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A recent study, the Arktic Fox 2024 Digital, Marketing & eComm in Focus report, highlights the struggles marketers and digital professionals are experiencing in adapting to these evolving economic conditions.
The report, which involved interviews with 250 marketing, digital, and e-commerce leaders from a variety of industries across Australia, underscores a critical shortfall in preparedness for upcoming Privacy Act reforms. Alarmingly, only 38% of respondents believe their executive teams recognise the importance of adapting to these privacy changes and view it as a strategic priority. This apprehension dovetails with an ongoing struggle to keep pace with advances in marketing technology (MarTech), partly due to a lack of adequately skilled personnel.
Australian marketers are notably concerned about their current MarTech investment strategies. The study reveals a growing trend towards combining 'best-of-breed' solutions rather than relying on single-vendor technologies. This shift illustrates a fundamental questioning of previous investments in MarTech, which many feel have not delivered the expected outcomes.
According to the findings, business growth remains the primary focus for Australian marketers, with 77% of respondents citing it as a key strategic priority. This is closely followed by customer acquisition at 48%. Technology integration is also highly valued, with 42% prioritising the development of customer data strategies and better utilisation of first-party data, and 36% placing emphasis on digital transformation.
Despite these aspirations, there is a striking gap in MarTech efficacy. Only 29% of the leaders surveyed believe their organisations are effective at using data to enhance customer experiences. Additionally, a mere 22% think their data management is of high quality, while just 19% have succeeded in developing a unified customer view. These shortcomings in data maturity underscore the challenges faced by marketers in leveraging technology to its fullest potential.
Teresa Sperti, Director of Arktic Fox, noted that this lack of preparedness is not unexpected. "It's not uncommon for us to have to explain to an organisation's staff, including senior members, where their data resides and how to connect the dots within their MarTech ecosystem," she said. "Despite two decades of efforts, fewer than one in five organisations have achieved a unified customer view, essential for a data-driven marketing approach."
Billy Loizou, Asia Pacific Area Vice President of Amperity, added that external factors compound the industry's hurdles. "The rise of generative AI, forthcoming Privacy Act reforms, stagnating marketing budgets, and Google deprecating third-party cookies all contribute to the current nervousness among CMOs," he explained.
Another key insight from the study reveals that organisations may need to rethink their digital transformation strategies. Only about 20% of respondents indicated their organisations had been engaged in digital transformation for more than three years. Meanwhile, 50% stated their digital transformation journey had only just begun or was in its early stages.
Loizou emphasised the need for better alignment within executive groups on digital transformation priorities. He noted that misalignment leads to competition for resources and siloed thinking, delaying the achievement of digital ambitions. "A concerted effort to align executive priorities can enable organisations to focus on the most impactful digital strategies," he said.
Regarding future investments, CRM systems and marketing automation remain top priorities for marketers, with 43% and 41%, respectively. Consumer Data Platforms (CDPs) are also gaining traction, as noted by 35% of respondents. Loizou believes CDPs are key to resolving data quality issues, which in turn accelerates growth and contributes to a data-first corporate culture.
