Today, data has become one of the most important aspect for brands seeking to understand consumers and deliver personalised marketing. As data consumption and processing increases, marketers are becoming increasingly respectful of consumer privacy, and how they handle personal data.
A recent research by the World Federation of Advertisers, conducted in conjunction with The Customer Framework, found that 72 percent of senior marketers view data as a strategic asset, although more than half are only just starting the process of giving it a central place in their marketing.
“To make the most of their investment in data planning, execution and analysis, companies need to develop the right organizational structure to deploy commercial, practical insights combined with a program to improve data-driven marketing capabilities across the organization”, said Nick Broomfield, Director and Managing Partner at The Customer Framework.
Based on responses from 32 companies with a global annual marketing spend of USD 35billion, the survey found that 31 per cent described themselves as advanced or highly advanced in the adoption of data-driven marketing (DDM) using multiple data personalisation and segmentation techniques. These advanced companies were underpinning their efforts with a range of technology solutions including customer relationship management (CRM) systems, analytical systems, data management platforms (DMPs) and rules engines.
However, not all companies are as advanced. Fifty-six per cent of respondents recognise they are still early in the journey, at best in the initial planning stage and have yet to deploy a DDM strategy. The study also found a range in confidence in analytics, with only half “somewhat confident” and 27% “not very confident” in their ability to identify return on investment via data analysis.
Nevertheless, investment into analytics and insight is on the rise with 89 percent of respondents expecting to increase budgets and 31 percent % to boost them “greatly”. The goal is to evolve the analytics function from historical reporting of ‘what happened’ to more predictive and prescriptive approaches, something that a quarter of respondents already claim to be able to deliver.
“It’s no secret that data has become important for marketing purposes, though it’s interesting to note that even some of the world’s biggest companies are only at the early stages of delivering data driven marketing strategies. Data consumption is set to increase rapidly and with that sophistication – clarifying how data will be used and how consumer privacy will be protected, should be a fundamental component of a brand’s strategy as it advances into DDM. Enhanced transparency and a strong value proposition will be vital to ensuring consumer trust in how the industry collects, stores and uses data today, and in the future,” commented Matt Green, Senior Global Marketing Manager at the WFA.
