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Data Analytics, So Hot Right Now

Seven in 10 marketing execs plan to increase reliance on data analytics for decision-making

As marketers increase data collection efforts, analytics are helping them make sense of the information collected to determine the success of their campaigns. According to an October 2014 study by Forbes Insights in association with Turn, 55% of US marketing executives employed analytics to measure all or most of their marketing campaign returns, compared with just 4% who never did this.

Extent to Which US Marketing Executives Employ Analytics to Measure Marketing Campaign Returns, Oct 2014 (% of respondents)

Marketers were most likely to use data analytics for online media advertising, cited by two-thirds. Offline personalization matters, too, and respondents also employed analytics in the physical world: 46% said they did so for traditional media ads, and 41% for direct mail campaigns. More than one-third employed analytics for telemarketing (35%) and coupons, rebates and special offers (34%), while 27% did so for PR or media outreach.

The reliance on data analytics is only going to get bigger in the coming years. More than seven in 10 marketing execs expected to increase their reliance on data analytics for decision-making over the next three years. Just 2% planned to lean on analytics less, and 14% wouldn’t change anything.

Leading Marketing Areas Where US CMOs Plan to Invest, Sep 2014 (% of respondents)

While marketing executives recognize the importance of data analytics, the area will lag in dollars spent in the coming years, based on September 2014 polling by Gartner and The CMO Club. Among US CMOs polled, 40% ranked analytics as one of the top increased management expectations over the past year—the second-highest response, behind customer experience.

However, analytics came in second-to-last place when CMOs were asked about the marketing areas where they planned to invest in the coming years, cited by 32% and trailing digital commerce, customer experience and mobile. Marketing technology—which goes hand in hand with analytics—took last place (31%).

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