Sitecore together with First Point Research and Consulting present a uniquely Australian and New Zealand study into the marketer’s relationship with and understanding of digital marketing.

1. EMERGING DIGITAL MARKETING TRENDS
AUSTRALIA & NEW ZEALAND 2013
1

2. I love it... and the
possibilities seem
ENDLESS!!!
(Just give me a budget) ;)

3. Contents
Executive Summary
4
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Summary of key themes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
A snapshot of the Australian & NZ sectors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
What’s in the digital toolkit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Findings in Detail
13
Part 1.
A Context for Digital Marketing in Australia & New Zealand…
How do marketers feel about working in the digital environment?. . . . . . . . . . . . . . . . 8
Findings in Detail
Managing the digital marketing strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Part 2.
What constitutes digital success and how is it measured? . . . . . . . . . . . . . . . . . . . . . . . 9
25
Current patterns of behaviour in digital marketing
Barriers to the acceleration of digital marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Research Methodology and Profile of
Participants 11
Sample profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
About Sitecore
48

4. 1
EXECUTIVE SUMMARY
4

5. Introduction
Thank you for your interest in
the attitudes and behaviour
of marketers across Australia
and New Zealand.
Sitecore together with First Point Research
and Consulting are pleased to present a
uniquely Australian and New Zealand study
into the marketer’s relationship with and
understanding of digital marketing.
Digital marketing is a rapidly evolving industry.
Marketers are faced with a diverse and growing
range of channels, a consumer journey with multichannel touch points, different technologies to
deliver to each channel and no consistent approach
to the measurement of marketing effectiveness.
With these challenges comes greater scrutiny of
marketing budgets and demands for increased
linkages to sales. With this survey we analyse the
current state of digital marketing and attitudes
to the challenges and opportunities within
the Australian and New Zealand markets.
It’s not uncommon to see reports discussing the
trends within this space, however many only
focus on the United States or United Kingdom
and presume these countries reflect the stance in
Australia and New Zealand. Other reports simply
confirm what is already known – that it’s happening
now and will continue long into the future. With
that in mind, we wanted to get to the truth of digital
marketing in Australia and New Zealand, even if
that meant some potentially disruptive insights.
Read on and find out how your organisation
and role compares to others in your industry,
seniority and organisation size.
Robert Holliday
Managing Director
Sitecore Australia & New Zealand
This research study conducted with
330 marketing managers examines:
•
Current patterns of behaviours
in digital marketing
•
The current digital toolkit and
how it is expected to change
•
Attitudes of marketers
working in a digital world
•
Managing the digital
marketing strategy
•
What constitutes digital success
and how it is measured
•
The barriers to the acceleration
of digital marketing
5

6. Summary of key themes
Digital marketing is no longer niche.
Digital marketing is now considered mainstream within the marketing repertoire. Marketers
have seen the opportunities presented and are now embracing them. (page 35)
Big companies are waking up to the advantages.
Large companies are now leading the investment in digital marketing activities.
While smaller companies were the early adopters of digital marketing,
the big spenders are now catching up and are the most likely to be
investing more in digital over the next 12 months. (page 21)
Senior marketers are building their own skills in digital marketing
but greater emphasis is now needed at the junior-mid levels.
Experienced marketers (15yrs+ in the industry) are more likely to have undertaken
specific training in digital marketing (relative to those with 10yrs or less in the industry)
and this is reflected in their knowledge of the digital tools available to them, application
of more sophisticated digital tools and higher rates of measurement of ROI.
Less experienced marketers are less knowledgeable about digital, are less likely to measure ROI
and are generally less confident about the digital marketing strategies they implement. (page 32)
Web analytics is not being used effectively.
Web analytics are used primarily for periodic reporting and most marketers are frustrated
in their knowledge that they could be used far more effectively. Web analytics is the
number one area marketers would like to see their organisations improve. (page 31)
Big appetite for predictive analytics.
Digital ROI is a work in progress.
6
Predictive analytics is largely viewed as the next ‘golden ticket’ but
most feel ill equipped to move in that direction. (page 31)
ROI of digital activity is still evolving and most are still focused on visits to the website
as a primary measure of success. 20% are not measuring ROI at all. (page 40)

7. A snapshot of the Australian & NZ sectors
The majority of the marketing budget is
still being spent offline but within the next
12 months the spend on digital marketing
activities is likely to outstrip offline.
•
The most significant differences in the
application of digital marketing activities is
observed across the scale of organisations.
•
•
Organisations with turnover of
$20million+ are still more traditional
in their marketing activities while
smaller companies (turnover of
$2million or less) are using digital
marketing more extensively.
•
The indication however is that larger
companies have now realised they need
to ‘get on board’. Large companies
are the most likely to be spending
more on digital in the next 12 months
(75% of high turnover companies
indicate they will invest more money
in digital in the next 12 months,
compared with 50% of companies
with a turnover of $2million or less).
73% intend to spend more on digital
in the next 12 months (only 2%
will spend less on digital); and
•
Two of the top three most
common marketing activities in
late 2013 are digital activities.
Only 11% intend to increase
spend on traditional marketing
(while 33% will spend less).
Social media & email marketing
to existing customer databases
(both used by more than 80%
of the organisations surveyed)
are currently the most widely
used marketing activities.
The top 5 ‘areas of growth’ all fall
within the scope of digital marketing.
The top 5 ‘over-rated marketing channels’
are all traditional marketing channels.
•
•
Social media (22% perceive it as
the greatest opportunity for future
growth); emailing to their own database
(14%); personalisation (12%); mobile
(10%) and paid search (8%) are
perceived as the key growth areas.
Print (38% perceive it as over-rated);
TV (24%); trade shows (16%);
direct mail (15%) & radio (13%).
7

8. What’s in the digital toolkit?
How do marketers feel about working
in the digital environment?
What’s hot right now?
• Web analytics (currently used by 88% of companies).
• Email marketing (currently used by 85% of companies).
There is a clear need to deliver enhanced training
to junior and mid-level marketers.
What are the priorities for the next 12 months?
•
• Predictive analytics (44% planning to use within 12 months).
• Content profiling (40% planning to use within 12 months).
• Integration to CRM (40% planning to use within 12 months).
Formal training in digital marketing is heavily skewed to marketers with 15
years or more experience (53% vs 38%). It appears as an industry there is
an assumption that young marketers are obtaining the necessary skills in
their undergraduate courses… and this doesn’t appear to be the case.
• Mobile adapted version of the website (37%
planning to use within 12 months).
While most feel relatively confident with their digital marketing
skills, younger marketers are much less confident in their
skills, which is not surprising given they are far less likely to be
completing specific training courses in digital marketing.
What are the knowledge roadblocks?
•
• Personalisation (40% planning to use within 12 months).
• IP Lookup for sales (22% don’t know what this is).
• Predictive analytics (16% don’t know what this is).
• Marketing automation (14% don’t know what this is).
Analytics & personalisation are the areas marketers
want to see their organisations improve.
• Web analytics (51% want to see their
organisation get better at this).
• Predictive analytics (50% want to see their
organisation get better at this).
• Personalisation (50% want to see their
organisation get better at this).
8
While 27% of marketers with 15yrs or more experience in marketing
rate their digital skills as ‘excellent’, only 13% of marketers with less
than 5 years experience view their digital skills as ‘excellent’.
The enhanced training received by senior marketers is reflected not only
in their higher level of digital competency, but also in a competitive edge.
•
While 33% of senior marketers think their organisation is ‘ahead of most
competitors’, only 22% of junior to mid level marketers believe that.
Digital marketing is no longer considered niche. Marketers
feel more confident about it and are embracing the
opportunities presented by the sector.
•
95% now view digital marketing as mainstream;
•
83% find digital marketing stimulating and exciting.
Mid-Larger companies have been slower to invest in digital but are
now seeing success and are feeling more confident in the process.

9. Managing the digital
marketing strategy
What constitutes digital success
and how is it measured?
There is great variation in the way
the digital marketing function is
managed across organisations.
While the vast majority (80%) of organisations track ROI on their digital marketing
activities, the big surprise is that 20% are not tracking ROI on digital activities at all.
•
The largest proportion (46%) use ROI to report back to management.
•
•
A small but significant segment (14%) are tracking the ROI but are unsure of how to use it.
•
•
As might be expected, there are significant
differences between small-medium size
companies compared with larger firms.
While the most common scenario is now to
have a ‘digital marketing team’ (28% overall),
this increases to 34% amongst large companies
and only 15% amongst smaller companies.
A large proportion still rely on a single
marketing person to handle all marketing
activities (20% overall) but this is more
prevalent in smaller companies (38%) and
far less so in larger companies (10%).
Multiple platforms are common
for managing content activity,
particularly in larger companies.
•
73% on average are using multiple platforms
and only 17% are using a single platform.
Social media is the area that
marketers are most vigilant about the
activities of their competitors.
•
The most common measure of digital success is the use of website traffic.
The three most common measures of success are:
•
Visits to the website (73%);
•
Conversions/ sales/ new customer acquisitions (57%); and
•
Leads generated (44%)
Most marketers are in no doubt though about how ‘the boss’ measures success:
•
Conversions/ sales/ new customer acquisitions (43%) is cited by the largest
proportion as the key indicator sought by the management team, followed
by having KPIs aligned with the business objectives (14%).
Web analytics could be used far more effectively in most organisations.
•
They are generally used in periodic marketing meetings (in 48% of
organisations) and few are using them in real time (only 8%).
•
The most common use of web analytics is in reporting (38% using them
extensively for reporting) and to a lesser extent for insights (22%).
•
Few are using web analytics for recommendations for content for market automation, or site
or content optimisation (only around 10% are using them regularly for these functions).
47% think their competitors have an
edge over them in social media.
9

10. Barriers to the acceleration
of digital marketing
Limited financial resources is the most significant barrier to greater
investment in digital marketing. Many participants articulated this in
their open comments, but the survey results reinforce the problem:
•
51% view a limited marketing budget as a significant barrier.
•
The problem is even worse in Australia (52% cite limited budget
as a significant barrier) relative to New Zealand (42%).
NO MONEY!
Junior & mid level marketers are far more likely to cite a lack of
digital marketing knowledge as a barrier. Previous results support
this and reinforce a need for more training at junior levels.
•
33% of younger marketers identify ‘lack of marketing knowledge’ as
a significant barrier, compared with 18% of senior marketers.
I DON’T KNOW
HOW TO...!
Younger marketers don’t feel that clear objectives are being
set for ROI on digital activities. Senior marketers must do
more to keep their team moving in the same direction.
•
10
31% amongst younger marketers identify ‘lack of clear
understanding of ROI’ as a significant barrier to further investment
in digital, compared with just 12% of senior marketers.
WHAT DO YOU
MEAN BY ROI?

11. 2
RESEARCH METHODOLOGY AND
PROFILE OF PARTICIPANTS
11

12. Sample profile
17+8+65320x
BUSINESS SECTOR
ROLE & EXPERIENCE
Marketing (<5 years)
14%
Marketing (5-14 years)
32%
Marketing (15 years +)
15%
Web development/ IT
20%
Other (Customer service / operations)
18%
GOVERNMENT 17%
FINANCE/ INSURANCE 20%
EDUCATION 8%
TECHNOLOGY 6%
OTHERS 25%
MEDIA 5%
LOCATION
HEALTHCARE 3%
RETAIL 3%
SERVICES 3%
MANUFACTURING 5%
NON PROFIT 5%
SPORT & LEISURE 5%
ANNUAL TURNOVER
88%
12%
<$2MILLION 8%
$20MILLION OR MORE 48%
12
BASE: CLIENT SIDE SAMPLE (N=330)
$2- $19MILLION 16%
DON’T KNOW 28%
*responses have been rounded so could add to more than 100%. Fieldwork was conducted via online survey from 1-9 October 2013.

13. 3
FINDINGS IN DETAIL
Part 1.
A Context for Digital Marketing in
Australia & New Zealand…
13

14. The sentiment amongst marketers is largely positive…
It is the place to be! It is growing, evolving and in the next 12-18
I’m excited about new platforms
months we will see a lot of dinosaurs leaving traditional methods
and possibilities for reaching our
and jumping into the “”new”” digital marketing space. Mobile is the tip of
target audience which has grown up with
the iceberg, and where a lot of money & efforts will be concentrated on.
technology and are first embracers.
Australian marketing is about 10
Digital marketing is fast moving and it takes time and effort to keep up
with the technology. If you can keep up there are exciting times ahead.
years behind the UK in strategy
and channel optimisation, however, the
need to satisfy and focus on the customer
is always at the forefront of strategic
conversations. If companies don’t
I’m excited, with Google Glass about to disrupt social media,
have a plan in place to implement an
and Pebble leading the charge into smartwatch technology,
effective digital marketing plan, including
wearable digital devices will become integrated, more so, into
every aspect of life. And marketers need to be able to harness these
trigger based CRM, then they are already
technologies and provide customers with better brand experiences.
14
reporting through to optimisation and
5 years behind their competitors.

15. But there are still plenty of cynics…
Digital is simply another advertising/marketing
Stop making out it’s something
medium, we use it alongside traditional media
it isn’t. Digital is just another set
at different weights depending on the campaign
of channels - some work, some don’t.
objectives. It’s not a silver bullet, it may work in some
I wish the BS and noise would die.
cases and not in others... like any other medium!
It’s still full of digi-spruikers
Digital marketing is just another tool in the tool
conning money out of marketers
kit. It’s not always the answer, sometimes it is the
by pretending there is something
best/sole solution and sometimes it is part of an integrated
special about digital. With all these digi-
strategy. It’s probably going to grow in importance
experts we have not seen any market
as many more people spend more time online.
share shifts, nor any reduction in
budgets from testing and analytics.
15

16. A number of challenges have been identified…
I think digital marketing is evolving as we
It will become a very crowded space so we
speak. There’s little differentiation between
need to develop effective new ways to cut
editorial content and sponsored content and I think
through the clutter and connect with potential clients.
that this is going to be a problem. Many people want
to buy native advertising, but if there is too much
vendor content, then it will significantly reduce
the value of such content and their proposition.
As a marketing manager I feel overwhelmed at the enormity
of creating and implementing a digital marketing plan
with very little budget. I feel like our organisation has left it all up
Digital marketing has much
potential but the rapidly
evolving nature of it makes long term
usage strategies difficult to plan for.
There is always something new, lots
of static about social media, frauds
to my department and there is no support for us. My working
week is now 80% digital and I am not sure when that turning point
occurred. Over the next 12-18 months I can see that the digital task
will continue to be my team’s focus as we strive to harness its many
facets. It will be unlikely that we employ digital specialists, so we are
all trying to get up to speed with digital marketing as best we can.
purporting to be experts, people who
don’t understand specific industries,
a disconnect between reality and fact
which will continue into the future.
16
Positive as far as ROI and insight goes, apprehensive as to how long it will last,
fear consumers will say enough is enough with the stalking style tactics.

17. Lack of resources is a common theme…
There is a lot for our organisation to learn from how digital
I love it... and the possibilities seem
marketing can benefit our business. We currently need more
ENDLESS!!! (Just give me a budget) ;)
resources to even look at digital within the next 12 - 18 months.
I feel agnostic and
Lots of potential for creating great campaigns,
however resources are often understated
and great tools end up being under-utilised.
yet resigned to not
doing anything about it,
knowing there is absolutely
no budget for such activities.
Exciting opportunities exist. However, as a Government body that sets industry standards and ensures
industry compliance we are greatly restricted in terms of budget in the current economic environment.
17

18. Many are concerned about isolating digital activity
from the broader marketing mix
Growing, critical, but part of the greater marketing mix, integrated
campaigns still provide best return. digital alone won’t succeed.
Digital marketing will grow
I feel that people have very high exceptions of
however it should not be looked
digital marketing and that they need to understand
at in isolation in the total marketing mix.
it is one platform of a good multi-channel campaign.
Awash with opportunity but must be part of overall business strategy. Requires a huge corporate
cultural shift but those that embrace it and move forward with it will reap the rewards.
18

19. But the overwhelming tone is of EXCITEMENT & OPTIMISM
I am very excited about the
Excited! So much opportunity and if we don’t
outlook for the digital marketing
lose the NBN plans in Australia then we’ll have
industry. I am only a newbie and not
exponential growth in digital marketing. Marketers will need
formally trained, but the last two years
to be creative to stay one step ahead of the media savvy
working in this space have convinced
public. But the challenges and opportunities excite me!
me that this is the career I want.
I feel very passionately about digital marketing and would like to partake in more
training courses to keep up to date with new technologies and improvements.
Bring it on...!
19

20. Spend on offline activities
still outstrips online spend
by more than 60%
390+610= 39%
610+390= 61%
ONLINE/DIGITAL MARKETING ACTIVITIES
OFFLINE MARKETING ACTIVITIES
100 AVERAGE PROPORTION OF THE MARKETING
BUDGET SPENT ONLINE VS OFFLINE
Q: Approximately what proportion of your marketing budget
would currently be spent online (ie. on digital marketing
activities) compared with offline marketing activities?
Smaller firms are leading the way
in their investment in digital
39+61+x
39%
The average
proportion of the
marketing budget,
on average, spent on
DIGITAL marketing
activities
BY COMPANY TURNOVER
550+450= 55%
< $2MILLION
460+540= 46%
$2-19MILLION
330+670= 33%
$20MILLION OR MORE
20
BASE: CLIENT SIDE SAMPLE (N=330)

21. The momentum however is
clearly towards an increased
spend on digital marketing
And it is larger firms now
driving the increased spend
in digital and ‘catching up’
73+20+2+5+0+1+48+33+8 73+27+x
73% 20% 2% 5%
ONLINE/DIGITAL MARKETING
11% 48% 33% 8%
OFFLINE MARKETING
100 INCREASE SPEND
100 MAINTAIN SPEND
100 DECREASE SPEND
100 DON’T KNOW
Q: Looking ahead to the next 12-18 months, what is planned for your digital
marketing budget and your offline marketing budgets?
Indicates they
will increase their
spend on DIGITAL
marketing activities
73%
BY COMPANY TURNOVER
500+500= 50%
< $2MILLION
760+240= 76%
750+250= 75%
$2-19MILLION
$20MILLION OR MORE
21
BASE: CLIENT SIDE SAMPLE (N=330)

22. The use of social media & customer databases feature
heavily in current marketing activities
ONLINE
OFFLINE
840+160= 84%
810+190= 81%
600+400= 60%
550+450= 55%
320+680= 32%
310+690= 31%
270+730= 27%
210+790= 21%
170+830= 17%
150+850= 15%
120+880= 12%
90+910= 9%
820+180= 82%
650+350= 65%
590+410= 59%
470+530= 47%
460+540= 46%
360+640= 36%
180+820= 18%
180+820= 18%
EMAIL TO OWN DATABASE
SOCIAL MEDIA
DISPLAY ADS
PAID SEARCH
MOBILE
BUSINESS/ WEB ANALYTICS
EMAIL TO EXTERNAL DATABASE
VIDEO ADS
WEBINARS
AFFILIATE MARKETING
PERSONALISATION
PRICE COMPARISON SITES
22
BASE: CLIENT SIDE SAMPLE (N=330)
PRINT
TRADE SHOWS
DIRECT MAIL
RADIO
TV
OTHER EVENTS
TELEMARKETING
OUT OF HOME
Q: Looking at the extensive list below of offline and online
marketing channels, please indicate which channels currently
feature within your marketing mix (or the marketing mix of
the organisation you deal with most often). (Multiple answers
possible)

23. The top 5 over-rated marketing channels are all OFFLINE
380+620= 38%
240+760= 24%
160+840= 16%
150+850= 15%
130+870= 13%
110+890= 11%
60+940= 6%
60+940= 6%
60+940= 6%
50+950= 5%
40+960= 4%
40+960= 4%
30+970= 3%
20+980= 2%
50+950= 5%
PRINT
TV
TRADE SHOWS
DIRECT MAIL
RADIO
DISPLAY ADS
SOCIAL MEDIA
TELEMARKETING
PAID SEARCH
EMAIL MARKETING
OUT OF HOME
PRICE COMPARISON SITES
AFFILIATE MARKETING
WEBINARS
Q: Of those channels that currently feature in your marketing mix, which, if any, do you think are
over-rated and would prefer to see less of your marketing budget spent on?
OTHERS
23
BASE: CLIENT SIDE SAMPLE (N=330)

24. The top 5 growth opportunities are all ONLINE
220+780= 22%
140+860= 14%
120+880= 12%
100+900= 10%
80+920= 8%
60+940= 6%
30+970= 3%
SOCIAL MEDIA
EMAIL TO OWN DATABASE
PERSONALISATION
MOBILE
PAID SEARCH
TV
ALL OTHERS
Q: Looking again at the comprehensive list of marketing channels, which ONE channel, do you
perceive offers the greatest opportunity for growth of your organisation (or the organisation you
deal with most often) over the next 12-18 months?
24
BASE: CLIENT SIDE SAMPLE (N=330)

25. 3
FINDINGS IN DETAIL
Part 2.
Current patterns of behaviour
in digital marketing
25

26. What is in the digital toolkit and how
is that expected to change?
88+85+63+57+55+53+40+40+38+26+24+18+11
26
BASE: CLIENT SIDE SAMPLE (N=330)
18%
11%
IP LOOKUP
MARKETING AUTOMATION
26% 24%
CONTENT PROFILING
INTEGRATION TO CRM/
CUSTOMER REPOSITORIES
ECOMMERCE SERVICES
PERSONALISATION
MOBILE ADAPTED
VERSION OF WEBSITE
TESTING
57% 55% 53% 40% 40% 38%
SOCIAL MEDIA INTEGRATION
CAMPAIGN MANAGEMENT
85% 63%
EMAIL MARKETING
WEB ANALYTICS
88%
PREDICTIVE ANALYTICS
What’s hot right now?
Q: To what extent does your organisation use the following?
WEB ANALYTICS
AND EMAIL
MARKETING
ARE ON FIRE!

27. Some interesting observations about the different
digital activities being implemented
<5 YEARS MARKETING EXPERIENCE
5-14 YEARS MARKETING EXPERIENCE
15YEARS + MARKETING EXPERIENCE
Web analytics
81%
91%
88%
Email marketing
85%
88%
90%
Campaign management
71%
58%
78%
Social media integration
67%
59%
47%
Testing
52%
46%
57%
Mobile adapted version of the website
48%
41%
55%
Personalisation
54%
37%
55%
Ecommerce services
27%
40%
61%
Integration to CRM
46%
33%
31%
Content profiling
35%
19%
29%
Marketing automation
27%
23%
33%
Predictive analytics
23%
12%
24%
IP Lookup
17%
10%
12%
Q: To what extent does your organisation use the following?
27
BASE: CLIENT SIDE SAMPLE (N=330)

28. What’s planned for the
next 12 months?
What’s not on the radar yet…?
440+560= 44%
410+590= 41%
400+600= 40%
400+600= 40%
370+630= 37%
350+650= 35%
340+660= 34%
290+710= 29%
260+740= 26%
260+740= 26%
210+790= 21%
90+910= 9%
70+930= 7%
380+620= 38%
300+700= 30%
270+730= 27%
220+780= 22%
180+820= 18%
150+850= 15%
140+860= 14%
120+880= 12%
100+900= 10%
80+920= 8%
60+940= 6%
60+940= 6%
100 PLANNING TO USE IN THE NEXT 12 MONTHS
Q: To what extent does your organisation plan
to use the following in the next 12 months?:
PREDICTIVE ANALYTICS
CONTENT PROFILING
INTEGRATION TO CRM
PERSONALISATION
MOBILE VERSION OF WEBSITE
SOCIAL MEDIA INTEGRATION
MARKETING AUTOMATION
IP LOOKUP
CAMPAIGN MANAGEMENT
TESTING
ECOMMERCE SERVICES
WEB ANALYTICS
EMAIL MARKETING
Q: What does your organisation plan
to use in the next 12 months?
28
BASE: CLIENT SIDE SAMPLE (N=330)
IP LOOKUP
ECOMMERCE SERVICES
MARKETING AUTOMATION
PREDICTIVE ANALYTICS
CONTENT PROFILING
INTEGRATION TO CRM
PERSONALISATION
TESTING
CAMPAIGN MANAGEMENT
MOBILE VERSION OF WEBSITE
EMAIL MARKETING
SOCIAL MEDIA INTEGRATION
100 NO INTENT TO USE IN THE NEXT 12 MONTHS

29. There are several digital functions not well understood by marketers…
IP LOOKUP
?
?
220+780= 22%
160+840= 16%
140+860= 14%
90+910= 9%
70+930= 7%
60+940= 6%
60+940= 6%
40+960= 4%
50+950= 5%
30+970= 3%
20+980= 2%
PREDICTIVE ANALYTICS
?
MARKETING AUTOMATION
TESTING
INTEGRATION TO CRM
PERSONALISATION
MOBILE VERSION OF WEBSITE
CAMPAIGN MANAGEMENT
CONTENT PROFILING
SOCIAL MEDIA INTEGRATION
EMAIL MARKETING
100 I DON’T KNOW WHAT THAT IS
Q: To what extent does your organisation use the following?
29
BASE: CLIENT SIDE SAMPLE (N=330)

30. The knowledge gaps lie most significantly with junior-mid level marketers
<5 YEARS MARKETING EXPERIENCE
5-14 YEARS MARKETING EXPERIENCE
15 YEARS + MARKETING EXPERIENCE
IP Lookup
27%
22%
14%
Predictive analytics
13%
22%
4%
Marketing automation
17%
13%
6%
Testing
10%
12%
2%
Content profiling
10%
18%
10%
Integration to CRM
2%
7%
4%
Personalisation
4%
5%
0%
Mobile adapted version of the website
8%
6%
0%
Campaign management
4%
3%
2%
Social media integration
4%
1%
0%
Q: To what extent does your organisation use the following: (I DON’T KNOW WHAT THAT IS)
30
BASE: CLIENT SIDE SAMPLE (N=330)

31. Analytics & personalisation are the areas most want to be doing better…
IP LOOKUP 17%
ECOMMERCE SERVICES 19%
MARKETING AUTOMATION 32%
TESTING 32%
INTEGRATION TO CRM 32%
CAMPAIGN MANAGEMENT 33%
EMAIL MARKETING 34%
MOBILE VERSION OF WEBSITE 35%
CONTENT PROFILING 38%
SOCIAL MEDIA INTEGRATION 42%
PERSONALISATION 50%
PREDICTIVE ANALYTICS 50%
100 WHAT COULD YOUR ORGANISATION BE DOING BETTER?
51+50+50+42+38+35+34+33+32+32+32+19+17
WEB ANALYTICS 51%
Q: Which of the following, if any, do
you think your organisation should be
doing better? Please select all that
apply. (Multiple responses possible)
31
BASE: CLIENT SIDE SAMPLE (N=330)

32. Attitudes & behaviour of marketers working in a digital world
There is a clear need to deliver enhanced training to those new to the industry
Q: Have you undertaken any training
courses in digital marketing?
‘YES’, THEY HAVE UNDERTAKEN A TRAINING COURSE
40+60+x
40% YES
60% NO
SOME OF THE TRAINING UNDERTAKEN INCLUDED..
530+470= 53%
15 YEARS+ IN MARKETING
540+460= 54%
32
BASE: CLIENT SIDE SAMPLE (N=330)
•
Post-graduate degrees
•
Industry Association courses
•
Sitecore training courses
•
ADMA courses
•
Google Adwords
•
Google Analytics
•
SEO/SEM
•
Short courses (1-2 days)
Seminars
Webinars
•
5-14 YEARS IN MARKETING
Undergraduate degrees (units within)
•
380+620= 38%
•
•
< 5 YEARS IN MARKETING
In-house training

33. While most feel quietly
confident about their own
skills in digital marketing…
Q: How would you rate your own
knowledge of digital marketing?
170+830= 17%
EXCELLENT
430+570= 43%
GOOD
280+720= 28%
ADEQUATE
110+890= 11%
LIMITED
10+990= 1%
POOR
The more concentrated training directed
at senior marketers is reflected in
their own confidence… and also lack of
confidence amongst younger marketers
17+83+x
Marketers that rate
their own digital
marketing skills
as ‘excellent’
17%
MARKETING EXPERIENCE
130+870= 13%
< 5 YEARS IN MARKETING
230+770= 23%
5-14 YEARS IN MARKETING
270+730= 27%
15 YEARS+ IN MARKETING
33
BASE: CLIENT SIDE SAMPLE (N=330)

34. Almost one in four think their
organisation is more digitally
competent than their competitors…
240+760= 24%
300+700= 30%
180+820= 18%
120+880= 12%
120+880= 12%
40+960= 4%
AHEAD OF MOST OF OUR COMPETITORS
ABOUT THE SAME AS OUR COMPETITORS
ABOUT 6 MONTHS BEHIND OUR COMPETITORS
ABOUT 12 MONTHS BEHIND OUR COMPETITORS
MORE THAN 12 MONTHS BEHIND OUR COMPETITORS
I DON’T KNOW/ COULDN’T SAY
100 DIGITAL COMPETENCY WITHIN THE ORGANISATION
24%
MARKETING EXPERIENCE
220+780= 22%
< 5 YEARS IN MARKETING
230+770= 23%
5-14 YEARS IN MARKETING
15 YEARS+ IN MARKETING
EDUCATION SECTOR: 19%
GOVERNMENT SECTOR : 30%
BASE: CLIENT SIDE SAMPLE (N=330)
24+76+x
Marketers believe they
are ahead of most
of their competitors
in terms of digital
competency
330+670= 33%
Q: Which of the following best describes your impression of
the digital competence within your organisation?
34
Senior marketers feel particularly confident
about their competitive position. The enhanced
training received by senior marketers is
reflected not only in their higher level of digital
competency… but also in a competitive edge

35. Digital marketing is now mainstream. Marketers feel more
confident about it and are embracing the opportunities.
Q: Listed below are a number of statements other people have shared with us about
how they are feeling about digital marketing. Using a scale from 1 to 5 please
indicate the extent to which you agree or disagree with each statement.
I now see digital marketing as part of mainstream marketing
I find working on digital marketing activities both stimulating and exciting
I feel more confident executing digital marketing
activities than I did 12 months ago
Measurement of the impact of digital marketing activities
continues to be a major challenge for the industry
I continue to be impressed by the outcomes
achieved by our digital marketing activities
I prefer traditional, offline marketing methods as they have a proven ROI
I avoid getting involved in digital marketing activities when I can
I don’t really ‘get’ the fuss about digital marketing
950+50= 95%
830+170= 83%
720+280= 72%
650+350= 65%
600+400= 60%
80+600+320= 8%
70+830+100= 7%
70+830+100= 7%
60% DISAGREE
83% DISAGREE
83% DISAGREE
100 STRONGLY AGREE/ AGREE
100 DISAGREE
35
BASE: CLIENT SIDE SAMPLE (N=330)

36. Mid-size companies are the
most likely to be seeing rewards
from their digital activities
Digital success amongst midsize companies is now translating
to increased confidence
60+40+x
BY COMPANY TURNOVER
72+28+x
550+450= 55%
630+370= 63%
690+310= 69%
750+250= 75%
590+410= 59%
700+300= 70%
60%
Continue to be
impressed by the
outcomes achieved
by their digital
marketing activities
< $2MILLION
$2-19MILLION
$20MILLION OR MORE
36
BASE: CLIENT SIDE SAMPLE (N=330)
72%
Feel more confident
executing digital
marketing activities
than they did 12
months ago
BY COMPANY TURNOVER
< $2MILLION
$2-19MILLION
$20MILLION OR MORE

37. Managing the digital marketing strategy
There is great variation in approach taken to
managing the digital marketing function
We outsource all digital marketing activities
We have a single marketing person who
handles all activities, including digital
We employ a ‘digital manager’ or equivalent
We have a ‘digital marketing team’
We have different teams for different digital marketing functions
Something else
I don’t know
80+920= 8%
200+800= 20%
130+870= 13%
280+720= 28%
220+780= 22%
80+920= 8%
40+960= 4%
380+620= 38%
100+900= 10%
150+850= 15%
340+660= 34%
100 < $20MILLION TURNOVER
100 > $20MILLION TURNOVER
Q: How does your organisation currently manage the digital marketing activities?
37
BASE: CLIENT SIDE SAMPLE (N=330)

38. Multiple platforms are common for managing content
activity, particularly in larger companies
Q: Still thinking about the content
management activities listed previously, do
you use different platforms to manage the
different activities or are they all managed
from a single platform/ one solution?
BY COMPANY TURNOVER
10+17+73x
10% I DON’T KNOW
17% SINGLE PLATFORM/
ONE SOLUTION
73% DIFFERENT/
MULTIPLE PLATFORMS
$2-19MILLION
$20MILLION OR MORE
670+330= 67%
670+330= 67%
770+230= 77%
210+790= 21%
220+770= 22%
170+830= 17%
MULTIPLE PLATFORMS
< $2MILLION
ONE SOLUTION
38
BASE: CLIENT SIDE SAMPLE (N=330)

39. Most marketers feel vulnerable
about their social media
strategy & keep a close eye
on competitor activity
470+530= 47%
410+590= 41%
390+610= 39%
370+630= 37%
270+730= 27%
150+850= 15%
SOCIAL MEDIA TECHNOLOGY
APPS
MOBILE
NZ marketers are feeling
left behind in the area of
business and web analytics
37+63+x
Overall feel that
competitors have an
edge in business/
web analytics
37%
BUSINESS/ WEB ANALYTICS
350+650= 35%
EMAIL PLATFORMS
500+500= 50%
AUSTRALIA
NEW ZEALAND
OTHERS RESPONSES
100 WHERE DO YOUR COMPETITORS HAVE AN EDGE
Q: In which of the following areas, if any, do you feel that your
competitors have an edge over what your organisation is doing
(or the organisation you are dealing with most often)?
39
BASE: CLIENT SIDE SAMPLE (N=330)

40. What constitutes digital success and how is it measured?
Most track ROI to report back
to the executive team… But
20% are NOT TRACKING ROI
on digital activities at all!
500+500= 50%
380+620= 38%
160+840= 16%
140+860= 14%
200+800= 20%
YES, TO REPORT BACK TO THE EXECUTIVE TEAM
YES, TO DETERMINE WHERE TO SPEND MORE
FUNDS OR WHERE TO CUT BACK
YES, FOR ADDITIONAL FUNDING
YES, BUT I’M NOT SURE HOW TO USE
THE INFORMATION YET
NO, WE DON’T TRACK THE ROI ON DIGITAL ACTIVITIES
Q: Does your organisation track the ROI on digital marketing activities?
Smaller companies tend to be
the ones not tracking ROI
20+80+x
Don’t track the
ROI on their digital
marketing activities
20%
BY COMPANY TURNOVER
250+750= 25%
< $2MILLION
150+850= 15%
$2-19MILLION
160+840= 16%
$20MILLION OR MORE
40
BASE: CLIENT SIDE SAMPLE (N=330)

41. Marketers with weak digital
marketing skills are also far less
likely to be measuring digital ROI
20+80+x
On average, do
NOT track the ROI
on their digital
marketing activities
20%
BY DIGITAL MARKETING COMPETENCY
50+950= 5%
EXCELLENT
120+880= 12%
GOOD
Most marketers are still
anchored to website traffic as
an indicator of digital success
730+270= 73%
570+430= 57%
440+560= 44%
380+620= 38%
380+620= 38%
290+710= 29%
230+770= 23%
70+930= 7%
40+960= 4%
30+970= 3%
VISITS TO THE WEBSITE
CONVERSIONS/ SALES/ NEW CUSTOMER ACQUISITIONS
LEADS GENERATED
KPIS ALIGNED WITH BUSINESS OBJECTIVES
MARKETING OBJECTIVES ACHIEVED
INCREASED SITE PERFORMANCE
HIGHER CUSTOMER SATISFACTION
KPIS ALIGNED WITH CUSTOMER LIFECYCLE ACROSS MULTIPLE CHANNELS
SHORTENED TIME FROM CONTENT CREATION TO PUBLISHING
WE DON’T MEASURE THE IMPACT OF OUR DIGITAL ACTIVITIES
250+750= 25%
ADEQUATE
540+460= 54%
LIMITED
100 MEASURES OF DIGITAL SUCCESS CURRENTLY USED?
Q: How does your organisation measure the success of digital marketing
activities? Please select all that apply (multiple answers possible).
41
BASE: CLIENT SIDE SAMPLE (N=330)

42. Marketers are in no doubt about
what the boss is looking for!
Web analytics could be used more
effectively in most organisations
430+570= 43%
140+860= 14%
100+900= 10%
90+910= 9%
60+940= 6%
60+940= 6%
100+900= 10%
480+520= 48%
80+920= 8%
280+720= 28%
160+840= 16%
CONVERSIONS/ SALES/ NEW CUSTOMER ACQUISITIONS
KPIS ALIGNED WITH BUSINESS OBJECTIVES
LEADS GENERATED
VISITS TO THE WEBSITE
MARKETING OBJECTIVES ACHIEVED
HIGHER CUSTOMER SATISFACTION
OTHER RESPONSES
100 MEASURE MOST VALUED BY MANAGEMENT
Q: Which measurement do you believe is valued most highly by the
management team? Please just choose one of the options below
42
BASE: CLIENT SIDE SAMPLE (N=330)
PERIODIC MARKETING MEETINGS
REAL TIME
BOTH OF THESE
I DON’T KNOW/ COULDN’T SAY
Q: Are the analytics that are gathered used primarily in ‘real time’ or
for discussion and reviews during periodic marketing meetings?

43. Use of web analytics
FUNCTIONS
USED EXTENSIVELY
USED MODERATELY
LIMITED/ NO USE
For reporting
38%
41%
16%
For insights
22%
43%
28%
For recommendations about SEO/SEM
17%
35%
38%
For recommendations about content optimisation
12%
34%
40%
For recommendations about conversion optimisation
10%
30%
51%
For recommendations about Site optimisation
10%
37%
45%
For recommendations about which content
should be used for market automation
5%
19%
62%
Q: To what extent does your organisation currently use web analytics for each of the following functions?
43
BASE: CLIENT SIDE SAMPLE (N=330)

44. Barriers to the acceleration of digital marketing
Limited financial resources is the most significant barrier
to greater investment in digital marketing
Limited marketing budget
Lack of understanding/ education
about digital marketing
Lack of capabilities in digital software
Lack of executive support and buy-in
Lack of clear understanding of ROI
Reliance on traditional marketing
Difficulty recruiting digital staff
A fear of failure
Difficulty retaining digital staff
510+490= 51%
340+660= 34%
330+670= 33%
300+700= 30%
290+710= 29%
270+730= 27%
160+840= 16%
150+850= 15%
110+890= 11%
520+480= 52%
420+580= 42%
300+700= 30%
530+470= 53%
260+740= 26%
330+670= 33%
100 AUSTRALIA
100 NZ
100 SIGNIFICANT BARRIER
Q: Listed below are a number of factors that have been identified as barriers to
increasing the investment in digital marketing at different organisations. How significant
do you perceive each of these issues as a barrier in your organisation?
44
BASE: CLIENT SIDE SAMPLE (N=330)

45. Limited budgets are a more
significant problem for smaller
companies who would like
to invest more in digital
51+49+x
Junior & mid level marketers are far more
likely to cite a lack of digital marketing
knowledge as a barrier. Previous
results support this and reinforce a
need for more training at junior levels
BY COMPANY TURNOVER
34+66+x
710+290= 71%
330+670= 33%
650+350= 65%
350+650= 35%
430+570= 43%
180+820= 18%
51%
Overall identify a
‘limited marketing
budget’ as a
significant barrier to
further investment
in digital marketing
< $2MILLION
$2-19MILLION
$20MILLION OR MORE
34%
BY MARKETING EXPERIENCE
Overall identify ‘lack
of understanding/
education about
digital marketing’ as
a significant barrier
to further investment
in the area
< 5 YEARS IN MARKETING
5-14 YEARS IN MARKETING
15 YEARS+ IN MARKETING
45
BASE: CLIENT SIDE SAMPLE (N=330)

46. Younger marketers do not feel that clear objectives are being
set for ROI on digital activities. Senior marketers must do
more to keep their team moving in the same direction
29+71+x
Overall, identify ‘lack of clear understanding
of ROI’ as a significant barrier to further
investment in digital marketing.
29%
BY MARKETING EXPERIENCE
310+690= 31%
< 5 YEARS IN MARKETING
290+710= 29%
5-14 YEARS IN MARKETING
120+880= 12%
15 YEARS+ IN MARKETING
46
BASE: CLIENT SIDE SAMPLE (N=330)
ROI?

47. Summary of key themes
Digital marketing is no longer niche.
Digital marketing is now considered mainstream within the marketing repertoire.
Marketers have seen the opportunities presented and are now embracing them.
Big companies are waking up to the advantages.
Large companies are now leading the investment in digital marketing activities.
While smaller companies were the early adopters of digital marketing, the big spenders are now
catching up and are the most likely to be investing more in digital over the next 12 months.
Senior marketers are building their own skills in digital marketing
but greater emphasis is now needed at the junior-mid levels.
Experienced marketers (15yrs+ in the industry) are more likely to have undertaken
specific training in digital marketing (relative to those with 10yrs or less in the industry)
and this is reflected in their knowledge of the digital tools available to them, application
of more sophisticated digital tools and higher rates of measurement of ROI.
Less experienced marketers are less knowledgeable about digital, are less likely to measure
ROI and are generally less confident about the Digital Marketing strategies they implement.
Web analytics is not being used effectively.
Web analytics are used primarily for periodic reporting and most marketers are frustrated
in their knowledge that they could be used far more effectively. Web analytics is
the number one area marketers would like to see their organisations improve.
Big appetite for predictive analytics.
Predictive analytics is largely viewed as the next ‘golden ticket’
but most feel ill equipped to move in that direction.
Digital ROI is a work in progress.
ROI of digital activity is still evolving and most are still focused on visits to the
website as a primary measure of success. 20% are not measuring ROI at all.
47

48. About Sitecore
Sitecore is the global leader in customer experience management software for delivering the marketing that matters
most – highly relevant content and personalised digital experiences that delight customers, increase loyalty and
drive revenue. With Sitecore’s fully unified, powerful, and easy-to-use software suite, marketers can focus on
engaging customers instead of managing data – to deliver experiences that are relevant, immediate, and integrated
across channels. More than 3000 of the world’s leading brands – including Nissan Australia,
Network 10, AustralianSuper, Canon, Blackmores, Jenny Craig,
Sydney Airport, AGL, Water Corporation, and TAL.
e. Sales-au@sitecore.net
t. +61 2 8014 8857
Level 4, 50 Pitt Street
SYDNEY NSW 2000
Level 1, 27-31 King St
MELBOURNE VIC 3000
www.sitecore.net
48