Marketing leaders face intensified pressure to show their program’s value. Competition for budget comes from many corners of the business. Gartner’s 2020 CMO Spend Survey, for example, found that 27% of respondents said they compete for budget and resources the most with sales/business development, 19% said the IT organization, and 18% said R&D product development
Which brings us to the marketing analytics team. Marketing leaders estimate they allocate 10.2% of the marketing program budget on marketing analytics and consumer insights. To understand how marketing teams are leveraging data and analytics to power modern marketing, Gartner this year fielded a survey of more than 400 marketing leaders and analytics practitioners.
Lizzy Foo Kune, my colleague who specializes in marketing data and analytics and advertising, found that a large proportion of CMOs and other senior marketers are unimpressed by the results they receive from their marketing data and analytics investments. In an upcoming report, she points out that respondents are looking to grow teams to support advanced analytics capabilities, such as data and decisioning automation, even though they haven’t seen the results of current investments.
Of those who anticipate a staff increase over the next two years, the top three reasons were the same for the high and low maturity organizations: They need to increase influence on business outcomes, obtain staff with new skills and to obtain a larger team. Respondents from medium maturity organizations named slightly different reasons, including more staff to support data automation and insights provided by external service providers weren’t sufficient to meet their needs.
Adding staff in an attempt to increase the influence on business outcomes needs is only a partial solution. Instead, marketing leaders responsible for analytics need to prioritize skill development, particularly in areas like advanced modeling, consultation and persuasive communication. My colleague Jason McNellis also notes that more mature teams are noticeably more likely to influence more marketing decisions with marketing analytics. See his blog post, “Sneak Peak: Marketing Analytics Still Matters.”
Gartner clients can access the survey key findings and recommendations in the upcoming report, Marketing Data and Analytics Survey 2020: Optimism Persists as Results Fall Short of Expectations.