The Talent Revolution Survey Agencies
March 2017
Executive summary Customer engagement via digital continues to increase, diversify and get personal • Global smartphone usage and digital advertising spend are at an all-time high (and growing) • Digital marketing is moving towards 'hyper-active' targeting via mobile and video, shaped by always-on connectivity and customer feedback
Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
Given the above trends, performance of agencies is broadly satisfactory (68 DCI) • Agencies have a strong understanding of social media and search, and feel they do an excellent job across the measurement capabilities such as metrics and marketing analytics • However, scores for mobile are the lowest, showing diverging skills in a marketing world increasingly dominated by smarthphone users (vs. traditional TV / phone) • Data-driven testing also remains relative low reflecting the fact that the industry is yet to fully adopt a test-fail-learn approach Agencies should not be tempted to be good across all skills, but focus on emerging needs • Build comparative advantage around key shortfalls of advertisers • But also... work to reduce the cost of doing business, given the increased complexity of agency-advertiser relationships and greater industry fragmentation
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Context This document is prepared as an aggregate report on findings from the Talent Revolution Survey – a digital marketing skills benchmarking study. All assessments presented in this report are based on the following digital marketing skills framework.
Build Strategy & Plans
Act
Digital Content
Digital Targeting
Digital Channels
Metrics & Measurement
Marketing Analytics
Testing
Measure
Enablers
Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
Plan
Responses to an online survey form the basis of all the assessments provided in this report. With the online survey, Agency employees worldwide are asked to assess their organization's capabilities on a 7-points scale vs. best practices across the skills areas highlighted in the framework above. Survey responses are turned into assessment scores (out of 100) that are presented in this report.
Source: BCG Talent Revolution survey
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Over the last year, the importance of digital marketing has continued to increase
$
$ $
$
Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
$ $
Mobile users spend 4 hours / day
Hyper-active targeting, always-on connectivity
Digital ad spend now 1/3 of global total
on their smartphone devices
are re-shaping digital marketing
estimated at $182bn in 2016
Source: Magna Global, Forrester; BCG analysis
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The average digital-skills score for all agencies is 68, with most uniformly distributed in the 55-to-85 range Frequency 25%
20%
13% 12%
10%
5%
14% 13%
11%
10% 9%
8% 5% 3% 2%
0%
<=40
40 - 45
45 - 50
50 - 55
55 - 60
60 - 65
65 - 70
70 - 75
75 - 80
80 - 85
>85
Digital-skills score distribution
Source: BCG Talent Revolution survey (N=126)
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Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
15%
Despite the relatively good performance, agencies face some shortfalls across key capabilities – testing, mobile and video Digital marketing skills scores
Digital channels drill-down Ø 68
Build Strategy & Plans
70
Enablers
71
67
Digital Targeting
68
Digital Channels
Metrics & Measurement
70
Marketing Analytics
70
0
20
40
60
Note: Agreement scale, where 0 is don't know and 100 is strongly agree Source: BCG Talent Revolution survey (N=126)
62
Mobile Advertising
60
Mobile Web & App
77
Social Media
63
Video
59
Testing
69
Display Media
80
100
0
20
40
Above average score
60
80
100
Below average score 5
Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
ACT
68
Website
67
Digital Content
MEASURE
75
Search
DIGITAL CHANNELS
PLAN
Ø 68
Agencies rate the level and quality of training programmes consistently lower than their overall performance (60 vs. 68) Ø 60
L&D questions We build communities of best practice to help us all build digital knowledge & skills faster
61
64
We have a learning programme which enables me to build the digital knowledge and skills required of me / my role Digital marketing training materials are easily available, when I need them
61
Learning programme allows for different styles of learning Digital marketing course materials are up to date with latest technology trends, new advertising products and solutions
62
I can spend enough time to develop my digital marketing capabilities
57
Overall I believe we have a very effective and impactful learning and development programme for digital marketing
56
0
20
40
60
80
100
Performance score Note: Agreement scale, where 0 is don't know and 100 is strongly agree Source: BCG Talent Revolution survey (N=141)
Above average score
Below average score 6
Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
61
Digital channels, planning and strategy execution seen as critical in short and mid-term Top capabilities teams need to develop this year2
Digital marketing skills framework 64
Build Strategy & Plans 54
Digital Channels
Digital marketing skills framework Digital Channels
46
Build Strategy & Plans
45
Metrics & Measurement
37
Marketing Analytics
Marketing Analytics
36
Metrics & Measurement
22
Digital Content
22
33
Digital Content
28
Digital Targeting
10
Testing
5
Enablers
15
Digital Targeting
9
Testing
24
2
Enablers
Digital channels drill-down
Digital channels drill-down
Mobile Advertising
20
Social Media
11
Mobile Web & App
18
Mobile Web & App
11
Mobile Advertising
10
16
Social Media
12
Video
9
Video
Display Media
8
Display Media
7
Search
7
Website
6
Website
7
Search
0
20
40
60
80
100
1. When thinking about your organisation over the next 3 years, which of the following digital marketing capabilities will be most important for your success? (Please pick top 5); 2. Thinking about your immediate team, what are the most important 3 capabilities you need to develop this year?; Source: BCG Talent Revolution survey (N=141)
5 0
20
Top 3 capabilities
40
60
80
100
Other capabilities 7
Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
The most important capabilities to success over the next 3 years1
Cross-Europe: UK agencies struggle to catch up others, with agencies in Germany are the top performers UK
Germany
Benelux
Nordics
Other Europe
Build Strategy & Plans
66
73
69
68
71
70
Enablers
66
72
72
71
68
71
Digital Content
67
70
67
62
68
67
Digital Targeting
52
73
64
68
67
67
Digital Channels
59
68
68
66
67
68
Search
63
70
78
73
68
75
Website
62
68
71
62
74
68
Display Media
59
67
68
73
69
69
Mobile Advertising
51
64
63
59
52
62
Mobile Web & App
48
63
61
55
61
60
Social Media
74
78
76
75
78
77
Video
57
69
61
64
67
63
Metrics & Measurement
60
68
69
71
71
70
Marketing Analytics
63
73
70
68
71
70
Testing
49
59
59
56
59
59
Total
60
70
67
66
68
68
Total
Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
MEASURE
ACT
PLAN
Performance scores by European region
Note: Agreement scale, where 0 is don't know and 100 is strongly agree; The number of respondents from the public sector was deemed unsatisfactory this year to draw robust conclusions Source: BCG Talent Revolution survey (N=141)
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Agencies perform well compared to advertisers, but have similar shortfalls across the individual capabilities Advertisers 2016 performance
Agencies 2016 performance Ø 68
61
ACT
ACT
53
Digital Targeting
57
Digital Channels Metrics & Measurement
61
Marketing Analytics
60 50
Testing
Partner Management 71
Enablers
56
Digital Content
70
Build Strategy & Plans
Digital Content
67
Digital Targeting
67
Digital Channels
68
Metrics & Measurement
70
Marketing Analytics
70 59
Testing
Ø 68 65
Search
DIGITAL CHANNELS
DIGITAL CHANNELS
Ø 57
63
Website 56
Display Media 45
Mobile Advertising
51
Mobile Web & App
67
Social Media 52
Video 0
20
40
60
Source: BCG Talent Revolution survey (N=57 in 2015, N=36 in 2016)
80
100
75
Search Website
68
Display Media
69 62
Mobile Advertising
60
Mobile Web & App
77
Social Media 63
Video 0
20
40
Above average score
60
80
100
Below average score 9
Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
54
Partner Management Enablers
MEASURE
PLAN
60
Build Strategy & Plans
MEASURE
PLAN
Ø 57
Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
Agenda
Appendix: Methodology
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Scores are calculated by taking the average across the 9 Digital Skill scores Average scores for answers to each Digital Skill for each respondent
Respondent Skill Score
Average each Digital Skill Score across Respondents
Aggregate Skill Score1
Average each Digital Skill score across Advertisers
Industry Skill Score
Build Strategy & Plan Digital Targeting Digital Content Metrics & Measurement
Build Strategy & Plan
Build Strategy & Plan
Digital Targeting
Digital Targeting
Digital Content
Digital Content
Metrics & Measurement
Metrics & Measurement
Testing
Testing
Testing
Channels
Channels
Channels
Marketing Analytics Partner Management
Marketing Analytics
Marketing Analytics
Partner Management
Partner Management
Enablers
Enablers
Enablers
Average across Digital Skills
Average across Digital Skills
Overall Score
Industry Benchmark
Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
Answer Scores
1. Scores are aggregated on the basis of different participant profiles
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