Australia continues to lead the pack in Asia Pacific when it comes to digital marketing proficiency but skill shortages and budget constraints are holding back further digital and business transformation. The APAC Digital Directions report, a joint study by CMO Council and Adobe, shows confidence in the value of digital marketing is growing but marketers are still struggling to validate investment and build a business case.
Digital has come of age
Digital and business transformation is a complex and challenging task, but if done right, the rewards are great. Early adopters in Australia are leading the region in digital marketing proficiency and are able to prove value to their organisations and industries. These companies are using customer intelligence in an insightful way and are leading with data.
Digital has truly come of age. Australian respondents are confirming that digital enables additional touchpoints (68%), delivers more cost-effective customer acquisition (51%), improves customer loyalty (41%) and improves the overall customer experience and responsiveness (34%). The challenge now, is to turn our attention to extracting greater value and insights from data to provide ideas and knowledge that improve product, services and customer engagement and provide the foundations for a stronger internal pitch to boost investment and resourcing.
Metrics that matter
At a time when marketing is fast becoming the catalyst for business transformation and customer engagement optimization, Australia’s marketers are still largely focused on single vector metrics that measure past success or single campaign performance only. They are typically not measuring the impact of harder business metrics such as sales pipeline performance or customer lifetime value.
So what are they measuring? Only a few Australian respondents said they measure business value metrics, with just 16% measuring revenue per customer (a significant drop from 26% in 2013), 15% measuring customer lifetime value and 16% measuring market share movements. The bulk of Australian marketers are focused on more basic metrics with 70% measuring click-through rates, 49% measuring campaign ROI and 73% measuring response rates. This is very much in-line with their regional peers across Asia.
Other key findings
Here are the top-line Australian findings from APAC Digital Directions report:
- Australia continues to lead the region in digital marketing proficiency with 35% of Australian marketers rating their organisation’s efforts as high or pretty good, compared with the APAC average of 24%.
- The top 3 challenges and complexities experienced in building in-house and virtual digital marketing teams in Australia are a lack of the right talent and skills (55%), budget limitations (42%) and identifying the right tools and technologies needed to take the next step (40%).
- The top 3 challenges to digital campaign execution in Australia are budget limitations (54%), determining the best technology solutions and services to use (41%) and making a business case for digital marketing spend (36%).
- The top 3 digital priorities for Australian marketers in 2015 are strengthening the digital content strategy (68%), richer, deeper customer profiling and insights (51%); and social media optimisation (50%).
- When asked where they allocate their digital marketing funds, the majority (72%) of marketers in Australia said website content, development and performance optimisation, followed by search engine optimisation (69%) and paid search (61%).
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