Can digital marketing bring you revenue

Study: digital marketing pays off

Why is the importance of digital marketing increasing? Quite simply: it's worth it! The new Google study proves this again. Companies can generate more sales with digital marketing and save costs at the same time. However, this requires a clear strategy as well as digital and technical skills.

The new study by the Boston Consulting Group (BCG) evaluated the success factors of 200 international companies on behalf of Google. The most important questions were: How do companies organize digital marketing? Which organizational and technical drivers help to achieve a high degree of digital maturity for marketing ROI?

Digital marketing maturity phases

The survey of companies revealed four phases of maturity in digital marketing.

  1. Beginners hardly ever work with digital data in marketing. So none of this counts towards sales.
  2. Advanced users already use one channel and digital data in a limited area.
  3. Connected companies work across channels to measure digital marketing ROI with sales.
  4. The highest level is multi-moment marketing, in which companies create digital customer experiences in order to address customers individually and to inspire and retain them with WOW effects. The most mature companies also use marketing automation tools and cross-channel campaigns.

Source: Think with Google - BCG study

Status quo on digital marketing maturity

However, only a few of the companies surveyed practice multi-moment marketing (2%). Most of them are still entangled in data silos and shy away from using multiple channels. That is why the majority of those surveyed (47 percent) have the maturity level “advanced”.

One progress is that almost as many companies are already considered "networked" in the study. This shows that they are quite successful with measures in digital marketing and have thus developed further.

Source: Think with Google - BCG study

An overview of two important study results

The study shows that the combination of human experience and technology increases the effectiveness of a campaign by 15 percent. Because the knowledge can be used to better define the target group, adjust the strategy again and again and regulate the budget better.

1) Growing success through data-driven technologies:For the study, the companies worked with data-driven technology. After just six weeks, most of them saw their online revenue halve. As a result, advertisers were able to invest more in advertising because the CPA (cost-per-action) was also reduced by almost 40 percent.

2) It doesn't work without humans:Technology alone is not a guarantee of success. The study also shows that the people behind the technology are needed. It has to be used correctly. Decisions play the most important role here. Which strategy is the right one? What technology does this strategy need? Which goals should be pursued? The specialist knowledge of the employees has to optimize the technology and its use again and again.

Source: Think with Google - BCG study

Campaign success through organization and technology:

The BCG study also found that technological and organizational factors combine to generate more sales. From this, three practical drivers were developed in each case:

Three technological drivers

  1. Networked data: It makes sense to use different data sources, for ad design and marketing, but also for information about the behavior of the target group. All online and offline touchpoints should be connected.
  2. automation: Use analysis tools for your website and CRM systems to automate tasks. The strategy can then be better adapted from the data obtained.
  3. Analysis relevant to decision-making: Your strategy must be in line with the company's goals, across all channels. You can also use the data obtained from your tools, for example to adjust advertising budgets and gain leads.

Three organizational drivers

  1. Strategic partnerships: At a higher maturity in digital marketing, it is advantageous to have control over data and technology yourself. To do this, you should get the right agencies or providers of marketing tools on board. But you set the tone as to which budget, quality and schedule goals need to be observed.
  2. Professional skills: Socia Media, Programmatic Marketing - such processes need employees who know their way around and can implement trends and strategies. It certainly helps here to hire experts. But training existing employees is also important. Ultimately, everyone should pull together and understand what digital marketing means.
  3. flexibility: Without the support of managers, companies will not even reach the first stage of digital maturity Because this includes rethinking structures and, above all, experimenting. Social media, tools and digitization change so quickly and offer so many possibilities. There are always moments when marketers have to try things out. Constant analysis is also important for this.

Conclusion: Digital marketing means testing different options, drawing data-based analyzes and findings from them, and developing strategic evaluations. That takes know-how. Long-term success is only possible if there is a strategy, all departments work together and the employees are qualified. We are happy to help you with your marketing strategy. Just write us an email.