Digital Marketing Best Practices Report

1. Digital Marketing Best Practices Report Digital Marketing: Best Practices, Case Studies & Insights © 2014 Demand Metric Research Corporation. All Rights Reserved. Best Practices Report By: Clare Price, VP Research With: Jerry Rackley, Chief Analyst; Kristen Maida, Senior Research Analyst & Phi Schmidt, Senior Research Analyst June 2014

2. 3 5 10 15 18 32 Executive Summary What is Digital Marketing? Digital Marketing & The MMO Digital Marketing Landscape Digital Marketing Playing Field Digital Marketing Best Practices 38 39 40 Analyst Bottom Line About the Research Analysts Our Best Practices Report Methodology 35 36 Digital Marketing Maturity Model Action Plan Table of Contents 33 Digital Marketing Framework 41 About Demand Metric 3 5 10 15 18 32 Executive Summary What is Digital Marketing? Digital Marketing & The MMO Digital Marketing Landscape Digital Marketing Playing Field Digital Marketing Best Practices 38 39 40 Analyst Bottom Line About the Research Analysts Our Best Practices Report Methodology 35 36 Digital Marketing Maturity Model Action Plan Table of Contents 33 Digital Marketing Framework 41 About Demand Metric

3. EXECUTIVE SUMMARY 3 Digital Marketing: Best Practices, Case Studies & Insights It has been said that “All Marketing is Digital Marketing.” And with good reason! In the last decade (or less), the marketing environment has been transformed. Marketing has moved from an environment in which traditional marketing, brick and mortar storefronts and Digital Marketing options all competed for the time, attention and resources of the marketing department to one in which Digital Marketing reigns supreme – with an occasional nod in the direction of the storefront, or traditional marketing (direct mail, print advertising, etc.) One of the biggest challenges of Digital Marketing is the speed of which it has taken over the marketing organization, often in an ad hoc, uncoordinated fashion. Demand Metric’s research has consistently shown that Digital Marketing has a very significant and positive impact on the organizations that are employing it when they do so by following best practices and processes in a coordinated, holistic approach. In this Best Practices Report on Digital Marketing we will cover the Digital Marketing landscape in five distinct categories:  Content Marketing  Social Media Marketing  Mobile Marketing Our goal is to enable the Modern Marketing Organization (MMO) to create a holistic, end-to-end, enterprise-level approach to Digital Marketing. Here are some of the highlights:  The depth and breadth of Digital Marketing has created a compelling need within the MMO to gain control of it.  Digital Marketing has evolved in four stages, externally and internally. Externally, we have seen the customer experience mature from mass display and broadcast to highly personalized real-time experiences. © 2014 Demand Metric Research Corporation. All Rights Reserved.  Video Marketing  Public Relations EXECUTIVE SUMMARY 3 Digital Marketing: Best Practices, Case Studies & Insights It has been said that “All Marketing is Digital Marketing.” And with good reason! In the last decade (or less), the marketing environment has been transformed. Marketing has moved from an environment in which traditional marketing, brick and mortar storefronts and Digital Marketing options all competed for the time, attention and resources of the marketing department to one in which Digital Marketing reigns supreme – with an occasional nod in the direction of the storefront, or traditional marketing (direct mail, print advertising, etc.) One of the biggest challenges of Digital Marketing is the speed of which it has taken over the marketing organization, often in an ad hoc, uncoordinated fashion. Demand Metric’s research has consistently shown that Digital Marketing has a very significant and positive impact on the organizations that are employing it when they do so by following best practices and processes in a coordinated, holistic approach. In this Best Practices Report on Digital Marketing we will cover the Digital Marketing landscape in five distinct categories:  Content Marketing  Social Media Marketing  Mobile Marketing Our goal is to enable the Modern Marketing Organization (MMO) to create a holistic, end-to-end, enterprise-level approach to Digital Marketing. Here are some of the highlights:  The depth and breadth of Digital Marketing has created a compelling need within the MMO to gain control of it.  Digital Marketing has evolved in four stages, externally and internally. Externally, we have seen the customer experience mature from mass display and broadcast to highly personalized real-time experiences. © 2014 Demand Metric Research Corporation. All Rights Reserved.  Video Marketing  Public Relations

4. 4  Internally, we have seen technologies mature from ad hoc point solutions to fully integrated, end-to-end systems connected across the Enterprise, at every touchpoint and delivery channel. We present four models to enable Modern Marketers to take a holistic approach to Digital Marketing. These four models are:  The Modern Marketing Organization Model, which offers a look at the key functions needed to fully address Digital Marketing initiatives across the organization.  The Marketing Organization Maturity Model, which shows the progression and pathway a marketing department should take to mature from a Cost Center to a World Class Organization, responsible for, and measured on, driving sales and revenue.  The Demand Metric Digital Marketing Maturity Model, which shows the pathway an organization should take to mature in its use of Digital Marketing from Ad Hoc to World Class.  The Demand Metric Digital Marketing Framework, which highlights the roles, responsibilities, processes, technology, content, and metrics for effective Digital Marketing strategies. Our solutions section covers the Digital Marketing systems, vendors and applications from the fix Digital Marketing functions noted above. Each of these categories is covered in more detail in our Digital Marketing Solution Study Series. Additionally, Digital Marketing teams need to evaluate and integrate their approach to websites, landing pages and microsites; online advertising and SEO; creative design services and virtual events. These will be covered in detail in our Customer Experience Virtual Summit. Demand Metric’s key recommendation from this report is that Digital Marketing can make a significant and positive impact on the organizations that are employing it when they do so by following best practices and processes, holistically integrated across the six key categories listed above. We offer this Best Practices Report to enable your organization to make your Digital Marketing function the best that it can be. Digital Marketing: Best Practices, Case Studies & Insights 4  Internally, we have seen technologies mature from ad hoc point solutions to fully integrated, end-to-end systems connected across the Enterprise, at every touchpoint and delivery channel. We present four models to enable Modern Marketers to take a holistic approach to Digital Marketing. These four models are:  The Modern Marketing Organization Model, which offers a look at the key functions needed to fully address Digital Marketing initiatives across the organization.  The Marketing Organization Maturity Model, which shows the progression and pathway a marketing department should take to mature from a Cost Center to a World Class Organization, responsible for, and measured on, driving sales and revenue.  The Demand Metric Digital Marketing Maturity Model, which shows the pathway an organization should take to mature in its use of Digital Marketing from Ad Hoc to World Class.  The Demand Metric Digital Marketing Framework, which highlights the roles, responsibilities, processes, technology, content, and metrics for effective Digital Marketing strategies. Our solutions section covers the Digital Marketing systems, vendors and applications from the fix Digital Marketing functions noted above. Each of these categories is covered in more detail in our Digital Marketing Solution Study Series. Additionally, Digital Marketing teams need to evaluate and integrate their approach to websites, landing pages and microsites; online advertising and SEO; creative design services and virtual events. These will be covered in detail in our Customer Experience Virtual Summit. Demand Metric’s key recommendation from this report is that Digital Marketing can make a significant and positive impact on the organizations that are employing it when they do so by following best practices and processes, holistically integrated across the six key categories listed above. We offer this Best Practices Report to enable your organization to make your Digital Marketing function the best that it can be. Digital Marketing: Best Practices, Case Studies & Insights

5. Digital Marketing is, at its most basic, the use of electronic means to present a company, product and services to customers, prospective buyers and the marketplace. The term Digital Marketing is so broad that it has almost lost any contextual meaning. The purpose of this report is to put a solid framework around Digital Marketing so that Modern Marketing organizations can measure their progress and success in achieving their Digital Marketing goals. Broadly, Digital Marketing includes the creation and distribution of marketing through software, the Internet and Social Media. It also covers the production of documents by electronic means such as digital printing. Since virtually all documents today are designed in software such as Adobe Photoshop or InDesign and printed on digital printers, it is easy to see why we say all marketing is Digital Marketing. Demand Metric defines Digital Marketing as the strategies, processes, tools and technologies that support the development, deployment, management and measurement of digital elements used for marketing and advertising. Bottom Line: Digital Marketing drives revenue by creating a unique and memorable digital experience for the customer or prospect. WHAT IS DIGITAL MARKETING? © 2014 Demand Metric Research Corporation. All Rights Reserved. 5 Digital Marketing: Best Practices, Case Studies & Insights Digital Marketing is, at its most basic, the use of electronic means to present a company, product and services to customers, prospective buyers and the marketplace. The term Digital Marketing is so broad that it has almost lost any contextual meaning. The purpose of this report is to put a solid framework around Digital Marketing so that Modern Marketing organizations can measure their progress and success in achieving their Digital Marketing goals. Broadly, Digital Marketing includes the creation and distribution of marketing through software, the Internet and Social Media. It also covers the production of documents by electronic means such as digital printing. Since virtually all documents today are designed in software such as Adobe Photoshop or InDesign and printed on digital printers, it is easy to see why we say all marketing is Digital Marketing. Demand Metric defines Digital Marketing as the strategies, processes, tools and technologies that support the development, deployment, management and measurement of digital elements used for marketing and advertising. Bottom Line: Digital Marketing drives revenue by creating a unique and memorable digital experience for the customer or prospect. WHAT IS DIGITAL MARKETING? © 2014 Demand Metric Research Corporation. All Rights Reserved. 5 Digital Marketing: Best Practices, Case Studies & Insights

6. Driving Forces Marketing focus on Digital Marketing continues to grow as more organizations learn how to use digital resources for website traffic, demand generation, content marketing, online advertising and mobile/video marketing development. The most sophisticated marketers realize that the value of Digital Marketing is not just for lead generation and nurturing, advertising and content marketing. The true power rests in creating digital experiences can drive brand equity, create lasting relationships and directly impact sales, revenues and profits. Demand Metric’s Digital Marketing Landscape Benchmark Report examined the major factors driving Digital Experiences including budgets, creation priorities, platforms, sophistication of digital experiences, approaches and measurements. Here are some conclusions from the report:  58% of study participants are allocating less than half of their budgets to digital marketing, which leaves room for growth. Yet, marketers have long understood that the digital marketing dollar goes farther than the traditional marketing dollar, so the budget for digital initiatives don’t directly indicate their impact (Figure 1). © 2014 Demand Metric Research Corporation. All Rights Reserved. Digital Marketing: Best Practices, Case Studies & Insights Figure 1: Percentage of Marketing Budget Allocated to Digital Digital Marketing Landscape Benchmark Report, Demand Metric, 2013, n=518 4% 28% 18% 12% 8% 10% 14% 6% % of Marketing Budget Allocated to "Digital" None 1 to 15% 16 to 30% 31 to 45% 46 to 60% 61 to 85% More than 85% Don't know 6 Driving Forces Marketing focus on Digital Marketing continues to grow as more organizations learn how to use digital resources for website traffic, demand generation, content marketing, online advertising and mobile/video marketing development. The most sophisticated marketers realize that the value of Digital Marketing is not just for lead generation and nurturing, advertising and content marketing. The true power rests in creating digital experiences can drive brand equity, create lasting relationships and directly impact sales, revenues and profits. Demand Metric’s Digital Marketing Landscape Benchmark Report examined the major factors driving Digital Experiences including budgets, creation priorities, platforms, sophistication of digital experiences, approaches and measurements. Here are some conclusions from the report:  58% of study participants are allocating less than half of their budgets to digital marketing, which leaves room for growth. Yet, marketers have long understood that the digital marketing dollar goes farther than the traditional marketing dollar, so the budget for digital initiatives don’t directly indicate their impact (Figure 1). © 2014 Demand Metric Research Corporation. All Rights Reserved. Digital Marketing: Best Practices, Case Studies & Insights Figure 1: Percentage of Marketing Budget Allocated to Digital Digital Marketing Landscape Benchmark Report, Demand Metric, 2013, n=518 4% 28% 18% 12% 8% 10% 14% 6% % of Marketing Budget Allocated to "Digital" None 1 to 15% 16 to 30% 31 to 45% 46 to 60% 61 to 85% More than 85% Don't know 6

7.  59% of study participants rated the creation of digital experiences either “high” or “very high” as a marketing priority (Figure 2).  A relationship exists between placing a high priority on digital experience marketing and revenue growth. 76% of study participants that reported revenue growth in the most recent fiscal year also put a high priority on digital experience creation. For organizations that reported declining revenue growth, only 6% reported digital experience creation was a high priority. (Digital Marketing Landscape Benchmark Report, Page 9).  The more sophisticated or advanced the digital experience, the more magnified the effect is on brand perception: 91% of study participants that are deploying sophisticated digital experiences report that these efforts have a favorable influence on brand perception. At the basic level of sophistication, only 50% of participants report this favorable impact. (Digital Marketing Landscape Benchmark Report, Page 13) © 2014 Demand Metric Research Corporation. All Rights Reserved. 7 Digital Marketing: Best Practices, Case Studies & Insights 3% 8% 30% 35% 24% 0% 5% 10% 15% 20% 25% 30% 35% 40% Very low Low Moderate High Very high Digital Experience Creation Priority Figure 2: Digital Experience Creation Priority Digital Marketing Landscape Benchmark Report, Demand Metric, 2013, n=518  59% of study participants rated the creation of digital experiences either “high” or “very high” as a marketing priority (Figure 2).  A relationship exists between placing a high priority on digital experience marketing and revenue growth. 76% of study participants that reported revenue growth in the most recent fiscal year also put a high priority on digital experience creation. For organizations that reported declining revenue growth, only 6% reported digital experience creation was a high priority. (Digital Marketing Landscape Benchmark Report, Page 9).  The more sophisticated or advanced the digital experience, the more magnified the effect is on brand perception: 91% of study participants that are deploying sophisticated digital experiences report that these efforts have a favorable influence on brand perception. At the basic level of sophistication, only 50% of participants report this favorable impact. (Digital Marketing Landscape Benchmark Report, Page 13) © 2014 Demand Metric Research Corporation. All Rights Reserved. 7 Digital Marketing: Best Practices, Case Studies & Insights 3% 8% 30% 35% 24% 0% 5% 10% 15% 20% 25% 30% 35% 40% Very low Low Moderate High Very high Digital Experience Creation Priority Figure 2: Digital Experience Creation Priority Digital Marketing Landscape Benchmark Report, Demand Metric, 2013, n=518

8. ABOUT THE RESEARCH ANALYSTS 39 Clare Price, VP Research Clare is an expert in marketing strategy, branding, strategic communications, sales enablement, social media marketing, content marketing and leveraging marketing technologies. Clare is a former Gartner Research Director and helped build their Internet Strategies Services division with clients such as Microsoft, IBM, HP, Cisco, Proctor & Gamble and Wells Fargo. Kristen Maida, Senior Research Analyst Kristen has worked with Demand Metric for the past 4 years, learning about and gaining experience in all aspects of the organization. She has developed job functions in almost every department to help with Demand Metric’s rapid growth. Her specialties include: social media marketing, digital marketing, content marketing & management and business process development. Digital Marketing: Best Practices, Case Studies & Insights Jerry Rackley, Chief Analyst Jerry Rackley is Chief Analyst at Demand Metric. His 30-year marketing career began at IBM, and includes experience in the technology and financial services sectors. He has worked with companies ranging in size from startups to members of the global 1000, performing marketing, marketing communication, public relations and product management work. Phi Schmidt, Senior Research Analyst Phi R. Schmidt has an award-winning background in music, sound and visual effects, and draws upon his experience working on feature films such as '300', and commercial clients like 'Ford' and 'Toyota'. Phi is an expert in video production and online marketing, and is a Senior Research Analyst at Demand Metric. ABOUT THE RESEARCH ANALYSTS 39 Clare Price, VP Research Clare is an expert in marketing strategy, branding, strategic communications, sales enablement, social media marketing, content marketing and leveraging marketing technologies. Clare is a former Gartner Research Director and helped build their Internet Strategies Services division with clients such as Microsoft, IBM, HP, Cisco, Proctor & Gamble and Wells Fargo. Kristen Maida, Senior Research Analyst Kristen has worked with Demand Metric for the past 4 years, learning about and gaining experience in all aspects of the organization. She has developed job functions in almost every department to help with Demand Metric’s rapid growth. Her specialties include: social media marketing, digital marketing, content marketing & management and business process development. Digital Marketing: Best Practices, Case Studies & Insights Jerry Rackley, Chief Analyst Jerry Rackley is Chief Analyst at Demand Metric. His 30-year marketing career began at IBM, and includes experience in the technology and financial services sectors. He has worked with companies ranging in size from startups to members of the global 1000, performing marketing, marketing communication, public relations and product management work. Phi Schmidt, Senior Research Analyst Phi R. Schmidt has an award-winning background in music, sound and visual effects, and draws upon his experience working on feature films such as '300', and commercial clients like 'Ford' and 'Toyota'. Phi is an expert in video production and online marketing, and is a Senior Research Analyst at Demand Metric.

9. OUR BEST PRACTICES REPORT METHODOLOGY © 2014 Demand Metric Research Corporation. All Rights Reserved. 40 Demand Metric’s Best Practices Reports investigate new developments and approaches in a given focus area to provide marketers with up-to- date, practical and efficient solutions to modern day challenges. Each guide identifies a challenge, discusses previous solutions to that challenge, presents new solutions based on in-depth research and suggests a recommended approach to implement new solutions. Each Best Practices Guide involves hours of analyst research, focus area specific surveys and comprehensive interviews with executives in a given focus area in order to recommend solutions for the presented challenges. Digital Marketing: Best Practices, Case Studies & Insights OUR BEST PRACTICES REPORT METHODOLOGY © 2014 Demand Metric Research Corporation. All Rights Reserved. 40 Demand Metric’s Best Practices Reports investigate new developments and approaches in a given focus area to provide marketers with up-to- date, practical and efficient solutions to modern day challenges. Each guide identifies a challenge, discusses previous solutions to that challenge, presents new solutions based on in-depth research and suggests a recommended approach to implement new solutions. Each Best Practices Guide involves hours of analyst research, focus area specific surveys and comprehensive interviews with executives in a given focus area in order to recommend solutions for the presented challenges. Digital Marketing: Best Practices, Case Studies & Insights

10. . © 2014 Demand Metric Research Corporation. All Rights Reserved. Best Practices Report ABOUT DEMAND METRIC Demand Metric is a global marketing research & advisory firm serving a membership community of over 40,000 marketing professionals, CEOs, and business owners with advisory services, custom research & benchmarking reports, vendor studies, consulting methodologies, training, and a library of 500+ tools and templates. Using Demand Metric resources, members complete projects faster and with greater confidence, boosting respect for the marketing team and making it easier to justify needed resources. Our 1,000+ clients range from start-ups to members of the Global 1000. TO LEARN MORE ABOUT DEMAND METRIC To read the rest of this Benchmark Report, become a Demand Metric member today!