Data-Driven Spending Grows Despite Tempered Expectations

Marketers continue to invest more and more in Big Data. Over one-third of marketers (37.5%) increased their expenditures on data-driven campaigns during the first quarter of 2015 compared to the final quarter of 2014, according to a new Winterberry Group study. Nearly half (47.7%) of marketers said their data-driven marketing spend remained level during those two quarters.

Spend is expected to continue to rise. Nearly half (43%) of respondents said they are likely to increase spending on data-driven marketing during the next quarter, while 48.2% expect to maintain current levels of spending.

In all, Winterberry reports that data-driven spending during the first quarter of 2015 “grew at a pace not seen” since the first quarter of 2014.

Winterberry conducted an online survey of 239 Direct Marketing Association (DMA) members for the report in April 2015. Respondents included 166 marketers and 127 marketing services (including agency services) and technology providers, per a release.

Perhaps the increased budgets are because of increased performance. Winterberry notes that 44.7% of respondents said their revenues generated by data-driven marketing increased in the first quarter of 2015 compared to the previous quarter. A similar amount of respondents (41.4%) said their related revenue remained constant, per a release.

The vast majority of respondents were confident that data-driven marketing is here to stay. Nearly half (48%) of those surveyed “strongly agreed” that data-driven marketing is well-positioned to grow in the future, and another 26% “somewhat agreed” with that statement. A combined 21.2% either “somewhat disagreed” or “strongly disagreed” with that claim.

However, marketers are not quite as enthused about data-driven marketing today as they have been for the past two years. On a scale of 1-5 -- with one representing strong disagreement that data-driven marketing is well-positioned to grow in the future, and five representing strong agreement -- the average response was 3.87. This is the lowest average response Winterberry has recorded since the first quarter of 2013 (3.76).

“The [report's] findings suggest marketers are realists,” stated Neil O’Keefe, DMA senior vice president of CRM and member engagement.  “They can spot the growth potential but they also understand the need for improved measurement and talent development to capitalize on future opportunity.”

The full first quarter 2015 Quarterly Business Report from the DMA and Winterberry Group can be found here.

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