The Forrester Wave : Search Marketing Agencies, Q4 2017

Transcription

1 The Forrester Wave : Search Marketing Agencies, Q by Collin Colburn Why Read This Report In our 25-criteria evaluation of search marketing agency providers, we identified the 12 most significant ones 360i, Acronym, Catalyst, Forward3D, icrossing, iprospect, Merkle, Mirum, Neo@Ogilvy, Performics, Rise Interactive, and Wpromote and researched, analyzed, and scored them. This report shows how each provider measures up and helps B2C marketing professionals make the right choice. Key Takeaways Performics, Merkle, 360i, And iprospect Lead The Pack Forrester s research uncovered a market in which Performics, Merkle, 360i, and iprospect lead the pack. Wpromote, Rise Interactive, Neo@Ogilvy, Acronym, and icrossing offer competitive options. Catalyst, Mirum, and Forward3D lag behind. B2C Marketing Pros Are Looking For Expertise And Resources The search marketing agency market continues to grow as search marketers need outside expertise and resources to advance their SEO and paid search programs. Non-Traditional Search Engine Expertise And Agency Strategy Are Key Differentiators Basic processes and technologies used for optimizing web pages and buying ads in traditional search engines like Bing and Google have become commodified. To differentiate, search agencies have started to master skills for non-traditional search engine visibility in places like Amazon and TripAdvisor. Additionally, we found that agencies that can articulate a clear and ambitious vision for the future will better woo buyers. forrester.com

2 by Collin Colburn with Melissa Parrish, Christian Splaine, Stephanie Liu, and Christine Turley Table Of Contents Related Research Documents Search Marketing Agencies Have Reached Full Maturity Differentiation Comes From Supporting Discovery Beyond Google Search Marketing Agencies Evaluation Overview Evaluated Vendors And Inclusion Criteria Vendor Profiles Leaders Strong Performers Contenders Challengers Supplemental Material The State Of Search Marketing, 2017 Vendor Landscape: SEO Tools And Technologies Voice Search Will Change Customer Discovery Forever Share reports with colleagues. Enhance your membership with Research Share. Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA USA Fax: forrester.com 2017 Forrester Research, Inc. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Unauthorized copying or distributing is a violation of copyright law.

3 Search Marketing Agencies Have Reached Full Maturity This is Forrester s sixth Wave on search marketing agencies. Since 2006 we have seen this space evolve and grow, but one thing has remained the same: Marketers need the resources, expertise, and knowledge that search marketing agencies supply. In this study, we found that search marketing agencies have reached full maturity because they have mastered: Search engine optimization (SEO). Marketers have been turning to agencies to help optimize their web pages for well over 15 years. That maturity shows in the well-baked processes search agencies employ. In fact, every agency in this Forrester Wave demonstrated that they have a good framework or methodology in place to create a client s SEO strategy, and each agency uses proprietary or third-party tools that help automate SEO tasks like keyword research or site auditing. Paid search. Today, paid search advertisers need agencies more for creating efficiencies than for getting their strategy going a sure sign of a maturing market. In fact, nearly 90% of client references in our study said they rely on their search agency to optimize performance for their paid search campaigns. 1 Differentiation Comes From Supporting Discovery Beyond Google Search agencies have had years to master the basics of SEO and paid search, and today marketers are emphasizing discoverability in all the places where their customers find information or websites. We reflected this in our evaluation by looking more closely at each agency s: Reasons for supporting other biddable media. Many agencies have a check the box philosophy when deciding which media they will support. We dug deeper to find out specifically why the agencies in this Forrester Wave support display advertising and social advertising. Agencies that intentionally support display and social to elevate their search marketing offering fared better. Ability to create organic visibility in non-traditional search engines. In evaluating each agency s SEO offering, we looked at how they create a strategy across both traditional and non-traditional search engines and the tools they use to optimize in both places. Some agencies have built tools to understand how other search environments rank or serve up content to a searcher. For example, 360i has built a proprietary tool to track how intelligent agents like Alexa and Siri respond to questions. Experience with ad campaigns in Amazon and Pinterest. When it comes to non-traditional search engines, we most often field questions from our clients about Amazon and Pinterest. For that reason, agencies received a boost in this evaluation if they have many clients using their services to manage ads across these two networks. 2

4 Search Marketing Agencies Evaluation Overview To assess the state of the search marketing agency market and see how the vendors stack up against each other, Forrester evaluated the strengths and weaknesses of top search marketing agency vendors. After examining past research, user needs assessments, and vendor and expert interviews, we developed a comprehensive set of evaluation criteria. We evaluated vendors against 25 criteria, which we grouped into three high-level buckets: Current offering. Each agency s position on the vertical axis of the Forrester Wave graphic indicates the strength of its current market research approach, biddable media, organic search visibility, and paid search capabilities. These criteria also evaluate agency collaboration tools and processes, account management functions, reporting and analytics methods, and ability to execute on a global level. Strategy. An agency s position on the horizontal axis indicates Forrester s assessment of its strategy and approach to the market. We compared the corporate strategies of the agencies based on their visions, road maps, and recent performance attracting new clients. Market presence. To determine the size of each agency s search marketing business, we evaluated its search marketing revenues, number of employees and clients, and geographic footprint. Evaluated Vendors And Inclusion Criteria Forrester included 12 vendors in the assessment: 360i, Acronym, Catalyst, Forward3D, icrossing, iprospect, Merkle, Mirum, Neo@Ogilvy, Performics, Rise Interactive, and Wpromote. Each of these vendors (see Figure 1): Has a substantial search marketing business. We evaluated agencies that had more than $20 million in revenue from search marketing services. Specializes in both SEO and paid search. More marketers now look for one agency to handle both SEO and paid search, so we included agencies that had at least 22% of their revenue coming from SEO and paid search and at least 12% of their clients using the agency for both SEO and paid search. Focuses on the enterprise market. Forrester s clients are enterprise-level companies with complex businesses and challenges. For that reason, we screened in agencies that had at least 70% of their client base coming from companies with more than 1,000 employees. 3

5 FIGURE 1 Evaluated Vendors: Vendor Information And Selection Criteria Vendor 360i Acronym Catalyst Forward3D icrossing iprospect Merkle Mirum Neo@Ogilvy Performics Rise Interactive Wpromote Vendor inclusion criteria Revenue from the agency s search marketing business must be greater than $20 million. At least 22% of overall agency revenue must come from search engine optimization (SEO) and paid search. At least 70% of the agency s clients must be enterprise. At least 12% of clients must use the agency for both SEO and paid search. 4

6 Vendor Profiles This evaluation of the search marketing agencies market is intended to be a starting point only. We encourage clients to view detailed product evaluations and adapt criteria weightings to fit their individual needs through the Forrester Wave Excel-based vendor comparison tool (see Figure 2). FIGURE 2 Forrester Wave : Search Marketing Agencies, Q4 17 Strong Strong Challengers Contenders Performers Leaders Current offering Performics 360i Merkle Rise Interactive Acronym iprospect Catalyst Neo@Ogilvy Wpromote Mirum icrossing Forward3D Go to Forrester.com to download the Forrester Wave tool for more detailed product evaluations, feature comparisons, and customizable rankings. Market presence Weak Weak Strategy Strong 5

7 FIGURE 2 Forrester Wave : Search Marketing Agencies, Q4 17 (Cont.) Current Offering 50% Forrester s weighting 360i Acronym Catalyst Forward3D icrossing iprospect Merkle Mirum Neo@Ogilvy Performics Rise Interactive Wpromote Market research 5% Media 5% Organic search visibility 25% Paid search 25% Collaboration 10% Account management 5% Reporting and analytics 15% Global execution 10% Strategy 50% Service vision 50% Execution road map 35% Performance 15% Market Presence 0% Revenue 25% Number of employees 25% Number of customers 25% Breadth of offering 25% All scores are based on a scale of 0 (weak) to 5 (strong). 6

8 Leaders Performics. Performics paid search offering and vision to be its clients premier growth driver has helped this agency make a splash. Its intent-based planning framework to create client strategy is guided by its partnership with Northwestern University; together, they seek to understand how customers make decisions and the true meaning of their search queries. We like this approach and Performics proprietary technology to create visibility in non-traditional search engines like Amazon. But don t expect too much from it on content and creative. As a client reference put it, They do tend to slack on things like ad copy; it gets tired easily. Marketers that are looking to expand their definition of search marketing into places like Amazon, Pinterest, Trivago, and others, and require a partner with a large global footprint, will find a well-suited partner in Performics. Merkle. In this study, Merkle earns great feedback for its paid search offering due to its method of categorizing known, semi-known, and unknown audiences to personalize and target searchers. Merkle s execution road map also received high praise for its focus on deepening its vertical expertise in industries struggling with digital disruption and its plans for a digital business school to advance its employees careers. However, Merkle currently lacks the global breadth that other agencies possess. We recommend Merkle to marketers that require deep vertical expertise Merkle focuses on seven industries including travel, retail, and non-profits and are looking to use search to guide the rest of their digital media planning and investments. 360i. This evaluation found 360i s strengths to be in its market research process and a proprietary tool to monitor how intelligent agents like Alexa, Cortana, and others are responding to voice searches. Marketers will appreciate this agency s ability to stay on top of trends but also have a level-headed perspective on what is industry hype versus real market changes. But 360i is not a truly globalized agency, and its vision, while ambitious, is not for every marketer. 360i is positioned to disrupt the lead agency landscape by leading with expertise in digital rather than traditional marketing. US-based companies that are not just looking for a search agency to swim in their lane but want a lead agency with deep heritage in search and digital will find 360i a perfect fit. iprospect. iprospect is the largest search agency in this Forrester Wave. This agency s recent acquisition of Leapfrog Online bolsters its landing page optimization capabilities as it integrates Leapfrog s platform across existing client relationships. And iprospect received high praise in our study for its collaborative approach and ability to execute global search marketing strategies on behalf of large, complex enterprises. But its scale can also make some marketers feel like a tiny star in a giant universe. For example, one client reference told us, We tend to have low visibility with their executive team, which we d like to see more of. Nonetheless, multinational marketers should look to iprospect as search evolves beyond just Google s search box and into new formats like voice. 7

9 Strong Performers Wpromote. Wpromote premiered this year in its first Forrester Wave. This agency is laser focused on brands that they categorize as challengers in their industry and are looking to steal market share from larger competitors. Wpromote complements that vision with a strong offering to determine customer lifetime value, both for individual audience segments to target in paid search and in account management, which is enriched with dedicated account strategists that study the client s full business. However, Wpromote is the only agency in this evaluation without an international presence, and it lacks frameworks to collaborate across multinational businesses. We recommend it for entrepreneurial-minded marketers that are looking for an agency to handle their search campaigns and be a valued business resource to think through shifting market dynamics. Rise Interactive. Rise Interactive (Rise) relies heavily on its platform, Connex, to power its clients search programs and execute on its financial portfolio theory approach to marketing; this theory aims to determine the optimal bid, ad format, or channel where each dollar should go. And Rise makes good on that approach: It possesses a strong ability to craft a client s organic search strategy and identify traditional and nontraditional search engines for a client to appear in, based on revenue impact to the client. But Rise has some weaknesses: It has weaker collaborative frameworks than competitors and is not yet able to effectively execute on a global scale. Marketers looking to answer the question, When should I buy a keyword versus try to rank for it organically versus do both? will finally find a data-driven answer with Rise Interactive. Neo@Ogilvy. Neo@Ogilvy (Neo) received praise for its account management, reporting and analytics, and global execution in its first search agency Wave. Specifically, this agency uses a proprietary multiyear framework to develop a client s search strategy. Neo identifies people on the client side to take on responsibilities for search marketing projects. Where the client lacks resources, Neo supplements with its global delivery system of small and medium-sized enterprises (SMEs). But Neo lacks a clear and defined vision and expertise in search marketing beyond traditional search engines. As one client reference told us, We need them to beef up in eretail search like Amazon and Walmart. Marketers with substantial multinational campaigns will like Neo s ability to get in the weeds and orchestrate a search strategy from market to market. Acronym. Acronym did well in this year s study due to its ability to collaborate with other agencies and internal stakeholders. It also received high praise from client references for its account management, which includes a high degree of executive involvement. In fact, one client reference told us, We have our day-to-day account manager, but I know if I ever need anything done I can call one of their C-suite executives. But that strength is also a weakness: Managing clients through executives is hardly scalable and takes the company s focus away from being a visionary agency. Acronym s vision to be a next-generation search agency, while nice in principle, is not specific and lacks detail. We d recommend this agency to search marketers that want close relationships with their agency and need high-touch service. 8

10 icrossing. icrossing is one of the few agencies to be featured in all six search agency Waves. This search agency veteran has faced significant turbulence in executive leadership in the past four years, churning through three different CEOs. And that constant state of change shows in its wobbling strategy over the years. But we like icrossing s new vision of using search, social, and commerce insights as the foundation for all audience understanding across media. However, icrossing still has catching up to do against competitors in areas like building cohesive strategies across organic and paid search and in its reporting and analytics. Traditional direct response search marketers that value this agency s rich heritage and its data and creative resources from parent company Hearst should keep icrossing on their short list. Contenders Catalyst. In our study, we found that Catalyst, which is part of GroupM, had a lackluster vision and road map and lacked support for other biddable media like display advertising. But we like Catalyst s high-performing capabilities around organic search and its advanced offering for creating visibility and managing campaigns within nontraditional search engines like Amazon. Marketers that work with WPP s GroupM for their media buys will find Catalyst an easy fit for all things search. Other marketers, especially consumer packaged goods (CPG) companies, should keep their eye on Catalyst, too, as the agency builds out a direct business rather than being fed only through GroupM which will make it a more meaningful competitor to other WPP search agencies. Mirum. Mirum is a three-year-old agency that was created through consolidation of 11 smaller WPP-owned agencies. We found that Mirum had a comparatively weak paid search offering and unambitious strategic vision. Mirum brands itself as a borderless agency, which means it is globally connected, collaborative, and not too formal or overly structured. We support the globally connected and collaborative missions, but agencies need lots of structure. We found a lack of cohesion in processes and methodologies that Mirum uses to formulate clients search marketing strategies, which can likely be attributed to multiple agencies being pieced together into one. But keep an eye on Mirum: It s grown swiftly this year by adding more than 25 search marketing clients. We recommend it to marketers that need creative resources for landing page optimization and ad copy expertise. Challengers Forward3D. A newcomer to this search agency Wave evaluation, Forward3D is a London-based agency. Forward3D lacks the established methodologies and processes to advance client s search marketing strategies, which other agencies in this study have mastered. However, there are some unique aspects to this agency: Forward3D has a fully dedicated linguistics team that is tasked with servicing over 90 languages, and clients are managed directly by subject matter experts rather 9

11 than typical account managers. But its model for client engagement has its pitfalls. As one client reference put it, We can feel that they are constantly busy and strapped for resources. Mediumsized search marketers particularly in Europe and Asia where this agency has good presence should consider Forward3D. Engage With An Analyst Gain greater confidence in your decisions by working with Forrester thought leaders to apply our research to your specific business and technology initiatives. Analyst Inquiry To help you put research into practice, connect with an analyst to discuss your questions in a 30-minute phone session or opt for a response via . Learn more. Analyst Advisory Translate research into action by working with an analyst on a specific engagement in the form of custom strategy sessions, workshops, or speeches. Learn more. Webinar Join our online sessions on the latest research affecting your business. Each call includes analyst Q&A and slides and is available on-demand. Learn more. Forrester s research apps for ios and Android. Stay ahead of your competition no matter where you are. Supplemental Material Survey Methodology Forrester fielded its Forrester s Q Search Marketing Agencies Forrester Wave Customer Reference Online Survey to 45 marketing professionals who use a search marketing agency that is included in this Forrester Wave evaluation or outside of it. Vendors recruited the majority of these respondents to complete a survey about their satisfaction and use of their agency. 10

12 Forrester fielded the survey from August 2017 to September Respondent incentives included a summary of the research results when the Forrester Wave was published. Online Resource The online version of Figure 2 is an Excel-based vendor comparison tool that provides detailed product evaluations and customizable rankings. Click the link at Forrester.com at the beginning of this report to download. Data Sources Used In This Forrester Wave Forrester used a combination of three data sources to assess the strengths and weaknesses of each vendor. We evaluated the vendors participating in this Forrester Wave, in part, using materials that they provided to us by each vendor s in-person evaluation and briefing. Hands-on lab evaluations and briefings. Vendors spent three hours with the Forrester Wave team who performed a hands-on evaluation of the vendor using a scenario-based testing methodology. We evaluated each vendor using the same scenarios, creating a level playing field by evaluating every agency on the same criteria. The evaluation also included a briefing on the vendor s strategy, road map, and culture. Vendor surveys. Forrester surveyed vendors on their capabilities as they relate to the evaluation criteria. Once we analyzed the completed vendor surveys, we conducted vendor calls where necessary to gather details of vendor qualifications. Customer reference calls and survey. To validate vendor qualifications, Forrester also conducted reference calls and conducted a survey with three of each vendor s current customers as well as other sourced respondents. The Forrester Wave Methodology We conduct primary research to develop a list of vendors that meet our criteria for evaluation in this market. From that initial pool of vendors, we narrow our final list. We choose these vendors based on: 1) product fit; 2) customer success; and 3) Forrester client demand. We eliminate vendors that have limited customer references and products that don t fit the scope of our evaluation. After examining past research, user need assessments, and vendor and expert interviews, we develop the initial evaluation criteria. To evaluate the vendors and their products against our set of criteria, we gather details of product qualifications through a combination of lab evaluations, questionnaires, demos, and/or discussions with client references. We send evaluations to the vendors for their review, and we adjust the evaluations to provide the most accurate view of vendor offerings and strategies. We set default weightings to reflect our analysis of the needs of large user companies and/or other scenarios as outlined in the Forrester Wave evaluation and then score the vendors based 11

13 on a clearly defined scale. We intend these default weightings to serve only as a starting point and encourage readers to adapt the weightings to fit their individual needs through the Excel-based tool. The final scores generate the graphical depiction of the market based on current offering, strategy, and market presence. Forrester intends to update vendor evaluations regularly as product capabilities and vendor strategies evolve. For more information on the methodology that every Forrester Wave follows, please visit The Forrester Wave Methodology Guide on our website. Integrity Policy We conduct all our research, including Forrester Wave evaluations, in accordance with the Integrity Policy posted on our website. Endnotes 1 Source: Forrester s Q Search Marketing Agencies Forrester Wave Customer Reference Online Survey. 12

14 We work with business and technology leaders to develop customer-obsessed strategies that drive growth. Products and Services Core research and tools Data and analytics Peer collaboration Analyst engagement Consulting Events Forrester s research and insights are tailored to your role and critical business initiatives. Roles We Serve Marketing & Strategy Professionals CMO B2B Marketing B2C Marketing Customer Experience Customer Insights ebusiness & Channel Strategy Technology Management Professionals CIO Application Development & Delivery Enterprise Architecture Infrastructure & Operations Security & Risk Sourcing & Vendor Management Technology Industry Professionals Analyst Relations Client support For information on hard-copy or electronic reprints, please contact Client Support at , , or clientsupport@forrester.com. We offer quantity discounts and special pricing for academic and nonprofit institutions. Forrester Research (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We work with business and technology leaders to develop customer-obsessed strategies that drive growth. Through proprietary research, data, custom consulting, exclusive executive peer groups, and events, the Forrester experience is about a singular and powerful purpose: to challenge the thinking of our clients to help them lead change in their organizations. For more information, visit forrester.com