Optimization Activities Not Getting Any More of the Marketing Budget This Year

Adobe-Share-Marketing-Budgets-Optimization-May2013Not only is optimization not getting a bigger slice of the marketing budget pie this year, it may actually be getting a slightly smaller share, per results [download page] from the Adobe 2013 Digital Marketing Optimization Survey. This year, 53% of the digital marketers surveyed from around the world said they devote less than 5% of their total marketing budget to optimization activities (including agency fees, professional services, and technology), up from 48% last year. Only 6% of respondents are allocating more than one-quarter of their budgets to these activities, relatively unchanged from last year’s 7%.

The study indicates that those allocating more of their budgets to optimization tend to have more success with their conversion rates. For example, 21% of respondents spending more than one-quarter of their budgets on optimization are achieving conversion rates of 9% and above, compared to only 8% of those spending up to 25% of their budgets on these activities. A similar gap exists for those seeing conversion rates in the range of 5-8.9%.

Part of the problem seems to be a lack of ingrained testing culture within the organization. This year, 49% said that testing is not a priority in their company yet. While that’s a slight decrease from 52% who responded that way last year, there was also a 3% point decline in the proportion of respondents who say they have adopted testing as a form of decision-making, down from 14% in last year’s survey to just 11% this year.

Much as with budgeting, testing (as one would expect) appears to have an influence on conversion rates. Among respondents who don’t test or who have not testing process, just 12% achieved an average website conversion rate north of 5%, versus 33% of those respondents who said they have multiple departments with input into the testing process.

About the Data: The Adobe 2013 Digital Marketing Optimization Survey received global responses from more than 1,800 digital marketers across North America, Europe, and Asia.