Marketing will finally make the shift from being regarded as a cost to a revenue-generating division over the next five years, according to CMOs surveyed by the Economist Intelligence Unit. Currently 68% of CMOs globally say the rest of their business see marketing as little more than a cost. In APAC that figure is 70%, above the 62% in the US.
However, 80% of Asia Pacific marketers said they believe business owners will treat marketing as a revenue driver in three to five years, higher than in North America (75%).
The report from the Economist Intelligence Unit, on behalf of Marketo, surveyed almost 500 global CMOs about the challenges they face and their forecasts for the next five years.
Three quarters of marketers also believe that the marketing division will have full control over “end-to-end” customer engagement, putting marketers at the centre of revenue growth and strategy.
Currently around a third of CMOs have responsibility for the full customer experience.
This is highest in Europe with 90% of marketers expecting to lead business strategy. In APAC and North America it is 79%.
Only 16% of APAC marketers say marketing’s output is measured on revenue impact – well below North America at 31%.
Asia Pacific marketers have a slightly different focus than their global peers, according to the report. They're less likely to be responsible for branding and strategy, but more likely to drive customer retention and acquisition strategies.
It also revealed that eight in 10 marketers think that businesses need to make dramatic changes to the way they operate to keep up with increased technical and consumer demands.
The report claims that only half of current CMOs use data to drive insights – but that in the coming years 80% will do so. In APAC, though it's higher with 59%, ahead of the 44% in North America.
“The transformation taking place in marketing is profound as marketers race to adopt technology and add skills that will allow them the entire relationship with the customer,” said Sanjay Dholakia, chief marketing officer at Marketo.
Engagement will continue to be a driving force for marketing, but its emphasis will change. Just 22% of CMOs see engagement based on brand love while almost a third (63%) of marketers saying that engagement has a direct impact on retention and repeat purchase.
The top four areas of investment for marketers are reaching consumers on social networks, mobile devices, e-mail and the use of analytics.
APAC marketers forecast more investment in advertising management, content marketing and resource management than their North American or European peers, who are more concerned with social and mobile.
The Internet of Things has been bandied around for years, but half of marketers think that over the next three to five years it will “revolutionise” marketing and customer experience - equal to the revolutionary impact of real time personalised communications on mobile. In APAC, marketers put more emphasis on wearable technology than those in North America, 37% to 18%.
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