Commentary

Martech Counterpunch: Brands Shift Spending In Response To Privacy Changes

Marketers have been challenged by recent data privacy changes, and 90% have fundamentally altered how they measure marketing performance according to Marketing Intelligence Report, a study released Wednesday by Salesforce.  

For instance, brands have made the following investments in technology in an effort to cope with privacy changes: 

  • Marketing analytics and measurement technology — 52% 
  • Customer-data platform technology — 50% 
  • Real-time interaction and personalization technology — 45% 
  • Content management technology — 44%
  • Identity enrichment and resolution technology — 41% 

But fewer than half are very confident in their ability to do the following in the face of the recent changes:

  • Hit sales or business targets — 42% 
  • Create personalized customer experiences — 40% 
  • Identify and target relevant audiences — 39%
  • Compare marketing performance across channels — 38%
  • Measure marketing ROI — 37%

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Among other privacy shifts, Apple’s Mail Privacy Protection has reduced the relevance of email opens, and Google’s third-party cookie deprecation has pushed businesses to “a consumer-first, content-based approach to data collection,” the study states. 

As a result of all this, brands have invested in these marketing tactics in response to the changes, with email marketing falling far down the list:

  • Paid social —54%
  • Mobile marketing — 52% 
  • Web experiences — 51% 
  • Content marketing — 49% 
  • Paid search — 48% 
  • Email marketing — 43% 
  • Event marketing — 41% 
  • Programmatic/display advertising — 40%
  • Affiliate marketing — 39% 
  • Out-of-home marketing — 38% 
  • Connected TV/OTT marketing — 36%
  • Traditional TV/radio advertising — 32% 

Email investments remained the same for 42%. And 13% reported a decrease.  

But companies face serious challenges: 80% say their ability to track ROI for each investment needs improvement. And 33% aver that their insights are too slow for marketing decision-making.

The study separates companies into high performers (17%), moderate performers (69%) and underperformers (!5%). 

It shows that 48% of the high performers are completely satisfied with their ability to drive email opt-ins, as are 42% of moderate performers and 36% of the underperformers.  

But 59% of the high performers are satisfied with their ability to generate sales, while 51% are satisfied with audience/follower growth. In addition, 51% are able to fuel form fills and sign-ups, 51% to achieve product adoption, 51% to create content downloads and 52% to pull website visits. 

Brands also say these disciplines are key to driving marketing-led growth: 

  • Data quality — 79%
  • Shared marketing and sales business objectives — 74% 
  • Cross-channel analytics — 73%
  • Collaboration across distributed teams — 73%
  • Real-time personalization — 73%
  • Testing new marketing channels/platforms — 71% 
  • Artificial intelligence performance insights — 69%
  • Unified customer profiles — 67%

Similarly, they see these skills also fuel customer experience:

  • Data quality — 77%
  • Shared marketing and sales business objectives — 75%
  • Cross-channel analytics — 72%
  • Collaboration across distributed teams — 75% 
  • Real-time personalization — 74% 
  • Testing new marketing channels/platforms — 72%
  • Artificial intelligence performance insights —71% 
  • Unified customer profiles — 71%  

In another finding, the study shows that 40% say their cross-channel data integration is mostly or entirely automatic. But 42% have an even mix of manual and automatic, and 17% are entirely manual.

Salesforce surveyed 2,583 marketing decision makers worldwide. 

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