SOURCE: SocialCode

December 03, 2015 12:01 ET

CMOs Hungry for More Consumer Insights From Digital Advertising, According to The CMO Club and SocialCode Report

77 Percent of CMOs Will Use Digital Advertising to Learn About Customers Over the Next Year

NEW YORK, NY--(Marketwired - Dec 3, 2015) - Chief Marketing Officers (CMOs) invest the least in channels from which they can learn the most about their consumers and the effectiveness of their advertising, according to research from SocialCode and The CMO Club.

More than 80 chief marketing officers, most of whom spend more than $25 million on paid media annually, were surveyed for the report, "Digital Advertising Insights: A Treasure Chest for CMOs to Open." The report provides insights into the digital marketing and data-management strategies of large consumer brands, and includes perspectives from marketing leaders at TD Ameritrade, Clorox, Belkin International, 3M and Patron.

Platforms like Facebook, Instagram, Twitter and Pinterest provide marketers with the opportunity to rapidly learn what elements of an advertising campaign drive performance with different audience segments, yet CMOs say social advertising is their smallest digital expenditure, accounting for 12% of digital budgets compared to 29% for display and 30% for search. And 61% of CMOs do not use digital advertising to identify new customer segments.

The research also shows that CMOs recognize the need to better meet consumers' expectations for more personalized advertising, with more CMOs planning to combine their customer and advertising data to capture consumer insights, identify new customer segments and address consumers with more relevant and timely advertising.

"While digital advertising platforms like Facebook are a powerful tool for CMOs to gain rapid and in-depth insights about their consumers and help inform better marketing choices across digital and traditional media, many marketers are still in the planning and preparation stage," said Pete Krainik, Founder of The CMO Club. "Our research showcases how leading marketers are proving the value of digital first and being smarter with their marketing approaches. The goal of this CMO Solution Guide is to help CMOs move farther along into implementation so that they can reap the rewards of a digital-first approach."

37% of CMOs currently use digital advertising to better understand their customers and an additional 40% plan to do so in the next twelve months, according to the survey. To extract more value from their data, CMOs plan to take greater control over it. Just 24% of CMOs said they currently manage their own data management platform compared to 51% who outsource; however, 60% plan to move data management in-house within the next two years. 

"With a majority of media being consumed digitally, marketers have an opportunity to tell more authentic, relevant brand stories than ever before," said Lee Applbaum, Chief Marketing Officer of Patrón Spirits International AG. "The research in the CMO Solution Guide signals that CMOs increasingly recognize the need to expand beyond traditional methods and are poised to take greater advantage of digital's capacity to surface timely, accurate insights about what resonates with their consumers, which can in turn be amplified across channels."

"Sophisticated marketers no longer view social advertising and digital as just another advertising channel, but as a nerve center to inform creative, messaging and investment decisions across their entire marketing mix," said Max Kalehoff, Chief Marketing Officer of SocialCode. "Our research with The CMO Club highlights both the benefits and challenges of adopting a digital-first advertising strategy by shining light on why marketers need to take greater control their data, and implement a plan to learn from and act on it."

Additional resources

Portions of this story appeared first on MediaPost.

About SocialCode
SocialCode is a technology and insights company that manages digital advertising for the world's leading consumer brands. SocialCode decodes human needs to deliver actionable insights from consumer data on advertising platforms like Facebook®, Twitter, Instagram and Pinterest. SocialCode is the only major social marketing platform that combines automation with a strategic services group. That's why marketers like AB InBev, Nestle, Capital One, Reckitt Benckiser, Macy's and Visa trust SocialCode to know what to do now and what to do next. Visit SocialCode.com to learn more.

About The CMO Club
The CMO Club is the world's most engaged and inspired community of Senior Marketing Executives who help each other solve their biggest challenges, within a candid, trusted, and sharing environment. Collaboration fueled by inspiring events and within the members-only Digital Solutions Clubhouse raises the standard for what is required to be a successful Chief Marketing Officer. With more than 850 members, The CMO Club is the go-to center for today's Senior Marketer for peer-based personal and career success support. For more details, please visit The CMO Solution Guide at www.thecmoclub.com.

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