report on marketing innovation - iab · ^digital transformation is definitely not a hype but a...

REPORT ON MARKETING INNOVATIONTHE NETHERLANDS 2018

INTRODUCTION.The report in front of you is the latest piece of research onmarketing innovation in the age of digital transformation,initiated and performed by IAB The Netherlands with supportfrom Deloitte. For this research we had interviews with 25 ChiefMarketing Officers and leading marketers and asked them abouttheir vision and mission in digital marketing and marketinginnovation. A recurring topic of discussion was the question ifnon-digital still exists. With the marketers we spoke about theircurrent organization and strategy and the expectations for 2020.The main themes discussed and reflected in this report areabout their organizational context, marketing innovations andchallenges and opportunities for data & technology, mediabuying and digital human capital.

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TABLE OF CONTENTS.Introduction 3Executive summary 6Organizational context 8Data & Technology 11Media marketplace 14Digital human capital 16Closing words 20Respondents 22References 23Contacts 24Sponsors 25

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“Digital transformation is definitely not a hype but a must. A logical step, as we once had

industrialization and mechanization: the next thing!

Digital transformation is nothing else but an acceleration and simplification of things that were not

possible in the past and that now all of a sudden are things people always wanted. We are lazy, it

must be easier because then we have more time left for other things. We are still consuming

something, enjoying it, forming an opinion and sharing that opinion. Only that sharing has (also)

become different!“

Walter Kraus, Bol.com Retail Media Groep

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EXECUTIVE SUMMARY.Digital organization

Chief Marketing Officers are increasingly required to fullyembrace new digital solutions and develop tailored digitalofferings, since consumers are choosing various (digital)channels to reach out to the organization.

CMOs and their digital agenda obtained a firm position on theBoard. Marketing has become more important than it waspreviously considered to be. Becoming digitally mature is notjust the task of the CMO: the entire marketing ecosystemneeds to transform. Organizations need to rethink currentprocesses, ways of working and business structures, withtheir marketing department ahead of the troops.

However, our results show a surprising decrease intechnology investment. This could be due to changes inbudget allocation as marketing technology is possibly part ofthe ‘general’ IT budget of the organization. Many tools (e.g.DMP) have shown to be of value for more than just themarketing department.

Transforming technology

Nowadays organizations are increasingly structured aroundthe customer journey. In this journey often we see themarketing team in the lead.

An important shift in required capabilities of the futuremarketer: both the ownership of marketing technology andconsumer data are mostly the responsibility of the marketingteam – not the IT department. IT is seen as a support functionin this area.

The challenge with all this data is to create one single point oftruth. This uniformity challenge is still prevalent, despite anincreasing amount of organizations that use a DataManagement Platform (DMP) to solve this issue.

Most CMO’s are excited about new technologies andmarketing innovations and are curious to learn how thesetechnologies can enable them in their effort to reach theright costumer with the right message at the right time.However the CMO’s also see the risk of being distracted by allnew tools and hypes, and stress the importance to keep theirfocus on the essence of marketing.

"My biggest barrier is to continuously call it digital marketing! The whole feeling has changed: there is no digital and non-digital anymore!“

Patricia Slootjes, Miele

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“There’s a lot of focus on new tools and tactics but we shouldn’t lose sight of creativity and messaging”

Robert-Jan van Dormael, Harman

Digital resources

One of the main challenges CMOs identify is to attract andretain the right talent. However, there is already a lack ofconfidence in having the right skills in house right now.

Research shows that millennials ranked their organizationsmore negatively than the older generations with respect todigital maturity. Younger employees seem more likely thantheir older peers to leave their company when they are notprovided with opportunities to develop in a digitalenvironment.

Senior management does not always grasp digitaldevelopments, therefore marketers need to be skilled in bothunderstanding details, as well as understanding what reallygoes on in the organization and how to effectively push thedigital agenda during board meetings.

CMOs agree that the gap between new generation marketersand board level marketing should be closed by investing inproper training and education.

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Media buying

What exactly is and isn’t marketing innovation in digitaltransformation these days? Traditional marketing channelsare increasingly labelled digital – with television being next,with Smart TV’s and addressable TV transforming the TV’smarketing landscape. This has a major impact on the mediabuying ecosystem.

The amount of data that is generated in the marketing buyingprocess is growing rapidly, and organizations recognize thepotential value this data holds. Despite the growing numberof in-house ad procurement departments, the majority oftrading is still being outsourced. This means that mediaagencies remain important players in the marketplace.

However, CMOs have flagged concerns on the lack oftransparency when working with media agencies. Especiallyregarding legal requirements.

ORGANIZATIONAL CONTEXT.Marketing innovation is on top of mind for every CMO inthe Netherlands. We asked 25 of them: what does theirworld look like these days, what are the big topics in digitalmarketing innovations and what are potential barriers fordigital maturity?

A generic profile for a CMO does not exist, their backgroundsdiffer widely. Some of them grew up as ‘traditionalmarketers’, others came from within the business on variouspositions like for example ecommerce managers. However,all of them have a keen interest in and growing knowledge ofdigital transformation. Furthermore, the position of the CMOis subject to many changes these days. Not only the structureof the marketing organization keeps evolving, but also theindividuals and their required capabilities change. Sinceconsumers are choosing different (digital) channels to reachout to the organization and due to their changingconsumption behavior, CMOs need to fully embrace andunderstand these new solutions and develop tailored digitalofferings.

One thing is clear however: the CMO and the digital agendaobtained a firm position on the Board – in some cases in aSales or Commercial capacity. Already also concluded lastyear but marketing has become more and more important,due to the developments as mentioned above and further inthis report.

Digital maturity in organizations

Recent research by Facebook and Deloitte on achieving digitalmaturity shows that 41% of the interviewees are notconvinced that their organizational culture supports digitaltransformation1. 87% of these business leaders expect theirbusinesses being disrupted by digital business models2, butonly 30% think they can handle this and believe they have theskills to execute and lead a digital business. Overall,marketing organizations are not yet fully operating as digitalbusinesses and there is a gap between perceived digitalmaturity and actual digital maturity3.

Becoming digitally mature is not only the task of the CMO:the entire marketing ecosystem, including universities, needsto transform. Marketing organizations need to move fromonly ‘doing’ digital to actually ‘becoming’ digital. This entailsrethinking current processes, ways of working and businessstructures. Current training methods need to incorporate theright knowledge and tools for the digital era3.

“The biggest changes towards 2020 will be: data, its relevance and the further development of content. That requires a different breed of people, which is already becoming a challenge for a lot of the marketing departments. Either the traditional marketers have to come along and embrace digitalization or we should have a look at the millennials who will inspire the rest of the organization with their enthusiasm for the latest developments.“

Jos van den Bergh, Renault

“Organizations are struggling to stay upright, the new generation customers are much more into authenticity… That is difficult for some organizations."

Edwin Rietkerk

"Digital to me is a kind of intertwining within everything and not a discipline in itself."

Patricia Slootjes, Miele

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22%22%

44%

11%

7,5%+5% – 7,5%2,5% – 5%0% – 2,5%

2018 Marketing budget compared to total turnover

2,5% 5% 7,5% 10%0%

Growth of digital marketing and its budget

Last year’s IAB the Netherlands report on digital marketinginnovation showed a solid growth of the digital marketingbudgets. Today, the marketing budget is on average 7% ofthe company’s turnover in the Netherlands, compared to anaverage of 8% of company’s total turnover in the UnitedStates. Most of the CMOs we spoke to have a marketingbudget between 2,5% and 5% of the company’s totalturnover. Furthermore, the respondents expect that themarketing budget will keep on increasing towards 2020.

“We changed the combination of TV campaigns and online advertisement by switching to a Jukebox approach: being able to serve a lot of different messages at many different moments to many different segments, all based on data and insights.”

“For me, branding and performance are becoming more of the same. A branding campaign that is not performing is worthless and a performance campaign logically includes branding. Otherwise people do not know who the sender is and where to go to. So you can not separate those two anymore, I think that is an old-fashioned way of thinking.”


The CMOs were also asked how they allocate their budget: totechnology, media buying or human resources. The resultsshow a surprising decrease in technology investment, butthis can be due to changes in budget allocation as technologyneeded for marketing purposes is possibly part of the‘general’ IT budget of the organization. Many of these tools(i.e. DMP) have shown to be of value for more than just themarketing department.

53% 61%

47% 39%

2017 2020

Traditional marketing

Digital marketing

44% 47%

56% 53%

2017 2020

Performance

Branding

Marketing Mix

Digital Marketing Budget

62%13%

25%

Increase Similar Decrease

Expected marketing budget 2020

Last year, digital claimed a 54% share of the marketing mix ofthe respondents, and was expected to grow towards 66% inthe coming years. This year shows a similar percentage fordigital as part of the marketing budget (53%) but the growthtowards 2020 seems to be less steep (61%). The definitionquestion remains however, whether or not all media –including TV – will ultimately be labelled digital. Besides that,CMOs expect an increase of their branding budget and in thefuture it will even maybe merge with the performancebudget.

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The KPIs of digital transformation

Compared to last year, the use of dashboards made a hugeleap. In the IAB the Netherlands report on digital marketinginnovation of 2017, 85% of the marketers said they had adashboard – today all interviewed CMOs do. Not only aredashboards important in the decision making process, 25% ofthe CMOs reached the stage where dashboards triggerpredefined scenarios.

In addition to dashboards, KPIs can be seen as the dials toturn for CMOs to effectively manage their business. Similar tolast year, revenue has been mentioned as one of the mostdominant KPIs to monitor success and track marketinginvestments. However, the most important KPI for managingthe business is Customer Satisfaction. For tracking marketinginvestments Cost of Sales is deemed most relevant. It seemsKPIs have shifted during the digital transformation.Traditionally, the most popular KPI was ‘top of mindawareness’, nowadays the focus is more on cost and sales.

“It is going to be dangerous if the reasoning behind investments is backwards. Dare to invest even if the desired results are not immediately clear, you have to keep on going and not slow down.”

Jeroen de Bakker, Talpa Radio

“Top and bottom-line performance are overall KPI's. Next to that: what is our reach within the target group in the markets we have chosen to invest.”

Frank Tomholt, Nutricia Export

KPIs for managing the business

12%

63%

25% Dashboard for reporting purposes

Ad hoc actions based on dashboard

Dashboard triggers predefined scenarios with actions

Customer satisfaction (NPS)Revenue

Acquisition, Conversion & RetentionMar

gin

s

Total customers

Daily Active Users (traffic)

Brand awareness Market sh

are

Cost of Sales

Dashboard usage

Cost of salesRevenueAcquisition, Conversion & RetentionROICustomer satisfaction (NPS)SalesDaily Active Users (Traffic)Customer (lifetime) valueBrand awareness

KPIs for tracking marketing investment

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“If you still need a chief digital officer, I wonder what the rest is doing. Digital must be integrated as a marketing responsibility. No separate digital department need to exist.”

Edwin Rietkerk

“IT changes and innovates extremely rapidly. When developing something new, you’re already surpassed by the next big thing. You almost have to be a software company to keep up.”

Maarten van Schalkwijk, Tony’s Chocolonely

“Linking online and offline: that's where it all starts! If we are able to do that, we can start continuity testing.”

Laurens van Bergeijk, Ford

DATA & TECHNOLOGY.Current data landscape and business structure

Most CMOs do not have a separate digital marketingdepartment (anymore). Some of them say that if you have aseparate department, this could hinder the digitaltransformation as a whole. Our results also show that mostCMOs do not have a separate mobile media strategy,although many emphasize their focus on ‘mobile first’. Inorder for marketers to build communications that are trulymobile first, it is recommended to build teams around thatprinciple.1

In the past, organizations used to be structured per separatedepartment: Marketing, sales , customer services and IT.Nowadays, organizations are increasingly structured aroundthe customer journey. In this journey often we see themarketing team in the lead. In this new structure, agileworking and working in multi-disciplinary teams are a must.Research on doing digital versus being digital shows thatmarketing organizations need to be more agile, 46% of morethan 300 marketing professionals participated in this study,do not agree that their organization can manage unplannedchange without it slowing them down. Still, more than half ofthese respondents have a low appetite to adapt theirorganizational structure.1

An important change and with consequences for thecapabilities of the future marketer, is the fact that both theownership of marketing technology and consumer data aremostly the responsibility of the marketing team – and not theIT department. IT is progressively seen as a support functionin this respect. In addition, the majority of the organizationshave a data strategy, but also 32% of our respondentsindicate that they don’t have one (or are not aware). Theexpectation is that the amount of organizations with a datastrategy will increase in the coming years.

28%

78%

13%

72%

22%

87%

Separate digital marketingdepartment

Digital media strategy

Separate mobile media strategy

Yes No

18%

45%

5%

32%

Yes, > 3 year

Yes, > 1 year

Yes recently (< 1 year)

No

Does your organization have a data strategy?

Digital structure and strategy

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Although the consumer data is mostly the responsibility ofthe CMO and his team, a lot of the other (e.g. financial,commercial) data has been ‘assigned’ to the CTO.The challenge with all this data is to create one single point oftruth. This uniformity challenge is still prevalent, while anincreasing amount of organizations are using a DataManagement Platform (DMP) to solve this issue. The nextchallenge for the CMOs is to link their DMP with their CRMdatabase to generate valuable, customer-based insights. TheDMP is currently seen as the 1:1 marketing enabler, which allCMOs expect to be able to realize within the next 3 years byemploying new technological developments.

GDPR scatters CMO opinions

Are you ready for the GDPR! This is a main question and bigtopic on top of mind of almost all CMOs. Almost all CMOswere aware of the approaching data protection regulationand potential fines. But for the majority that are aware, theopinions around the GDPR implementation range from ‘good’to ‘terrible’. Most organizations are right in the middle ofprojects to get ready for GDPR. These projects areperformed by teams that contain a mix of professionals:Business, legal and IT. Only a small number of organizations isfully ready for the new data regulation.

Fear for this new regulation and the potential penaltiesdominate the industry. Usability of customer data is pivotal inthe discussion, will we still be able to use the data as we areused to? Uncertainty makes a lot of the CMOs scratch theirheads, they predict that sharing data and effectivelyconnecting with consumers will be far more challenging.

The quotes on this page show the considerable differences ofopinion amongst the CMOs when talking about GDPR.

Transparency is key! If you are not transparent and open in what you do, you will break the trust. Trust comes on foot and goes on horseback.”


Privacy and government interventions can be seen as a positive thing, but it also makes it more complex. Exciting to see how it will further develop."

Tjeerd Kooij, Bookchoice

“I do get it from the consumer perspective, data regulation has definitely an added value also for 1:1 marketing. But I’m also worried about the GDPR. What if you, by default, turn off everything in your browser? It will take you back in time compared to what you have built up. What is the short-term impact of that?”

Jeroen Lampe, The Coca-Cola Company

“There is a lot of data but the question is: what do we want to, can and are allowed to use? Having all this customer data is a luxury, but it depends on what can we do with it, how valuable it is.”

Bart Klomp, Rabobank

“People now have the power to decide for themselves when it comes privacy and their data. But The reliability of (third party) data, the quality of channels and methodologies (reliability) and no longer being able to reach the consumer (because of GDPR / Adblocking) is also challenging for further growth of digital marketing."

Louise Meijer, ING

“From a technical point of view, everything is possible if you already have a small amount of data, but the privacy legislation limits it.”


Op

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rtu

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hal

len

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DP

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Voice

Voice (enabled) was mainly mentioned as the nextinnovation in house and car. Using hands and eyes forbrowsing is being replaced by voice interactions, sinceconsumers are continually on the go, it is not alwayspossible to type in keywords to search. Thesecustomers are reaching out to new search methodsthat are efficient and fast and require minimal effort,voice digital assistants help customers find the rightanswer.

Technology opportunities and hypes

Most CMO’s are excited about new technologies andmarketing innovations and are curious to learn how thesetechnologies can enable them in their effort to reach theright costumer with the right message at the right time.However the CMO’s also see the risk of being distracted by allnew tools and hypes, and stress the importance to keep theirfocus on the essence of marketing. We asked them whichinnovative technologies are grabbing their attention andwhere they have the highest expectations. Voice, Augmentedreality and Artificial Intelligence were mentioned with thegreatest interest. VR was seen as currently lacking realisticopportunity. Marketers do not expect consumers to walkaround wearing VR glasses.

Starting in 2018 AR content created on a smartphone will look increasingly photorealistic, which makes it of great use for a lot of marketers. Not only will face tracking and face filter apps allow consumers to augment faces to show how make-up looks like on your face, AR apps will complement a visit to the showroom and will become part of the customer journey. AR will also generate other marketing opportunities as i.e. the ability to place an AR-generated logo anywhere.6

Artificial Intelligence

AI technology is continuously evolving to understandusers’ intent and search context, to make customerusage more efficient. AI could be of great help fororganizations, especially for customer servicespurposes. Due to the advancement of AI andmachine learning, organizations are able to predictthe answer to consumer questions via email, chat,app or social. This will make the customer servicesmuch more efficient and the customer experiencemuch more pleasant. These new solutions will bringtogether the efficiency of bots with the empathy ofcustomer service agents who can personalize thepredicted responses before answering theconsumer.5

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Google reports that one in every five Google Android apps is avoice search and by 2020, 30% of web browsing will be donewithout using a screen5. With voice assistants getting moreresponsive and advanced, the addition of voice searchpromises to offer a great customer experience.

“Voice: hands on the wheel! Voice communication and marketing is really important and relevant.”


“Voice enabled products are taking the market by storm.”


“With AR we want to show the ‘other’ world, where the chocolate comes from.”


"AR make-up genius: get your beauty advice by testing looks via AR and buy directly the make-up products online that fit the look".

Kevin Capota, L’Oréal

Augmented Reality Deloitte predicts that over a billion smartphoneusers will create AR content at least once in 2018and that tens of thousands of apps incorporating ARcapability will come available during the year.

MEDIA MARKETPLACE.Current media buying landscape

As discussed, the definition of digital marketing is expanding.In addition to growing digital marketing budgets, traditionalmarketing channels are increasingly labelled as digital – withtelevision being next with SmartTVs and addressable TVtransforming the TV’s marketing landscape. This has a majorimpact on the media buying ecosystem.

Over the last years, IAB’s ad spend reports show thatprogrammatic buying is becoming an accepted method ofpurchasing ads, and is expanding to all channels, formats anddevices.

Next to the new buying methods, the amount of data that isgenerated in the marketing buying process is growing rapidly,and organizations recognize the potential value this dataholds. User data can be used for targeted and automatedadvertising, which allow companies to improve theirmarketing efficiency.

The increase of programmatic advertising, combined with thedata ownership topic, causes the trend of investing more insetting up the buying capability in-house. The expectation isthat in-house ad procurement will continue to grow towards2020.

Challenges

Despite the growing number of in-house ad procurementdepartments, the majority of trading is still being outsourced.This means that media agencies remain important players inthe marketplace.

However, CMOs have flagged concerns for the lack oftransparency when working with media agencies. 41% of ourrespondents feel the media agencies they work with are nottransparent on the margins they make. Information regardingmedia procurement is deemed very valuable by board-levelmarketers, so transparency is not just relevant but crucial.Trust and a sense of control lack, according to CMOs. Whatmost worries the CMO’s we spoke to is the (in) transparencyon what happens with the data that is shared with the mediaagencies, in relation to legal data requirements (GDPR).

59%

41%Transparent

margins

Yes No

“While media agencies are not keeping information from me, I am happy the board and CFO are not asking about the details: I couldn’t provide any. The world at large and the online world specifically are not transparent – this also negatively affects the agencies.It is an important topic to understand, but it is so shady that I wouldn’t know where to begin.”

Erik van Engelen

1. Privacy & Data Risks

2. Viewability

3. Cost & Margins

4. Fraud Prevention

Third party transparency requirements

CMO perception of media agencies

15

Imp

ort

an

ce

Opportunities

The media marketplace is rapidly changing. Media buyingcapabilities are increasingly harbored in-house, meaning thatmedia agencies are challenged to adapt to thesedevelopments and rethink their role. CMOs have arguedthese challenges are accompanied by opportunities for themedia agencies to move on.

As the attitude towards media agencies is changing, and adprocurement will increasingly be performed without usingthese intermediaries, the media agency activities will shifttowards an expert/advisory nature. The added value of theagencies could be found in their experience and expertise,content creation and data-based insights. The CMOsidentified data generation and analysis to be the keyopportunity area for media agencies to stay ahead of thegame. In addition, more and more we also see a scenariowhere media agency experts are contracted by companies toperform digital marketing activities in-house.

“Future of the media agency lies in content and data!”


“It’s interesting that consulting firms are now also joining the stage, and they are keen to use data more so than traditional agencies.”


“I’m expecting more from agencies, I need help from strong business-focused experts especially on data topics like data architecture, data sharing, audience set-up and automation. There is still a gap there unfortunately."


52%

42%

36%

32%

32%

65%

42%

31%

23%

15%

Content

Data

Crossmedia

Collaboration

Innovative organization

Five major development areas for media agencies 7

2018 2017

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DIGITAL HUMAN CAPITAL.Digital talent in your workforce

To stay ahead of the curve, one of the main challenges CMOsidentify is to attract and retain the right talent. The specificskills required to adapt to new technologies and extractingthe right insights of the growing amount of data, areparamount to a marketer's success. However, confidence incurrently having the right skills in house is still lacking.

When different generations of employees are asked to assessthe digital maturity level of their organizations, the answersshow a pattern. A study performed by Facebook and Deloitte2

shows that millennials ranked their organizations morenegatively than the older generations in this respect. Thatsame study suggests that younger employees are more likelythan their older peers to leave their company when they arenot provided with opportunities to develop in a digitalenvironment. Our interviewed CMOs add that the youngercrowd see digitization as an opportunity to improve customerexperience, while older generations focus more on the costsaving benefits.

That being said, CMOs agree that it is not just age thatinfluences the level of digital marketing expertise, rather it isthe willingness and openness to embrace new technologies.These traits are deemed very valuable when building anorganization’s digital human capital.

Capability mismatch

International research showed: while 87% of leadersanticipate their businesses are being disrupted by digitalbusiness models, a mere 30% believe they currently have theright leadership or skills to execute2. Furthermore, almosthalf of business leaders feel that todays digital skills training isnot effective to meet future business needs1. CMOs agree onspecific trends and observations regarding the people aspectof digitization, discussed on the next page.

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“It is often difficult for marketers to make senior management (generally a bit older) aware of how those data processes work, run and what data is needed for. And what IT is needed for to use that data efficiently. It is a challenge we all have!”


“Talent, war for talent is still very much ongoing. Only talented people can take your organization further.”

Nicky Claeys, Domino's Pizza

“The challenge is to get senior leadership on board. Marketing wants to go digital rapidly. That requires C-level teams to embrace a change of direction and related investments. Now”


CMO, ‘the Jack of all trades’

Today the marketing profession requires broadly trainedprofessionals. Because senior management and the boarddoes not always grasp digital developments, the marketersneed to be skilled in both understanding details, data and itsapplications, but also understanding what really goes on inthe organization and how to effectively push the digitalagenda towards the board meetings. The CMO needs to be achange agent and at the same time understand the potentialof data in relation to marketing. The CMO must understandthe latest trends and technologies, and at the same timerecognize the purpose and values their brand represents. Isthe CMO being asked for the impossible? The worry is thatnew marketers are gradually losing their knowledge ofmarketing strategy and focus only on data but forget toeffectively direct customer experiences. On the flipside,senior marketers seem to only scratch the surface ofunderstanding the data potential. The gap between newgeneration and board level marketing should be closed byinvesting in proper training and education. But is that enoughto prepare the CMO for the future?

“As digital is becoming a specialism fewer and fewer board still understands us. Future proof boards need this knowledge to make the right choices.“

Edwin Rietkerk

“Marketing is not split up anymore in online & offline, marketers need to fully grasp all channels and understand and employ KPIs. And keep up with the customer. We need to run faster than our legs can carry us.“

Brenda Smith, AS Watson

“Finding the right people for your team is a true challenge. As marketer, expectations are different, as you have to be both data savvy and creative..”

Annemarie Joosen, Marktplaats

“You want to fish in the right pond, but that pond is not very big. Preferably more people should be pulled from the digital and tech space.”


“Digital transformation: it is challenging to take away prejudice from traditionally trained marketing employees. Unfortunately IT thinks in efficiency, cheap and fast. Content is currently hygienic, and misses the WOW factor.”

Edwin Hof, TUI

“Connecting on- and offline. The team needs to change, including both content marketers and web analysts. But first you need to set up the right environment for such a team to thrive.”


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HOW WOULD YOU DEFINE MARKETING INNOVATION?

“Marketing is innovation.”

Nico Rijkhoff, Maandag

“A new fast way of creating business value.”

Edwin Hof, TUI

“The drive to continuously understand better what your customers are doing and what they want. Responding to the changing need and desire with all channels.”

Annemarie Joosen, Marktplaats

“Make sure that the basis of the marketing channels is up and running and optimize it with the right people, build around the customer!"


"All topics related to how I can better reach and touch the customer: from technical solutions and marketing automation to creativity. To make sure I am more relevant, so consumers prefer me

and not someone else. Everything you do to achieve that is part of marketing AND customer innovation.”

Brenda Smith, AS Watson

“Automation of marketing communication.”


“All new ways to reach customers and do that as optimally as possible.”

Louise Meijer, ING

"Data driven (and therefore consumer-centric) decision making at the core, integrating and optimizing all paid, owned, earned and retail touchpoints of the consumer journeys.“


"Everything that brings improvement, in stores, on the site, to provide service and to earn revenue. You have to anticipate by doing and testing, but you can not test everything extensively so you just

have to do it.”

Nicky Claeys, Domino’s Pizza

"We are continuously getting better in getting the right message/proposition to the right person. Thanks to innovation in media.“

Jos van Eyken, LOI

“The move to a digital brain, an automated system that determines which message reaches the customer at what time via which system."

Bart Klomp, Rabobank

“Consumer is boss, how to best engage and communicate with our consumers.”

Frank Tomholt, Nutricia Export

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Marketing innovation is all about reaching your customer in the most relevant way. And ‘relevant’ can be different per company and/or industry. Marketing innovation in the age of digitaltransformation is described as both product innovation as well as customer journey innovation. When thinking of customer journey innovation people will immediately refer to the technologyopportunities and hypes as mentioned in this report. But it also has to do with your ‘digital human capital’. Do you have the right people in your organization that understand the technologyopportunities but are also able to link it with customer needs and use it to optimize the customer journey? That will make CMOs able to add huge value to the business!

CLOSING WORDS.This is our second research report of IAB NetherlandsMarketing Innovation in the age of digital transformation.Like last year, we interviewed top marketers of leadingcompanies who shared their vision and experiences in theirdigital transformation journeys, where they stand today andwhat areas of innovation they feel are most important toinvest in. The marketers represent a good reflection of themarket, including some of the pure digital players. Afterreading this study, you should have a clear vision about thetrends that will dominate the market in the coming years.Our purpose is to provide you with insights in our industrywhere digital is the accelerator for business growth.

Digital maturity

It’s clear that the structure of the marketing organizationkeeps evolving, and requires change of capabilities.Consumers behavior patterns are changing. We should thinkin seamless experiences and adopt a multichannel approachas consumers are connected 24/7. CMO’s and their teamsneed to fully embrace and understand this new reality anddevelop tailored digital offerings. In this new reality, the roleof marketing has become increasingly important.

Organizations no longer have separate digital departments,or separate mobile strategies, and from next year all mediawill be digital. All of these are positive developments toevolve towards digital maturity, but what is the reason that atthis moment most of the marketing organizations are notoperating as digital businesses yet. Organizations ‘doingdigital’ instead of ‘being digital’.

Great concern is being expressed regarding the support ofdigital transformation within organizations. The focus is toooften centered around technological change alone, instead oflooking at supported processes and behavior as well. Asuccessful digital transformation requires much more thantechnology.

So there should be enough ability in the organization toimplement new digital technologies. We have to work hardon becoming digitally mature, as in ‘becoming digital’. Whichis not only the task of the CMO; the entire marketingecosystem needs to transform. As an advocate of the market,IAB Netherlands will also work hard on this. As marketingbecomes more technology and data driven, the IABNetherlands strategy is focused on bringing in-depthknowledge to the market in order to respond to the needs ofthe market and on rethinking current processes.

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IAB Netherlands initiated a cross industry working group tocome to a joint approach on GDPR. The goals are to create aCode of Conduct, with both industry wide- and regulatorysupport, launch a consumer orientated research on 'Consent'and make sure all industry members will have uniformcommunication towards consumers.

Change of the ecosystem

Digital marketing will change the way your company works.Marketers must relearn their trade while reclaiming their roleas integral business managers. Create cross-functional teamsthat break through silos and work close to the consumer. Allinsights, expertise, and decision rights should be accessibleacross all relevant functions. The new way of marketing callsfor faster iterations, more and different concepts and mediaplacements, and deeper data insights. This changes themedia marketplace and the agency processes. New agencymodels; key performances indicators; incentives & coststructures and transparency on performance will arise. IABNetherlands will help to break these silos by creatingguidelines for transparency, new cost structures and crossmedia measurement. And we believe in leading by example:in our own association we will be at the forefront ofpartnerships. We are already and will enter further intopartnerships with other Dutch associations in various areas.

The new war for talent

In successfully executing a digital transformation one of themain challenges is to attract and retain the right talent. In thenext five years the demand for talent to deliver on newcapabilities will increase even more. Understanding whattalent is needed, starts with understanding what capabilitiesdigital businesses need to become successful. While thosewill vary by market and geography, successful digitalbusinesses share some common traits: they’re focussed onthe customer, operate quickly, are responsive and agile, andcan create proprietary insights. There is an absolute necessityfor individuals, educational institutions and companies tocollaborate in the field of talent development. For thatreason, attracting and retaining the right digital talent will bean important agenda topic of our new working group data &technology.

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The importance of the customer journeyThe customer journey centric approach in many cases leadsto the ownership of both marketing technology as consumerdata being in hands of the marketing departments. While it isimportant for marketers not being distracted by all new toolsand hypes, marketers should have great knowledge of datascience. This will help to revolutionize traditionalpropositions, customer relationships, personalizing thecustomer journey and opening doors to explosive growth.Creating a good data strategy, with one single point of truthfor all the data in the organization, will be the challenge forthe upcoming year.The implementation of the GDPR on the 25th of Mayhowever, seems as a distraction for this growth. Fear for thisnew regulation and the potential penalties dominate theindustry.

RESPONDENTS.AS Watson / Brenda Smith

Bol.com Retail Media Groep / Walter Kraus

Bookchoice / Tjeerd Kooij

The Coca-Cola Company / Jeroen Lampe

Corendon / Martin de Boer

Domino's Pizza / Nicky Claeys

Erik van Engelen (former Eneco)

Ford / Laurens van Bergeijk

Harman / Robert-Jan van Dormael

Louise Meijer (former ING)

L'Oreal / Kevin Capota

LOI / Jos van Eyken

Maandag / Nico Rijkhoff

Marktplaats / Annemarie Joosen

Miele / Patricia Slootjes

Nutricia Export / Frank Tomholt

PepsiCo / Charlotte Zelders

Rabobank / Bart Klomp

Renault / Jos van den Bergh

Edwin Rietkerk (former Robeco)

Talpa Radio / Jeroen de Bakker

Tele2 / Cilesta van Doorn

Tony’s Chocolonely / Maarten van Schalkwijk

Travix / Paul van Breugel

TUI / Edwin Hof

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REFERENCES.

1. Facebook & Deloitte marketing organizations study (May 2017)

2. Aligning the Organization for Its Digital Future, by Deloitte & MIT (Summer 2016)

3. Achieving digital maturity, findings from the 2017 digital business global executive study and research project, by Deloitte & MIT (Summer 2017)

4. Report on digital marketing innovation, by IAB the Netherlands (January 2017)

5. The Top 10 Customer Experience Trends in 2018 by Lauren Kindzierski, HGS Vice President, Solutions and Capabilities: http://markets.businessinsider.com/news/stocks/The-Top-10-Customer-Experience-Trends-in-2018-1013121925

6. Deloitte 2018 global TMT predictions: https://www2.deloitte.com/global/en/pages/technology-media-and-telecommunications/articles/tmt-predictions.html

7. Station10: https://www.adformatie.nl/nieuws/dit-worden-de-trends-van-2018-volgens-25-media-ceos?sthash.eEOesXQY.mjjo

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http://markets.businessinsider.com/news/stocks/The-Top-10-Customer-Experience-Trends-in-2018-1013121925

https://www2.deloitte.com/global/en/pages/technology-media-and-telecommunications/articles/tmt-predictions.html

CONTACTS.Nathalie Peters

President of IAB Netherlands

Head of Digital Transformation IPG Mediabrands

+31 (0)6 2238 1271

[email protected]

Nathalie La Verge

Deloitte | Technology, Media & Telecom

+31 (0)6 2336 7886

[email protected]

Jorrit Sloot


+31 (0)6 8201 9387

[email protected]

Esmée de Nooy


+31 (0)6 8333 0490

[email protected]

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mailto:[email protected]




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