Australian Marketing Institute
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1 1 Australian Marketing Institute Senior Marketer Monitor 2014 January 2014 Enquiries: Mark Crowe, CEO Australian Marketing Institute,
2 2 Background & Methodology The Australian Marketing Institute (AMI) commissioned Colmar Brunton to conduct a study of Australia's senior marketing professionals. The aim of the study was to understand senior marketer sentiment, priorities, perspectives and challenges in the current marketing environment. The first online survey was administered in to a selection of Australian Marketing Institute members and Colmar Brunton clients who were senior marketing professionals. The study was repeated in,, and. The fieldwork was conducted in November and December and included responses from n=261 senior marketers.
3 3 Key Findings Overall, the results of the Senior Marketer Monitor in 2014 vary for the marketing profession. It is encouraging that marketing budgets, overall, are forecast to increase 3.4% in 2014 compared with 1% in. Marketers are positive about the role of marketing in Australia, and in particular it is smaller organisations that are growing fastest and most positive. Marketing s Two fifths () are expecting their marketing budget to increase in 2014 and are expecting it to remain the same. On a total level, senior marketers have indicated a total marketing budget increase of about 3.4% in Encouragingly, of the organisations who are expecting an increase, an average budget increase of is expected. Organisations with a turnover of under $150 million were more likely to expect an increase in their budget for Marketing Priorities and Challenges The top marketing priorities include measures to increase sales, customer acquisition and focusing on more profitable market segments. Overall, there was slightly more emphasis on increasing sales and customer acquisition and less focus on efficiency and brand building compared with previous years. Shifts in Communications Channels The use of social networking and Web 2.0 as a communication channel continues to grow, but has stabilised. The movement away from increased investment in traditional marketing has been arrested with intent to increase the use of some channels growing for the first time in a number of years (radio, Pay TV). Role and Influence of Marketing Similar to previous years, most senior marketers (77%) feel positive about the role and influence of marketing in Australia.
4 4 Two fifths () expect their marketing budget to increase in 2014, which is a significant increase from. In total, expect a decrease in 2014 and expect their budget to stay the same. Marketing Changes Increase Decrease Stay exactly the same 0% 5% 10% 15% 25% 45% 50% Q3A. In 2014, how do you expect your marketing budget to change from? Do you expect it to?
5 5 Marketing budgets will grow by 3.4% in 2014, following growth in of 1%. In 2014, of marketers expect their marketing budget to increase, with these organisations anticipating an average increase of. expect a decrease in 2014, and for these organisations they anticipate an average decrease of (indexed at 100) Q3A. In 2014, how do you expect your marketing budget to change from? Do you expect it to? Q3B. Can you specify the % that it is likely to increase? Q3C. Can you specify the % that it is likely to decrease?
6 6 Half of organisations with employees again expect to increase marketing budgets in These smaller organisations are more positive than the mid sized and larger organisations. Marketing Changes - Employee Size Increase Decrease Stay the same Total Total Total Total Employees Employees Employees Employees 52% 48% 47% 50% 14% 14% 15% 101-1,000 Employees 101-1,000 Employees 101-1,000 Employees 101-1,000 Employees 46% 27% 1,000+ Employees 1,000+ Employees 1,000+ Employees 1,000+ Employees 29% 29% 46% 0% 10% 50% 60% 70% 80% 90% 100% Q3A. In 2014, how do you expect your marketing budget to change from? Do you expect it to? Q3B. Can you specify the % that it is likely to increase? Q3C. Can you specify the % that it is likely to decrease?
7 7 More large, medium and small turnover organisations are planning to increase marketing budgets in Fewer organisations are planning to decrease their marketing budget. Marketing Changes - Turnover Increase Decrease Stay the same Total Total Total Total $0-$30m Turnover $0-$30m Turnover $0-$30m Turnover $0-$30m Turnover 42% 57% 58% 16% 15% 11% 42% 32% $31-150m Turnover $31-150m Turnover $31-150m Turnover $31-150m Turnover 32% 65% 12% 23% $151m+ Turnover $151m+ Turnover $151m+ Turnover $151m+ Turnover 25% 27% 47% 23% 50% 0% 10% 50% 60% 70% 80% 90% 100% Q3A. In 2014, how do you expect your marketing budget to change from? Do you expect it to? Q3B. Can you specify the % that it is likely to increase? Q3C. Can you specify the % that it is likely to decrease?
8 8 There is a great deal of variation at an industry level when it comes to outlook for marketing budgets. Financial services (48%) has the highest proportion increasing budgets in 2014 and education (64%) and media & communications (53%) the highest proportion decreasing budgets. Total Total Total Total Financial Services Financial Services Financial Services Financial Services Manufacturing Manufacturing Manufacturing Manufacturing Education Education Education Education Professional Services Professional Services Professional Services Professional Services Retailling Retailling Retailling Retailling Media & Communciations Media & Communciations Media & Communciations Media & Communciations Non For Profit Non For Profit Non For Profit Other Other Other Other Q3A. In 2014, how do you expect your marketing budget to change from? Do you expect it to? Q3B. Can you specify the % that it is likely to increase? Q3C. Can you specify the % that it is likely to decrease? 27% 43% 43% Marketing Changes - Industry 48% 51% 48% 63% 67% 14% 9% 55% 10% 23% 45% 17% 14% 53% 12% 60% 29% 29% 57% 10% 25% 64% 64% 48% 42% 43% 29% 53% 32% Increase Decrease Stay the same 0% 10% 50% 60% 70% 80% 90% 100%
9 9 Most organisation types and most industry sectors are increasing marketing budgets in 2014, with only larger organisations and retailing reducing budgets Change from Total % 0 to % Number of Employees 101 to 1, % % < $ % Annual Turnover (millions) $ % $ % Financial Services % Manufacturing % Education* % Professional Services % Retailing % Media & Communications % Not for Profit* % *Base year is
10 10 Marketing Priorities Measures to increase sales continues to be the top marketing priority. Customer acquisition and marketing to more profitable segments have increased in priority. More focus Q4. Have your marketing priorities shifted in the past 12 months? Less Focus Maximising efficiency of marketing expenditure 68% -2% 61% -2% 58% -3% 53% -3% Measures to increase sales 65% -2% 58% -2% 63% -2% 65% -2% Maintaining, building brand(s) 50% -8% 52% -6% 47% -11% 43% -8% More profitable market segments 52% -2% 50% -2% 51% -3% 55% -3% More focus Less Focus Customer acquisition 56% -8% 46% -6% 49% -7% 57% -7% New product development 43% - 46% -9% 42% -12% -15% Customer retention 58% -2% 45% -4% 45% -4% 46% -4% Channels, channel partners -8% 45% -6% -7% -8% Measures to increase current period profits 47% -2% -3% 47% -3% -5% Pricing issues 47% -8% -9% -5% 29% -9% Internal marketing -16% % - Longer term return on marketing investment - 27% -14% 29% -17% -15% Your direct competitors 23% -14% -15% 16% -16% -
11 11 Major Marketing Challenges Acquiring new customers, maintaining current customers, along with effectively getting the message to market, continue to be the major challenges for senior Australian marketers. Effectively getting your message to market Acquiring new customers Maintaining current customer base 54% 51% 50% 52% 55% 45% 47% 52% 58% 51% 46% 48% 50% 27% 45% Demonstrating the contribution of marketing to senior management Maintaining pricing /margins Committing sufficient budget to long term goals Maintaining marketing budgets Product issues Dealing with competition Supply channel, distribution issues 27% 25% 25% 29% 29% 29% 27% 42% 46% 42% 42% 45% 32% Very high level High level Q5. What are the major marketing challenges you are facing in your organisation today. Very high level High level
12 12 Use of social networking and Web 2.0 is high but growth is less pronounced. The popularity of Viral marketing continues to decrease. Use of content marketing is expected to increase in 2014 for almost half of organisations. Social Networking and Web 2.0 applications Online advertising Public relations -6% -2% -2% -2% -4% -9% -5% -4% -4% -7% -10% -10% -10% - -12% 61% 71% 77% 66% 63% 63% 64% 64% 56% 52% 46% 47% Content Marketing -4% 49% Viral marketing Direct marketing Mobile / SMS -9% -6% -9% -8% -11% -9% -12% -11% -15% -12% - -9% -7% -9% -5% 43% 32% 23% 50% 48% 46% Using more Using less Q6. Has your use of different communications channels changed in the past 12 months?
13 13 Use of traditional media has stabilised after a decreasing trend. Intent to use radio and pay TV more has increased for the first time since this measure as tracked. Point of sale advertising Outdoor Free to air television Sponsorships Pay Television Print advertising Radio advertising -14% - -11% -15% -10% % - -17% - -23% - -17% -12% % % % -12% - -27% - -42% % - -17% -10% 32% 27% 11% 10% 23% 8% 8% 4% 7% 12% 25% 23% 8% 11% Using more Using less Q6. Has your use of different communications channels changed in the past 12 months?
14 14 Similar to prior years, most senior marketers (77%) feel positive about the role and influence of marketing in Australia. The proportion that are very positive has increased to. Furthermore, 78% of marketers are positive about the role and influence of marketing within their own organisations. 16% 67% 9% 7% 0% 17% 61% 9% 12% 1% In Australia 16% 64% 10% 9% 1% 45% 11% 11% 2% 8% 32% 47% 8% 10% 2% 46% 11% 3% In your organisation 14% 58% 49% 10% 15% 14% 12% 3% 1% 60% 10% 12% 0% Very Positive (8-9) Positive (6-7) Neutral (5) Negative (3-4) Very Negative (1-2) Q1. How do you feel about the role and influence of marketing in Australia organisations today? Q2. How do you feel about the role and influence of your marketing department/team in your organisation today?
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