"Growth through better measurement tools"

For the third year in a row, the digital experts at the international market research and consulting company Kantar Millward Brown are looking at the opportunities and challenges of digital marketing as part of the Getting Digital Right study. The results of the study are based on a survey of more than 300 marketing decision-makers from companies, media and agencies in the USA. Four key findings of the current study are:

Fragmented consumer behavior

Consumer behavior is changing rapidly. The Consumer Decision Journey shows a clear evolution away from a straightforward purchase decision process to a complex decision process characterized by both well-informed consumers and an oversupply of information. The results of the study suggest that a large proportion of companies have not yet found a solution to this challenge: This is because 55 percent of the marketing decision-makers surveyed deny their organization's ability to understand the consumer journey of its own target groups in detail - which creates uncertainty when it comes to selecting the right marketing mix. Just under a third (32 percent) of respondents say their organization has found a good balance between traditional and digital activities. By contrast, half (50 percent) express doubts about the effective composition of current marketing measures.

"Increasingly complex consumer behavior is unsettling marketing decision-makers. If you don't know the relevant touchpoints, you can't build a relationship with your consumers. Marketing can only use its resources efficiently if it is clear who is being reached when, via which channel, and with which activities. Otherwise, messages will have no impact and brands will miss good opportunities to interact with target groups. In terms of understanding customers and their media behavior, many organizations have a lot of catching up to do," says Bernd Büchner, Managing Director of Kantar Millward Brown in Germany, Austria and Switzerland.

Lack of solution for measurement of ROI

The respondents from companies, media and agencies agree that measuring the return on investment (ROI) is currently the greatest challenge for marketing. They are particularly concerned about the measurability of the effects of measures in the areas of content marketing and events and conferences. In the coming years, therefore, increasing spending is expected in particular on market research tools that help to quantify the ROI of marketing activities more concretely. Solutions in this area would help the industry to achieve significant growth: This is because nearly three-quarters (74 percent) of marketing decision-makers would increase their investments in digital channels if ROI could be better demonstrated than it is today. With regard to cross-channel activities, 71 percent would then increase their spending and 43 percent in traditional channels.

Data-based marketing approaches on the rise

The buzzword "big data" is becoming increasingly important in marketing: the marketers surveyed are generally positive about their own organization's ability to collect and use data for marketing activities. At 41 percent, confidence in the evaluation of big data has risen significantly among companies compared with the previous year (14 percent). Among marketing decision-makers in media companies (59 percent) and agencies (60 percent), however, the affinity for data is even more pronounced. The increased trust in data-based marketing is also reflected in the fact that respondents forecast rising research budgets in the coming years - especially for measuring ROI, consumer behavior along the consumer journey, and in the area of advertising effectiveness research.

Understanding of overarching strategies

Consumers today expect a consistent brand experience across all channels. The reality, however, is that a good quarter (26 percent) of the organizations surveyed still have difficulty implementing integrated activities with coordinated messages. The positive news is that there is a growing understanding of overarching strategies that effectively combine traditional and digital measures. While 74 percent of respondents today say they develop integrated marketing strategies, only 67 percent (2015) and 59 percent (2014) did so in previous years. If the focus is directed exclusively to digital marketing, it becomes apparent that the coordination of activities still offers plenty of potential for improvement here as well: Around a third (33 percent) state that the marketing measures in the individual online channels do not pursue an overriding objective.

"The study shows that, compared to the previous year, decision-makers have become much more intensively involved with digital marketing and the associated opportunities. The greatest attention is paid to ROI. However, further efforts are needed to understand the digital consumer even better," says DACH Region Managing Director Büchner.