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Modernizing The Mix: Transforming Marketing Through Technology And Analytics

July 2016 dataxu.com

© DataXu, Inc.ii

TABLE OF CONTENTS

1. Introduction And Key Findings 1

2. Report Methodology 3

3. The Rise Of The Marketing Technologist 4

4. The Positives (And Pitfalls) Of Martech And Adtech 10

5. Solving The Marketing ROI Measurement Challenge 16

6. Planned 2017 Marketing Technology Investments 22

7. Trends In Martech And Adtech Management 24

8. Conclusion 33

© DataXu, Inc. 1

1. Introduction And Key FindingsMarketing roles and functions evolve over time

as consumer trends, new digital media formats

and cutting-edge technologies force change upon

organizations. Today, marketers around the world at

all levels are expected to select and manage a wide

array of marketing technologies in addition to their

“traditional” marketing responsibilities.

In an era of technology-driven marketing, senior

marketers must have the skill set necessary to

understand these technologies and implement them

within the marketing department. What remains to

be seen is if marketers are ready for the accelerating

technological shift that is happening around them.

To help answer this question, DataXu surveyed 532

marketers across the U.S., the UK, Germany, France,

Spain and Italy to uncover the role and impact of

technology on the strategy and day-to-day operations

of marketing teams around the world. Although use

of marketing technologies varies by region, our survey

reveals that marketing technologies have been widely

adopted at a variety of organizations around the globe to

cover an ever-expanding array of functions.

Differences Between Martech and AdtechTwo categories of technologies are frequently utilized by

marketers: martech solutions and adtech solutions.

Martech typically refers to marketing tools that

are used to target known customers, while adtech

typically refers to tools that allow marketers to target

anonymous audiences.

Martech tools include: CRM platforms, marketing

automation solutions, social media management

and e-commerce technologies.

Adtech tools include: data management platforms,

demand-side platforms, tag management solutions

and ad servers.

Growing Importance of Technology SkillsMarketing technology skills have become mission-

critical prerequisites for senior marketers looking to

succeed within their organizations.

The United States leads all other countries surveyed

in terms of senior marketers’ authority over technology

decisions, control over marketing technology budgets

within the marketing department, and expected levels

of marketing technology prowess at the senior level.

However, marketers from all countries are leveraging

martech and adtech solutions in greater numbers

than ever before. Many marketers anticipate adding

additional solutions to their marketing technology

stacks over the next 12 months.

Marketing technologies have the potential to bring

significant cost-savings to the table if leveraged

correctly, but they also bring along additional

complexity and challenges.

The following pages detail key insights derived from

DataXu's survey of 532 global marketers.

Key Findings

• In 2016, understanding marketing technology

has become table stakes for senior marketers.

• U.S. marketers lead the rest of the world in

utilization of both martech and adtech solutions.

• Marketers tend to use a variety of marketing

technology point solutions and vendors rather

than one full-stack solution, but acknowledge

that they are stretched too thin across too many

platforms as a result.

• Customer insight analytics and programmatic

marketing are two areas in which marketers

expect to increase investments in 2017.

• The perceived benefits of bringing martech or

adtech in-house vary by region: cost efficiency is

the primary driver behind bringing technologies

in-house for U.S., UK and Italian marketers, while

increased transparency and improved campaign

performance are the key benefits German, French

and Spanish marketers attribute to in-house tech.

• Marketers' number-one marketing challenge

is understanding how to create an effective

marketing mix across channels.

© DataXu, Inc. 3

The research for this report was carried out in May

2016 by market research specialist Morar and Withpr

on behalf of DataXu. An online survey of 29 questions

was administered to and completed by a total of 532

global marketers (Figure 1). The results from the survey

are analyzed within this report.

Company Size• 76% of marketers surveyed are part of companies

with 500 or more total employees.

• 21% of marketers surveyed are part of companies

with 250 to 499 total employees.

Geographic Location• 174 marketer respondents are based in the U.S.

• 156 marketer respondents are based in the UK.

• 52 marketer respondents are based in France.

• 150 marketer respondents are based in Germany

(50), Spain (50) and Italy (50).

Annual Marketing Budget• 24% of marketers hold annual marketing budgets

of over USD $1.45 million.

• 33% of marketers hold marketing budgets of

between USD $750,000 and USD $1.45 million.

• 33% of marketers hold marketing budgets of

between USD $150,000 and USD $749,999.

• 10% of marketers surveyed hold marketing

budgets of USD $149,999 or less.

Country # of Marketers Surveyed

United States 174

United Kingdom 156

France 52

Germany 50

Spain 50

Italy 50

2. Report Methodology

Location of Survey Respondents

Figure 1. 532 marketers were surveyed for this report. 174 respondents are based in the United States. 358 respondents are based in Europe.

Seniority of Survey Respondents• 16% of survey respondents hold a Chief

Marketing Officer title.

• 9% of survey respondents hold a Chief

Marketing Technologist title.

• 3% of survey respondents hold a Vice

President of Marketing title.

• 23% of survey respondents hold a Director

of Marketing title.

• 15% of survey respondents hold a Head

of Marketing title.

• 19% of survey respondents hold a

Marketing Manager title.

Profile of U.S. Respondents• 174 U.S. marketers' responses are included

in this report.

• 38% of U.S. marketers surveyed hold an

Executive title, Head of Marketing title or

Vice President of Marketing title.

• 18% of U.S. marketers surveyed hold a

Director of Marketing title.

• 24% of U.S. marketers surveyed hold a

Marketing Manager title.

Profile of European Respondents• 358 European marketer responses are

included in this report.

• 19% of European marketers surveyed hold

a CMO or Vice President of Marketing title.

• 11% of European marketers hold a CMT title.

• 25% of European marketers hold a Director

of Marketing title.

• 17% of European marketers hold a Head of

Marketing role.

• 17% of European marketers hold a Marketing

Manager title.

• 11% of European marketers hold a different title.

© DataXu, Inc.4

3. The Rise Of The Marketing TechnologistMore marketers than ever before are responsible for

purchasing and managing marketing technologies

within their organizations.

To succeed as a senior marketer today requires a deep

understanding of marketing technologies as well as

hands-on experience in implementing technologies

across the team.

• 78% of U.S. marketers and 63% of European

marketers surveyed identify understanding

marketing technology as an increasingly

important skill for senior marketers looking

to be successful in their role (Figure 2).

• 72% of all global marketers identify creativity

as the most important skill necessary for

marketing success.

• 72% of U.S. marketers surveyed identify

understanding digital media as an increasingly

important skill, compared with just 52% of

European marketers surveyed.

• 64% of U.S. marketers feel people management

skills are increasingly important, compared with

58% of European marketers surveyed.Figure 2. 78% of U.S. marketers feel that understanding marketing technology is a critically important skill for successful senior marketers, compared to 63% of European marketers surveyed. Understanding marketing technology is identified by U.S. marketers as second only to "creativity" (79%) as an increasingly important skill for senior marketers.

What skills are becoming increasingly important for successful senior marketers?

79% 78%

Creativity Understanding marketing technology

Understanding digital media

Managing people Being data literate

69%72%

63%68%

72%

52%

59%

64%

58% 60%65%

54%58%

USA Europe Global

4 © DataXu, Inc.

© DataXu, Inc. 5

• 72% of European marketers categorize their

business as much more digitally advanced or

more digitally advanced than average or than their

competitors, compared to 69% of U.S. marketers.

• 15% of U.S. marketers categorized their

marketing leadership team as more traditional

than digital, compared with just 9% of European

marketers who categorized their marketing

leadership team as more traditional than digital.

How digitally advanced would you say your overall business is?

Figure 3. When it comes to assessing the digital expertise of their business, Europeans feel more confident in their organization's digital skills than U.S. marketers do. 72% of European marketers categorize their organizations as much more digitally advanced or more digitally advanced than average/than their competitors, compared to 69% of U.S. marketers.

Global

Much more advanced than average/ competitors

Less advanced than average/competitors

Much less than average/competitors

About the same as the average

More advanced than average/

competitors

6%

0%

23%

23%

48%

USA





43%23%

8%

0%

26%


competitors

Europe






competitors

50%

22%

23%

5%

1%

Digital Expertise Within Marketing

Organizations and Leadership Teams

When it comes to comfort levels and experience with

digital, marketer responses vary by region. European

marketers are slightly more confident in their marketing

leadership teams' digital skills than U.S. marketers

are. When it comes to their overall business, European

marketers feel marginally more confident in their

organization's digital skills than U.S. marketers do

(Figure 3).

© DataXu, Inc. 5

© DataXu, Inc.6

Presence of Dedicated Technology StaffThe U.S. leads the world in terms of the level of senior

marketers' responsibility for marketing technology,

control of technology budgets within the marketing

department, and expected levels of marketing

technology prowess at the senior level.

However, compared to their global peer set, Spain and

Italy have the highest percentage of teams with a staff

member mainly responsible for marketing technology.

• 94% of Spanish marketers, 76% of Italian

marketers, and 76% of U.S. marketers are

part of a team that includes a staff member

mainly responsible for marketing technology.

• 66% of European marketers are part of a team

that includes a staff member mainly responsible

for marketing technology (Figure 4).

Many organizations who do not yet have a dedicated

team member to manage marketing technology plan

on creating this position in the coming year (Figure 4).

• 13% of U.S. marketers, 15% of European

marketers overall and 19% of UK marketers

state that they plan to hire someone to manage

marketing technologies in the next 12 months.

Figure 4. 76% of U.S. marketers and 66% of European marketers state that their department includes a team member mainly responsible for marketing tech usage.

No, but we are looking to recruit someone in the next 12 months

No, but our marketing department will become more technology focused

No, and I don’t think it’s necessary to have a dedicated person to own this in the next 12 months

USA

No, but our IT department will get more involved in martech decisions

Yes76%

3%4%

4%

13%




Europe


Yes66%

3%

6%

10%

15%




Global


Yes70%

3%5%

8%

15%

Do you have a person on your marketing team who is mainly responsible for marketing technology usage?

© DataXu, Inc. 7

Ownership of Marketing Technology BudgetsWhen it comes to controlling marketing technology

budgets, ownership varies by region. In Europe,

pockets remain in which non-marketers retain

control of marketing technology budgets. However,

these companies are laggards when compared to

companies in the U.S. in which marketing departments

tend to also control marketing technology budgets.

• 49% of European marketers state that in cases

where their organization has a designated role or

team outside of marketing to manage marketing

technologies, that team controls a separate

budget (Figure 5).

• 33% of U.S. marketers state that in cases where

their organization has a designated team outside of

marketing to manage marketing technologies, that

team controls a separate budget (Figure 5).

Who is responsible for marketing technology purchases at your company?

Other

Europe

IT Manager

ChiefMarketing

Officer (CMO)

Chief MarketingTechnologist (CMT)

Chief Digital Officer (CDO)

Other

Digital Director

Brand Manager

Digital Manager

IT Director

Head of Digital

Marketing Manager

Chief Information Officer (CIO)

Head of IT

Chief Technology Officer (CTO)

VP Marketing

Marketing DirectorHead of Marketing

18%

16%

11%9%8%

7%

6%

6%

4%

4%

3%3%

1%

Global

ChiefMarketing

Officer (CMO)



Other

Digital Director

Brand Manager

Digital Manager

IT Director

Head of Digital

Marketing Manager


Head of IT

VP Marketing

Chief Technology Officer (CTO) Marketing DirectorHead of Marketing

22%

14%

9%9%7%

6%

8%

5%

4%4%

4%3%

1%2%

USA

IT Manager

ChiefMarketing

Officer (CMO)



Digital Director

Brand Manager

Digital Manager

IT Director

Head of Digital

Marketing Manager


Head of IT


VP Marketing

Marketing DirectorHead of Marketing

31%

8%

6%8%4%3%

11%

5%

5%

5%5%

3%

1%

Figure 5. According to the responses of U.S. marketers, marketing departments in the U.S. typically seem to maintain responsibility over marketing technologies and all associated budgets. In Europe, marketers tend to give up control of marketing technology budgets once a separate technology team has been established.

Do you have a person on your marketing team who is mainly responsible for marketing technology usage?

2%

© DataXu, Inc.8

The Rise of the Chief Marketing TechnologistA new addition to the traditional suite of marketing

roles has steadily been gaining traction in recent years.

The role of Chief Marketing Technologist (CMT)

is currently staffed at two-thirds (66%) of survey

respondents' companies (Figure 6).

• The CMT role is especially prevalent in the UK

and in Europe. 73% of European marketers

state that their company currently has a Chief

Marketing Technologist (CMT) in place.

• U.S. organizations lag behind their Europen

counterparts in adding the CMT role to marketing

department staffing plans. Only 53% of U.S.

marketers state that their company currently

has a CMT in place.

Does your company currently have a Chief Marketing Technologist (CMT) in place?

Figure 6. The role of Chief Marketing Technologist has become increasingly prevalent in Europe. 73% of European survey respondents state that their organization currently has a CMT role in place. Only 53% of U.S. respondents state that their company currently has a CMT role in place.

Global

USA

Europe

No

No

No

Yes

Yes

Yes

34%

47%

27%

66%

53%

73%

• The CMT role may become more prevalent in

U.S. organizations in 2017. Of U.S. marketers

surveyed who do not currently have a CMT role

in place, 26% indicate that their organization is

looking to fill a CMT role in the next 12 months.

• Expect to see even more European companies

hiring CMTs in the coming year. Of the European

marketers surveyed who do not currently have a

CMT role in place, 24% indicate that their org is

looking to fill a CMT role in the next 12 months.

• Globally, 42% of marketers whose organizations

do not currently have a CMT role in place plan

to make their marketing departments more

technology-focused over the next 12 months,

rather than hiring for a dedicated CMT position.

© DataXu, Inc.10

4. The Positives (And Pitfalls) Of Martech And AdtechAdvertising to and interacting with consumers is

becoming increasingly fragmented and complex.

Consumers around the world are using multiple

devices simultaneously. The rapid proliferation of paid,

owned and earned content available on the Internet

is also contributing to an environment in which it is

difficult to attract and retain consumer attention.

Today, a wide variety of marketing technologies exist

to help brand marketers and their agencies understand

consumer behavior and regain control over specific

marketing channels, campaigns and programs.

Global Marketing Technology Utilization

The majority of global marketers surveyed currently

leverage point solutions for at least three categories

of marketing activities: social media management,

email marketing and digital advertising (Figure 7).

U.S. marketers lead the globe in terms of the scale of

their marketing technology utilization. Some marketers

juggle ten or more specialized technology solutions,

while only 3% of U.S. marketers surveyed do not use

any specialized marketing technologies.

For which aspects of your marketing strategy or execution do you currently use specialized marketing technology software?

Figure 7. Specialized marketing technologies are utilized worldwide for a variety of marketing functions. Adoption and usage rates vary according to size of company, annual budget and geographic location.

USA Europe GlobalOther 1%

71%

71%

65%

41%

34%

24%

3%

36%

31%

20%

1%

Social media management

56%

Email marketing 55%

Digital advertising(including display,

mobile, social media and video)

52%

Content marketing 34%

PR 30%

Programmatic marketing 25%

We do not use anymarketing technologies 2%

Customer insights/analysis 35%

CRM 29%

SEO 21%

70%

60%

56%

37%

31%

25%

2%

35%

30%

21%

0%

© DataXu, Inc. 11

Marketing Technology DefinitionsWhile hundreds of marketing technology solutions and

providers are available, the following nine categories of

marketing technology are typically leveraged by brand

marketers and their agencies.

Social Media Management Software (SMMS)SMMS is software that facilitates an organization’s

ability to successfully engage in social media activities

across different communication channels. SMMS is

typically used by marketers to monitor inbound and

outbound conversations, document social marketing

initiatives and evaluate the effectiveness of a

company's social media presence.

Email Marketing SoftwareEmail marketing software provides businesses with all of

the tools needed to create and execute email marketing

campaigns, including: templates, design tools and

contact-management solutions. Email software sends

emails out via its own server and provides analytics on

the success of each campaign.

Content Marketing/Management SoftwareContent marketing software helps marketers define and

manage a user’s end-to-end content process. Content

software is typically used to create, store and manage

content; track content by date; assign workflows;

assign user permissions; distribute content and/or

analyze content effectiveness.

Customer Relationship

Management (CRM) SoftwareCRM software is a category that covers a broad set

of applications designed to help businesses manage

customer data and track customer interactions. These

programs are typically used by Sales and Marketing and

allow teams to access business information, track leads

and opportunities, manage business contracts, manage

employee, vendor and partner relationships and provide

customer support.

Digital Advertising SoftwareDigital advertising software is a broad category that

covers data management platforms (DMPs), ad

exchanges, supply-side platforms (SSPs) and, less

commonly, demand-side platforms (DSPs). These

four technologies form the broader digital advertising

ecosystem. Within this ecosystem, large amounts of

data are collected, integrated and managed by the DMP.

Publishers connect their inventory to ad exchanges and

DSPs and buyers purchase advertising inventory directly

from an ad exchange, ad network, or via a DSP.

Search Engine Optimization Software (SEO)SEO software offers keyword suggestions and quality

ratings to help marketers' businesses and content

rank better in search results. SEO software can help

organizations perform better than competitors in search,

and drive highly qualified website traffic from search.

Public Relations (PR) SoftwarePR software can be used to locate company press

mentions, assess competitors' share of voice, publish

press releases, collect press analytics and push out

pitches to journalists.

Customer Insights/Analysis SoftwareCustomer insights/analysis software, also known as

customer intelligence software, helps marketers analyze

available customer data and past behaviors in order to

inform future marketing strategies. This category of

software is typically used to segment customers into

sub-groups, track customers as they move across

segments over time, predict future behaviors of

customers, determine customer lifetime value and

access machine-based learning recommendations

to improve future marketing efforts.

Programmatic Marketing SoftwareProgrammatic media buying, marketing and advertising

software enables marketers or their designated agents to

make algorithmic purchases of advertising space in real-

time using computers. The term programmatic software

is commonly used to refer to demand-side platforms

(DSPs). Programmatic software is used to automate the

buying, placement and optimization of media inventory

via a bidding system. Programmatic software typically

helps marketers achieve cost and time efficiencies,

while simultaneously enabling better targeting of and

personalized messaging to advertising recipients.

© DataXu, Inc. 11

© DataXu, Inc.12

Marketing Technology Utilization According

to Location and Budget SizeThe utilization of certain marketing technologies varies

by geographic location and/or annual budget size.

Customer relationship management technologies and

content marketing technologies display a significant

amount of variation by location and by annual budget.

CRM Technology UtilizationThe use of customer relationship management (CRM)

marketing technologies varies widely by geographic

location and budget size.

• 40% of German marketers with budgets over

USD $1.45 million use CRM technologies,

compared with only 28% of German marketers

who manage budgets of less than USD $1.45

million (Figure 8).

• Only 10% of Southern European marketers with

budgets over USD $1.45 million use specialized

CRM technologies, while 25% of their peers

with budgets of between USD $750,000 to USD

$1.45 million use CRM technologies (Figure 8).

• Globally, more marketers with annual budgets of

between USD $750,000 and USD $1.45 million

use CRM marketing technologies (31%) than

marketers with annual budgets greater than

USD $1.45 million (26%).

Marketers who currently utilize specialized customer relationship management (CRM) marketing technologies

Figure 8. The UK and the U.S. lead the rest of the world in utilization of CRM marketing technologies. Southern Europe lags behind both the U.S. and the rest of Europe in terms of CRM marketing technology usage.

Marketers with USD $1.45M+ annual budget

Marketers with USD $750,000 to $1.45M+ annual budget

Global

26%

31%

37%35%

31%34%

40%

28%

10%

25%

UK USA Germany SouthernEurope

12

© DataXu, Inc. 13

Content Marketing Technology Utilization

According to Location and Budget SizeThe use of content marketing technologies varies widely

according to size of annual marketing budget (Figure 9).

• Of all global marketers (except for those based in

the UK), marketers with annual budgets of less

than USD $1.45 million are more likely to utilize

specialized content marketing technologies than

marketers with budgets over USD $1.45 million.

• Budget size does not seem to have a noticeable

impact on content marketing technology

utilization in either the U.S. or the UK.

• United States marketers surveyed lead the rest

of the world in terms of specialized content

marketing technology utilization (~45%).

• Marketers based in Southern Europe with large

budgets are the least likely of all respondents to

have content marketing technologies in place.

Marketers who currently use specialized content marketing technologies

Figure 9. Marketers who control marketing budgets of less than USD $1.45 million are more likely to utilize specialized content marketing technologies than marketers who control larger budgets. UK marketers are the one exception to this trend.

Marketers with USD $1.45M+ annual budget

Marketers with USD $750,000 to $1.45M+ annual budget

34%

40%37%

35%

44% 45%

30%

39%

22%

40%

Global UK USA Germany SouthernEurope

© DataXu, Inc. 13

© DataXu, Inc.14

Marketing departments are being tasked with more

responsibilities than ever by leadership teams—while

facing unprecedented scrutiny from Finance and

Procurement. Best-of-breed point solutions offer

value to busy marketers with the promise of increased

performance and workflow efficiencies.

Unfortunately, technologies originally created to

save marketers time and money have proliferated and

gained complexity in recent years to the point where

they are now identified as the largest current source of

anxiety and fear for marketers around the globe.

When Marketing Solutions Also Become

Marketing ChallengesAlthough marketing technologies have been enginered

to streamline workflows for everything from ad

buying to content creation and customer relationship

management, there are also unique challenges

associated with adopting a variety of technology point

solutions within the marketing department.

When asked what the current biggest threat is to

their marketing team's success, 23% of global

marketers say "being stretched too thin due to working

with and managing too many vendors." (Figure 10)

What is the largest current threat to your marketing team's success?

Figure 10. 23% of global marketers surveyed identify "being stretched too thin due to working with and managing too many vendors" as the largest current threat to their team's success.

Skepticism from the C-Suite around the validity of our current marketing strategy Being stretched too thin

due to working with andmanaging too many vendors

Rumors from Financethat our marketing

budget is being reduced

Proving that one channel works better than another channel

Poor staff retention and difficulties finding the right talent for our team

Poor visibility into metrics on whether or not our marketing is working

Global

8%

12%

15%

21%

21%

23%

14

© DataXu, Inc. 15

Europe

USA

Current Threats Perceived By U.S. and

European Marketing Departments Although 23% of all global marketers surveyed identify

being stretched too thin across marketing technology

vendors and platforms as their greatest current threat,

U.S. marketer and European marketer responses vary

when it comes to identifying other significant threats.


marketers overall, and 24% of UK marketers

identify being stretched too thin due to working

with too many marketing technology platforms

and/or vendors as the largest current threat to

their team's success (Figure 11).

• 25% of European marketers identify “rumors

from Finance that our marketing budget is being

reduced” as their greatest current threat.

• 11% of U.S. marketers identify “rumors from

Finance that our marketing budget is being

reduced” as their greatest current threat.


marketers overall, and 22% of UK marketers

identify "poor visibility into metrics on whether

or not our marketing is working" as their greatest

current threat.

• 20% of U.S. marketers identify poor staff

retention and difficulties sourcing marketing

talent as their largest current threat, compared to

just 14% of UK marketers and 13% of European

marketers overall.

What is the largest current threat to your marketing team's success?

Figure 11. “Rumors from Finance that our marketing budget is being reduced” is the number one threat selected by European marketers. “Being stretched too thin due to working with too many marketing technology vendors” is the number one threat selected by U.S. marketers.

Skepticism from the C-Suite around the validity of our current marketing strategy

Skepticism from the C-Suite around the validity of our current marketing strategy

Being stretched too thindue to working with and

managing too many vendors

Rumors from Financethat our marketing

budget is being reduced


Being stretched too thindue to working with and

managing too many vendors

Rumors from Financethat our marketing budgetis being reduced






7%

9%

11%

9%

16%

13%

20%

21%

22%

22%

24%

25%

1% Other

© DataXu, Inc.16

Global

Number One Challenge for Marketers Is

Generating Marketing ROI Across ChannelsWhile marketing technologies can be valuable assets for

the majority of global marketing departments, they also

contribute an additional layer of challenges to

both strategic and day-to-day marketing operations.

Perhaps this is why 41% of all marketers surveyed state

that the biggest marketing challenge they face today is

figuring out how to create the most efficient marketing

mix across channels to drive results (Figure 12).

When marketers' second and third biggest challenges

are also considered, it becomes clear that marketers

across the globe struggle with quantifying the impact

their marketing efforts have on sales outcomes.

• 74% of global marketers state that their biggest

marketing challenge is quantifying the effect that

marketing efforts have on new sales revenue,

or creating/quantifying the most efficient

cross-channel mix possible to drive results.

• 75% of European marketers overall, 70% of UK

marketers and 70% of U.S. marketers state that

their biggest marketing challenge is quantifying

the effect that marketing efforts have on new

sales revenue, or creating/quantifying the most

efficient cross-channel mix possible to drive

results (Figure 13, page 17).

5. Solving The Marketing ROI Measurement Challenge

What is the biggest marketing challenge you face today?

Figure 12. The number one marketing challenge identified by marketer respondents from the U.S., Europe and the UK is creating the most efficient marketing mix possible across channels to drive results.

Unifying one brand across different international programs

Creating the most efficient marketing mix across

channels to drive results

Quantifying the effect my marketing efforts have

on new sales revenue

Preserving/defending my marketing budget in the face of Finance cuts

Finding competent marketing staff

Successfully mastering all the new technologies needed to stay ahead

Finding the right attribution model to show the impact of each channel in the path to purchase

8%

5% 3%

10%

15%

18%

41%

Top Three Resolution RoadblocksWhen Figures 11, 12 and 13 are considered together,

it is clear that creating the most efficient marketing mix and quantifying the effect of that mix on sales has become the holy grail of modern marketing. Yet the

following three challenges prevent many marketers

from moving forward to measure their marketing's ROI.

1. Few partners or platforms offer marketing technology solutions today which reliably address cross-channel analysis and optimization.

Real-time cross-channel marketing mix analysis and

optimization can be tricky. Technology is needed

to identify the most efficient mix possible to drive ROI.

© DataXu, Inc. 17

2. Marketers are busier than ever juggling technologies, reporting and vendor management.

In the previous section of this report, “being stretched

too thin due to working with and managing too many

marketing technologies” is identified as the single

greatest threat to the success of marketing teams

by 23% of global marketer respondents (Figure 10).

Traditional econometrics studies or bottom-up

attribution methods leading to cross-channel

optimization take significant amounts of both time

and resources. Few marketers today find themselves

with an excess of either.

3. Platform-specific success metrics or measurement

standards unique to individual “walled gardens” such

as Facebook or Google cause headaches later when

attempting to analyze marketing return on investment

(ROI) and/or channel performance.

Aggregating and normalizing channel-specific campaign

data for which “apples-to-apples” equivalents may not

exist to create a single holistic performance report can

be time-intensive and challenging.

As illustrated in Figure 11 on page 15, the second

greatest self-identified threat to the success of

marketing teams around the world is poor visibility

into metrics on whether or not marketing efforts

are working.

Inability to prove the effectiveness of each marketing

channel is also identified as a significant threat.

Figure 13. 12% of U.S. marketers, 10% of European marketers overall and 8% of UK marketers identify mastering all of the new marketing technologies needed to stay ahead as their biggest marketing challenge.

What is the biggest marketing challenge you face today?

USA

Europe



















8%

8%

7%

4%

3%

3%

12%

10%

13%

16%

16%

20%

37%

43%

© DataXu, Inc.18

The Future of Data and Analytics Within

Global Marketing DepartmentsData and analytics have become more important than

ever in marketers' quest to create the most efficient and

effective marketing mix possible across channels.

The United States leads all other countries surveyed

when it comes to seeing the business value in data and

analytics and leveraging data to assess the performance

of current marketing strategies.

• 100% of U.S. marketers surveyed feel that data

and analytics will play a crucial role within their

team as well as within other marketing teams

more broadly in the future (Figure 14).

• Many French and Spanish marketers feel that

leveraging data and analytics will help ensure

that future marketing efforts make a significant

business impact.

• A few French and Spanish marketers express

concern that they lack the knowledge required

to use data correctly, while a small number of

French marketers express resistance to the idea

of incorporating data and analytics into future

marketing efforts.

• A few Spanish marketers express concern that

increased use of data may result in staffing cuts

within the marketing department.

• The majority of UK marketers state that the

increased use of data and analytics will help their

department with marketing strategy, help to

achieve more visible wins within the company, or

will assist in making their day-to-day tasks easier.

• A few UK marketers indicate that they do not feel

data and analytics are relevant to their business,

or that they do not wish to dive deeper into data

and analytics within their department.

“Many marketing technologies used to

measure and target advertising have

failed to keep up with changing consumer

behaviors. As a result, media budgets and

consumer media consumption have fallen

increasingly out of alignment.”

- Aaron Kechley, SVP of Product, DataXu

18 © DataXu, Inc.

© DataXu, Inc. 19

Being able to track and monitor data and

analytics is a major day-to-day task.

Enables me to see what does and doesn't work.

Data tells us how well or how poorly our

marketing team is doing in regards to driving sales and maximizing profit.

Data and analytics plays a large role for the marketing team. We run reports on a daily and monthly basis to see how our strategies are

working and how each medium is performing.

Data and analytics has a major impact on [our] marketing. Data allows us to see what's good

and what we need to improve.

Data and analytics provide important

information that allows the best utilization of resources in order to

assure the highest ROI.

I believe that [leveraging] data and analytics is the best

way to go for our marketing team

in the future.

Better understanding of marketing

ROI.

Data and analytics help us advertise more

efficiently.

Quantitative measures don't lie.

Data and analytics are very important. They

measure how well what you've instituted is working, and what

changes you should make depending on the results.

Data analysis is a key factor in determining the company's

marketing goals. Our company is continually looking to enhance or improve the

amount and quality of data received in order to improve our marketing strategies.

What role/impact do you see data and analytics having on your marketing team (or on marketing teams in general) in the future?

Figure 14. 100% of U.S. marketers surveyed feel that data and analytics will have an increasingly important role to play within their own team and other marketing teams in the future. A sample of U.S. marketers' answers to this open response survey question are featured above.

© DataXu, Inc. 19

© DataXu, Inc.20

Responsibility for Marketing Data

Marketers' attitudes towards data and analytics vary

according to their title and geographic region.

Figure 15 identifies the individual within the org who

marketers feel is primarily responsible for the day-to-day

management of data to inform marketing strategy.

• 25% of global marketers state that the Chief

Marketing Officer is the individual responsible

within their organization for the day-to-day


• 14% of global marketers identify the Director

of Marketing as responsible for the day-to-day


• 11% of global marketers identify the Vice

President of Marketing as responsible for the

day-to-day management of data.

• 65% of global CMO survey respondents feel

that they are responsible for the day-to-day


• 33% of global CMTs survey respondents feel

that they are responsible for the day-to-day


• 22% of VPs surveyed, 24% of Heads of Marketing

surveyed, and 22% of Marketing Directors

surveyed feel that they personally are responsible

for the management of data to inform marketing

strategy within their organization.

Figure 15. 25% of global marketers state that the CMO is responsible for the day-to-day management of data to inform their marketing department's strategy. 14% of global marketers identify their Marketing Director as the responsible party, while 11% identify the VP of Marketing as the responsible party.

Who in your organization is responsible for the day-to-day management of data to inform the marketing strategy?

Chief Marketing Officer (CMO)

Head of Marketing

Brand Manager



Marketing Director


Head of Digital

Digital Director

VP of Marketing

Marketing Manager

Other

Head of IT

Chief Marketing Technologist (CMT)

Digital Manager

IT Manager

IT Director

25%

14%

11%

9%

8%

6%

5%

3%

3%

3%

3%

3%

2%

2%

2%

1%

0%

20

© DataXu, Inc. 21

Role of Data in Annual Budget AllocationsMarketing departments around the world use a variety of

methodologies to allocate annual marketing budgets.

Although the majority of budget allocation methods

utilize data and analytics to inform future marketing

strategies and channel allocations, a few common

allocation methods do not include the consideration of

historical marketing performance data or analytics.

Marketers may wish to review the responses of their

peers (shown in Figure 16) who claim to use data-

driven methods for budget allocation with a slight

dose of skepticism. As the survey responses depicted

in Figures 12 and 13 reveal (pages 16-17), marketers

identify calculating marketing ROI across channels as

their greatest current marketing challenge. Therefore, it

seems unlikely that 37% of all marketers surveyed are

able to accurately analyze the ROI and performance of

each channel and use those metrics to dictate 2017

marketing budget allocations, as stated in Figure 16.

Variation between the responses of all global marketers

surveyed and/or the responses of U.S. and European

marketers surveyed was no more than 1%-3%; therefore

only global results are depicted in Figure 16.

When it comes to allocating your company's annual marketing budget, which process is most similar to the one your company follows?

Figure 16. 37% of global marketers state that they analyze the ROI and performance of each marketing channel before allocating next year's marketing budget to the best-performing channels.

• 7% of global marketers allocate their annual

budget based on direction from the C-Suite.

• 7% of global marketers brainstorm ideas

with their team and allocate budget according

to the most popular ideas generated.

• 2% of global marketers outsource their marketing

to a third-party and are therefore not responsible

for specific allocations within the annual budget.

Global

We actually outsource our marketing to a third-party, so they decide for us.

We analyze ROI from each channel, such as Social Media

or Events or Webinars, and then allocate more spend towards the

highest performance channels for the coming year.

We look at what we spent on line items last year, and increase

spend this year by X%.

We all brainstorm ideas and then allocate budget to what most people agree sounds good for the coming year.

We allocate our budget however the CEO/C-Suite wants us to.

We use technology to generate our annual marketing plan for us.

We employ a consultant to tell us how to spend our budget next year.

2%

7%

7%

8%

12%

27%

37%

• 37% of global marketers state that they analyze

the ROI and performance of each channel before

allocating next year's marketing budget according

to the highest performing channels.

• 27% of global marketers look at what was spent

on line items during the previous year, and

increase future spend by X% for the coming year.

• 12% of marketers employ a consultant to advise

how to allocate budgets in the coming year.

• 8% of global marketers leverage technology

to generate their annual marketing plan.

© DataXu, Inc.22

Even with the added time and resource challenges that

managing multiple point solution technologies brings to

team members, marketers anticipate adding additional

marketing technologies to their marketing tech stack

in the next 12 months (Figure 17). It seems likely that

marketers plan to address previously identified but

as-of-yet-unsolved-for marketing weaknesses and/or

threats through the use of additional marketing tech.

U.S. marketers plan to increase investments in both

customer insights analysis marketing technology as

well as in programmatic marketing technology in 2017.

The following insights were derived from comparing

current marketing technology usage (as depicted

in Figure 7 on page 10) with planned marketing

technology usage over the next 12 months

(depicted in Figure 17).

6. Planned 2017 Marketing Technology Investments

Figure 17. Although European marketers seem to be planning a slight reduction in the utilization of marketing technologies over the next 12 months, European marketers and U.S. marketers alike intend to increase investments in specialized customer insights/analytics software. Content marketing technology usage is projected to rise by 1% in 2017 to 35% utilization by European marketers, while utilization of programmatic marketing technologies in 2017 by U.S. marketers is slated to rise 10% YoY to 34% utilization in 2017.

In which area(s) of marketing are you planning on using marketing technology/software over the next 12 months?

USA Europe GlobalOther 1%

1%

71%

63%

62%

36%

34%

1%

43%

32%

22%

2%

Social media management

47%

Email marketing 42%

Digital advertising(including display,

mobile, social media and video)

42%

Customer insights/analysis 38%

PR 25%

Programmatic marketing 23%

We do not use anymarketing technologies 3%

Content marketing 35%

CRM 25%

SEO 20%

55%

49%

49%

41%

29%

27%

2%

38%

27%

21%

46%

© DataXu, Inc. 23

• 46% of U.S. marketers intend to leverage

specialized customer insights/analytics software

in the coming year, versus the 36% of U.S.

marketers currently utilizing this type of

software. It may be that an increasing sense

of disconnection from today’s consumer is

prompting U.S. marketers to turn to software

to obtain a holistic view of consumers and their

complex behaviors across all devices

and channels.


specialized programmatic marketing technologies

in the coming year, versus the 24% of U.S.

marketers currently utilizing programmatic

marketing technologies.

• 62% of U.S. marketers intend on leveraging

digital advertising technology in the coming

year—a category of technology often considered

to encompass programmatic marketing in

addition to data management platforms (DMPs),

ad exchanges and supply-side platforms (SSPs).

EU 2017 Marketing Technology InvestmentsMany European marketers plan to slightly reduce

investments in marketing technologies over the next

12 months, with only two categories of technology

attracting increased investment from European

marketers in 2017: customer insights/analytics software

and content marketing software.

• 38% of European marketers surveyed expect to

leverage customer insights/analysis software in

2017, up from the 35% of European marketers

who utilize this type of technology today.

• 35% of European marketers anticipate using

content marketing software in the coming year,

up 1% from the 34% who currently use content

marketing software today.

EU 2017 Marketing Technology ReductionsAmong European marketers, the following technologies

are expected to decrease in utilization over the next 12

months. The catalyst behind this anticipated contrac-

tion in marketing technology usage within Europe in the

coming year may be marketers' self-professed fears of

impending budget cuts to their department.

• Specialized social media technology usage

is slated to decline from 56% of European

marketers to 47% in 2017.

• Email marketing technology usage is slated

to decline from 55% of European marketers

to 42% in 2017.

• Digital advertising technology usage is slated to

decline from 52% of European marketers to 42%.

• PR software usage is slated to decline from 30%

of European marketers to 25%.

• Specialized CRM software usage is slated to

decline from 29% of European marketers to 25%.

• Programmatic marketing technology usage

is slated to decline from 25% of European

marketers to 23% in 2017. The exception to this

trend occurs in the UK, where 37% of marketers

in possession of budgets of more than GBP 1

million intend to utilize programmatic marketing

technology in 2017. Only 26% of UK marketers

with an annual marketing budget of less than

GBP 1 million intend to utilize programmatic

marketing technologies in 2017.

• SEO technology usage is slated to decline 1%

from 21% to 20%. The exception to this trend

occurs within the UK, where 30% of marketers

with annual budgets of more than GBP 1 million

anticipate leveraging SEO technologies in the

coming 12 months.

• German marketers are the least likely to

utilize specialized SEO technologies in 2017;

only 10.5% of German marketers anticipate

using specialized SEO technologies in 2017,

irrespective of budget size.

© DataXu, Inc.24

7. Trends In Martech And Adtech ManagementMarketing organizations around the world utilize a

variety of specialized marketing technology solutions

to streamline marketing workflows, organize marketing

content and advertising campaigns and simplify

analytics and reporting.

However, hands-to-keyboard usage of marketing

technologies is not always the responsibility of brand

marketers. In many instances, marketers indicate that

their company's agency is the primary manager and/

or end user of martech or adtech solutions licensed

on behalf of their company. The party responsible for

the selection of marketing technologies, as well as the

ultimate end user, varies by geographic location of the

organization and size of annual marketing budget.

Perceived Differences Between Martech

Solutions and Adtech Solutions34% of global marketers feel that a distinct difference

exists between martech and adtech solutions. Another

25% of global marketers do not see a difference

between the two categories of technology.

• Among U.S. marketers, 41% feel that there is a

distinct difference between martech and adtech.

17% of U.S. marketers disagree, while the rest

of U.S marketers surveyed are unsure.

• 31% of European marketers see a difference

between martech and adtech; 29% of EU

marketers do not, and the rest are unsure.

I have distinct needs for both martech and adtech and have different solution providers for both. Agree or disagree?

Figure 18. The percentage of marketers who recognize distinct needs for martech and adtech varies by location and by size of annual marketing budget. This graph excludes the responses of global marketers with budgets under USD $750,000.

Distinct Martech Needs Versus Adtech NeedsMore than half (52%) of global marketers state that

they have distinct needs for both martech and adtech

and have different solution providers as a result.

7% of global marketers do not feel that they have

distinct needs for both martech and adtech.

• 56% of U.S. marketers have distinct needs for

both martech and adtech. 8% do not feel they

have distinct needs for martech and for adtech.

• Of U.S. marketers with budgets of USD $750,000

to USD $1.45 million, 60% recognize distinct

needs for martech and adtech (Figure 18).

USD $1.45M+

USD $1.45M+

USD $1.45M+

USD $1.45M+

USD $1.45M+

USD $750K - $1.45M+

USD $750K - $1.45M+

USD $750K - $1.45M+

USD $750K - $1.45M+

USD $750K - $1.45M+

Global UK USA Germany Southern Europe

53%

42%

5% 6%

40%

54%

57% 44%53%

35%30%

60%50%

10%22%

28% 56%

7% 7%

43%

50%37%

5%

42%

60%

5%

52%

4%

43%

Disagree

Neither Agree Nor Disagree

Agree

© DataXu, Inc. 25

• 50% of European marketers recognize a distinct

difference between martech and adtech. 7% of

European marketers do not feel they have distinct

needs for martech and distinct needs for adtech.

• In all European countries surveyed, with the

exception of Germany, marketers with smaller

budgets are more prone to recognize distinct

needs for martech and distinct needs for adtech.

Rising Levels of Collaboration Between

Martech and Adtech VendorsAlthough a large percentage of marketers think about

martech and adtech as being different from one another,

over half of the 532 marketers surveyed state that they

have begun observing more and more collaboration and/

or combined solutions between martech vendors and

platforms and adtech vendors and platforms.

• 70% of U.S. marketers state that they have

begun observing more and more collaboration

and/or combined solutions between martech and

adtech vendors and platforms. Only 2% of U.S.

marketers feel this is not the case.

• 60% of European marketers state that they have

begun observing more and more collaboration

and/or combined solutions between martech and

adtech vendors and platforms. 7% of European

marketers feel that this is not the case.

Future Convergence of Martech and Adtech When asked if they believe martech and adtech will

converge completely within the next five years, the

responses of marketers vary widely.

• 49% of global marketers believe that martech

and adtech will converge completely within the

next five years. 10% disagree with this statement.

• 53% of U.S. marketers believe that martech and

adtech will converge completely within the next

five years. 8% disagree with this statement.

• 47% of European marketers believe that martech

and adtech will converge completely within the

next five years. 11% disagree with this statement.

• UK marketers express higher levels of certainty

on this question than any other sub-group of

European marketers surveyed. 50% of UK

marketers believe that martech and adtech will

converge completely within the next five years.

• 70% of UK marketers with annual marketing

budgets of greater than GBP 1 million believe

that martech and adtech will converge completely

within the next five years.

25

© DataXu, Inc.26

Roles of Brand Marketers And Agencies in

Day-to-Day Martech and Adtech ManagementThe role of the agency during a marketing department's

selection of specific martech solutions and adtech

solutions varies by geographic location and size of

annual marketing budget.

Today, the most prevalent model of marketing

technology management is one of true partnership

between brand marketers and their agencies.

• 54% of global marketers choose technologies in

partnership with their agency, but then leave day-

to-day technology management to agency staff.

• 10% of global marketers leave the selection and

management of technologies entirely in the hands

of their agency.

• 47% of U.S. marketers choose technologies in

partnership with their agency, but then leave day-


• 18% of U.S. marketers leave the selection

and management of technologies entirely in

the hands of their agency.

• 54% of European marketers choose technologies

in partnership with their agency, but leave day-


• 10% of European marketers leave the selection

and management of technologies entirely in the

hands of their agency.

© DataXu, Inc.

© DataXu, Inc. 27

Agencies remain trusted partners throughout the marketing technology decision-making process. 54% of all brand marketers surveyed choose

marketing technologies in partnership with their agency, and then entrust the day-to-day management of the technologies to agency staff members.

© DataXu, Inc. 27

© DataXu, Inc.28

Future In-House Management of MartechWhen it comes to managing martech, most marketers

have shifted at least a portion of their martech solutions

in-house (Figure 19, page 29).

• 59% of global marketers expect to manage

significantly more or slightly more martech

in-house in the next 12 months.

• 62% of U.S. marketers surveyed expect to

manage significantly more or slightly more

martech in-house in the next 12 months.

• 58% of European marketers overall expect to


martech in-house in the next 12 months.

• 57% of UK marketers say that all or the majority

of their martech solutions are managed in-house.

• 27% of global marketers surveyed anticipate

current martech levels to stay the same over the

next year.

• 30% of U.S marketers anticipate current martech

levels to stay the same over the next year.

• 25% of European marketers overall anticipate

current martech levels to stay the same over

the next year.

Future In-House Management of AdtechWhen it comes to managing adtech, most marketers

have also shifted at least a portion of their adtech

solutions in-house (Figure 19, page 29).

• 54% of global marketers surveyed expect to


adtech in-house in the next 12 months.

• 55% of U.S. marketers surveyed expect to


adtech in-house in the next 12 months.

• 57% of European marketers overall expect to


adtech in house in the next 12 months.

• 56% of UK marketers say that all or the majority

of their adtech solutions are managed in-house.

• 31% of global marketers surveyed anticipate

current adtech levels to stay the same over the

next year.

• 39% of U.S marketers anticipate current adtech

levels to stay the same over the next year.

• 27% of European marketers overall anticipate

current adtech levels to stay the same over

the next year.

28

© DataXu, Inc. 29

Do you expect the level of martech that is managed in-house by your company to change in the next 12 months?

Do you expect the level of adtech managed in-house at your company to change in the next 12 months?

Figure 19. 32% of global marketers surveyed expect to manage significantly more martech in-house over the next 12 months (versus 29% for adtech). 27% expect to manage slightly more martech in-house (versus 27% for adtech), while 27% of global marketers surveyed anticipate current in-house martech levels staying the same over the next year (versus 31% for adtech).

I expect us to manage significantly less of our martech in-house

I expect us to manage slightly less of our martech in-house

I expect the level to stay the same

MoreLess Same

I expect us to manage significantly more of our martech in-house

I expect us to manage slightly more of our martech in-house

Don’t know

32%27%27%9%1%

4%

Global

Europe

3%




MoreLess Same



Don’t know

1%

3%

USA

24% 38%30%




MoreLess Same



Don’t know

1%

5%

Europe

11% 25% 29% 29%

I expect us to manage significantly less of our adtech in-house

I expect us to manage slightly less of our adtech in-house


MoreLess Same

I expect us to manage significantly more of our adtech in-house

I expect us to manage slightly more of our adtech in-house

Don’t know

1%

2%

USA

3%39% 26% 29%




MoreLess Same



Don’t know

3%

3%

10% 27% 28% 29%




MoreLess Same



2%

Global

8% 31% 27% 29%

Don’t know3%

© DataXu, Inc.30

What do you believe is the greatest benefit of managing martech in-house? What do you believe the greatest benefit is of managing adtech in-house?

I do not think managing adtech in-house is better -I prefer to work together with my agency

Don’t know/no opinion

It gives advertisers direct access to their own data

I do not think managing adtech in-house is better - I prefer to

outsource this entirely

It offers greater transparency

It gives better results on marketing campaigns

4%5%

13%

21%

24%

32%

1%

1%2%

USA



I do not think managing martech in-house is

better - I prefer to work together with my agency


It’s more cost-effective


44%

18%

18%

12%

5% 3% Don’t know/no opinion




I do not think managing adtech in-house is better - I prefer to work with my agency




38%

22%

17%

14%

6%

Europe



I do not think managing martech in-house is better - I prefer to


I do not think managing martech in-house is better - I prefer to work together with my agency




24%

11%

1% 1%

5%

28%

25%

5%

Europe

Don’t know/no opinionOther



outsource this entirelyI do not think managing adtech in-house is better - I prefer to work with my agency



It gives better results on advertising campaigns

20%

13%

1% 1%

4%

28%

27%

6%

Global


USA

Global

I do not think managing martech in-house is better - I prefer to work together with my agency




It offers greater transparencyIt gives better results on

marketing campaigns

5%5%

11%

22%

23%

33%

1% I do not think managing martech in-house is better - I prefer to


Figure 20. For U.S. marketers, the number one perceived benefit of moving both martech and adtech in-house is cost-effectiveness. For European marketers, cost-effectiveness also ranks first, but is closely followed by improved campaign results and increased transparency as the most compelling arguments in favor of managing martech and adtech in-house.

Other

© DataXu, Inc. 31

Benefits of Managing Martech In-House

And Managing Adtech In-HouseWhen it comes to managing martech and/or

adtech in-house, the rationale behind transitioning

technologies in-house varies by region.

The number one perceived benefit of moving both

martech and adtech in house for U.S. marketers is

improved cost-effectiveness (Figure 20, page 30).

For European marketers, cost-effectiveness ranks

first but is closely followed by improved campaign

results and increased transparency as the most

compelling arguments for managing martech and

adtech in-house (Figure 20, page 30).

Bringing Martech In-House

• 44% of U.S. marketers feel that the greatest

benefit of bringing martech in-house is improved

cost-effectiveness.

• 28% of European marketers overall feel that the

greatest benefit of bringing martech in-house is

improved cost-effectiveness.



improved transparency.

• 40% of German marketers feel that the greatest


transparency.



improved campaign results.

• 39% of French marketers feel that the greatest


campaign results.

Bringing Adtech In-House

• 38% of U.S. marketers feel that the greatest

benefit of bringing adtech in-house is improved

cost effectiveness.


greatest benefit of bringing adtech in-house is

improved cost-effectiveness.

• 39% of French marketers feel that the greatest


cost effectiveness.



improved transparency.



improved campaign results.

• 50% of Spanish marketers feel that the greatest


campaign results.

© DataXu, Inc. 31

© DataXu, Inc. 33

In 2016, brand marketers find themselves charged

with the success of their businesses more heavily

than ever before. Perhaps this is why marketing and

advertising technologies continue to make their way

onto marketing budget sheets around the world at an

accelerating pace and scale.

The Increasing Importance of Technology and

Analytics Within Marketing Departments 78% of U.S. marketers identify understanding

marketing technologies as a skill that is increasingly

becoming a prerequisite to success for senior marketers.

Marketing technologies bring numerous efficiencies

and cost-savings to the table if leveraged correctly,

but they also bring their own set of unique challenges.

The responses of the 532 global marketers surveyed for

this report make it clear that the widespread adoption

of a variety of martech and adtech solutions by global

marketers is accompanied by both positives and pitfalls.

Along with marketing technology expertise, 65% of U.S.

marketers identify being data literate and understanding

digital media (72%) as mission-critical skills in today’s

digital-first world.

Disparate Marketing Technology Solutions23% of marketers state that they are stretched too

thin across too many marketing technology vendors

and platforms as a result of utilizing specialized point

solutions for a slew of marketing functions.

8. Conclusion• Some marketers work with ten or more vendors

and/or platforms simultaneously across the

martech and adtech landscapes.

• More and more marketers are considering

bringing marketing or advertising technologies

in-house, although the rationale behind such

a move varies by geographic region.

• Cost efficiency is the primary perceived benefit

of bringing martech and/or adtech in-house

for U.S. marketers.

• Cost efficiency, improved transparency and

improved campaign performance are the key

perceived benefits of bringing martech and/or

adtech in-house for European marketers.

The majority of global marketers already manage at

least a portion of their technology solutions in-house.

However, the most prevalent model of marketing

technology management today is one of true

partnership between marketers and their agencies.

• Among all global marketers surveyed, 54%

choose technologies in partnership with

their agency, but then leave the day-to-day

management of technologies to agency staff.

• 10% of global marketers leave both the selection

of and management of technologies entirely in

the hands of their agency.

Shifting Consumer Behaviors and Difficulty

Measuring Cross-Channel Performance Will

Drive Additional Tech Investments in 2017Customer insight analytics and programmatic marketing

are two additional areas in which marketers expect to

invest marketing dollars over the next 12 months.

• One-third of global marketers cite poor visibility

into metrics on whether or not their marketing is

working, and difficulty proving that one marketing

channel works better than another channel, as

the largest current threats to their team’s success.


customer insight analytics in 2017, up from the

36% of U.S. marketers currently using these

types of analytics.

• 41% of global marketers and 37% of U.S.

marketers surveyed believe the single biggest

marketing challenge facing their organization

is creating the most efficient marketing mix

possible across channels to drive results.

Few partners or platforms offer marketing technology

solutions today which reliably address cross-channel

analysis and optimization. However, real-time cross-

channel marketing mix analysis and optimization is

the only true solution to marketers' most pressing

challenge: creating the most efficient mix possible

to drive results for their business.

Research Contributors

DataXu’s mission is to make marketing better using data science. The world’s top brands and agencies use DataXu to better understand and engage customers across all devices and

media formats. Our solution provides marketers with unparalleled Media Activation, Marketing Analytics and Data Management capabilities. With sixteen offices in eleven countries,

DataXu’s full-stack solution is powering the digital transformation of the world’s most valuable brands.

Morar are specialists in measuring and advising on brand performance. The team includes researchers, consultants, strategists and software developers; together, providing managers

with the insight and ideas to grow the value of their brands.

Morar’s services include research, strategy and brand positioning. Based in London, Morar’s work spans the globe having worked with over 130 companies in more than 30 countries,

ranging from blue-chip global corporations to small national and local businesses.

Our clients include Burberry, Fitness First, Burtons Biscuits, Moo, Nandos, Mercedes-Benz, Boots, Cancer Research UK, eFinancialCareers, Orange, THUS, WI, Top Up TV, Tata,

Peabody Trust, Ukash, Snell, People Tree, Ping Pong and Tourism New Zealand.

Withpr is a dynamic, full service PR agency, powered by collaborative thinking. Clever, creative and commercially-minded, we specialise in strategic PR across the adtech, fintech

and clean tech sectors. Finalist in PRWeek’s New Consultancy of the Year 2012, Withpr has the rigour, standards and connections of a big agency, with the dynamism, energy and

openness of a smaller team. We cover 12 languages across the team and implement campaigns across the US, LatAm and Europe that deliver business-changing results.

DataXu, Inc. • dataxu.com • 281 Summer Street, 4th Floor, Boston, MA 02210 • 1.857.244.6200 • @DataXu

Boston • New York • Chicago • Detroit • San Francisco • LA • Cologne • London • Madrid • Montevideo • Milan • Paris • Sao Paulo • Singapore • Sydney • Bangalore

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