emarketer marketing_technology-the_six_developments_that_matter_the_most_in_2016

MARKETING
TECHNOLOGYThe Six Developments That
Matter the Most in 2016
MARCH 2016
BryanYeager
Contributors: Rebecca Chadwick, Lauren Fisher, Maria Minsker
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eMarketer for iPad

MARKETING TECHNOLOGY: THE SIX DEVELOPMENTS THAT MATTER THE MOST IN 2016 ©2016 EMARKETER INC. ALL RIGHTS RESERVED 2
CONTENTS
2 Marketing Technology
3 As the C-Suite Focuses on Data and Analytics, Marketing
Technology Steps into the Spotlight
6 The Expansion of the Marketing Tech Landscape
Continues to Outpace Consolidation
9 Marketing Technology Strategy Matures, But with Room
for Staying Agile
11 The Nebulous Task of ‘Integration’ Becomes Clearer and
Easier to Accomplish
13 Marketing Technology and Advertising Technology
Come Together
15 Tech- and Data-Focused Agencies Are in High Demand
17 eMarketer Interviews
18 Related eMarketer Reports
MARKETING TECHNOLOGY: THE SIX DEVELOPMENTS THAT MATTER THE
MOST IN 2016
CEOs are talking about it, as its size and scope continues to grow. Marketers are getting ever-savvier at dealing with
it, especially as the dots become easier to connect. And agencies have no choice but to embrace it. It’s marketing
technology—the underlying software and services that power modern marketing operations.
■■ Data-driven marketing executives are increasingly being
tapped by their CEOs to lead companywide digital
transformation efforts, bringing marketing technology
into the spotlight to help solve new problems across
their organization.
■■ Innovation in marketing technology continues to
outpace consolidation in the space as the media
universe continues to expand, resulting in a steady
influx of new players. But economic headwinds could
put the brakes on the rapid growth seen over the past
five years.
■■ In the face of relentless change, marketers have
solidified their technology strategy, with built-in
flexibility to ensure they can keep up with the times.
■■ One way marketers are staying flexible is by getting a
handle on the frequently vague task of “integration,”
with dedicated in-house teams and strides from tech
vendors in making their tools work well with others.
■■ Because consumer behavior cuts across owned,
earned and paid media, marketers trying to get a
more holistic grasp on those behaviors are working to
get data from all those channels under one roof. As a
result, marketing technology and advertising technology
are merging.
■■ Agencies and other third-party marketing service
providers realize they need to be experts on data and
technology to meet the demands of their clients, and
through various investments they are working to stay
ahead of the curve.
WHAT’S IN THIS REPORT?This report details the six
marketing technology developments eMarketer believes
will matter the most to brands and agencies in 2016.
% of respondents
Change in Data-Driven Ad/Marketing Spending
According to Ad/Marketing Professionals Worldwide,
2015 & 2016
5—increased signiﬁcantly
20.1%
28.3%
4
36.2%
40.3%
3—no change
33.0%
24.0%
2
6.3%
4.6%
1—decreased signiﬁcantly
4.4%
2.2%
2015 2016
Note: numbers may not add up to 100% due to rounding
Source: Global Alliance of Data-Driven Marketing Associations (GDMA) and
Winterberry Group, "The Global Review of Data-Driven Marketing and
Advertising 2015" with the support of MediaMath, Dec 10, 2015
202325 www.eMarketer.com
KEY STAT: Spending on data-driven marketing and
advertising continues to grow worldwide. As a result,
marketing technology investments will follow.

AS THE C-SUITE FOCUSES ON
DATA AND ANALYTICS,
MARKETING TECHNOLOGY STEPS
INTO THE SPOTLIGHT
CEOs today are anxious to harness the power of
digital platforms and the data they generate to stay
competitive and drive future growth. As a result,
marketers that have embraced a data- and tech-driven
approach are being tasked to spearhead digital
initiatives that cut across the organization, helping
raise the awareness and underscore the strategic
importance of marketing technology in the process.
September 2015 data from consultancy
PricewaterhouseCoopers (PwC) underscored the top
benefit that C-level executives worldwide see by investing
in a more digital enterprise: revenue growth. While it’s
true that creating a better customer experience is also
an important benefit, it’s apparent that business leaders
want to ensure those enhancements are ultimately tied
back to key business objectives.
% of respondents
Primary Beneﬁt that C-Level Executives Worldwide
Expect to See from Their Digital Enterprise
Investments, Sep 2015
Grow revenues
45%
Create better customer experiences
25%
Increase proﬁts
12%
Innovate our products
5%
Achieve cost savings
4%
Improve talent retention and recruitment
2%
Enhance brand and reputation
2%
Improve decision-making through better data analytics
2%
Disrupt our own or other industries
1%
Combat new industry entrants
1%
Other
1%
Note: n=1,988
Source: PricewaterhouseCoopers (PwC), "2015 Global Digital IQ Survey,"
Sep 30, 2015
Though business and technology managers find that
CEOs are the most effective at working to integrate and
align their organization’s technology department to meet
new business demands (like being more digital- and
customer-centric, for example), marketing executives
are not far behind. July 2015 research from think tank
Business Performance Innovation (BPI) Network found
that chief sales, marketing or customer experience
officers are more effective than even chief technology
officers (CTOs) at merging tech and business goals,
at least in the view of business/technology managers
worldwide who were queried.

% of respondents
Roles that Are Working Most Effectively to
Integrate/Align the CIO and IT Organization with New
Business Demands* According to
Business/Technology Managers Worldwide, July 2015
CEO
42%
Chief sales, marketing or customer experience officer
37%
Chief technology officer
34%
Line or business leaders
28%
CFO
21%
Head of strategic planning
19%
COO
16%
Head of product development
15%
Chief digital officer
9%
Head of compliance and governance
9%
Chief security officer
5%
General counsel
2%
Other
7%
Note: *demands, dynamics, requirements and risks
Source: Business Performance Innovation (BPI) Network, "Accelerating
Business Transformation Through IT Innovation: Getting the Business
Leader Take on the IT Change Mandate" sponsored by Dimension Data, Aug
10, 2015
“C-suite expectations from their CMOs have
skyrocketed,” said Kashyap Kompella, research director
for independent research and consulting firm Real
Story Group. “In addition to their day jobs orchestrating
bread-and-butter marketing, CMOs are expected to
be chief experience architects, chief digital officers
[CDOs] and be the board’s consiglieres in the company’s
digital charge.”
CMOs, chief information officers (CIOs) and the
increasingly common CDOs all look at what digital means
for their business in slightly different ways, per PwC’s
survey. While all three agreed that “technology
innovation-related activities” were an important aspect
in defining digital for their company, CMOs ranked
customer-facing tech activities higher and viewed digital
as less synonymous with IT than did CIOs and CDOs.
% of respondents
Ways in Which Their Company Defines Digital
According to CDOs, CIOs and CMOs Worldwide,
Sep 2015
CMOs CIOs CDOs
Technology innovation-related activities 62% 50% 46%
Customer-facing technology activities 49% 33% 37%
Synonymous with IT 29% 41% 41%
Technology investments in all parts of business 25% 41% 45%
Data and analytics activities 11% 14% 13%
Source: PricewaterhouseCoopers (PwC), "2015 Global Digital IQ Survey,"
Sep 30, 2015
Ashu Garg, general partner at early-stage venture capital
firm Foundation Capital, says that this may be because
“the biggest priorities for digital transformation are
marketing-related issues: transforming the customer
experience, commerce and marketing communication.”
As a result, Garg believes that as the world becomes
more digitally inclined, marketing “will play an increasing
role in driving the technology agenda.”
August 2015 data from the Association of National
Advertisers (ANA) supports Garg’s thinking. It showed
that US marketing organizations—the groups that have to
execute these digital initiatives—now have a diverse array
of roles to support more digitally adept companies. More
than half of marketers polled said they previously had
existing roles dealing with social media (76%), marketing
operations (65%) and customer experience (56%); nearly
half also had staff dedicated to marketing technology.
Additionally, top functions created in 2015 included
content strategy (30%), marketing/digital transformation
(21%) and mobile (18%). And the top roles planned for
creation in 2016 were data science, customer experience
and mobile.
Even so, to be a true change agent across an organization,
“CMOs need to forge tighter partnerships with the CIOs
and several other functions within the organization,”
Kompella said. While marketing can certainly help the
business understand customers better, delivering superior
customer experiences extends beyond the marketing
department, he added. Instead, “you need a strategy for
the overall digital transformation for the organization.”
Many organizations are still at the early stages of digital
transformation, though, according to an April 2015
Economist Intelligence Unit (EIU) survey. Just 7% of
executives polled worldwide had transformed up to half
of their business practices, while three in 10 were just
starting to develop their digital transformation strategy.

% of respondents
Extent to Which Their Organization Has Undergone
Digital Transformation According to Executives
Worldwide, April 2015
Transformed more than half of our business practices
8%
Transformed up to half of our business practices
7%
Starting to implement our digital transformation
26%
Developed our high-level digital transformation strategy but
have not started implementing yet
27%
Developing/starting to develop our digital transformation
strategy
31%
Source: The Economist Intelligence Unit (EIU), "Digital Evolution: Learning
from the Leaders in Digital Transformation" sponsored by Accenture and
Pegasystems, Oct 14, 2015
The same EIU study found that the leading digital
transformation goals of respondents included improving
customer satisfaction, loyalty and retention, at 53%,
followed by improving operational efficiency (52%) and
maintaining or achieving market leadership within their
industry (48%).
Some of these digital transformation objectives are
at odds with the customary goals of certain types of
marketing practitioners, many of whom have been
more focused on customer acquisition than post-sales
experience and engagement.
For US email marketers, there is a strong focus on
customer acquisition, based on November 2015 research
conducted by email marketing services provider
Campaigner. Close to three-quarters of respondents said
attracting new customers was their top marketing goal for
2016, with just four in 10 focused on customer retention.
% of respondents
Leading Marketing Goals for 2016 According to US
Email Marketers
Attracting new customers 74.0%
Customer retention 40.1%
Increased brand awareness 39.3%
Increased ecommerce activity29.0%
Brand loyalty 18.5%
Note: respondents selected their top 2
Source: Campaigner, "2016 Insights Survey," Jan 20, 2016
Among the US marketers and service providers polled
in July 2015 by the Direct Marketing Association (DMA)
and marketing consultancy Winterberry Group, customer
acquisition (61.4%) and customer retention (60.6%)
were on more equal footing in terms of key priorities.
Evaluating the utilization of existing marketing technology,
along with integrating and activating new data sources,
were also cited as important goals.
% of respondents
Initiatives that Are Likely to Be a Priority* for Their
Company According to US Marketing Professionals,
Q1-Q3 2015
Expanding focus on customer acquisition
Expanding focus on retention, loyalty and CRM
Evaluating utilization of marketing technologies
Integrating/activating new data sources
Evaluating new/emergent marketing technologies
Training existing marketing staff
Revisiting/updating data governance
policies/processes
Hiring additional marketing staff
Pursuing deeper involvement in industry
trade organizations
Insourcing marketing functions
previously outsourced
Outsourcing marketing functions previously
managed internally
Q1
2015
71.6%
69.9%
56.7%
59.9%
53.8%
54.8%
41.7%
40.5%
23.7%
31.0%
22.2%
Q2
2015
61.4%
60.6%
51.3%
50.8%
48.3%
42.2%
29.8%
36.1%
25.0%
31.0%
27.8%
Q3
2015
72.2%
67.5%
58.7%
57.0%
55.0%
47.5%
38.7%
37.7%
30.7%
28.2%
22.2%
Note: over the coming year; *and focal point for attention/resources
Source: Direct Marketing Association (DMA) and Winterberry Group,
"Quarterly Business Review Q3 2015," Dec 3, 2015
Still, the potential to have a wider-scale impact on a
company is an exciting prospect to client-side marketers
and agency professionals alike. Per December 2015
research by Econsultancy, optimizing the customer
experience topped out as the most exciting opportunity
in 2016 among these two constituencies, followed
by creating compelling content to power these digital
experiences and creating data-driven marketing that
focuses on the individual.

% of respondents
Most Exciting Opportunity for Their Company* in 2016
According to Client-Side Marketers vs. Agency
Professionals Worldwide
Optimizing the customer experience
Creating compelling content for
digital experiences
Data-driven marketing that focuses
on the individual
Using marketing automation to increase
efficiency and yield
Cross-channel marketing
Internet of things/connected devices
Social marketing
Video to increase brand engagement
Reaching and understanding mobile customers
Location-based services that add place and
time to the customer relationship
None of these
Client-side
marketers
22%
16%
16%
9%
8%
6%
6%
6%
4%
3%
4%
Agency
professionals
19%
17%
16%
7%
8%
7%
7%
7%
5%
3%
4%
Note: n=3,013 client-side marketers; n=2,653 agency professionals; *or for
their clients
Source: Econsultancy, "Quarterly Digital Intelligence Briefing: 2016 Digital
Trends" in association with Adobe, Jan 22, 2016
Tip Rose, vice president of enterprise digital marketing
at healthcare services firm Cardinal Health, said that his
team focuses on its sales funnel and how marketing
technology can support goals like improving the velocity
of prospects turning into customers. But as a result, they
“sometimes forget about the fact that we can also use a
lot of these same tools to enhance the overall customer
experience for our existing customers.” As marketers
continue to expand their scope, the underlying technology
on which they’ve come to rely on can also be used to
help solve new problems.
THE EXPANSION OF
THE MARKETING TECH
LANDSCAPE CONTINUES TO
OUTPACE CONSOLIDATION
Spending on marketing technology continues to
grow, and so do the number of vendors vying to
capture their share of those bulging budgets.Though
some consolidation is expected in legacy categories,
it will be outpaced by the expansion brought about
by new channels and innovations.
One key marketing technology growth driver is an
anticipated increase in spending on data-driven marketing
and advertising. Polling from the Global Alliance of
Data-Driven Marketing Associations (GDMA) and
Winterberry Group indicated that ad and marketing
professionals worldwide planned bigger spending
increases on data-driven activities in 2016 than in 2015.
Specifically, more than one-quarter of respondents
expected significant increases for the year ahead.
% of respondents
Change in Data-Driven Ad/Marketing Spending
According to Ad/Marketing Professionals Worldwide,
2015 & 2016
5—increased significantly
20.1%
28.3%
4
36.2%
40.3%
3—no change
33.0%
24.0%
2
6.3%
4.6%
1—decreased significantly
4.4%
2.2%
2015 2016
Source: Global Alliance of Data-Driven Marketing Associations (GDMA) and
Winterberry Group, "The Global Review of Data-Driven Marketing and
Advertising 2015" with the support of MediaMath, Dec 10, 2015

And in April 2015 research conducted by Forbes Insights
in association with predictive analytics tech provider
Lattice, eight in 10 marketing execs polled in North
America expected some type of increase in marketing
technology purchases over the next year, with the most
common increases ranging from 1% to 10%.
% of respondents
Planned Change in Marketing Technology Purchases
According to Marketing Executives in North America,
April 2015
<1% increase
3%
1%-5% increase
28%
6%-10% increase
27%
11%-20% increase
16%
21%-25% increase
5%
26%+ increase
5%
No change
10%
Decrease
2%
Don't know
5%
Note: over the next year; numbers may not add up to 100% due to
rounding
Source: Forbes Insights, "The Predictive Journey: 2015 Survey on Predictive
Marketing Strategies" in association with Lattice, Oct 27, 2015
The practitioners who spoke with eMarketer for this
report overwhelmingly said that they have increased their
marketing tech budgets as well, though not all of them
take a line-item approach. Chris Curtin, Visa’s chief brand
and innovation marketing officer, works with the brand’s
CIO to define needs and determine what’s going to be
added to the portfolio throughout the year. “That will
represent an increase in our marketing technology spend,
but it’s not because we’ve got to meet a quota of a 10%
year-over-year increase,” he said.
Some marketing technology categories like web analytics,
ecommerce and web content management have been
around for well over a decade. But there are still new
companies developing products that they think can
compete and potentially displace incumbents, according
to Scott Brinker, editor of the Chief MarketingTechnologist
blog and co-founder and CTO for ion interactive, an
interactive content software provider.
“There is certainly consolidation happening, but the pace
of innovation does not seem to have slowed,” Brinker
explained.Though he believes the size of the marketing
technology landscape is no longer doubling each year
like it used to, “you’re still talking about thousands of
companies that are trying to innovate in the space.”
Many companies in this marketing technology universe
are startups, and marketers are increasingly interested
in working with these emerging firms to help meet
objectives while also staying ahead of the tech curve. A
September 2015 survey conducted by the ANA and the
ConsumerTechnology Association (CTA) found that 36%
of US client-side marketers had worked with startups for
marketing or advertising purposes within the past year.
The top areas or tactics where those marketers worked
with startups included social media, content development
and management, and research and analytics.
% of respondents
Areas/Tactics for Which Their Company Works with
Startups According to US Client-Side Marketers,
Sep 2015
Social media 53%
Content development and management 49%
Research and analytics 45%
Mobile advertising 43%
Marketing automation 39%
Promotions 37%
Programmatic buying 35%
Data management 33%
Web/app development 31%
Campaign management16%
Other 14%
Note: n=51 whose company works with startups
Source: Association of National Advertisers (ANA) and Consumer
Technology Association (CTA) (formerly Consumer Electronics Association
(CEA)), "Brands Working with Startups," Feb 2, 2016
Duane Schulz, the chief marketing technologist at Xerox,
said that even though many of the major pieces of his
company’s marketing stack are in place, he nonetheless
takes several “carefully curated cold calls from potential
vendors” per week to stay abreast of new capabilities
that might fit a future need.

In truth, though, some marketers could do a better job
of utilizing their existing tech assets, since it’s already
common for them to work with several tech providers
to support their practice. Skyword’s July 2015 research
found that just 9% of US marketers used one technology
provider, while more than a quarter used between four
and 10 providers. Another 21% claimed that they worked
with 11 or more.
% of respondents
Number of Technology Providers with Which US
Marketers Work for Marketing Purposes, July 2015
1 9%
2 22%
3 21%
4-10 27%
11+ 21%
None1%
Note: n=190; numbers may not add up to 100% due to rounding
Source: Skyword, "A Study in Brand Transformation: Are Enterprise
Marketers Transforming Their Organizations for Sustained Storytelling?"
conducted by Researchscape, Jan 12, 2016
It’s well within the realm of possibility that marketers
need to use a broad swath of tools and providers to
accomplish their objectives. But there is also concern
that existing technologies might not be getting used to
their fullest potential, especially as it becomes easier to
bring in software-as-a-service (SaaS) solutions to solve
immediate problems.
At business software firm CATechnologies, vice president
of marketing technology and demand analytics Cynthia
Gumbert says that her group is constantly reevaluating
its stack just to make sure they’re not paying twice
for the same thing. “It’s a constantly moving universe
of capabilities,” she said. “What we bought yesterday
isn’t going to be the same thing as what we have in
place tomorrow.”
And Jason Heller, the global lead of digital marketing
operations for consulting firm McKinsey & Company,
believes the aspiration to overcome those types
of challenges will be the focus of the next wave of
marketing technology innovation. “I believe the pendulum
will swing the other way from where it has been the
past few years, where there are a lot of point solutions
that have evolved for specific use cases.” Instead,
Heller expects to see more “metasystems,” which have
customer data management and analytics at their core to
maximize the existing technology infrastructure.
Numerous sources have pointed to the robust
investment activity that took place in this area in 2015.
Investment bank Petsky Prunier reported 979 marketing
technology deals (one more than in 2014). It valued them
at more than $26 billion (up 38.4% over the year prior).
And researcher VB Insight estimated that more than
$11 billion in venture capital funding went to 323
marketing technology startups in 2015.
But a softening economy could lead to tighter capital
markets, in which newer startups might find it harder
to get early-stage venture funding, and more mature
companies could be pressured by investors to sell—
both leading to consolidation. Some segments, like
advertising technology, have already witnessed a funding
pullback, according to January 2016 data from investment
bank Coady Diemar Partners. Between 2014 and 2015,
the firm found that transactions in the “ad tech and
services” category contracted by 25.3%, and deal value
decreased 7.4%.

MARKETING TECHNOLOGY
STRATEGY MATURES, BUT WITH
ROOM FOR STAYING AGILE
As marketers become ever more reliant on using
technology to manage and measure their efforts,
they are turning into more seasoned strategists in
building, maintaining and deploying their marketing
technology stacks. But in reaction to the relentless
pace of change in a digital world, they’re also
building in ways to ensure that stack can evolve with
the times.
One thing is certain: Marketers have to make more
tech-related decisions than ever before. Skyword’s
July 2015 survey of US marketers found that adoption
of new technologies was the top change made within
the respondents’ companies in the year prior. Other
prominent changes included the increased use of social
networks, the expanded use of content marketing,
reorganization of the marketing department and the
addition of new marketing channels.
In the face of these changes, companies are “becoming
much more realistic about deploying marketing
technologies,” according to Scott Vaughan, CMO of
Integrate, which provides services for improving demand
generation programs and their underlying systems.
Specifically, Vaughan believes marketers are getting
better at avoiding the “shiny new toy syndrome” aspect
of technology and instead more effectively aligning tech
investments with business objectives.
Brinker of ion interactive said that marketers are now
“trying to rationalize their marketing stacks and cutting
down from just having random stuff from all over the
landscape.” He added that “a lot of them have decided
that what they want is a best-of-breed collection,”
including a mix of base products and a collection of more
specialized capabilities.
“When it comes to picking new tools, a ‘best-of-breed’
approach prevails,” Real Story Group’s Kompella added.
He believes that approach is born out of necessity, “as
the scope and variety of marketing use cases is quite
large” and continues to grow.
Marketers are also becoming more comfortable with the
tools they already own, enabling more prescriptive and
efficient use. Xerox’s Schulz said that through 2015 and
into 2016, his company “moved from the stage of getting
our arms around the tools to how they align with the
ambitions we have in marketing and sales.”
Cardinal Health’s Rose echoed Schulz’s focus on tying
technology to business goals as an important aspect
of marketing tech strategy. “If you don’t have a good
strategy and strong alignment with sales, you’re not going
to deliver the results that you would like, in spite of all the
accolades that the software may receive.”
Rishi Dave, CMO of business information provider
Dun & Bradstreet, also stressed the importance of
cross-functional teams—including specialists in marketing
technology, data, content and creative—to work together
and help drive results. “Marketing technology experts
cannot work in a vacuum,” he said. “They need a set
of processes, content and strategy to work with them
to help drive the return on investment [ROI] from
that technology.”
And marketing technology is indeed driving results for
companies that are using it effectively. Personal Capital,
which provides digital wealth management technology
and services to consumers, uses its mobile app as a
key channel to acquire users, convince them to use
their financial advisory services and have advisors
communicate with them about their portfolio.
“Our stack has had to evolve quite substantially” to
be able to support a cross-channel conversion and
engagement strategy, according to Mark Goines, the
firm’s CMO. By being strategic but also nimble with its
approach to marketing technology, Goines detailed that
Personal Capital can now convert users into customers
“three times faster than we did three years ago … it’s
really improved our efficiency as a business.” He added:
“We’re just starting.There’s so much opportunity there.”
Research shows that marketers also believe there’s
still plenty of room for improvement when it comes to
marketing technology. In July 2015 findings from Walker
Sands, 58% of US marketers were in agreement that
their company’s marketing tech was up to date and
sufficient for helping them do their job more effectively,
though just half believed they were making the right
amount of investments.

Our marketing tech is
up to date and
sufficient for helping me
do my job more effectively
My company invests
the right amount in
marketing technology
% of respondents
Attitudes Toward Marketing Technology at Their
Company Among US Marketers, July 2015
Source: Walker Sands, "State of Marketing Technology 2016: Understanding
the New Martech Buyer Journey," Oct 14, 2015
Strongly agree
12%
Disagree
30%
Strongly
disagree
12%
Agree
46%
Strongly agree
9%
Disagree
42%
Strongly
disagree
9%
Agree
41%
One area on the technology front that marketers find
particularly deficient is related to data. Close to half of
marketers in North America told Winterberry Group in a
September 2015 survey that better data technology (for
processing, matching, segmentation and more) would
be the key resource that would help them achieve a
data-driven competitive advantage. More first-party data
(information a company owns) and the development
of more standardized metrics for benchmarking data’s
contribution to the business rounded out the top three
most-desired resources.
% of respondents
Resources that Would Advance Their Efforts to
Achieve Competitive Advantage Through the Use of
Data* According to Marketers in North America,
Sep 2015
Better data technology (enabling faster/higher-volume
processing, matching, segmentation, etc.)
47.9%
More first-party data
41.7%
Development of standardized metrics and KPIs for benchmarking
data's contribution
39.6%
More experienced talent/internal resources with relevant skills
39.6%
Better analytics models and methodologies
39.6%
Better general understanding of evolving best practices
31.3%
Better quality first- or second-party data
29.2%
More/better training for our existing staff
27.1%
Deeper integration of advertising/marketing technology with
other enterprise systems
27.1%
More support from our vendors or solutions providers
18.8%
Larger allocated budgets
18.8%
More third-party data
16.7%
More/more deeply specialized technology or solutions providers
14.6%
More second-party/affiliate provider data
6.3%
Note: respondents chose their top 5; *in support of marketing, advertising
or media
Source: Winterberry Group, "Data as Competitive Advantage" in partnership
with Interactive Advertising Bureau (IAB) and with the support of Accordant
Media, AddThis, Dun & Bradstreet and Oracle Marketing Cloud, Oct 28, 2015
Technology likely isn’t the only barrier to squeezing more
value out of data for marketing. In September 2015
research from Forbes Insights in association with digital
marketing technology providerTurn, one-third of US
marketing executives characterized their company’s
approach to data-driven marketing as a mix of
technologies available to various lines of business
with little coordination. Conversely, just 14% said they
had a well-established portfolio of tools that enable
data-driven analysis and planning, with the rest reporting
still-emergent data capabilities.

% of respondents
Extent to Which Their Company Takes a Data-Driven
Approach to Marketing According to US Marketing
Executives, Sep 2015
A portfolio of tools that enable analysis and planning is well
established and fully supported by a single platform and best
practices
14%
In addition to tools, a single platform is emerging to support
data-driven marketing initiatives
24%
A common set of tools is emerging to support data gathering,
analytics, insights, programmatic advertising and planning
29%
A mix of technologies is available to various lines of business,
with little coordination
33%
Source: Forbes Insights, "Data Driven and Customer Centric: Marketers
Turning Insights Into Impact" in association with Turn, Nov 3, 2015
Going forward, it’s clear that closing both the
organizational and technological data gaps will be major
marketing tech priorities.
THE NEBULOUS TASK OF
‘INTEGRATION’ BECOMES
CLEARER AND EASIER
TO ACCOMPLISH
“Integration” is often cited as a top marketing
technology challenge, with most such issues
boiling down to accessing data and assets from
common sources and ensuring communication and
coordination across the systems in operation. As the
market matures, integration is becoming easier to
define and accomplish.
July 2015 research from Econsultancy sums up
marketers’ integration hurdles. More than half of digital
marketers and ecommerce professionals worldwide cited
nonintegrated tech platforms as the leading obstacle
to having consistently integrated marketing activities.
“Disparate data sources” and organizational structure
issues followed.
% of respondents
Leading Obstacles to Consistently Integrating
Marketing Activities According to Digital
Marketers/Ecommerce Professionals Worldwide,
July 2015
Nonintegrated tech platforms 56%
Disparate data sources 47%
Organizational structure 40%
Complexity of customer journey 39%
Lack of budget 38%
Company culture 33%
Lack of marketing skills 25%
Lack of senior-level buy-in20%
Note: n=749
Source: Econsultancy, "Quarterly Digital Intelligence Brieﬁng: The
Multichannel Reality" in association with Adobe, Sep 3, 2015
With marketers increasingly taking a best-of-breed
approach to building out their marketing stacks, the
requirements for marketing tech vendors to have their
product work and share data with other systems have
grown in tandem. Schulz said that a key requirement for
bringing new products into the fold is that “it has to play
well with the other members of our stack,” something
that he feels more and more providers are able to
accomplish today.

“Culturally, I think anything that prevents collaboration,
open architecture and easy integration defeats the
purpose of why you would go with technology in the first
place,” Visa’s Curtin said. His sense was also that things
are getting better on the integration front.
These days, when vendors are faced with questions
surrounding integration, they are more likely to be
prepared. As Brinker put it, “They have now invested the
research and development efforts and are saying, ‘Yeah,
we have a really good answer for that. We plug into their
API here, and this is how it works.’”
Even if marketers have a well-connected stack, they may
be missing key pieces of data from other parts of the
organization—another integration-related impediment. Six
in 10 US marketing executives believe this issue is one of
the leading challenges in developing data-driven marketing
initiatives, per the Forbes Insights/Turn research.
% of respondents
Leading Challenges of Developing Data-Driven
Marketing Initiatives According to US Marketing
Executives, Sep 2015
Breaking down the silos of data between departments to ensure
the successful ﬂow of information
61%
Gathering and parsing data
56%
Deﬁning audience and customer segments
56%
Focusing on complex technical solutions
54%
Telling the story of your brand and products
51%
Creating a single view of the customer
38%
Source: Forbes Insights, "Data Driven and Customer Centric: Marketers
Turning Insights Into Impact" in association with Turn, Nov 3, 2015
Personal Capital’s Goines noted that his company
developed its stack to avoid such gaps along the
customer journey by defining and monitoring a dozen
conversion events across multiple channels, such as app
installs and registrations. “We use multiple technologies
so that we can then integrate all that data into a single
view of the user’s journey and then try and do attribution
from that.”
Integration efforts can also be time-consuming.
Skyword’s July 2015 study found that it took most of
the US marketers it surveyed four to six months to fully
integrate new technologies into their efforts.Though a
greater proportion reported shorter spans than longer,
one in five faced a window of seven to 12 months for
integration, underscoring the bottleneck such phases
can cause.
% of respondents
Length of Time It Takes for US Marketers to Fully
Integrate New Technologies into Their Marketing
Efforts, July 2015
1 month 12%
2-3 months 26%
4-6 months 29%
7-12 months 21%
1-2 years 7%
3+ years1%
Don't know4%
Note: n=189
Source: Skyword, "A Study in Brand Transformation: Are Enterprise
Marketers Transforming Their Organizations for Sustained Storytelling?"
conducted by Researchscape, Jan 12, 2016

MARKETING TECHNOLOGY AND
ADVERTISING TECHNOLOGY
COME TOGETHER
The terms “marketing technology” and “advertising
technology” have traditionally had firm boundaries,
with the former concerned with owned media and
the latter with paid. But from start to finish, from data
through delivery, these two realms are in the process
of converging.
According to McKinsey’s Heller, the main reason for
this phenomenon is because “we live in a world of
addressability where consumers have multiple devices,”
where prospects are being reached in the same channels
as customers. As a result, the only way for marketers to
account for interactions across every touchpoint is “when
our marketing technologies and advertising technologies
are at least integrated,” he said.
The primary basis of this collision is data. Dun &
Bradstreet’s Dave emphasized that to get the most out of
digital marketing and advertising data, marketers need a
data management strategy. “It’s common in the industry
to mix up your data and analytics strategy with your
technology strategy and seeing the two as the same,”
he said. After data is collected and analyzed, it should be
“used in all my different marketing technologies to drive
an outcome.”
Winterberry Group’s September 2015 research details
the adoption level of various types of data leveraged for
marketing, advertising and media efforts for marketers
and publishers in North America. First-party data—
specifically the most personal, insightful and often
valuable kind of this data—was the most popular,
followed by anonymous, third-party online behavioral data.
% of respondents
Types of Data Leveraged by Their Company* to
Support Marketing/Advertising/Media Efforts
According to Marketers and Publishers in North
America, Sep 2015
First-party/anonymous/digital (e.g., web analytics/site traffic)
70.4%
First-party/known/digital (e.g., site registrations/transaction
records)
66.7%
Third-party/anonymous/digital (e.g., online behavioral/intenders)
63.0%
First-party/known/traditional (e.g., CRM records, customer
survey response)
48.1%
Third-party/known/digital (e.g., qualified online "leads")
38.9%
Second-party/anonymous/digital (e.g., business affiliate web
analytics/site traffic)
35.2%
Third-party/known/traditional (e.g., licensed
demographic/psychographic mailing lists)
33.3%
Third-party/anonymous/traditional (e.g.,
syndicated market research)
29.6%
First-party/anonymous/traditional (e.g.,
commissioned market research)
24.1%
Second-party/known/digital (e.g., business affiliate-provided site
registration/transaction records)
20.4%
Second-party/known/traditional (e.g., business affiliate
CRM/loyalty records)
16.7%
Second-party/anonymous/traditional (e.g., market research
commissioned by business affiliate)
14.8%
None—my organization/clients do not use any data in support of
their marketing, advertising and/or media efforts
1.9%
Note: *or their clients
Source: Winterberry Group, "Data as Competitive Advantage" in partnership
with Interactive Advertising Bureau (IAB) and with the support of Accordant
Media, AddThis, Dun & Bradstreet and Oracle Marketing Cloud, Oct 28, 2015
Marketers are actively exploring ways to more effectively
link first- and third-party data. September 2015 findings
fromThe CMO Club showed that 37% of the 80 CMOs
surveyed worldwide were using digital advertising data
to better understand the audiences within their customer
relationship management (CRM) database. And another
40% were planning to launch into this practice within the
12 months following the study.

% of respondents
CMOs Worldwide Who Use Digital Advertising to
Better Understand Audiences in Their CRM Database,
Sep 2015
Yes
37%
No, but planning to
in the next 12 months
40%
No, and not
planning to in the
next 12 months
23%
Note: n=80
Source: The CMO Club, "Digital Advertising Insights: A Treasure Chest for
CMOs to Open" in partnership with SocialCode, Dec 3, 2015
Andrew Daley, vice president of marketing for car-sharing
service Zipcar, characterized this trend as moving “from
audience-based marketing to more of a user-centric
focus.” Daley said one way his company is adapting is
by “starting to look more at each member’s reservation
patterns across platforms like the app and website
rather than looking at reservation data in these
standalone groups.”
A growing number of marketers are looking to tie data
management platforms (DMPs)—a technology category
that originated in the world of digital display advertising
and anonymous cookie data—in with their existing
marketing technology stack. Four in 10 marketers
worldwide told Econsultancy in a May 2015 survey that
their DMP was “very integrated” with other marketing
technologies. Another 51% characterized their current
state as “somewhat integrated.”
In the same study, 22% were in strong agreement about
using first-party data to enhance their ad campaigns. And
one in five also strongly agreed about using first-party
data to improve their cross-channel marketing
performance. Marketers also reported major benefits
like centralized control and standardization of existing
first-party data, along with improving data utilization
for personalization.
% of respondents
Extent to Which Select Factors Are Benefits of Using
a Data Management Platform (DMP) According to
Marketers Worldwide, May 2015
Centralized control and standardization of existing
first-party data
53% 42% 5%
Developing rich and actionable data sets across first-, second-
and third-party data sources
46% 43% 11%
More effective display advertising (e.g., retargeting, lookalikes)
46% 37% 17%
Ability to develop attribution models for inventory and
channel sources and understand what is working
44% 50% 6%
Improve cross-channel marketing effectiveness by
using insights gained from the DMP
44% 51% 5%
Extracting more value from inventory and
learning what is working/not working
40% 44% 16%
Ability to integrate and match digital and offline
data sets for more targeted advertising
40% 47% 13%
Providing access to third-party audience data
marketplaces otherwise not available to us
32% 45% 23%
Major benefit Minor benefit Not a benefit
Note: n=114
Source: Econsultancy, "The Role of DMPs in the Era of Data-Driven
Advertising" in association with Oracle Marketing Cloud, July 16, 2015
Using the data we already have for better email, web,
social and content personalization
51% 46% 3%
“The outcomes have changed,” according to Glen
Hartman, global managing director of digital
transformation at digital agency Accenture Interactive.
“Programmatic advertising used to be about getting more
for your media buying dollar and maybe targeting better
with less inventory.” Hartman now sees programmatic
playing more of a role in driving action and engagement
from existing customers.
But cross-channel measurement remains a challenge.
The GDMA/Winterberry Group study showed that while
more than half of US ad and marketing professionals
considered themselves sophisticated practitioners on
maintaining databases full of customer and prospect
information, just 39.1% felt the same level of expertise
in measuring campaign results across multiple
marketing channels.

TECH- AND DATA-FOCUSED
AGENCIES ARE IN HIGH DEMAND
Though they still find creative capabilities valuable,
client-side marketers are now demanding that
agencies and other third-party providers also come
armed with proficient technology and data skills.
December 2015 research from business development
services provider RSW/US found that senior marketers
in North America placed a significant level of importance
on the data and analytics capabilities of their agencies. A
plurality said such capabilities would be one of several key
factors in selecting or retaining an agency, while three in
10 said it would be a leading determinant.
% of respondents
Importance of Their Agency Providing Marketing
Data/Analytic Capabilities in 2016 According to Senior
Marketers in North America
Highly important—it will be a leading determinant of agency
selection/retention
30.1%
Important—it will be one of several key factors in
selection/retention
43.4%
Not sufﬁciently important to be a deciding factor
18.6%
Not important
8.0%
Source: RSW/US, "2016 RSW/US NewYear Outlook Report: Agency and
Marketer Perspective on the Business of Advertising & Marketing," Jan 6,
2016
Numerous data points back up marketers’ heightened
expectations that their agency partners beef up their tech
and data aptitude to meet the demands of a digital world:
■■ US marketing executives surveyed in April 2015
by market research firmThe Relevancy Group said
analytical services to develop measurement and
attribution models were the most useful or valuable
marketing services, followed by strategic services to
help optimize their programs.
■■ Among digital experience decision-makers worldwide
surveyed by Forrester Consulting on behalf of
Accenture in June 2015, performance and analytics
reporting was the top area where third-party vendors
were used.
■■ DMA/Winterberry Group polling from October 2015
showed that four in 10 US marketing professionals
wanted their agency partners to increase their focus
on data and related functions like predictive modeling
and segmentation. More than one-third also wanted
heightened attention to digital marketing execution, and
a similar percentage wanted their agencies to become
more sophisticated users of marketing technology to be
able to guide its utilization within their company.
That last takeaway is particularly relevant to Rose of
Cardinal Health. “We use partners who have deeper
subject expertise within specific platforms to really
help augment that team,” to become more efficient
over time. And this need is increasingly being filled by
large consulting companies and marketing technology
specialist agencies.
Foundation Capital’s Garg asserted that “the role of an
agency is undergoing fundamental change. I think there
are agencies that will become more like technology
companies.” He cited agency holding company Publicis’s
acquisition of tech consultancy Sapient in February 2015
as one example.
Another instance of this evolution includes Group- and
WPP-owned media agency Maxus Worldwide launching
its own technology consulting arm in February 2016 to
capture more digital opportunities tied to software.
And coming from the tech side, Interactive Experience
(iX), a digital agency operated by IBM, bought three
smaller creative and digital firms at the beginning of 2016.
Per a February 2016 Digiday article, AdAge Datacenter
pegs iX’s 2015 revenues at $1.9 billion.
Christopher Penn, vice president of marketing technology
at public relations agency Shift Communications, said
he believes both the industry and his firm are leveling
up when it comes to data and analytics. “We’re not just
accepting what comes ‘out of the box’ from all of these
different marketing tools, but actually using other
third-party analytics software and systems” to deliver the
most value to clients.
Research confirms that some agencies are indeed trying
to stay one step ahead of their clients when it comes to
data and technology. In Econsultancy’s July 2015 survey
of 350 senior ad agency professionals worldwide, 37% of
respondents had some type of innovation lab at their firm,
and another 28% were in the process of planning one.

The study also showed that agency professionals
planned to make large investment increases in areas
like digital analytics, content marketing, DMPs and
mobile marketing.
% of respondents
Anticipated Change in Their Company's Technology
Investments According to Senior Ad Agency
Professionals Worldwide, by Area, July 2015
Digital analytics
Content marketing
Data management
platforms
Mobile marketing
Social media
CRM or email marketing
Programmatic advertising
App development
SEO (natural search)
Paid search (PPC)
Large
increase
45%
43%
31%
24%
22%
21%
19%
17%
15%
14%
Small
increase
42%
42%
48%
42%
47%
41%
32%
39%
41%
37%
No
change
12%
15%
19%
31%
26%
34%
45%
42%
40%
44%
Small
decrease
1%
1%
2%
2%
4%
4%
3%
1%
4%
4%
Large
decrease
1%
0%
1%
1%
1%
1%
1%
1%
0%
2%
Note: n=387; over the next year; numbers may not add up to 100% due to
rounding
Source: Econsultancy, "The Future of Agencies: The Progression of Agency
Value in a Digital World" in association with Adobe, Sep 17, 2015
And these executives see key benefits to getting a
better grasp on technology, including maximizing the
potential of digital channels (45%), driving competitive
advantages for their agency (41%) and delivering better
customer experiences on behalf of their clients (38%),
Econsultancy found.
Nonetheless, it’s worth noting that client-side marketers
still find a great deal of value in the purely creative
capabilities that agencies have long exceled at providing,
which was also apparent in the DMA/Winterberry study.
Creative and design services were listed as the most
important assets or capabilities that ad agencies provide.
But data analytics and modeling expertise came in a close
second place.
% of respondents
Most Important Assets/Capabilities Driving Their Use
of Ad Agencies* According to US Marketing
Professionals, Oct 2015
Creative and design services
45.6%
Data analytics and modeling expertise/capabilities
38.5%
Unique marketing and/or vertical market expertise
35.2%
Strategic counsel/insight into industry best practices
27.4%
Campaign reporting, measurement and/or attribution solutions
25.5%
Understanding of how to source/use third-party technologies
23.6%
General bandwidth/capacity (supplementing what's available
in-house)
19.9%
Ability to deliver cost efﬁciencies (compared to managing work
in-house)
18.7%
Flexible resources, allowing us to adjust to changing demands
17.5%
Note: respondents selected their top 3; *for their company or their clients
Source: Direct Marketing Association (DMA) and Winterberry Group,
"Quarterly Business Review Q3 2015," Dec 3, 2015
The RSW/US study came to similar conclusions, with
55.4% of respondents citing “creative” as the most
important services their agency partners will provide
in 2016.

EMARKETER INTERVIEWS
What Marketers Should Know AboutToday’s
Ever-ExpandingTechnology Landscape
Scott Brinker
Co-Founder and ChiefTechnology Officer
ion interactive
Editor
Chief MarketingTechnologist Blog
Interview conducted on February 1, 2016
ForVisa, MarketingTechnology Is About Making
Data Actionable
Chris Curtin
Chief Brand and Innovation Marketing Officer
Visa
Zipcar: Mobile Is Driving Marketing
Technology Growth
Andrew Daley
Vice President, Marketing
Zipcar
How MarketingTechnology’s Role Evolved at
Dun & Bradstreet
Rishi Dave
CMO
Dun & Bradstreet
How Personal Capital Optimizes User Acquisition,
Conversion Across Channels
Mark Goines
CMO
Personal Capital
Keeping Up with MarketingTech’s Rapid Growth Is
Tough on Brands
Tip Rose
Vice President, Enterprise Digital Marketing
Cardinal Health
Ashu Garg
General Partner
Foundation Capital
Cynthia Gumbert
Vice President, MarketingTechnology and
Demand Analytics
CATechnologies
Glen Hartman
Global Managing Director, DigitalTransformation
Accenture Interactive
Jason Heller
Global Lead, Digital Marketing Operations
McKinsey & Company
Adam Hirsch
Global Vice President, Digital
Edelman
Kashyap Kompella
Research Director
Real Story Group
Bastian Lehmann
CEO and Co-Founder
Postmates
Christopher Penn
Vice President, MarketingTechnology
Shift Communications
Chris Pisapia
Founder and Managing Partner
Verndale
Interview conducted on January 29, 2016
Mike Rothman
CEO
Fatherly
Alan Schulman
National Director, Content Marketing and
Creative Experience
Deloitte Digital

Duane Schulz
Chief MarketingTechnologist
Xerox
Interview conducted on January 28, 2016
Scott Vaughan
CMO
Integrate
Ray Velez
Global CTO
Razorfish
RELATED EMARKETER REPORTS
Cross-DeviceTargeting: First-Party Data,TV and
Privacy Are Big Factors for 2016
B2B Content Marketing in the US: Maximizing ROI
and Cost-Effectiveness overTime
US Digital Display AdvertisingTrends: Eight
Developments toWatch for in 2016
RELATED LINKS
Accenture
AdAge Datacenter
Association of National Advertisers (ANA)
Business Performance Innovation (BPI) Network
Campaigner
Chief MarketingTechnologist Blog
Coady Diemar Partners
ConsumerTechnology Association (CTA)
Digiday
Direct Marketing Association (DMA)
Economist Intelligence Unit (EIU)
Econsultancy
Forbes Insights
Forrester Consulting
Foundation Capital
Global Alliance of Data-Driven Marketing Associations
(GDMA)
Petsky Prunier
PricewaterhouseCoopers (PwC)
Real Story Group
The Relevancy Group
RSW/US
Skyword
Turn
Walker Sands
Winterberry Group
VB Insight
EDITORIAL AND
PRODUCTION CONTRIBUTORS
Cliff Annicelli Managing Editor, Reports
Michael Balletti Copy Editor
Kate Berman Chart Editor
Joanne DiCamillo Senior Production Artist
Dana Hill Director of Production
Stephanie Meyer Senior Production Artist
Kris Oser Deputy Editorial Director
Heather Price Senior Copy Editor
John Rambow Executive Editor, Reports
Allie Smith Director of Charts

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