Multiple Data Streams Overwhelming More Marketers
Like most surveys being carried out this year, the results of DataXu’s efforts show that a huge majority of advertisers are shifting more of the marketing budget from traditional to digital. This shift is taking place for 2 reasons. Marketers can reach consumers more efficiently through digital formats and businesses believe that digitization, the move to big data, will help them improve marketing effectiveness.
One of the goals of big data is to give marketers a chance to nimbly make changes to current digital campaigns. But what’s happening instead is that more marketers are feeling overwhelmed by the volume of data coming at them. Marketers are not getting as much out of their digital data as they would like because:
- They lack needed analytic skills 28%
- They lack software/technology 30%
These problems endure even as the vast majority of respondents say that using this data will “dramatically improve their commercial success.” The main reasons given for moving to digital include:
- Increased measurability 20%
- Increased customer engagement 18%
- Low cost of customer acquisition 16%
- Better ability to glean customer insights 13%
This interest in digital is important as nearly half of respondents note that 25% of their budgets have already moved from traditional formats. To handle the data management needs of going digital, more businesses are turning to automation. In these cases, the marketing staff makes the product and service selection decisions about 28% of the time. But, even the right software will not help marketers manage big data until they create internal systems that generate meaningful results. For example, segmenting customer data allows marketers to identify micro-segments of possible target audiences and buy media with more precision. This would be one step in the direction of goal setting and then measuring outcome after a campaign ends.
What’s also missing for most marketers is a cross-channel digital marketing platform. For now, these businesses are expecting their agencies of record (23%) or their in-house team (32%) to optimize digital campaigns. DataXu analysts note that more enterprises will be looking at how they are managing their digital marketing data. Those teams which are able to understand and manage the data and then adjust campaigns to boost ROI will be the teams that succeed in the marketplace.[Source: Marketing in the Digital Age. dataXu.com. 2012. Web. 11 Apr. 2012]