Marketing analytics are being used in less projects, their quality is being evaluated by fewer companies, and their contribution to companies’ performance is declining, finds Duke University’s Fuqua School of Business in its latest CMO Survey . The February installment of the survey, its 9th, found that only 40% of CMOs surveyed say their company formally evaluates the quality of marketing analytics, down from 47% 6 months earlier.
Additionally, the average percentage of projects that use marketing analytics has dropped to 30%, from 3%% in August 2012 and 37% in February 2012. Whether by cause or effect, CMOs are also reporting a slight drop in the contribution of analytics to their companies’ performance. On a 7-point scale (with 7 being “very highly” and 1 “not at all”), CMOs gave analytics’ contribution a mean rating of 3.7, down from 3.9 in the previous installment of the survey.
There’s some encouraging news, though. While there may have been a drop in the use of – and effectiveness of – marketing analytics, CMOs believe they’ll be spending more of their budgets on this area. Currently, they report spending 6% of their marketing budgets on analytics, but they expect that to rise to 10% in the next 3 years. (By comparison, CMOs expect to increase the share of their budgets allocated to social media from 8.4% currently to 21.6% in the next 5 years.)
Segregating budget responses by company type, the CMO Survey finds that B2C (6.7%) and B2B (6.5%) service companies currently devote the largest share of their marketing budgets to analytics, but that B2B services companies plan the most spending (11.6% share) in the next 3 years. The study also finds that the largest firms tend to spend more on analytics, and will continue to do so.
According to a recent survey by MarketingSherpa, 53% of marketers intend to increase their investment in analytics this year.
About the Data: The CMO Survey is conducted online twice a year. The latest survey was fielded from January 22 to February 8, 2013. 468 CMOs responded to the survey, of which 95% were VP level or above.-MarketingCharts