The State of MarTech and AdTech: Customer Journey Investments in 2017
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1 The State of MarTech and AdTech: Customer Journey Investments in 2017 The Agency Perspective Industry Report November 2016
2 Introduction Kitewheel commissioned research in November 2016 to understand the plans for marketing and advertising technology usage in agencies A total of 134 respondents participated in this survey: 57% from the US and 43% from Europe. With close to 8 of respondents representing digital, creative and integrated agencies, the findings in this report reflect the agency view of the current market and future opportunities. The research examined the state of technology investment, current agency capabilities in addressing the omni-channel marketing directive, emerging best practices and industry use cases for customer journeys and where agencies are falling short delivering them. Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
3 Executive Summary The technology arms race shows no signs of slowdown 81% of agencies plan to invest in new technology tools in 2017, despite most admitting very low levels of current use Only 6% of agencies use existing tools weekly, 66% of the reason is skill shortage 75% of agency tech investments plan to invest in customer journey and personalization solutions Customer journey delivery is emerging as the new winning 2017 business practice for agencies with close to half (49%) planning to launch a new customer journey practice next year The driver behind agencies investing in customer journey practices comes from the brands two-thirds of agencies (68%) point to client requests as the top reason for launching them in 2017 Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
4 Executive Summary (cont.) Customer journey use case priorities for 2017 point to the growing awareness of the need to shed the traditional services silos and integrate marketing The top use case opportunity involves linking acquisition and sales processes through unifying AdTech and MarTech systems The second most popular is AdTech journey attribution, and third is the ability to deliver omni-channel loyalty programs Yet, half of agencies admit they are not equipped to deliver effective customer journeys across channels today 49% have no process to start The top use cases have very poor delivery capabilities in particular: For example, only 12% of agencies can do AdTech/MarTech unification. Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
5 Executive Summary (cont.) Agencies are cautious in their ability to build the capabilities to deliver a customer journey in 2017: 64% don t expect to be able to deliver real journeys until 2018 or later Primary reason for this caution is the lack of skills and tools (54%) Agencies agree that specific vertical industry models are needed for customer journey services 91% of agencies point to varying brand interest in customer journeys by industry Agencies see Retail as leading the way (65%), Financial Services and Travel as holding the second spot (44%), followed by Automotive (37%), Telecoms () and CPG (15%) Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
6 The Technology Arms Race Continues The majority of agencies (81%) plan to invest in new technology tools in 2017, highlighting that agencies (and brands) continue to search for ways to address the market realities and deliver on the omni-channel customer experience for their customers. Do You Expect to Invest More in Technology in 2017 than in 2016? % % 14% Yes No Unsure Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
7 Targeted Tech Investments in 2017 More than two-thirds (75%) plan to invest in customer journeys and personalization technology solutions in Do you Plan to Invest in Customer Journeys and Personalization tools/technology in 2017? 8 75% % Yes No Unsure Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
8 New Investments Aimed at Alleviating Current Tech Overinvestment and Utilization Only 6% of agencies claim they use their existing tools on a weekly basis; 72% share they are able to utilize less than of their existing tools on a weekly basis. Weekly Frequency Of Tool Utilization % % Use less than of tools weekly Use between 6-8 of tools weekly Use all tools weekly 6% Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
9 The Culprits Behind Current Tool Underutilization Aside from existing tools lacking relevancy for in-market campaigns, the main driver hampering agencies from putting current tools to use is due to the skills gap (lack of training and internal expertise). Biggest Reasons for Tool Underutilization % 16% Capabilities aren t Lack of internal expertise Lack of training resources relevant to the campaign Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
10 Customer Journeys The Winning Agency Opportunity Customer journey delivery is emerging as the new winning 2017 business practice for agencies with close to half planning to launch customer journey practices in the next year. This highlights the demand and the opportunity for agency revenue growth by launching a dedicated customer journey practice in Are You Planning to Launch or Offer a Customer Journey Practice to your Clients in 2017? 5 49% 31% Yes No Don t know Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
11 The Driving Agency Factor for Launching Customer Journeys The driving factor behind agencies investing in customer journey practices comes from the brands. Two-thirds of agencies point to their customers asking for such services as the top reason for launching them in Are your Customers Asking your Agency to Deliver Customer Journey Services? 7 68% % Yes No Only in certain instances Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
12 Customer Journey Capabilities That Matter Agencies are united on where the demand for customer journeys lies: AdTech/MarTech unification, followed by omni-channel loyalty and AdTech journey attribution. Agencies recognize they cannot manage AdTech and MarTech separately moving forward and it is time to shed the traditional services silos and realign resources to deliver seamless customer experiences on behalf of the brands they represent. Rating Average Top Use Cases for Customer Journeys AdTech/MarTech unification Omni-channel loyalty programs AdTech journey attribution Social engagement/ lead generation Omni-channel personalization Rich audience segmentation for ad targeting Persona development Customer journey assessments Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
13 Closing the Customer Journey Capabilities Gap When it comes to the top customer journey capabilities, agencies admit that most are not capable of or are only partially equipped to deliver AdTech / MarTech unification (88%), omni-channel loyalty programs (82%), and AdTech journey attribution (73%). The immediate opportunity for agencies is to close this gap in Current Ability to Deliver Customer Journey Services to Clients % 82% 8 73% % 59% 59% 56% 54% 5 AdTech/MarTech unification AdTech journey attribution Omni-channel loyalty programs Customer journey assessments Rich audience Social segmentation for ad engagement/ lead targeting generation Persona development Omni-channel personalization Yes Partially or Not At All Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
14 Yet, Agencies Are Not Equipped to Maximize the Customer Journey Opportunities Agencies are at different stages when it comes to running journeys. Half of agencies admit they are not equipped to deliver effective customer journeys across channels today. 6 Have you Ever Run a Customer Journey on Behalf of your Clients in Real Time and Across Channels? 5 49% 39% 12% No Yes Don t know Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
15 The Elusive Art of the Customer Journey Start Nearly 5 of agencies don t have a standard process, such as a standard set of questions for uncovering customer journey requirements at the onset of programs. 6 Do you Have a Standard Set of Questions to Uncover Customer Journey Requirements? 5 49% 48% Yes No or in the process of developing Don't know 3% Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
16 Building Customer Journey Capabilities Agencies share a cautious optimism in their ability to build the capabilities to deliver customer journeys in 2017 (36%). However 64% don t expect to be able to address this growing opportunity until 2018 or later. When do you Believe That your Agency will be Able to Enable Effective Customer Journeys Across All Industries? 45% 35% 36% 41% 25% 15% 12% 11% 5% Never Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
17 Customer Journey FUD (Fear, Uncertainty, Doubt) Part of the caution is driven by the lack of skilled talent to run the tools (54%), part by the lack of available ROI (26%), and concerns around how to scale without losing personalization (15%). What is the Biggest FUD(Fear, Uncertainty or Doubt) About Customer Journeys? 6 54% 5 26% 16% 4% Determining what the ROI will be for brands Lack of skilled people to use the customer journey tools How to scale journeys without losing personalization Other Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
18 The Vertical Customer Journey Agencies stated that interest in customer journeys varies by industry and by client. Does Interest in Customer Journeys Vary by Client and Industry? 10 91% 8 6 9% Yes No Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
19 The Vertical Customer Journey Opportunities in 2017 Agencies see Retail as leading the way (65%), reflecting the already sophisticated approach to digital marketing within the retail sector, as brands fight it out to win in the experience economy. Financial Services and Travel hold the second spot (44%), followed by Automotive (37%), Telecoms () and CPG (15%). Which Industries Show Higher Interest in Customer Journeys? 7 65% % 44% 37% 15% Retail Financial Services Travel Automotive Telecoms CPG Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
20 Closing the Gap: The Agency Voice Integrating customer journeys with existing MarTech tools Workshops and journey mapping processes Standardized best practices A better story about the relationship between the user journey and ROI/brand Articulating and demonstrating the customer journey purpose and value Analyzing data across channels to draw valuable insights from it Mapping behavioral & realtime data into journeys Building better prebaked journeys that are easily implemented as a test versus status quo Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
21 Survey Demographics 7 work in creative, digital or full service 57% of respondents are from the US and 43% are from Europe Agency perspective 31% are in a strategy role within an agency or brand 134 respondents participated in Fall 2016 Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
22 About Kitewheel orchestrates intelligent customer journeys by unifying decisions across all touchpoints for brands and their agencies. Kitewheel s innovative Customer Journey Hub visually unifies disparate systems, channels and technologies to provide seamless customer experiences that drive real-time revenue as well as long-term loyalty. Kitewheel has more than 25 of the world s leading marketing agencies as active partners, including the top five agency groups Omnicom, WPP, Publicis and Havas. Kitewheel serves its global partner base from offices in Boston, New York City and London. For more information, please visit and follow Kitewheel on Twitter and LinkedIn. Contact us: info@kitewheel.com, Industry Report November 2016 The State of MarTech and AdTech: Customer Journey Investments in
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