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Gartner: Digital marketing is now mainstream

News | Offline marketing | Gartner | Mainstream

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A massive 98 per cent of marketers say online and offline marketing is merging, with digital marketing becoming mainstream and digital commerce a top priority for marketers, according to a survey by Gartner, Inc. 

Gartner’s 2015-2016 Chief Marketing Officer (CMO) Spend Survey, which polled a number of marketing executives and business leaders responsible for marketing, found that budgets increased by ten per cent in 2015, with 61 per cent of respondents saying they expect budgets to grow further in 2016. 

Respondents included marketers in over 300 companies in North America and the UK, representing organisations with more than £300 million in annual revenue.

This was measured across financial services such as high tech, manufacturing, consumer packaged goods (CPG), media, retail and transportation and hospitality sectors.

The survey took place between May and July 2015 and marks the fourth year that Gartner has surveyed marketers on spending priorities and marketing operations. 

Yvonne Genovese, group vice president at Gartner, said: “There is little doubt that digital marketing is now mainstream. 

“Marketers no longer make a clear distinction between offline and online marketing disciplines. 

“As customers opt for digitally led experiences, digital marketing stops being a discrete discipline and instead becomes the context for all marketing.” 

‘Digital marketing is now marketing in a digital world.’

A blurring of the physical and digital worlds in marketing represents a number of opportunities for those in the industry to apply customer insights to create and test new digitally led experiences and business models.

According to the survey, ten per cent of marketers say they have moved beyond digital marketing techniques and are expanding marketing's role to create new models.

Up from eight per cent in 2014, digital commerce captures 11 per cent of the digital marketing budget, as those in the industry become more accountable for driving results. 

Research vice president at Gartner, Jake Sorofman, said: "The rise in digital commerce is an opportunity for marketers.There was a time when marketing and selling were two distinct disciplines. 

“In many cases, digital merges these two into a single, continuous activity from initial awareness, through engagement, conversion, transaction and repeat purchase. 

“Marketers can now tie spend to revenue. In fact, it's becoming a mandate." 

Results and recognition

The need to point to tangible results from marketing investments and the recognition that companies need more than a commerce platform to sell, are the two main factors that are driving marketers’ interest in digital commerce, according to Gartner.

In today’s marketing industry, there is an integration between marketing and digital commerce, where the past has seen digital commerce operations which are wholly disconnected from the marketing engine.

Recently marketers have seen the introduction of content marketing, brand storytelling, advanced analytics and multichannel campaign management to optimise digital commerce across various channels. 

Growing B2B

The survey indicated a growing appetite by B2B companies who are under pressure to reach customers directly with digital commerce initiatives.

Companies are increasingly looking to engage with customers directly to better understand their needs, preferences and behaviours. 

This year, 61 percent of respondents said that marketing spending would average 11 percent of company revenue, up from 10 percent of company revenue last year. 

 


Posted by Jon Aspinell on 1st December 2015

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