US CMOs Report No Growth in Use, Influence of Marketing Analytics

September 10, 2014

This article is included in these additional categories:

Analytics, Automated & MarTech | B2B | Data-driven | Digital | Marketing Budgets

DukeCMOSurvey-Percentage-Projects-Using-Marketing-Analytics-Sept2014Despite all the focus on analytics, fewer than one-third of projects use available or requested marketing analytics, and that figure hasn’t changed in some time. That’s according to the latest installment of the CMO Survey [pdf] from Duke University’s Fuqua School of Business, which also finds the reported contribution of marketing analytics to firm performance to be flat, and few companies to be formally evaluating the quality of their analytics.

Results from the survey, which is conducted twice a year among CMOs in the US, indicate that only 32.3% of projects use available or requested marketing analytics. While that’s up from 29% a year ago, it’s down from 35% the year before; in other words, there doesn’t appear to be any clear trend towards increasing use of analytics.

Similarly, the reported contribution of marketing analytics to firm performance remains mostly unchanged. On a 7-point scale, where 7 refers to a very high degree of contribution, CMOs rated marketing analytics’ contribution a 3.7, a middling performance that is within the 3.5-3.9 range reported over the past 2 years.

Of course, the use of analytics differs by firm type, and some are making greater use than the overall averages suggest. For example, B2C product (4.3) and services (4.2) companies report a greater contribution to firm performance from marketing analytics than do their B2B counterparts (3.6 and 3.4, respectively).

There’s no clear trend when it comes to spending, though: B2B product companies average the highest spend on analytics, at 8.2% of their current marketing budgets, while B2C product companies allocate the smallest share (5.4%) of their budgets to analytics. Instead, spending on analytics appears to be more related to company size, as those larger than $10 billion in size are apt to direct the largest share (9.8%) of their marketing budgets to analytics. E-commerce sales also tend to make a difference – as companies that derive more of their sales from their internet report spending more on analytics. In fact, those with e-commerce sales also report a larger contribution from analytics than those who sell only offline.

In other results, only one-third of respondents indicate that their company formally evaluates the quality of marketing analytics, with this figure higher among services companies (B2C: 47%; B2B; 38%) than product companies.

About the Data: The CMO Survey is conducted online twice a year. The latest survey was fielded from July 22 to August 12, 2014. The survey had 351 respondents, of whom 89% were VP level or above.

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