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1
STATE OF PERFORMANCE MARKETING 2017
CONTENTS
2
EXECUTIVE SUMMARY
4
METHOD
6
PROGRAMMATIC ADVERTISING
8
RETARGETING
10
MOBILE RETARGETING
12
EMAIL MARKETING
14
ATTRIBUTION
16
FULL-FUNNEL PERFORMANCE MARKETING
18
CREDITS
www.adroll.com
3
STATE OF PERFORMANCE MARKETING 2017
EXECUTIVE SUMMARY
Introduction
Programmatic continues to shine
In previous editions of this report, our primary focus was on how industry professionals
approach the concept of programmatic advertising. While this is still important, the
industry, as well as marketer knowledge and skill sets, have evolved. This year, instead of
focusing solely on programmatic advertising, we expanded our research and interviewed
350 performance marketers across Australia, New Zealand and Singapore to understand
how they’re advertising to each stage of the marketing funnel and how they they utilise and
coordinate various channels and technologies in unison to achieve their goals.
In addition to these new insights, some of the trends from years past persist. For example,
marketers have continued to embrace a programmatic approach to digital marketing
with over 30% responding that they are currently investing more than half of their
budget in programmatic initiatives alone. Additionally, over 80% of marketers state that
programmatic advertising results in a greater return on investment (ROI) than traditional
media buying.
Attribution is king
It was clear from last year’s State of the Industry Report that marketers had a long way
to go with attribution. That all changed during 2016, as attribution was one of the most
discussed topics in digital media. Industry professionals have intensified their interest
in marketing measurement, in order to better evaluate their efforts and optimise their
decision-making process. While the majority of marketers currently rely on first- or lastclick models, 74% reported that they plan on changing their approach in 2017. To underline
the importance of this point, 30% of Australian marketers reported spending the majority
of their budget on measurement alone.
Conclusion
One way to characterise the overall trends we’re seeing is that the technology is actually
starting to line up with the promise and the vision marketers have had for many years but
didn’t necessarily have the tools to deliver. We’re seeing real world applications of machine
learning, automation and data-driven decision making. So where are we in the evolution
of technology and its ability to solve marketer challenges? What attribution models are
marketers moving toward? How are strategies changing to ensure ads reach prospects
at each stage of the sales funnel? What challenges are marketers seeing when creating
mobile campaigns? We’ve compiled the answers and provided even more insights into how
modern marketers are approaching digital advertising in 2017.
Email marketing becomes dynamic
Originally, email marketing consisted of drafting one piece of content and sending it to
a large, varied batch of recipients. Over time, marketers evolved to more behaviourally
triggered campaigns which grouped users into similar audiences. Now, this trend is being
taken even further with campaigns that include dynamic content personalised to the
individual user. In fact, the majority of marketers stated that their email campaigns are
now dynamically based on user behaviour, meaning their email sends will populate with
specific content based on the actions a person has taken online.
www.adroll.com
5
STATE OF PERFORMANCE MARKETING 2017
METHOD
350
marketers, business owners and executives.
Over 40%
of respondents spend over half of their
marketing budget on digital marketing.
APAC MARKETERS SPEND THE FOLLOWING AMOUNTS OF THEIR MARKETING BUDGET
ON DIGITAL MARKETING:
68% Primarily B2B
65% Agency
32% Primarily B2C
35% Brand Direct
1%
21%
35%
28%
15%
l No budget l Under 25% l 25–50% l 50%–75% l 75-100%
TYPE OF COMPANY
PRIMARILY MID-SIZED COMPANIES
Saas/Software/Technology
Media And Entertainment
27%
6%
26%
Financial Services
40%
12%
l <100 Employees l 100–500 Employees l 500–1000 Employees l > 1000 Employees
4%
Agency
13%
5%
23%
Education Or Government
Retail
Travel
25%
9%
Other
5%
Healthcare
5%
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STATE OF PERFORMANCE MARKETING 2017
PROGRAMMATIC ADVERTISING
Programmatic advertising involves the buying and selling of advertising space in real time.
Companies like AdRoll help automate this process, while optimising the placement and
performance of these ads. With programmatic marketing technologies, advertisers can
ensure that the right message is served to the right consumer at the right time, without
having to pull all the levers themselves.
Performance marketers have rapidly adopted this practice in recent years. In 2013, when
this survey was run in the US, only 7% of marketers dedicated more than half of their
budget to programmatic. By 2015, that had increased to 11% across ANZ and in 2016, 32%
of respondents acorss APAC were spending over 50% of their budget on programmatic.
What’s perhaps the most surprising is that the number of marketers reporting they spend
less than 10% of their budget on programmatic has fallen from 40% to 6% over the same
time period. Conversely, under 35% of Australian marketers spend the majority of their
budget on search marketing efforts.
77%
of marketers are very familiar to extremely familiar
with programmatic advertising. No APAC marketers
reported having no knowledge.
PERCENTAGE OF MARKETERS WHO EXPECT THEIR PROGRAMMATIC BUDGET
ALLOCATION TO INCREASE IN 2017
APAC Marketers
69%
Australian Marketers
77%
New Zealander Marketers
49%
Singaporean Marketers
61%
YEAR-OVER-YEAR INVESTMENT IN PROGRAMMATIC ADVERTISING
l <10% of Budget l 10-50% of Budget l >50% of Budget
2015 Marketers
Programmatic ties your ads to the web, social, mobile and beyond
But programmatic isn’t just contained to the web; marketers are able to programmatically
serve ads to customers via desktop, social channels like Facebook or even their inbox.
In fact, 77% of marketers claim they are either very familiar or extremely familiar with
programmatic advertising and 40% decided to run programmatic advertising across social
channels.
82%
of APAC marketers report that programmatic advertising
results in greater ROI than traditional media buying.
21%
68%
11%
2016 Marketers
6%
99%
61%
32%
of APAC marketers are familiar with paid social
advertising.
www.adroll.com
9
STATE OF PERFORMANCE MARKETING 2017
RETARGETING
100%
of marketers are using retargeting.
RESPONDENTS THOUGHT RETARGETING PERFORMED THE SAME AS, OR BETTER THAN,
THEIR....
l AU l US
Retargeting stands as one of the most effective ways for marketers to convert their window
shoppers into buyers and was the first breakout use case for programmatic advertising
since it delivers such clearly measureable ROI. Retargeting leverages behavioural data
from your site or app to deliver personalised ad campaigns. While it fits in well with any
performance marketing tactic, advertisers reported using retargeting to fulfil multiple
campaign objectives.
Following on from last year, the majority of marketers still view social media as the hottest
topic in retargeting, while email follows closely behind. Looking into the next year, almost
90% of marketers are planning on either increasing or maintaining their retargeting spend.
THESE WERE THE MOST COMMON OBJECTIVES FOR RETARGETING:
↗↗ Brand Awareness
Display Campaigns
79%
77%
Search Campaigns
76%
83%
Email Efforts
70%
82%
The average APAC marketer is spending between 25% and 50% of their
online advertising budget on retargeting.
↗↗ Lead Generation
↗↗ Social Engagement
↗↗ Lead Nurturing
↗↗ Driving New Sales
↗↗ Customer Retention
THE MOST POPULAR CHANNELS FOR RETARGETING
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11
STATE OF PERFORMANCE MARKETING 2017
MOBILE RETARGETING
Retargeting isn’t just limited to channels that perform well on desktop. Now technologies
are enabling marketers to take their retargeting campaigns cross-device. The majority of
marketers are already aware of how crucial mobile retargeting can be to driving net new
conversions.
The majority of marketers we surveyed said they’re already taking their retargeting
campaigns across devices. And over 83% of them plan to increase their mobile retargeting
spend in 2017.
83%
of marketers plan to increase their mobile retargeting
budget in 2017. (US 75%)
TOP KEY PERFORMANCE INDICATORS (KPIs)
FOR MOBILE RETARGETING
App Installs
27%
Mobile Conversions
20%
Increase In Overall Reach
17%
Integration With Other Digital Campaigns
13%
Extension Of Social Strategy To Mobile User Base
11%
Why so hesitant?
When considering cross-device campaigns, marketers can be deterred by several
challenges, including a perceived lack of users converting on mobile and an inability to
track campaign performance. Also, 23% of our marketers said that mobile advertising has
yet to develop a good user experience.
77%
of APAC marketers are currently retargeting on mobile.
WHY AREN’T YOU RETARGETING ON MOBILE?
Mobile advertising has yet to develop a good user experience.
23%
My customers aren’t mobile.
23%
Mobile analytics are not reliable.
20%
I don’t have an app.
13%
I don’t know how to measure attribution.
11%
Debunking the myth of mobile ads
While many people may worry that the mobile advertising experience is detrimental to
their brand, user behaviour is beginning to debunk this myth. As mobile sites and mobilefirst social apps like Instagram rise in prominence, ads are beginning to gain widespread
acceptance across the mobile landscape.
www.adroll.com
13
STATE OF PERFORMANCE MARKETING 2017
EMAIL MARKETING
The resurgence of email
IS YOUR EMAIL MARKETING DYNAMIC BASED ON USER BEHAVIOUR?
As marketers are applying programmatic technologies originally developed for paid media
into email, they are extending the reach of their advertising efforts. Many are looking to
capitalise on the high ROI this channel provides in new and interesting ways. In fact, 80% of
marketers surveyed in this year’s report claimed that their email campaigns are dynamic
based on user behaviour, expanding their aims beyond traditional batch sends.
l AU l US
Most marketers choose to run campaigns with multiple marketing objectives and each
objective typically varies from business to business. Loyalty sends are the most popular,
with lead generation and cross-sell offers coming in close behind.
No
One thing marketers had success with in 2016 was figuring out how to integrate their email
campaigns with their other marketing efforts. Over 80% of all those who were surveyed
said that they are either integrated or very integrated.
I Don’t Know
THESE ARE THE PRIMARY MARKETING OBJECTIVES FOR APAC MARKETERS’ EMAIL
CAMPAIGNS:
WHAT DOES A SUCCESSFUL EMAIL CAMPAIGN LOOK LIKE?
Yes
70%
17%
3%
23%
7%
ANZ 2015
Loyalty
41%
Lead Generation
33%
Cross-Sell/Up-Sell
26%
Lead Nurturing
80%
35%
Engagement
27%
Direct Revenue Generated
14%
Open Rate
13%
Cross-Sell And Up-Sell Sales
11%
Leads Generated
11%
13%
35%
14%
27%
16%
Customer Retention
15%
Customer Education
7%
2%
APAC 2016
34% Engagement
26% Direct Revenue Generated
9%
9%
34%
20% Open Rate
9%
Cross-Sell And Up-Sell Sales
9%
Leads Generated
2%
Open Through Conversions
20%
26%
www.adroll.com
15
STATE OF PERFORMANCE MARKETING 2017
ATTRIBUTION
Attribution is critical to marketing success because how you measure the impact of your
advertising determines if you spend more efficiently. And in the digital paradigm, almost
everything is measurable.
Trends year-over-year continue to show that marketers are placing more and more
importance on marketing analytics and attribution. When we surveyed our customers, we
heard this point loud and clear. Of the marketers we spoke to, 79% believe attribution is
critical or very important to marketing success. Over 30% of Australian marketers said
that they spend over half of their yearly budgets on campaign measurement. Despite this,
we’re still seeing many marketers place too much importance on the seriously outdated
single-click attribution models.
↗↗ Over 30% of Australian marketers spend over half of their budget on attribution and
measurement.
2015
While many marketers still value single-click attribution models, these models are
problematic in that they only measure a portion of your audience—those who click. They
discount altogether the much larger audience of internet users who make a habit of never
clicking on advertising.
A simple alternative to last-click attribution is blended attribution. This incorporates
customer touchpoints, including both views and clicks of ads, before the purchase. This
metric retains the simplicity and immediacy of click-based attribution, while accounting
for the cumulative effect of views.
↗↗ 76% of marketers use a third-party attribution partner to measure campaign success.
↗↗ Over 70% of marketers are still using a single-click attribution model, but 74% plan on
changing their attribution model in the next 12 months.
↗↗ 99% of marketers track view-through conversions.
PERCENTAGE OF MARKETERS WHO FIND ATTRIBUTION IMPORTANT OR CRITICALLY
IMPORTANT TO SUCCESS.
2014
The solution
2016
HOW FAMILIAR ARE YOU WITH MARKETING ATTRIBUTION?
Australian Marketers 2014
36%
62%
79%
81%
74%
23%
78%
48%
18%
8%
3%
ANZ Marketers 2015
AU
ANZ
APAC
AU
NZ
17%
SNG
42%
22%
12%
7%
APAC Marketers 2016
39%
WHAT WEIGHT DO YOU ATTRIBUTE TO VIEW-THROUGH CONVERSIONS?
16%
4%
2%
l I use a multi-touch attribution model and analyse how channels contribute to the overall
marketing mix.
ANZ 2015
18%
39%
25%
12%
6%
l I track attribution on most of my campaigns and analyse the results.
APAC 2016
5%
39%
l I track attribution, but I’m not sure how to effectively analyse the results.
33%
29%
32%
l 0%–9% l 10%–24% l 25%–49% l 50%–100% l We don’t count VTCs
1%
l I think attribution and analytics are important, but I’m not sure where to begin.
l I don’t know anything about attribution or analytics.
www.adroll.com
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STATE OF PERFORMANCE MARKETING 2017
FULL-FUNNEL PERFORMANCE MARKETING
The full-funnel perspective gives marketers the opportunity to adjust the approach to and
measurement of their campaigns according to where a prospect is in the buying cycle.
Because customers require a different approach at every stage of the funnel, it’s important
to adjust your marketing strategy accordingly.
The customer journey refers to the path that prospects take from brand awareness to
conversion. Although each customer’s journey is different, you can generally break it down
into upper, middle and lower funnel. Upper-funnel campaigns consist of brand awareness
and prospecting campaigns. Campaigns that move down through the middle of the funnel
aim to convert prospects and activate up-sell opportunities, while campaigns at the very
bottom of the funnel aim to retain and grow existing customers.
Marketers use many different channels in order to attract and convert customers at each
of these different stages.
While certain channels may work best for certain customers, the important thing for
marketers to remember is that they should try to extend their reach to as many different
customers as possible. This includes running campaigns across multiple channels and
across many devices.
HOW DO YOU ALLOCATE YOUR MARKETING BUDGET ACROSS THE CUSTOMER BUY
CYCLE?
WHEN TRYING TO ATTRACT NEW CUSTOMERS, THESE WERE THE MOST SUCCESSFUL
CHANNELS FOR MARKETERS:
l ANZ 2015 l APAC 2016
Organic social media
40%
Prospecting For New Customers
Programmatic display advertising
36%
21%
36%
Paid social media
Converting Prospective Customers
26%
35%
46%
Paid search
16%
Activating/Up-Selling Existing Customers
18%
24%
Retaining Existing Customers/Driving Loyalty
9%
20%
Traditional media buying
15%
Events
11%
Organic search
10%
Organic social media
9%
www.adroll.com
STATE OF PERFORMANCE MARKETING 2017
19
CREDITS
Sources
AdRoll, State of the Industry: A Close Look at Retargeting and the Programmatic Marketer,
2014.
AdRoll, State of the Industry: A Close Look at Retargeting, Programmatic Advertising, and
Performance Marketing, 2016.
About AdRoll
AdRoll is a leading performance marketing platform with over 30,000 clients worldwide.
Its suite of high-performance tools works across devices, helping businesses attract,
convert and grow their customer base. The company is home to the world’s largest opt-in
advertiser data co-op, the IntentMap™, with over 1.2 billion digital profiles. AdRoll’s goal
is to build the most powerful marketing platform through performance, usability and
openness.
AdRoll is headquartered in San Francisco, with offices in New York, Tokyo, London, Dublin
and Sydney. Learn more at www.adroll.com.
www.adroll.com
www.adroll.com