of a multi-layer framework to set up a proper Social Media strategy.
From a client perspective companies were still very much in the broadcast or advertising mode. And the perception gap could easily be made out. Although communities were their targets, and many companies and brands tried their best to generate engagement around their business, many of them were still in an advertising scenario and mindset, instead of trying to think about change management in terms of culture and people.
Ultimately, companies have a massive opportunity in 2012 to change their perspective and become Social Business driven with the right teams…
– Teams that work with customer market intelligence.
– Teams that scale the business with social commitment.
– Teams that crave content for leadership and insights.
– Teams that understand business touchpoints in new context.
– Teams that leverage synergies between companies and brands with an appropriate plan.
And these teams don’t work internal or external. These teams group together cross-channel through Community Centric Strategy by understanding the 5C’s as the engines of Social Business: Competition – Commitment – Content – Context – Collaboration.
Finally, Google+ started listing brand pages in organic search results. One of my successful posts from November appears in the first page of the organic search results (see picture last entry).
Status updates will become a game changer in the social ecosystem and boost brand awareness. If companies and brand are blogging they should consider this in their SEM/SEO and keyword strategy when posting your topics on Google+. Marketers should consider this and watch out if this should not affect Facebook and Twitter marketing activities. Maybe it is time to invest more in content marketing…
All roads might lead to Rom – not many to lead to a Social Business. Companies that will work with the Community Centric Strategy in 2012 can close the perception gap between consumer and customers on their journey to companies. Social Business is about people and culture. The 5C’s of the Community Centric Strategy is a new way to Rom… but it will leave the „customer chariot“ at home.
The IT company IBM were the first to make brands aware of the perception gap between what customers want from brands on Social Media, and what companies see as necessary. Some new studies from the Chief Marketing Officer Council and Lithium make clear that this perception gap widens.
What customers want…
The CMO Council asked 1,300 customers from around the world in a multiple-choice study. They discovered that 67% followed or liked brands to receive discounts and special offers. 65% replied that they connected with brands in order to get access to games or competitions while 60% want to connect with other customers.
What brands see…
The astonishing fact is that when the same survey was held with 120 CMOs (chief marketing officer), the results showed similar figures with the IBM study: Only 33% of the CMOs believed that their Social Media fans and followers were engaging with the brand for some kind of incentive or reward. Even more, just 27% understood that their customers were after exclusivity in terms of experience and savings.
Social Media is not a top three priority for one in ten CMOs. The reason is not changing for years probably. 67% said a lack of time and resources makes up for their poor efforts. This is even more amazing when we consider that 72% of the customers use Social Media to connect with brands. AND: 80% are more likely to try a product based on a friend’s recommendation on Social Media, which probably means a Social Network. There is no explanation that could make sense for this Social Media ROI (=Risk of Ignorance).
PS: This little infographic illustrates the digital divide between customers and brands.