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APAC

Executive Summary | November 2013


Copyright CMO Council. All Rights Reserved. 2013

DIGITAL MARKETING

PERFORMANCE

DASHBOARD 2013

APAC DIGITAL MARKETING PERFORMANCE DASHBOARD TM | EXECUTIVE SUMMARY

CONTENTS

3 Abstract 4 Introduction 5 APAC Digital Marketing Performance Dashboard 7 Japan Digital Marketing Performance Dashboard 9 Contributed Commentary From Adobe 11 Affiliate Partners 12 About the CMO Council 12 About Adobe

Copyright CMO Council. All Rights Reserved. 2013

APAC DIGITAL MARKETING PERFORMANCE DASHBOARD TM | EXECUTIVE SUMMARY

ABSTRACT
In this second annual look into the advancement of digital marketing across the Asia Pacic region, a deepening divide emerges between those markets seeking performance improvements in digital engagements, personalization, measurement and analytics and those markets struggling to make the shift away from digital advertising tactics. This division between more mature markets like Australia, India and Singapore and traditional markets like China, Korea and Japan highlights where and how the very denition of digital marketing is evolving as marketers continue to advance their case for a more measurable, business-focused strategy. The APAC Digital Marketing Performance Dashboard 2013 report highlights where and how senior marketers from across the region are shifting digital marketing priorities and advancing digital strategies, analytics and customer-centric engagements. The study reveals signicant struggles in securing budget and approvals from a still-skeptical senior management team, along with signicant talent gaps both in-house and at the agency level. Similarly to 2012, mature digital markets like Australia, India and Singapore earn top marks in organizational alignment, marketing mindset and digital readiness while more traditionally focused markets like China and Korea are still struggling to show the value and impact of digital marketing spend. Hong Kong resides in the middle of these two worlds, advancing strategies and cultivating a ready mindset for digital transformation but lacking the talent and budget to actualize the shift. Across the board, marketers in Asia Pacic are hopeful for the customer-centric future that digital marketing can bring to their organizations, but they lack the talent to press forward. Agencies, often managed on an ad hoc or project-to-project basis, have not delivered the business-focused results that marketers have been seeking. Yet in-house teams are also struggling to train or hire talent with deep digital knowledge. While Asia still lags behind North America in overall digital marketing performance and readiness, the speed at which the gap is closing is signicant as marketers keenly understand that there is not time to allow this evolution to move slowly. The ndings from this report were gathered via an online survey distributed by the CMO Council across the Asia Pacic region. The survey was elded in the third quarter of 2013, yielding 276 completed responses.

Copyright CMO Council. All Rights Reserved. 2013

APAC DIGITAL MARKETING PERFORMANCE DASHBOARD TM | EXECUTIVE SUMMARY

INTRODUCTION
Customer adoption and affinity for digital channels are continuing to grow across the Asia Pacic region. According to ComScore, 41 percent of the worlds Internet population now resides in Asia. Of that population, some 78 percent of Asias Internet population is under the age of 45. Social media numbers are also soaring as one-third of the worlds socially connected individuals are in Asia. While 46 percent of global consumers use social media to make purchasing decisions, 65 percent of customers in Asia turn to social as a key research and decision-making tool. As broadband becomes more readily available and mobile web gains speed and accessibility, digital engagements across a multitude of channels show no signs of slowing. By 2015, reports estimate that 40 percent of smartphone users and 35 percent of tablet users will reside in APAC. Estimates also point to more than half (57 percent) of all global mobile phones being in Asia, representing 10 times the number in North America. Singapore, as a prime example, will see 90 percent of homes equipped with broadband access by 2015. But the most telling statistic indicates that by 2015, digital advertising spend in the U.S. will reach 36 percent of total marketing spend, but in Asia, spend will only reach 29.4 percent. While it is clear that Asia still lags behind North America in its adoption and evolution of digital marketing, what has not yet been clearly understood is the speed and extent to which digital is advancing in the region and closing that gap in spending. This rapid advancement has seen some markets gain the supportand often mandateto increase digital investments, yet some markets are still being stymied by corporate mindsets that are averse to change and slow to see marketing as more than a functionary branding role. In the APAC Digital Marketing Performance Dashboard 2013 report, marketers reveal that digital adoption is growing, as is managements desire to test more digital programs to better reach and engage with a more digitally connected consumer. In 2012, when the initial Dashboard report was released, marketers revealed that while they were optimistic and even enthusiastic about what digital held in store for customer engagement and more efficient and cost-effective operations, there was a sense that in these early stages, the days ahead would be lled with trial and error. Many marketers were challenged by shortfalls in budgets, slowing their advancement beyond simple advertising and branding tactics online. Talent gaps also challenged marketers as nearly half of respondents believed their current marketing teams simply did not have the right skills, experience or talent needed to take on an advanced digital strategy. Talent across the region proved hard to nd, even for those who turned to agencies to bolster capabilities. One in four respondents says they are unable to nd the right staff with the right skills while 34 percent say their agency capabilities are also lacking, limiting their ability to execute effectively. But a yearespecially in this world of digital advancementcan bring a multitude of changes. Channels can come and go. New analytics platforms and solutions have emerged. Big data is a challenge that has left few brands untouched by the velocity and sometimes overwhelming stream of data that has barraged IT systems often unprepared for the melding of structured and unstructured data. But what is most evident is that customers have not slowed in their hunger for unied, connected and synchronized experiences. More than any single factor, the customer is forcing marketings hand to adapt. The question is: How quickly and effectively are we heeding that call? The second annual online study, elded by the CMO Council in partnership with Adobe during the third quarter of 2013, updates the view into the state of digital marketing adoption across the Asia Pacic region. The resulting dashboard focuses on four key areas of digital marketing: marketing mindset, organizational alignment that supports digital, marketing readiness and marketing skills required to develop strategies, execute and measure.
Copyright CMO Council. All Rights Reserved. 2013

APAC DIGITAL MARKETING PERFORMANCE DASHBOARD TM | EXECUTIVE SUMMARY

APAC DIGITAL MARKETING PERFORMANCE DASHBOARD 2013


This infographic illustrates the state of digital marketing adoption across the Asia Pacic region with respect to four key areas: mindset, marketing readiness, organizational alignment and marketing skills. All ratings are on a scale of one to 10, with 10 being the highest. The overall rating for each category is an average of the four key indicators beneath each measure. The ratings of the individual countries are then depicted below, with the highest rating for each measure appearing in that rating's specied color. As you can see, the mindset around digital adoption is strong across the region as a whole, but talent, readiness to implement and organizational alignment must improve in order to capitalize on these efforts.

MINDSET

MARKETING READINESS

ORGANIZATIONAL ALIGNMENT

MARKETING SKILLS

6.9
OVERALL RATING

4.9
OVERALL RATING

3.2
OVERALL RATING

1.6
OVERALL RATING

94%

Believe digital marketing will drive competitive advantage

Believe customer preference and digital dependency drive adoption of digital marketing

68%

80% 28%

Using analytic and reporting technologies

69% 17%

Currently measuring and testing

53% 15%

Strong senior management support; receptive to piloting and testing

38% 23%

Strong digital marketing champion on leadership team

32% 12%

Dedicated director of digital or interactive marketing

14% 7%

Dedicated and experienced in-house digital marketing analysts

64%

Believe digital marketing better engages and activates audiences

50%

Believe mobile device proliferation and appeal drive digital marketing

High or progressive level of maturity

High or reasonable ability to measure ROI

IT is a big contributor and partner in selecting and deploying digital marketing

Channel and sales teams are pushing for more digital marketing spend

Agency is extremely effective across strategy, execution, and measurement

Data is integrated throughout the marketing life cycle

0.67
MARKETING SKILLS

HONG KONG

7.1
MINDSET MARKETING READINESS

MARKETING SKILLS

1.8

6.3
MINDSET

0.82
MARKETING SKILLS

CHINA

KOREA

6.7
MINDSET ORGANIZATIONAL ALIGNMENT

MARKETING SKILLS

1.4

SINGAPORE

ORGANIZATIONAL ALIGNMENT

2.1

3.2

ORGANIZATIONAL ALIGNMENT

1.7

MARKETING READINESS

3.9

MARKETING READINESS

4.0

2.5

ORGANIZATIONAL ALIGNMENT

3.8

6.6
MINDSET MARKETING READINESS

5.0

APAC
DASHBOARD 2013

AUSTRALIA

7.7
MINDSET MARKETING SKILLS

MARKETING SKILLS

2.3

INDIA

6.8
MINDSET

PERFORMANCE

DIGITAL MARKETING

2.0

ORGANIZATIONAL ALIGNMENT

4.4

MARKETING READINESS

5.8

ORGANIZATIONAL ALIGNMENT

3.7

MARKETING READINESS

5.8

Copyright CMO Council. All Rights Reserved. 2013

MINDSET

MARKETING READINESS ORGANIZATIONAL ALIGNMENT MARKETING SKILLS

6.9
OVERALL RATING OVERALL RATING

4.9
80%
Using analytic and reporting technologies Currently measuring and testing Strong senior management support; receptive to piloting and testing Strong digital marketing champion on leadership team

3.2
53% 15%
IT is a big contributor and partner in selecting and deploying digital marketing

1.6
OVERALL RATING

Copyright CMO Council. All Rights Reserved. 2013

OVERALL RATING

94% 28%
High or progressive level of maturity High or reasonable ability to measure ROI

Believe digital marketing will drive competitive advantage

Believe customer preference and digital dependency drive adoption of digital marketing

68% 17% 23%

69%

38%

32%

Dedicated director of digital or interactive marketing

14% 12%

Dedicated and experienced in-house digital marketing analysts

64%

Believe digital marketing better engages and activates audiences

50%

Believe mobile device proliferation and appeal drive digital marketing

Channel and sales teams are pushing for more digital marketing spend

Agency is extremely effective across strategy, execution, and measurement

7%

Data is integrated throughout the marketing life cycle

APAC DIGITAL MARKETING PERFORMANCE DASHBOARD TM | EXECUTIVE SUMMARY

0.67
MINDSET MARKETING SKILLS MARKETING SKILLS

MARKETING SKILLS

HONG KONG KOREA

1.8 3.9
MARKETING READINESS

6.3 0.82 4.0 2.5

CHINA

7.1
ORGANIZATIONAL ALIGNMENT MARKETING READINESS

6.7
MINDSET ORGANIZATIONAL ALIGNMENT

MARKETING SKILLS

1.4

SINGAPORE

MINDSET

ORGANIZATIONAL ALIGNMENT

2.1
AUSTRALIA

1.7

MARKETING READINESS

3.2

ORGANIZATIONAL ALIGNMENT

3.8 2.3

6.6
MINDSET MARKETING READINESS

5.0
INDIA

7.7
MINDSET MARKETING SKILLS

MARKETING SKILLS

6.8
MINDSET

APAC
2.0

DIGITAL MARKETING

DASHBOARD 2013

PERFORMANCE

ORGANIZATIONAL ALIGNMENT

4.4

MARKETING READINESS

5.8

ORGANIZATIONAL ALIGNMENT

3.7

MARKETING READINESS

5.8

APAC DIGITAL MARKETING PERFORMANCE DASHBOARD TM | EXECUTIVE SUMMARY

JAPAN DIGITAL MARKETING PERFORMANCE DASHBOARD 2013


The infographic that follows illustrates the state of digital marketing adoption across Japan with respect to four key areas: mindset, marketing readiness, organizational alignment, and marketing skills. All ratings are on a scale of one to 10, with 10 being the highest. The overall rating for each category is an average of the four key indicators beneath each measure.

MINDSET

MARKETING READINESS

ORGANIZATIONAL ALIGNMENT

MARKETING SKILLS

5.7
OVERALL RATING

4.3
OVERALL RATING

1.7
OVERALL RATING

0.7
OVERALL RATING

6.9
OVERALL RATING

4.9
OVERALL RATING

3.2
OVERALL RATING

1.6
OVERALL RATING

APAC COMPARISON

APAC COMPARISON

APAC COMPARISON

APAC COMPARISON

91%

Believe digital marketing will drive competitive advantage

Believe customer preference and digital dependency drive adoption of digital marketing

71%

67% 49%

Using analytic and reporting technologies

41% 13%

Currently measuring and testing

38% 9%

Strong senior management support; receptive to piloting and testing

0%

Strong digital marketing champion on leadership team

20% 0%

Dedicated director of digital or interactive marketing

7% 0%

Dedicated and experienced in-house digital marketing analysts

32%

Believe digital marketing better engages and activates audiences

35%

Believe mobile device proliferation and appeal drive digital marketing

High or progressive level of maturity

High or reasonable ability to measure ROI

IT is a big contributor and partner in selecting and deploying digital marketing

22%

Channel and sales teams are pushing for more digital marketing spend

Agency is extremely effective across strategy, execution, and measurement

Data is integrated throughout the marketing life cycle

MARKETING SKILLS

0.7

JAPAN
DASHBOARD 2013

JAPAN

5.7
MINDSET

PERFORMANCE

DIGITAL MARKETING

ORGANIZATIONAL ALIGNMENT

1.7

MARKETING READINESS

4.3

Copyright CMO Council. All Rights Reserved. 2013

MINDSET

MARKETING READINESS ORGANIZATIONAL ALIGNMENT MARKETING SKILLS

5.7
OVERALL RATING OVERALL RATING

4.3
4.9

1.7
3.2
OVERALL RATING OVERALL RATING

0.7
OVERALL RATING

Copyright CMO Council. All Rights Reserved. 2013

OVERALL RATING

6.9
APAC COMPARISON APAC COMPARISON

1.6
OVERALL RATING

OVERALL RATING

APAC COMPARISON

APAC COMPARISON

91%
Using analytic and reporting technologies Currently measuring and testing Strong senior management support; receptive to piloting and testing

Believe digital marketing will drive competitive advantage

Believe customer preference and digital dependency drive adoption of digital marketing

71% 49%
High or progressive level of maturity High or reasonable ability to measure ROI

67% 13% 9% 22%

41%

38%

0%

Strong digital marketing champion on leadership team

20%

Dedicated director of digital or interactive marketing

7% 0%

Dedicated and experienced in-house digital marketing analysts

APAC DIGITAL MARKETING PERFORMANCE DASHBOARD TM | EXECUTIVE SUMMARY

32%

Believe digital marketing better engages and activates audiences

35%

Believe mobile device proliferation and appeal drive digital marketing

IT is a big contributor and partner in selecting and deploying digital marketing

Channel and sales teams are pushing for more digital marketing spend

Agency is extremely effective across strategy, execution, and measurement

0%

Data is integrated throughout the marketing life cycle

MARKETING SKILLS

0.7

JAPAN

5.7
MINDSET

JAPAN

DASHBOARD 2013

PERFORMANCE

DIGITAL MARKETING

ORGANIZATIONAL ALIGNMENT

1.7

MARKETING READINESS

4.3

APAC DIGITAL MARKETING PERFORMANCE DASHBOARD TM | EXECUTIVE SUMMARY

CONTRIBUTED COMMENTARY FROM ADOBE


By Hisamichi Kinomoto, Vice President of Marketing, Japan and Asia Pacic, Adobe

Im very happy to share the second annual APAC Digital Marketing Performance Dashboard report, developed by the CMO Council and sponsored by Adobe. This year, the research reveals signicant progress in some countries as digital marketing continues to become more sophisticated, accountable, strategic and central to business growth and competitive advantage. However, we also see other countries facing challenges. In-house and agency team members lack the critical skills to take measurement and reporting to the next level, and the budgets needed to hire and retain the necessary headcount to remedy this are not forthcoming. Are we seeing the region start to develop a two-tiered approach to digital marketing? Businesses in Singapore, Australia and India are gaining condence, taking a more aggressive approach to investment, enjoying higher levels of executive support, measuring more complex and sophisticated metrics and building more dynamic business cases for return on marketing investment. In other countries, however, marketers continue to struggle with low budgets and haphazard agency support, and they are working hard to measure the right elements to convince senior management that their business case for greater investment is water-tight. In spite of these country-by-country differences, all across the region we see positive signs that digital marketing is coming of age and increasingly taking its place at the heart of the marketing mix as a highly accountable, exible way to generate customer engagement and interaction. In the 2012 report, we learned that executive support for digital investment was being driven by the belief that it would be a cost-effective, efficient channel and deliver a good ROI (65 percent) and that it would be better able to engage and activate audiences (58 percent). In 2013, we see those numbers hold steady at 66 percent and increase to 64 percent, respectively. Marketers and executives remain convinced about the benets of digital. One of the possible reasons for their increasing certainty about the benets of digital is the continuing evolution in the art of analysis and measurement in some countries in particular. Sixty-nine percent of APAC marketers are measuring and testing digital campaigns, with 80 percent conrming they are using marketing analytics and reporting technologies. How do they think they are performing? In India, 28 percent of marketers rate their ability to measure the value and return on digital marketing as excellent or very good, and Australia and Singapore also rank highly at 21 percent each. However, in comparison, Korea (3 percent), China (7 percent), Hong Kong (9 percent) and the rest of APAC (12 percent) are not yet as condent in their ability to demonstrate return on investment. The research showed that marketers across APAC are generally lacking the in-house or agency analytic skills to do much more than review these key metrics. Typically, they are measuring standard areas such as web performance data (75 percent), click-through rates (68 percent), conversion (72 percent) and acquisition or lead costs (49 percent). Certainly, these are all excellent and necessary measurements, but to get to the point where its possible to demonstrate return, more emphasis needs to be placed on critical performance indicators, which are currently low on the listsuch as customer lifetime value (15 percent), churn rate (9 percent) and market share improvements (12 percent). Marketers are failing to tap into the business-driving metrics that will help convince senior management, and we see the impact of this in current budget allocations.

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APAC DIGITAL MARKETING PERFORMANCE DASHBOARD TM | EXECUTIVE SUMMARY

Recommendations To advance the adoption of more sophisticated and strategic digital marketing to build stronger customer engagement, reduce the cost of business and drive growth, we need to see a more emphatic commitment by the regions top executives to support digital marketing for long-term success. Among many of Adobes regional customers, we see the power of a digital champion on the executive team: business leaders with the vision to see customer experience at the heart of the business and the understanding that digital is at the heart of consistent, comprehensive, cross-channel customer engagement. To realise this vision, executives need to encourage cross-functional support from their teams, including the necessary IT expertise and support. For their part, marketing practitioners need to take steps to increase their own skill set and up-skill their teams. Without the ability to deeply analyse data and apply insights to strategic execution, marketers wont be able to close the gap that exists today and start to prove ROI. APAC s marketers must consider digital marketing a necessity, not an additional component or a nice-to-have strategy. The value of digital marketing continues to be recognized, and customer preference and dependence on digital is clear. The advances that some APAC countries have made in the last 12 months are evident, and they are showing the way forward for all marketers to continue to take the steps to broaden their skills, apply business-critical metrics, build an irrefutable business case and create truly digital-centric marketing organisations.

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APAC DIGITAL MARKETING PERFORMANCE DASHBOARD TM | EXECUTIVE SUMMARY

AFFILIATE PARTNERS
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CANADIAN MARKETING ASSOCIATION With more than 800 corporate members, the Canadian Marketing Association is the largest marketing association embracing Canada's major business sectors and all marketing disciplines, channels and technologies. CMA is the marketing community's leading advocate on the key public policy issues affecting both consumer and business-to-business marketers operating in the Canadian marketplace. The association is also the principal provider of knowledge, marketing intelligence and professional development opportunities for marketers and catalyst for networking and business opportunities within the Canadian marketing community. www.the-cma.org

NORCAL BMA Established in San Francisco in 1938, the Northern California chapter of the Business Marketing Association (Norcal BMA) is the leading B2B marketing organization in the San Francisco Bay Area and Silicon Valley. Norcal BMA offers a robust set of programs to members and the marketing community at large, including a series of regular roundtables on various marketing topics, as well as monthly educational and social events, networking, resources and B2B job listings. http://norcalbma.org

MOBILE MARKETING RESEARCH ASSOCIATION (MMRA) The rapid evolution and increasing use of mobile devices such as smartphones and tablets is creating unprecedented opportunities for the marketing research industry. This fast developing and complex industry needs a unifying body, a single voice and a place to exchange the best and most innovative ideas. Mobile Marketing Research Association (MMRA) exists to unite and serve the industry in developing best practices, professional standards and ethics regarding the use of mobile devices for marketing research. MMRA is building a foundation for education, conducting studies and creating communications to foster this growing industry. For more information on how you can shape the future of mobile marketing research, please visit www.mmra-global.org.
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APAC DIGITAL MARKETING PERFORMANCE DASHBOARD TM | EXECUTIVE SUMMARY

ABOUT THE CMO COUNCIL

The Chief Marketing Officer (CMO) Council is dedicated to high-level knowledge exchange, thought leadership, and personal relationship building among senior corporate marketing leaders and brand decision-makers across a wide range of global industries. The CMO Council's 7,000-plus members control more than $350 billion in aggregated annual marketing expendituresand run complex, distributed marketing and sales operations worldwide. In total, the CMO Council and its strategic interest communities include more than 35,000 global executives in more than 110 countries covering multiple industries, segments and markets. Regional chapters and advisory boards are active in the Americas, Europe, Asia Pacic, Middle East, India and Africa. The council's strategic interest groups include the Coalition to Leverage and Optimize Sales Effectiveness (CLOSE), Mobile Relationship Marketing (MRM) Strategies, LoyaltyLeaders.org, CMOCIOAlign.org, Marketing Supply Chain Institute, Customer Experience Board, Digital Marketing Performance Institute, GeoBranding Center and the Forum to Advance the Mobile Experience (FAME). Learn more at www.cmocouncil.org.

ABOUT ADOBE

Adobe is changing the world through digital experiences. For more information, visit www.adobe.com. Keep up to date with news and views from APAC digital marketers on the Adobe Digital Dialogue blog at blogs.adobe.com/digitaldialogue/. Join APAC marketers on the Digital Dialogue Asia Pacic LinkedIn group. Follow Adobe Digital Marketing Cloud news and updates via @AdobeMktgCloud and join the conversation about this report via #APDash.

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