Marketers continue to invest more money into data-driven marketing initiatives and are reaping the benefits. More than 40 per cent of US professionals stated that their enterprise’s revenues have increased during the last 12 months due to analytics-based activities, a new report shows.
Direct Marketing Association (DMA) and Winterberry Group surveyed marketers about their data-driven marketing activities for the second and third quarters of 2016. They found that the majority are planning to maintain their investment for the foreseeable future, and more than half (51.8 per cent) expect to see a boost in returns this year.
A third of those polled also revealed that their organisations contributed more money to the analysis of data between April and June compared to January and March, while 39 per cent are planning to increase investment either “somewhat” or “significantly” during the third quarter of the year.
Data-driven marketing is defined as the marketing insights and decisions that are driven by data analytics. The data generated by consumers can either be primary, such as surveying customers on particular subjects, or secondary, which covers aspects such as online social interactions and web browsing and search behaviours.
The latest report indicates that overall spending on technology that facilitates more relevant data-driven insights is growing across the globe, which is not surprising considering the huge potential that data analytics offers to modern enterprises. Overall, 68.6 per cent of marketers are planning to increase investment in 2016 compared to 56.3 per cent a year ago.
The findings dovetail with a separate study by DataXu, Morar Consulting and WithPR that found that marketing tech is an increasingly critical investment for senior marketers. More than 75 per cent of senior marketers in the US and two-thirds in Western Europe said that this tech is crucial to success.
Data is now seen as a key component in content marketing since it enables brands to deliver personalised messaging to end users. Forbes Insights and Turn also found earlier this year that “leaders in data-driven marketing” are now a staggering six times more likely to drive profitability and competitive advantage compared to laggards.