We partnered with Brand Innovators to understand what the marketing organization of the future looks like. We asked more than 200 marketers from Fortune 500 brands what they have to say about the focus of their marketing organizations and what they predict the marketing organization of the future will look like. These slides present the top 10 key trends learned from this study.
To learn more about our research, you can download the full report here: http://www.gumgum.com/learn/guides/building-the-marketing-organization-of-the-future/
4. 5/24/2016 4
is to add value to every connected image
GUMGUM’S MISSION
5. 5/24/2016
WHAT WE DO
Advertising
Our ads are served
in-line with content, where
users’ attention
is already focused
Visual Intelligence
We scour media
For all images that relate
to your brand
Site Monetization
We help publishers turn
images into sources
of revenue
5
7. 5/24/2016
IF YOU COULD PICK ONE WORD TO DESCRIBE THE MARKETING
ORGANIZATION OF TODAY, WHAT WOULD IT BE?
7
8. 5/24/2016
1. Staffing To Grow ….
8
22%
Senior
78%
Tactical
13%
6%
39%
33%
8%
2%
Decreased Significantly
Decreased Somewhat
Stayed About The Same
Increased Somewhat
Increased Significantly
Unsure
Which changes BEST described changes in Marketing organization’s OVERALL staffing
levels over the previous 24 months
All, n=246, total may not add up to 100% due to rounding
2%
8%
33%
39%
6%
13%
9. 5/24/2016
2.But Innovators Need Apply…..
9
Which of the following statements BEST describes the state of your current Marketing
Organization
42%
In Flux: We’re in the process
of shifting our focus
25%
Solid: We’re not the most
innovative organization out
there, but we’re on or slightly
above par with our key
competitors
15%
Well-Oiled:
We’re a very results-based,
campaign-driven organization that
excels at digital
9%
Innovative:
We live on the bleeding
edge and are
consistently evolving to
incorporate the best
tools and structures for
our organization to
drive success
9%
Stodgy:
We’re a very traditional
Marketing Organization,
still not as savvy at
digital as we should be
All, n=246, total may not add up to 100% due to rounding
10. 5/24/2016
3. Budgets Set To Rise ….
10
Thinking ahead to the end of 2017, do you see your company’s percentage of budget
allocated to digital to:
60%
INCREASING
SOMEWHAT
19%
STAYING ABOUT
THE SAME
19%
INCREASING
SIGNIFICANTLY
2%
UNSURE
All, n=246, total may not add up to 100% due to rounding
11. 5/24/2016
4. Role of Marketing Set To Evolve, But How?
11
22%
Senior
78%
Tactical
16%
23%
14%
21%
26%
Evolving - In the process of evaluating what role makes most
sense
Jack-Of-All-Trades - We have a fast-paced, wide, and evolving
remit
The Glue - We connect disparate initiative across different
departments
Tactical Practitioners - We are focused on the day-to-day
aspects of marketing
Strategic Advisors - We help drive the overall strategic
direction of the company
Currently, which of the below statements BEST characterized the OVERALL mission of
your Marketing Organization today
All, n=246, total may not add up to 100% due to rounding
26%
21%
14%
23%
16%
12. 5/24/2016 12
22%
Senior
78%
Tactical
“ I see more and more CMO’s having a
place at the strategic table and I think a lot
of that has to do with their access to
consumer data.”
– Lizzie Francis, Founding Partner at Brilliant Ventures
and Former CMO of Gilt Group
13. 5/24/2016
5. Changes in consumer behavior, marketing tactics, & technology drive
organizational changes overall
13
9%
6%
4%
3%
2%
7%
7%
7%
7%
6%
26%
25%
13%
14%
8%
33%
42%
52%
54%
54%
26%
20%
24%
22%
30%
Strategic direction from C-suite
Competative dynamics
Changes in digital technologies used by marketers
Changes in digital tactics used by marketers
Changes in Usage of Digital Channels by Consumers
No Effect Minor Effect Neutral Moderate Effect Major Effect
Please indicate the degree to which the following trends have caused organization
changes in your department to date
All, n=246, total may not add up to 100% due to rounding
8%
7%
30%
9%
6%
4%
3%
2%
7%
7%
7%
6% 8%
14%
13%
25%
26% 33%
42%
52%
54%
54%
22%
24%
20%
26%
14. 5/24/2016
6. But CMOs NOT Becoming CIOs ….
14
22%
17%
7%
9%
6%
12%
2%
6%
4%
2%
3%
2%
41%
34%
43%
39%
34%
26%
29%
24%
24%
22%
18%
16%
38%
49%
51%
52%
60%
61%
68%
70%
72%
77%
79%
82%
Tech Investment
Lead Gen
Innovation Initiatives
CRM
Mobile Initiatives
Marketing Automation
Analytics & Measurement
SEO
Social Media Optimization
Branding
Content Marketing
Advertising/Pad Media
Not At All We Are A Shareholder, But Don't Control Part Of Our Organization
Please indicate the degree to which the following trends have caused organization
changes in your department to date
All, n=246, total may not add up to 100% due to rounding
2%
3%
2%
4%
6%
2%
12
62
9%
7%
17%
22%
16%
18%
22%
24%
24%
29%
26%
34%
39%
43%
34%
41%
82%
79%
77%
72%
70%
68%
61%
60%
52%
51%
49%
38%
15. 5/24/2016
7. Creating cross functional teams is the most difficult challenge to
staffing today
15
26%
19%
13%
16%
23%
26%
15%
21%
14%
19%
31%
46%
50%
42%
44%
14%
18%
13%
22%
2%
2%
1%
2%
5%
2%
Creating Cross Function Teams That Actually Work
Training
Compensation
Retention Of Existing Staff
Finding/Hiring Talent
Difficult Very Difficult Neither Easy Or Difficult Easy Very Easy
Please indicate the degree of difficulty encountered in the following areas as relates to
staffing in your organization
All, n=246, total may not add up to 100% due to rounding
23%
16%
13%
19%
26%
19%
14%
21%
15%
26%
44%
42%
50%
46%
31%
2%2%
22%
13%
18%
14%
5%
2%
1%
2%
16. 5/24/2016 16
22%
Senior
“Gone are the days in which you had
marketing taking care of the upper
funnel and sales taking care of the
lower funnel of the consumer
pathways.”
– Laurent Faracci, Senior Vice President,
Global Marketing and Digital Excellence RB
17. 5/24/2016
8. Agencies & Vendor Roles Set to Evolve
17
22%
Senior
78%
Tactical
Which of the following statements BEST describe your organization’s current view of how
brands should work with agencies and other vendors:
31%
16%
33%
15%
19%
We are currently re-evaluating how we do and do not work with
agencies and other vendors
We see less and less reliance on third parties as we bring
more and more capabilities in-house
We see an expanded role for agencies & vendors over time
We see a diminished role for agencies & vendors over time
We see no real changes to the way we should work with such
partners
All, n=246, total may not add up to 100% due to rounding
19%
15%
33%
16%
31%
18. 5/24/2016
9. Innovation, Data and Mobile will drive organizational and staff changes
in the next two years
18
22%
Senior
78%
Tactical
Please indicate how much you agree or disagree that the following areas will cause
staffing and organizational changes in your department over the next 24 month. Agree to
strongly agree.
35%
42%
46%
46%
46%
48%
54%
55%
64%
64%
65%
68%
Lead Gen
SEO (Organic & Paid)
CRM
Social Media Optimization
Advertising/Paid Media
Branding
Marketing Automation
Tech Investment
Content Marketing
Mobile Initiatives
Analytics & Measurement
Innovation Initiatives
All, n=246, total may not add up to 100% due to rounding
68%
65%
64%
64%
55%
54%
48%
46%
46%
46%
42%
35%
19. 5/24/2016
10. Internal Issues Can Block Progress ...
19
Which of the following do you view as having the MOST impact with regards to holding
back Marketing Organizations from optimal performance in the future?
34%
Shifting Corporate
Priorities
22%
Budget Challenges
9%
Staffing
Challenges
(hiring,
retaining, &
nurturing
talent)
All, n=246
11%
Inertia
13%
The unstable
nature of the
marketing
landscape for the
forseeable future
11%
Lack Of Clear Best
Practices
Hello,
My name is John Weisgerber, I work for GumGum, the leading’s image recognition platform for marketers.
Together with our partner Brand Innovators, I’d like to share a preview of an extensive research that explores how marketers think about the current structure and focus of their respective marketing organizations, as well as their sense of what the future holds.
Before we go over the key findings of the study, I’d like to introduce GumGum briefly. In 2015, the average consumer’s attention span was 9 seconds. Apparently the average attention’s span of a goldfish is 8 seconds.
What’s so powerful about images is that they can communicate a message in milliseconds and are the perfect medium to deliver a brand’s value proposition in a very short period of time. In fact images can be processed 60,000x faster than words.
At GumGum our role is to extract insights and value from images to marketers. We do this across editorial and social images.
We help marketers run ads within the boundaries of images on editorial web site such as Time, RollingStones or People.com. In addition we levareg our proprietary image recognition technology to find images that relate to your brand on social media.
Now, let's move on to the research.
Never have so many talked so much about a topic so little quantified as the marketing organization of the future. There are many airy proclamations of big, vague changes lying ahead as marketing organizations evolve to deal with developing trends such as the increase of programmatic buying, the growth of native advertising, and the rise of consumer adoption of mobile devices and content. As one senior marketing executive we talked to noted, “If you look at what a CMO was doing four or five years ago, you look at what they’re doing today, and you think about what they need to be doing in the future, it’s pretty obvious that their roles are evolving to a greater degree than anywhere else in the enterprise.”
But to date, few actual details have emerged of how (or even if, for that matter) brands are actually evolving the focus and structure of their marketing organizations in the face of these trends. Until now. Building the Marketing Organization of the Future surveyed over 240 brands in the U.S. about the current structure and focus of their respective marketing organizations, as well as their sense of what the future holds. Here’s what they told us:
While there are obviously big changes afoot, many organizations emphasize the importance of ‘agile evolution’ as a core of what marketing organization must do.
41% of respondents have increased their staffing levels over the past 2 years; 19% have decreased
And more help is on the way …..
Overall, 54% are at least likely to change current staffing levels over the next two years
246 people completed the survey broken out into 5 segments that describe their current marketing organization: 23 who describe their organization as Stodgy; 103 who describe their organization as In Flux; 36 who describe their organization as Well-oiled; 61 who describe their organization as Solid; and, 23 people who describe their organization as Innovative
Nearly half (42%) of marketers work for an organization “in flux,” presenting a classic glass half-full or half-empty dilemma: Although it is encouraging that such a large percentage of organizations are trying to evolve their focus to be more effective, it is less encouraging that so many organizations are still in the midst of this process.
Today, 44% allocate at least 30% of their budget to digital; 18% allocate over 50%
79% see their digital budget increasing in 2017
1 in 4 are in the right spot as “strategic advisors”
Almost ½ (44%) are just tactical executions
16% are evolving
A trend likely to continue as 58% of respondents see their mission evolving over the next 24 months
What we discovered was that participants view changes in consumer behavior (84%), marketing tactics (76%), and digital technology (76%) as having the most impact in terms of driving organizational changes, significantly more so than either competitive dynamics (62%) or strategic direction from the C-Suite (58%).
When it comes to innovation or tech, Marketing has a say, but others own
Regardless of its perceived challenges, the creation of successful cross-functional teams is widely viewed as the best organizational paradigm for today’s brands
33 % of overall respondents see an expanded role for agencies and vendors over time; 31% see a diminished or less reliant role on outside vendors
Overall, shifting priorities at the corporate level is the biggest hold back to optimal performance