© 2013

2

The results are in. The 2014 State of Digital Marketing Survey

polled over 500 U.S. marketing professionals—two-thirds B2B,

one third B2C—to uncover their top objectives and toughest

challenges. Two trends emerged:

1. Increased uncertainty with the proliferation of new

digital marketing channels.

2. Increased pressure to deliver clear ROI.

Despite these hurdles, marketing professionals have managed to

increase spend in nearly every digital channel for the third year

running. While the complexity of the field has deepened and the

ability to measure and drive revenue has increased, the lack of

clear ROI remains an issue.

22%

ExEcutIvE Summary

2014 SurvEy HIgHlIgHtSSHIftIng focuS to rEvEnuE

Ranked as the #1 objective for B2c and #2 for B2B, revenue

is getting more attention than ever before. In the meanwhile, lead

generation remains the top priority for B2B.

SocIal mEdIa maturES

Today, 1 in 5 B2B and 1 in 3 B2c marketers report seeing

revenue from social media. This explains why marketers are a

lot less frustrated with social media measurement compared to

two years ago.

KPIs gEt SmartEr

In 2011, 74% of marketers measured digital marketing success in

terms of website traffic; in 2013, this has dropped to a mere 23%

as the pressure to prove ROI and generate revenue increases.

HIrE your WEaKnESSES

Marketers rely on agency expertise to supplement in-house teams

on non-core business functions, with a whopping 50% yoy

increase in outsourced SEO and SEM programs.

moBIlE taKES flIgHt

1 in 5 marketers see more than a third of their website traffic

coming from mobile. No wonder over 75% of marketers will

increase mobile investment.

contEnt gEtS Buzz and BudgEt

Content takes center stage as 63% of marketers plan to

increase spending on content.

rEconcIlIng roI

Marketers admit their greatest struggle in increasing budget is

their inability to prove ROI. This year brings increased

accountability, yet 2 in 5 still don’t have an attribution

model in place.

Despite these challenges, marketers still plan to spend more on

content and mobile.

© 2013

3

Compared to 2012, 30% more B2B marketers have identified revenue generation as their top objective, while 20% less still think it is lead generation.

Year over year, 30% more B2C marketers have identified revenue as the top priority, with brand awareness now trailing at a distant second.

toP oBjEctIvES for dIgItal marKEtIng ProgramS

toP oBjEctIvES for dIgItal marKEtIng ProgramS

11%

18%

40%

4%

1%

27%

17%

1%

3%

27%

41%

11%Increase website traffic

Increase website traffic

Generate leads

Generate leads

Drive sales/revenue

Drive sales/revenue

Improve ROI

Improve ROI

Lower cost-per-lead

Lower cost-per-lead

Improve brand or product awareness

Improve brand or product awareness

lEad gEnEratIon IS StIll tHE #1 oBjEctIvE

rEvEnuE trumPS aWarEnESS aS toP oBjEctIvE

#1 oBjEctIvE

#1 oBjEctIvE

© 2013

4

Lead generation is both the #1 objective and the #1 challenge. Meanwhile, marketers are finding it very challenging to produce enough quality content.

For B2C marketers, measuring and proving ROI is by far the leading challenge. They have yet to graduate to a more sophisticated set of KPIs, illustrated by the fact that website traffic is still the #1 metric.

B2B rEPort lEad gEnEratIon aS tHE toP cHallEngE

B2c rEPort ProvIng roI aS tHE toP cHallEngE

toP dIgItal marKEtIng cHallEngES

8%

4%

16%

12%

19%

20%

21%Generating enough leads

Producing enough quality content

Converting leads to customers

Integrating content and messaging across

channels

Measuring and proving ROI

Securing staff and budget

Improving ROI

toP dIgItal marKEtIng cHallEngES

7%

12%

25%

14%

22%

10%

10%

Generating enough leads

Producing enough quality content

Converting leads to customers

Integrating content and messaging

across channels

Measuring and proving ROI

Securing staff and budget

Improving ROI

#1 cHallEngE

#1 cHallEngE

© 2013

5

Surprisingly, despite the buzz on digital marketing, the vast majority of budgets still go to offline programs.

Half of marKEtErS SPEnd only 25% or lESS of tHEIr BudgEt onlInE

% of marKEtIng BudgEt SPEnt onlInE

6%

10%

16%

17%

29%

23%Less than 10%

10%–25%

26%–40%

41%–60%

61%–80%

81%–100%

© 2013

6

SEo

Increase

49%42%

2% 1%

Decrease

SEm

Increase

36%29%

7% 4%

Decrease

contEnt crEatIon (videos, webinars, white papers, etc.)

Increase

69%

53%

1% 2%

Decrease

Over 63% of all marketers intend to spend more on content marketing next year, again highlighting its importance.

marKEtErS BullISH on InvEStmEnt In dIgItal marKEtIng cHannElS

dISPlay

Increase

44% 48%

5% 6%

Decrease

EmaIl marKEtIng

Increase

47% 44%

5% 8%

Decrease

graPHIc dESIgn

Increase

31% 29%

2% 4%

Decrease

SocIal mEdIa

Increase

56%65%

2% 2%

Decrease

= =

© 2013

7

A whopping 50% increase in outsourced search marketing since 2012

marKEtErS WHo outSourcE

= =SEo32%

34%

29%

12%

11%

33%

39%

41%

47%

35%

22%

19%

28%

26%

SEm

dISPlay

SocIal mEdIa

EmaIl marKEtIng

contEnt crEatIon

graPHIc dESIgn

50% more B2B marketers now outsource SEO and 70% more outsource SEM compared to a year ago.

52% more B2c marketers now outsource SEO and 55% more outsource SEM compared to a year ago.

morE marKEtErS arE outSourcIng SEo and SEm

© 2013

8

No matter how you slice it, B2B vs. B2C, industry vertical, or company size, businesses are

in agreement about one thing: the top 3 obstacles to budget increase are:

1. Proving roI

2. lack of overall company revenue growth

3. lack of buy-in from management

If we scratch the surface, it’s clear how inability to prove ROI instigates other issues, such as

management’s reluctance to invest in digital marketing, and lack of overall company revenue growth.

Lack of clear strategy

15%

Poor ROI from past

digital problems

8%

Lack of buy-in

from management

15%

Lack of overall company

revenue growth

18%

Inability to prove ROI

24%

Lack of expertise

and/or experience

9%

InaBIlIty to ProvE roI #1 oBStaclE to BudgEt IncrEaSE

© 2013

9

1 in 3 don’t know which channel generates the most revenue.

1 in 4 don’t know which channel generates the most revenue.

cHannElS tHat drIvE tHE BESt lEadS & rEvEnuE

Email EmailSEo SEmSEm SEo

© 2013

10

10%Cost per acquisition

10%Don’t measure / Don’t know

17%Total revenue

22%Conversion rate (lead to customer)

4%Return on ad spend

13%Don’t measure / Don’t know

26%Conversion rate (lead to customer)

24%Website traffic

15%Total lead volume

7%Cost per lead

22%Website traffic

9%Total lead volume

5%Cost per lead

8%Total revenue

5%Return on ad spend

3%Cost per acquisition

In 2011, 75% of B2B marketers measured success in terms of website traffic, vs. just 23% this year. We’ve come a LONG way!

Even though B2C marketers say driving revenue is their biggest goal, they use website traffic as their top success metric. No wonder they can’t prove ROI!

HoW marKEtErS mEaSurE SuccESS

© 2013

11

Attribution has become increasingly important. While 41% of marketers still don’t do attribution at all, about one fifth actually have the more sophisticated multi-channel model in place.

We don’t have an attribution model in place 41%

Clear ROI

Unclear ROI

multi-channel (all influencing touch points)

22%

first touch (lead source) 20%

first and last touch (lead source & conversion)

16%

last touch (conversion) 13%

other custom model 7%

Only 17% of marketers can track ROI from SEO, yet they agree it is the 2nd strongest revenue channel. How can that be?

roI – WHErE tHE ruBBEr mEEtS tHE road

© 2013

12

1 in 5 B2B marketers have generated revenue from Social Media.

1 in 3 B2C marketers have generated revenue from Social Media.

SocIal mEdIa HaS maturEd Into a SourcE of rEvEnuE, not juSt aWarEnESS and lEadS. not SurPrISIngly, B2c lEadS tHE PacK.

HavE you gEnEratEd lEadS from SocIal mEdIa?

If So, HavE you gEnEratEd rEvEnuE from SocIal mEdIa?

HavE you gEnEratEd lEadS from SocIal mEdIa?

If So, HavE you gEnEratEd rEvEnuE from SocIal mEdIa?

yes 54%

no 26%

no 20%

no 29%

no 14%

unsure 20%

unsure 19%

unsure 32%

unsure 38%

yes 60%

yes 39% yes

54%

© 2013

13

arE you runnIng rEtargEtEd adS?

do you Plan to IncrEaSE InvEStmEnt In moBIlE

In tHE nExt 12 montHS?

If So, do you fInd tHEm EffEctIvE?

IS your WEB PrESEncE moBIlE frIEndly?

yes – 36% yes – 43%No – 64% Too soon to tell / Don’t know – 48%

No – 9%

SurPrISIngly, 64% of marKEtErS HavE yEt to try rEtargEtIng

only 57% of B2B WEBSItES arE moBIlE frIEndly vS. 71% for B2c

3 in 4 marketers plan to spend more on mobile in 2014.

no

31% yes

69%yes

57%no

43%

no

14%

yes 86%

no

29%yes

71%

B2B and B2C marketers agree…

the winner is ”synergy”!

Considerably more hated even than “viral”.

SynergyVira

l

Best-in-cl

ass

Thought

leadershipKPI

ROI

Optimiza

tion

Industry-le

ading

Data-driv

en

Engagement0%

20%

15%

10%

5%

connEct WItH uS

webmarketing123.com 800.619.1570

The third annual Webmarketing123 State of Digital Marketing Survey was conducted in the fall of 2013. Over 500 U.S. marketing professionals completed the survey — all participants responded to an email invitation. Participants answered questions using an online survey tool.

For more information about the survey, please contact marketingteam@webmarketing123.com.

aBout WEBmarKEtIng123

In 2012 and 2013, Webmarketing123 was named by Inc. Magazine as one of the fastest

growing private companies in the U.S. It was also the #9 fastest growing private company

in the Bay Area according to San Francisco Business Times last year.

Founded in 2004, Webmarketing123 is a digital marketing agency providing SEO, SEM,

Display Advertising, and Social Media Marketing to help clients generate and fast-track

online revenue. Our unique approach pairs metrics-rich methodology with an

understanding of our clients’ business goals and challenges. We combine a deep

expertise across industry verticals, smart use of automation, and efficient use of

analytics to inform data-driven decision-making.

Webmarketing123 develops and drives impactful digital marketing strategies for enterprise

clients, including fast growth Inc. 500 and Fortune 500 companies. For more information,

please visit www.webmarketing123.com.

aBout tHIS rEPort

Twitter.com/webmarketing123

Facebook.com/webmarketing123

Linkedin.com/company/321315

Plus.google.com/+Webmarketing123

marKEtErS’ moSt HatEd BuzzWordS