Study: Digital Differentiation Is Disappearing While Investment In New Tech Booms

Study: Digital Differentiation Is Disappearing While Investment In New Tech Booms
SHARE
THIS



Marketers across the globe are at a key inflection point according to the 2017/18 Global Digital Outlook Study from the Society of Digital Agencies (SoDA) and Forrester.

The study revealed that more than 75 per cent of agency leaders and in-house brand champions agree the term ‘digital’ is losing its relevance and will disappear within five years as a meaningful way to differentiate agencies and the marketing tactics related to technology.

Designed to explore digital marketing trends, the global survey of 216 client-side marketers and agency leaders also uncovered a widening gap in how agencies and clients view innovation.

It found that while agencies see innovation in terms of design thinking (solving existing problems in unique and novel ways), in-house marketers most value being first (doing something that’s never been done before or embracing new technology before our competitors do).

Matt Griffin, founder of Deepend and guest editor of the study and The SoDA Report, said that while the term digital may be on the out, consultancies anchored at the forefront of technological change will continue to evolve as they always have – creating and designing customer centred solutions, tapped from deep insights on human behaviour.

“Whether the medium is a CD-ROM, the worldwide web, virtual or mixed reality, AI or any other technical advancement that will undoubtedly come our way, the human-computer interface will continue to change, as too will the processes and structures of the companies that create them,” he said.

“There’s never been a more exciting time nor a better opportunity to design the connected world.”

Kath Blackham, managing director of Deepend and representative to the SoDA board of directors, said the outlook for the digital marketing industry is strong.

“Emerging technology is heading in an exciting direction and it’s a massive focus for us,” she said.

“At Deepend, we’ve already been working with chatbots and conversational interfaces for a while, and our scope of work will continue to grow here.

“These technologies are already changing the way consumers expect to interact and engage, so our dedicated creative technologist is partnering with both our clients and internal teams to take advantage of the rapidly shifting landscape.”

Here are some of the other key findings from the study:

  • Spending – 43 per cent of marketers are increasing their investment in digital marketing and, and nearly 50 per cent of marketers are now spending half or more of their entire marketing budget on digital.
  • Emerging technology – over 40 per cent of marketers plan to significantly increase their investments in programmatic advertising, AI/machine learning, chatbots/ conversational interfaces and AR/VR in the next 12 to 18 months. Here, 69 per cent of agency leaders also agree that the growing prevalence of AI technologies and conversational interfaces will significantly impact the way their agencies will design for customer interactions.
  • Optimism – agency leaders are bullish and 86 per cent project that 2017 will outpace 2016 in terms of profitable growth. That said, concerns around the commoditisation of digital work and the impact of nearshoring/offshoring both reached five year highs. Around 58 per cent of agency leaders also identified the increased in-sourcing of digital capabilities by client-side marketers as an area to watch.
  • In-sourcing – client-side marketing leaders continue to build their in-house digital capabilities, with nearly 60 per cent saying they now manage social marketing execution, customer insights/analytics, and aspects of web and mobile experiences entirely in-house.
  • Innovation – 89 per cent of client-side marketers rate their organisation as either somewhat or very innovative when it comes to digital marketing initiatives (up 24 points from 2016). Furthermore, 73 per cent believe their current organisational structure fosters the ability to innovate, while agency leaders hold a nearly polar opposite, with 48 per cent saying their clients’ organisations hinder their ability to innovate.
  • Inflection – The theme for this year’s study and report signals a period of accelerated change and the increasing importance for marketers and agency leaders to decipher nuanced signals amid a decidedly complex market conversation.

 

Please login with linkedin to comment

Latest News

Fraud & Faulty Programmatic Will Force Brands To Take Media In-House
  • Media

Fraud & Faulty Programmatic Will Force Brands To Take Media In-House

A growing number of marketers are taking back control of their digital marketing campaigns as more cases of fraudulent and waste in programmatic spending emerge across the world. Mr Jay Shah, CEO of artificial intelligence group, OpenDNA, marketers were taking back control of critically important processes like customer targeting, as many digital and programmatic advertising, […]

Cricket Australia Unveils Ashes Fan Campaign #BeatEngland
  • Campaigns

Cricket Australia Unveils Ashes Fan Campaign #BeatEngland

With an Ashes summer rapidly approaching, Cricket Australia has put out a rallying cry to fans around the country to get behind our Australian women’s and men’s cricket teams under the banner #BeatEngland. The #BeatEngland campaign is built upon a simple truth – nothing brings Australia together like the prospect of seeing our cricketers beat […]

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends
  • Advertising
  • Marketing

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends

Sydney-based adtech start-up Muzaara has announced a new strategic partnership with performance marketing platform Commission Factory. Together, Muzaara and Commision Factory are providing SMEs with a secret weapon to skyrocket their online brand visibility and effectively manage and maximise their online advertising campaigns. This partnership will allow both online marketing companies and their impressive roster […]

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard
  • Campaigns
  • Marketing
  • Technology

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard

Breakfast cereal manufacturer Kellogg’s has joined forces with Shazam and digital agency Orchard to deliver a first-of-its-kind augmented reality (AR) Halloween Trick or Treat experience for families. The campaign, which leverages Shazam’s visual recognition platform and recently-launched AR platform, sees Kellogg’s pilot the replacement of physical gifts in cereal packs with a digital experience that […]

Kraft Heinz Appoints Cummins&Partners As New Creative Agency
  • Advertising

Kraft Heinz Appoints Cummins&Partners As New Creative Agency

Kraft Heinz today confirmed the appointment of Cummins&Partners as its new Creative agency after an extensive pitch process. They will be responsible for brand strategy and integrated creative across the expanding Kraft Heinz portfolio including Kraft, Heinz and Golden Circle. A Kraft Heinz spokesperson said: “After an exhaustive search involving a competitive pitch, we have made […]

Patrick Delany (CEO, Fox Sports), Hugh Marks (CEO, Nine Entertainment Co), Miranda Devine (Columnist, News Corp), Michael Miller (Executive Chairman, News Corp Australasia), Grant Blackley (CEO & Managing Director, Southern Cross Austereo) at Radio Alive 2017
  • Media

Media Bosses Weigh In On Ten-CBS Deal

Do you enjoy articles featuring industry big-wigs? Well, it doesn't come much bigger and wiggier than this, we say.

by B&T Magazine

B&T Magazine
Kantar TNS’ Ali Dexter Joins T Garage As Director Of Insights & Strategy
  • Marketing

Kantar TNS’ Ali Dexter Joins T Garage As Director Of Insights & Strategy

Melbourne-based market research consulting agency T Garage has announced the appointment of Ali Dexter as its director of insights and strategy. Dexter joins T Garage from Kantar TNS, where she was the director of its Qualitative division. Prior to that, Dexter held a number of senior roles at Kantar TNS in the US and Vietnam.  “After […]

XXXX on Tuesday, March 21, 2017, in Las Vegas. (Jeff Bottari/AP Images for Adobe)
  • Advertising

Adobe Releases Advertising Cloud App

Not one, but two Adobe announcements. The tech elves have been busy this week, not that we're inferring Adobe is Santa.

Facebook Updates Its VR Offering
  • Technology

Facebook Updates Its VR Offering

Do you loathe Facebook for nicking all the ad cash? Well, why not scream "A pox upon you Zuckerberg" while reading this.

InterContinental Perth City Centre Chooses Bonfire To Build Digital Strategy
  • Marketing

InterContinental Perth City Centre Chooses Bonfire To Build Digital Strategy

Luxury hotel InterContinental Perth City Centre is officially set to open this Sunday, and has already taken strides towards developing a comprehensive online search strategy with digital agency Bonfire. The investment reinforces the desire of the hotel to promote its luxury business facilities, which include corporate and bespoke event spaces designed for local, national and […]

Datalabs Announces New Hire And Promotion
  • Marketing

Datalabs Announces New Hire And Promotion

Aussie data visualisation and content marketing analytics agency Datalabs has announced the appointment of Marc de Chellis to run its business development, as well as the promotion of Cass Lilley to accounts and project manager. De Chellis (pictured above, second from the left) joins Datalabs from Launchpad App Development, where he held the role of […]