On average, 38% of retail marketing budgets are devoted to digital channels, according to a recent report from Conversant.
Moreover, 20% of retail marketers report that digital now accounts for 50-75% of their total spend, and 19% say that it constitutes 75-100% of their marketing budget.
The findings come from a survey conducted in December 2013 of 82 senior-level marketers who work for retailers (brick-and-mortar businesses and e-tailers).
Below, additional key findings from the report.
Direct Response vs. Branding
- Respondents say they are now commonly using digital channels for both direct response and brand building.
- 58% disagree that digital is better for driving short-term sales than long-term brand building.
- 86% of senior retail marketers strongly agree or somewhat agree that personalized messages can be more effective than mass messages.
- 59% say omnichannel behaviors—in which consumers access digital experiences across multiple devices—complicate personalization.
- 26% strongly agree that "the future of marketing is in synchronized personalized communications tailored to every individual."
- 65% of respondents say they work with more than five marketing vendors (31% work with 11 or more).
- 48% report that finding the right digital vendor is somewhat or extremely difficult.
- 56% say "It's difficult to integrate the large number of digital vendors we work with."
- 74% of respondents say retargeting is an important tactic for driving close-in/impulse buyers to make a purchase.
- 28% say retargeting can hurt brands due to consumer privacy concerns.
- 44% say retargeting gets over-credited for sales because the lower funnel audience tends to be more likely to respond.
About the research: The report was based on data from a survey conducted in December 2013 of 82 senior-level marketers who work for retailers.
Continue reading "Retail: Digital Marketing Trends and Challenges" ... Read the full article
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