Skill Shortages And Budget Constraints Are Holding Back Business Transformation
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
Revium Snags Peter Bauld From Deloitte Digital
Revium, a leading full-service digital and AI consultancy, has announced the appointment of Peter Bauld (lead image) as Executive General Manager. Revium is a full-service digital and AI consultancy with over 20 years of experience creating engaging digital experiences for leading organisations and their customers. Bauld joins Revium after an illustrious career spanning over two […]
EMG/Gravity Media Names New Managing Director
The makers of Australia's Got Talent has been a magnet for senior hires in recent times.
Opinion: Shark Tank’s Sabri Suby Slams Politicians Jumping On TikTok Ban Bandwagon
Are politicians actually scaremongering about TikTok or just fed up of you doom-scrolling in the work bogs?
TV Ratings: “Ivana Was Robbed” – Final Three Contestants Revealed On Australian Idol
B&T's unsure if these Idol contestants look extra young or whether we are as old as we feel.
Veridooh Snatches Prashand Menon From ScentreGroup
Out-of-home OOH) and digital media leader Prashand Menon (lead image) has joined OOH ad tech company Veridooh as group business director within NSW and QLD. Menon joins Veridooh from his most recent role as ScentreGroup’s group business director and brings with him more than 10 years of experience in Australian media. Previously, he held positions […]
Creative Content Studio OK COOL Answers APAC’s Call, Opening In Melbourne
Life set to get extra confusing for new agency staffers mistaking OK COOL for a pass-ag housemate text message.
Harry’s Cafe de Wheels & Hipages Launch New Pie To Fuel Tradies While On The Tools
The pies should apparently be better for tradies' health, apparently but won't be better for on-site ribbing.
Women Leading Tech’s Woman Of The Year Megan Dalla-Camina: What’s The True Cost Of Cutting DEI Spending?
Cutting DE&I spending might seem easy but you might change your mind when faced with Dalla-Camina's ire.
Thrive Introduces A Batch Of New Senior Leadership Roles
You could say that Thrive is set to thrive with these new hires. But that would be too obvious.
It’s Coming Home! Sponsors Make Subbuteo World Cup Finals Free
No idea what Subbuteo is? You clearly had a more exciting childhood than our editorial team.
Media Bigwigs Bet On Predictive Intelligence Platform Prophet In $5M Seed Funding
Prophet, profit, geddit? Must be laugh-a-minute in this startup's office.
CommsDeclare Brands Shell Energy An “Olympic Gaslighter” & Urges Agencies Not To Pitch For Creative Account
And we thought the gaslight Olympics took place in the Coogee Bay Hotel smoking area!
AFL Wins Battle With Warner Bros. As New AFL Team Is Revealed
There hasn't been this much wrangling over a cartoon animal since, well, ever!
BBC Podcasts Go Global With Amazon Music
Ironically, BBC podcasts unlikely to be available in the Amazon given the lack of signal.
Johnson & Johnson’s Former Consumer Healthcare Arm Reviews Creative
J&J inspired by Scottish term for knowledge 'ken' in its rebrand; nothing says 'wise' like a shot of Listerine.
Kat & Co Transforms Into THE WORLD OF Experiential Agency
After more than twelve years of producing experiences for some of the world’s most innovative brands, including Hermes, Van Cleef & Arpels, Louis Vuitton, and Tiffany & Co, Kat & Co has quietly metamorphosed into THE WORLD OF. THE WORLD OF is an experiential agency at the juncture of culture, technology and the human condition. […]
Adobe Brings Firefly Generative AI Into Substance 3D Workflows
Still unclear of what generative AI actually is? Steer clear of this story.
Clemenger BBDO Introduces Saucy Campaign With Declan Cleary & Lee Kum Kee
When we heard this was a saucy campaign, we thought it be the barbecue and ketchup showdown we'd been waiting for.
Gawk Acquires 40 Billboard Locations From Transad
Gawk makes it move out of VIC into NSW with acquisition. Has promised to stop going on about Melbourne nightlife.
All About Attribution: Commission Factory Releases New eBook
Ever wanted to dive deep into channel attribution? Consider this the perfect springboard.
SMG Studio Launches Risk: Global Domination X Dune Part Two
Through a licensing agreement with Legendary Entertainment, SMG Studio inked the rights to adapt Dune: Part Two into a game based on Risk: Global Domination, Hasbro’s interactive board game. Inspired by Denis Villeneuve’s cinematic masterpiece, Dune: Part Two, this new digital adaptation, RISK: Global Domination X Dune: Part Two, is poised to captivate players from […]
RMIT Study Reveals That 73% Of Employees Don’t Believe Gen AI Is Relevant
Noticing staff switching off when you tell them about gen AI? Understand why here.
Australian Eggs Launches Egg-citing New Campaign Via Connecting Plots
How do you like your eggs in the morning? We usually skip them and go straight for the darts and whisky.
Future Lions 2024 Invites Young People To Be Heard With Spotify
Future Lions, of course, is the AKQA-backed student initiative at Cannes Lions, not a feeder for the rugby team.
QMS: Taylor Swift, Lunar New Year & Mardi Gras Were Boon For OOH Market
Taylor Swift, Lunar New Year and the Sydney Gay and Lesbian Mardi Gras Festival have had a dramatic impact on the number of people moving in and around Sydney over the past month, drawing big crowds into the heart of the city and its surrounding suburbs. New data from digital outdoor company QMS reveals a […]
Legend John McEnroe Joins Pepperstone’s Team Of Global Tennis Ambassadors
Despite the deal, McEnroe remains confused about difference between above- and below-the-line marketing.
LinkedIn Launches New Thought Leader Ads For Companies To Promote Member Posts
Though LinkedIn couldn't get any more insufferable? You thought wrong.
Latrell Mitchell Smacked On Wrist After Dropping Multiple F-Bombs In Post-Match Triple M Interview
Andrew Abdo has confirmed he is not angry... just disappointed.
TV Ratings: “When You Do Love Yourself, You’re Amazing” – Is This MAFS Most Heart-breaking Split?
Hold the press. MAFS groom and bride actually shown to be nice people.
Opinion: The Only Drag Marketers Should Be Worried About
Thought Transactional Drag was a lifeless club night in Newtown? Read this and you'll think again.
AWARD School Welcomes Class Of 2024
It's best to think of AWARD School like Survivor but with pitch decks instead of swimwear.
Interest In Motorsports Reaches New Heights As Formula 1 Grand Prix Revenue Expected To Surpass $100 Million
Need to get a dull sports client some quick results? Rustle up a Netflix series and watch the dollars roll in.
Chair Rob Murray To Depart As SCA Considers ARN’s Latest Takeover Bid
Struggling to make heads or tails of the SCA & ARN saga? Add this to your woes.
Adland Legend John Singleton Separates From Seventh Wife
Singo calls it quits with seventh wife as his race with Rupert Murdoch to become the most-married man continues.
ACCC Eyes Search Competition, Citing ‘Decreasing’ Quality & Rise In Generative AI
The only decline in search quality we notice is when B&T doesn't appear at the top of Google.
“Imagine A Career Above The Clouds”: Royal Australian Air Force Launches New Campaign Via VML
Don't worry about the forthcoming war with China - at least you'll get a bird's-eye view of the apocalypse.