Skill Shortages And Budget Constraints Are Holding Back Business Transformation

Skill Shortages And Budget Constraints Are Holding Back Business Transformation
SHARE
THIS



New research from Adobe and the CMO Council confirms skill shortages and budget constraints are holding back digital and business transformation in Australia and across Asia Pacific.

While the research shows confidence in the value of digital marketing is growing, marketers are struggling to validate investment and build a business case.

The Adobe APAC Digital Directions report is a deep-dive into strategies, mandates and challenges in digital marketing and is a companion piece to Adobe’s ongoing Digital Marketing Performance Dashboard. The new research reveals findings based on data collected from 648 respondents in Australia, South Korea, China, Hong Kong, Singapore and India.

At a time when marketing is fast becoming the catalyst for business transformation and customer engagement optimisation, Australia’s marketers are still largely focused on single vector metrics that measure past success or single campaign performance only. They are typically not measuring the impact of harder business metrics such as sales pipeline performance or customer lifetime value.

Instead, in Australia, few respondents said they measure business value metrics, with just 16 per cent measuring revenue per customer (a significant drop from 36 per cent in 2013), 15 per cent measuring customer lifetime value and 16 per cent measuring market share movements. Instead, they are focusing on more basic metrics with 70 per cent of Australian respondents measuring click-through rates, 49 per cent measuring campaign ROI, and 73 per cent measuring response rates.

The research showed marketers who measure business value metrics spend a higher proportion of their marketing budget on digital, and are almost twice as likely to allocate more than 50 per cent of their budget to digital than marketers who don’t measure the same metrics (19 per cent vs 10 per cent). Similarly, marketers who track business value metrics have higher levels of confidence in digital than their non-measuring peers (75per cent vs 59 per cent), are more likely to say that digital can grow a profitable business faster (45 per cent vs 33 per cent) and are less likely to say they struggle to make a business case for digital spend (31 per cent vs 40 per cent).

“Adobe and CMO Council have been tracking the digital journey of APAC’s marketers since 2011. We have also worked with many companies to successfully transform their operations, teams, technologies and strategies as they consolidate digital channels to deliver unified, exceptional customer experiences,” said Paul Robson, president, Adobe Asia Pacific.

“Digital and business transformation is a complex and challenging task, but the rewards are great. Early adopters in Australia are leading the region in digital marketing proficiency and are able to prove value to their organisations and industries. These companies are using customer intelligence in an insightful way and are leading with data. They are raising the bar by measuring, predicting and using insights across multiple channels to create relevant and personalised experiences to satisfy customers.”

Liz Miller, vice president of marketing at CMO Council, agreed. “Digital has truly come of age. Australian respondents are confirming that digital enables additional touchpoints (68 per cent), delivers more cost-effective customer acquisition (51 per cent), improves customer loyalty (41 per cent) and improves the overall customer experience and responsiveness (34 per cent). The challenge now, is to turn our attention to extracting greater value and insights from data to provide ideas and knowledge that improve product, services and customer engagement and provide the foundations for a stronger internal pitch to boost investment and resourcing.”

The report recommends three digital imperatives for APAC marketers to adopt to accelerate their digital journey.

  • Optimise strategies for engagement and enablement by diving deeper into intelligence, insights and customer analytics. Best practice leaders in the region are demonstrating this by integrating tools that help streamline operations, and rolling out new strategies that leverage online and offline data to create smarter experiences.
  • Boost team performance and skills. The talent gap consistently manifests as a major obstacle to digital advancement. In 2013, 37 per cent of marketers across Asia Pacific said their agency’s capabilities and experience were holding them back. In this latest survey, that number has jumped to 47 per cent of respondents, which is especially problematic when you consider that 74 per cent of respondents said they were working with one or more digital agencies across the region.

“Digital Directions clearly underlines the growth and importance of digital marketing not only within our clients, but across the broader range of APAC companies that are serious about their future marketing needs,” said Doug Chapman, managing director, Razorfish.

“Increased investment in skills development will ensure the APAC marketing community can better leverage the data they are collecting and drive business transformation.”

  • Allocate around a customer-centric business case. Digital budgets are slowly increasing in Asia Pacific, with 78 per cent of respondents saying they have increased budgets over the last 12 months. Marketers who leverage metrics tied to the bottom line, profitability and growth, are having greater success persuading internal stakeholders to increase their investment in digital.

“The data is there; now it’s up to the marketers of Asia Pacific to apply it to drive business growth, and demonstrate the value of their function,” said Robson.

Other top-line Australian findings from Adobe APAC Digital Directions include:

  • Australia continues to lead the region in digital marketing proficiency with 35 per cent of Australian marketers rating their organisation as pretty good or high, compared with the APAC average of 24 per cent.
  • The top three challenges and complexities experienced in building in-house and virtual digital marketing teams in Australia are a lack of the right talent and skills (55 per cent), budget limitations (42 per cent) and identifying the right tools and technologies needed to take the next step (40 per cent).
  • The top three challenges to digital campaign execution in Australia are budget limitations (54 per cent), determining the best technology solutions and services to use (41 per cent) and making a business case for digital marketing spend
 (36 per cent).
  • The top three digital priorities for Australian marketers are strengthening the digital content strategy (68 per cent), richer, deeper customer profiling and insights (51 per cent); and social media optimisation (50 per cent).
  • When asked where they allocate their digital marketing funds, the majority (72 per cent) of marketers in Australia said website content, development and performance optimisation, followed by search engine optimisation (69 per cent) and paid search (61 per cent).

Latest News

Women In Media Profile: Danni Wright
  • Media

Women In Media Profile: Danni Wright

We'd be headlining Danni Wright's Women in Media profile the "Wright stuff" if it wasn't utterly predictable and naff.

by B&T Magazine

B&T Magazine
Industry Generates A Record $10.5m For Social Impact
  • Media

Industry Generates A Record $10.5m For Social Impact

UnLtd, the media, marketing and creative industry’s social purpose organisation has announced a total industry contribution of $10.5m to social impact in FY18. The total value of funds, services, inventory and time donated by the media, marketing and creative industry increased by 21per cent compared to the previous financial year due to a growth in […]

Posterscope Promotes Two
  • Media

Posterscope Promotes Two

Posterscope, Dentsu Aegis Network’s specialist out-of-home agency, has promoted Ryan Hedditch to the newly created position of national head of strategy and Samantha Summers to Sydney Group Business Director. In his new role, Hedditch is charged with driving the continual improvement and transformation of the Posterscope offering to clients and partners. Summers’ promotion will see her lead […]

Outbrain Accelerates Growth With APAC Promotions
  • Media

Outbrain Accelerates Growth With APAC Promotions

Native discovery platformOutbrain has announced several movements in its regional leadership team, with plans to make more new hires. This comes on the heels of two senior appointments it made in February, after closing a record year in the region with expansion into new markets. Yoav Tourel has been promoted to head of sales for […]

Clems Syd & Extra GUM Unveil YouTube Digital Stage
  • Media

Clems Syd & Extra GUM Unveil YouTube Digital Stage

YouTube EXTRA Gum has launched EXTRA Support Acts, a program created to support Australia’s up and coming musicians by transforming pre-roll ads on YouTube into a digital support stage. It has been created in partnership with Clemenger BBDO Sydney as creative lead, Universal Music Australia and BRING for talent and music strategy and content, MediaCom and YouTube. The […]

OMD Australia Tops 2018 RECMA Rankings
  • Media

OMD Australia Tops 2018 RECMA Rankings

OMD Australia has taken the top spot for Australia’s Number 1 media agency in size, according to RECMA’s 2018 ‘Overall Activity Volume Rankings’ report released last week. Additionally, the company was named first in profile classification with a dominant profile for the 3rd consecutive year, along with vitality ranking and structure ranking. Furthermore, OMD Australia was also named […]

Red Agency Bolsters Sydney Team
  • Media

Red Agency Bolsters Sydney Team

Judging by the image, it seems Red Agency may have had no staff whatsoever prior to this hiring spree.

Nine Appoints Editor For 9Honey
  • Media

Nine Appoints Editor For 9Honey

B&T's editor coincidentally spilled honey on his shirt while typing this. And by typing, we mean copy and pasting.

Y&R Sydney Scores Best&Less   
  • Advertising
  • Media

Y&R Sydney Scores Best&Less  

Y&R wins Best&Less amid rumours the clothing shop its changing name to 'Somewhat OK&Reasonably cheap'.

Women In Media Profile: Judy Sahay
  • Media

Women In Media Profile: Judy Sahay

B&T's Women in Media profiles are like a wave washing over you. Even more so if an actual wave washes over you.

by B&T Magazine

B&T Magazine
How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)
  • Marketing
  • Opinion

How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)

In this opinion piece, SalesPreso co-founder and CMO Joel Thomson (pictured below) explains how B2B companies can use their data more effectively and deliver a personalised customer experience that matches their B2C counterparts. From the Cambridge Analytica scandal to the EU’s recent GDPR legislation, this year has prompted individuals all over the world to consider […]

Opinion

by B&T Magazine

B&T Magazine
M&C Saatchi Launches THIS Film Studio
  • Advertising
  • Marketing
  • Media

M&C Saatchi Launches THIS Film Studio

Not one to rest on its laurels, M&C Saatchi unveils new production studio it hasn't called 'Not One To Rest On Laurels'.

Creative Agency Launches Project Management Tool ‘Hassl’
  • Advertising
  • Technology

Creative Agency Launches Project Management Tool ‘Hassl’

Yesterday at TedX Melbourne the team behind award-winning, Melbourne-based agency Your Creative launched their new tech venture Hassl, the project management platform taking on Trello and the likes. With the belief there was a better design solution to project management, the platform has been developed over the last two years in collaboration with their clients. […]

ABC Axes Tom Ballard’s Tonightly
  • Media

ABC Axes Tom Ballard’s Tonightly

It's one of the ABC's edgier, controversial shows, but Tom Ballard's proven too edgy and controversial for ABC chiefs.

Taboola Strengthens APAC Programmatic Offering With New Partnership
  • Advertising
  • Media

Taboola Strengthens APAC Programmatic Offering With New Partnership

Global discovery platform Taboola has announced a strategic partnership with Wider Planet, Korea’s largest demand-side and data management platform. The partnership builds on Taboola’s programmatic efforts in Asia-Pacific, and will bring together Korea’s largest demand platform for agencies and brands to provide access to Taboola’s global audience through premium publisher placements. The partnership means advertisers […]

The Haus Picks Up Two New Clients
  • Marketing

The Haus Picks Up Two New Clients

The Haus announces two new client wins. Admittedly, not as good as winning three, but far better than losing four.