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CMOs & digital ad spending: the stumbling blocks continue

Marketers in Asia Pacific have taken up digital engagement as they move towards a connected channel experience strategy. Asia has now even surpassed Europe in digital adoption as 46 per cent of marketers here plan to spend 10 and 20 per cent of their budgets on digital.

This was revealed in the latest APAC Digital Marketing Performance Dashboard report by CMO Council in collaboration with Adobe. The report stated, “Marketers are gaining greater confidence in their overall ability to execute and measure digital marketing performance, and clear leaders are emerging across countries who have digital leadership on their teams and are honing the skill sets needed to effectively deploy and measure digital campaigns.”

Australia and Singapore markets are creating competitive advantage through omni-channel engagements. Digital marketing performance has improved overall. Organisational alignment which ranked at 3.2 in 2013 has risen to a 3.8 ranking. Singapore has the highest operational alignment scores, ranking 78 of 100 possible ranking points. Australia is not far behind with a score of 73, an improvement from the 2013 score of 67.

The reported stated, “Both Singapore and Australia have consistently led the region in readiness, maturity and performance, typically leading in the ability to execute, measure and deliver business value through personalised, data-driven experiences.”

Even China and South Korea saw an improvement in operational alignment with China at 42, up from 27 in 2013, and South Korea at 52, up from 25 in 2013.

Marketers were, however, far more convinced about digital’s engagement in 2013 than in 2014. While 64 per cent indicated digital as a top factor in 2013, only 58 per cent indicated the same in 2014. Australia was an exception to this as 82 per cent still believed in digital’s ability to engage and connect.

Market readiness was on the rise across Asia Pacific. In 2014, the market readiness for the region ranked at 5.1, up from 4.9 in 2013 and 4.5 in 2012.

The report added, “Only 12 per cent of marketers, the same number as in 2013, believe that their agency partners are extremely effective in digital marketing, from strategy and execution to measurement. Australian marketers see the most value in their agency partners as 23 per cent feel their partners are performing extremely well, while marketers in China are most disappointed with agency performance as only 2 per cent feel there is exceptional value. Agency partners in South Korea are providing strong support for their brand partners as 12 per cent of respondents feel that their agencies are delivering.”

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.