In a new study, Adverity examined the most significant challenges that data-driven marketing brings. For 33 percent of CMOs, the growing number of channels has the most significant impact on marketing.
- A new study by Adversity shows that for 33 percent of CMOs surveyed, the increasing number of channels and platforms is the most considerable external influence on marketing.
- Two-thirds of CMOs say they’ve been overwhelmed by the marketing data at their fingertips over the past few years.
- A lack of expertise within the organisation is the top barrier to investing in technology, say 27 percent of CMOS.
A lot has happened in marketing in recent years: Numerous data protection regulations have required new processes, and the global pandemic has rewritten the framework for data-driven marketing. Also, in the current social, geopolitical, and economic uncertainty climate, another potential storm looms – this time in the form of a global recession. As the pace of change accelerates and the number of external disruptions increases, it becomes increasingly difficult for companies in general, and marketing departments in particular, to adapt quickly enough. However, research shows that when companies base their strategies on data, they can absorb economic shocks and weather recessions more easily.
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Data-Driven Marketing: SMEs Recognize The Importance
The current survey shows that many marketing managers are losing track of all activities and platforms. A third of those surveyed see the increasing number of outlets and channels used as the most significant external influencing factor in marketing. And this results in the crux of the matter for the respondents with the question of the best possible handling and use of the data: Almost all CMOs (99 percent) state that their marketing team works with at least ten data sources.
Fifty-two percent even had 14 or more heads. In addition, 32 percent state that their teams use external data sources for marketing analysis. For comparison, a similar study from 2019 found that nearly half (47 percent) of respondents only had six or fewer data sources. Now, three years later, not one of the respondents uses so few anymore. In other words, the amount of data to be collected is more significant than ever.
And it’s precise because of this flood of data from so many different directions that teams are reaching their limits: 67 percent of CMOs admit that they have been overwhelmed by the amount of marketing data available in recent years. This could also explain why the unpredictability of black swan events – improbable events that occur unexpectedly and have lasting effects – and the increasing complexity of audience behaviour come second and third, with 26 percent and 17 percent, respectively, most critical external influences on marketing. Surprisingly, only eight percent expressed concern about data protection regulations.
Data-Driven Marketing Ensures Resilience
Specifically, 92 percent of respondents who assessed their resilience to black swan events as low and had difficulties adapting reported data overload. Those cutting their computing budgets this year (100 percent) were equally overwhelmed.
This shows that marketing teams lose sight of all activities and act ineffectively if they do not improve their data processing capacities, do not optimise their processes, and do not implement a single source of truth. Data-driven marketing is becoming more and more complex as digital development progresses. CMOS should ensure their teams can handle the rising tide of data. This is how they have the best chance of staying afloat and achieving optimal results.
Lack Of Qualification As An Obstacle To Technical Progress
As a rule, investments in new technologies fail due to limited resources, which also applies to data-driven marketing. Although budget issues are among the top obstacles, only 8 percent of CMOs in the survey named them. Surprisingly, the most significant barrier to investment is the lack of knowledge within the organisation to use these tools (27 percent).
While many companies are beginning to move beyond hiring to fill skills and knowledge, significant gaps remain in many marketing teams. Companies need to spend their budgets on technology and building data literacy. Only then can they unlock the actual value of their technology capabilities and reap long-term value from their investments in data strategy. But they are useless if this data cannot be evaluated and appropriate actions derived from it”.