1、 STUDY OVERVIEW The 2020 Digital Outlook Study was fielded in Q4 2019 in partnership with Forrester Research. The online survey targeted client-side executives with responsibility for digital marketing and technology along with executive leaders at agencies worldwide. (n=494) The study results inclu

2、ded a final, validated sample of 261 responses from client-side leaders and 231 responses from agency leaders. The data from this study looks at spending plans for 2020, organizational priorities and perspectives on the shifting digital landscape. While the onset of COVID-19 and a global economic sl

3、owdown will undoubtedly impact these previously forecast numbers, we believe the directional guidance is still relevant and will provide a good benchmark against data from 2019 and again in 2021 when the new study is fielded. When this digital outlook data is referenced in the report, we have clearl

4、y labelled it as “Q4 2019” so you understand that it reflects plans and perspectives coming into the year. In order to capture a snapshot of the current landscape, SoDA also conducted a quick-strike survey with agency leaders from March 13-22, 2020. This study included a final, validated sample of 1

5、22 agency leaders and explored their initial response to COVID-19, how their outlook for 2020 has changed since the beginning of the year, and their level of preparedness for such an abrupt and significant disruption. When this revised outlook data is referenced in the report, we have clearly labell

6、ed it as “March 2020” so you understand that it reflects the perspective of agency leaders in the early weeks of this crisis. OUTLOOK2020 SoDA. All rights reserved. April 2020.02 CLIENT LEADERS Data highlights from client-side executives with responsibility for digital marketing and technology inves

7、tments. SoDA. All rights reserved. April 2020. Before you begin this section CLIENT LEADERS Data collected in Q4 2019. Data for the Global Digital Outlook Study was collected in Q4 2019. The early months of 2020 have brought significant and unanticipated disruption. We do not expect the budget forec

8、ast data to hold true in light of the current climate. We do, however, believe the data provides useful directional guidance on priorities and perspectives coming in the year. 1 3 On the other side of this crisis, where will the trend lines point? While we certainly anticipate a significant disrupti

9、on to spending plans and strategic priorities for 2020, we believe that many of the structural and systemic challenges that brands are wrestling with will be accelerated and intensified by greater economic pressure and, perhaps, new social norms. Only time will tell. 2 Client Executives Responsible

10、for Digital. The sample for this section includes client-side leaders with responsibility for digital marketing and technology. There were 261 respondents from a healthy mix of industries and geographies across the globe. Nearly 60% of the respondents were C-level executives. A couple of thoughts to

11、 keep in mind before you review the data related to client-side leaders and the 2020 outlook. SoDA. All rights reserved. April 2020.04 201720182019 Digital Budget Outlook 2020 Decreasing digital budget21%11%5%6% Digital budget will be flat33%28%24%16% Increasing digital budget43%55%53%77% Digital bu

12、dget is NOT tracked separately 3%6%16%2% 35% Significant Increase 42% Moderate Increase For those who planned to increase their digital budgets in 2020, just 30% were also planning an increase to their overall marketing spend. The remaining 70% were increasing digital investments while cutting marke

13、ting spend or holding it flat. DIGITAL ALLOCATION Coming into the year, 77% of client-side leaders said they were increasing their digital budgets in 2020 35% signifi cantly so. Of those increasing their digital spend, 70% were planning to do so while decreasing or holding fl at their overall market

14、ing budget. Allocation of existing and net new fi nancial resources continue to move in the direction of digital initiatives. While the order of magnitude for budget increases may not hold for 2020, we suspect that the directional movement of investments will stay true. (Q4 2019) Digital Budgets Inc

15、reasing (?) SoDA. All rights reserved. April 2020.05 2020 Increasing Budget Websites & Web-based Experiences Campaign Development & Execution Data Analytics & Research Media Planning & Buying Platform Implementations Digital Products & Services AR/VR/Mixed Reality AI-Driven Customer Experiences Nati

16、ve Mobile App Design & Dev Experiential / Physical-Digital Installations Standalone UX/Design Services Voice Applications / No-UI Interfaces 51% 46% 45% 45% 44% 43% 43% 42% 41% 38% 37% 35% Project Budget Growth in 2020 Standalone Strategy Services33% 39% 36% 37% 33% 38% 37% n/a 36% 29% 28% 33% 26% 2

17、4% +12 +10 +8 +12 +6 +6 n/a +6 +12 +10 +4 +9 +11 2019 Increasing BudgetDifference BUDGET GROWTH A look at the percentage of client- side leaders who had planned to increase their digital budgets in 2020 by major capability area (Q4 2019). The data is compared to the same forecast made as part of las

18、t years digital outlook study. SoDA. All rights reserved. April 2020.06 Websites & Web-based Exp1 Platform Implementations2 Digital Products & Services3 Customer Insights & Analytics4 AI-Driven Digital Experiences Campaign Dev & Execution 5 2019 Top Areas for Budget Increase Websites & Web-based Exp

19、1 Customer Insights & Analytics2 Content Development3 Digital Products & Services4 Social Marketing Execution5 2018 Top Areas for Budget Increase Websites & Web-based Exp1 Campaign Dev & Execution2 Media Planning & Buying3 Customer Insights & Analytics4 Platform Implementations5 2020 Top Areas for B

20、udget Increase A 3-year comparison of the Top 5 digital capability areas where the greatest percentage of client-side leaders had planned for budget increases in 2020. (Q4 2019) Top Areas for Budget Growth SoDA. All rights reserved. April 2020.07 2020 Increasing Budget Paid Social Online Display (ex

21、cluding social) Video Advertising (excluding social) Paid Search Traditional Advertising 45% 45% 43% 38% 38% Budget Plans For Digital Media 2019 Increasing Budget 40% 36% 36% 28% 26% Difference +5 +9 +7 +10 +8 When it comes to digital media spend, nearly half of client-side leaders had planned to in

22、crease their budgets for Paid Social and Online Display advertising. Close to 40% were planning increases for traditional ad spend. (Q4 2019) Digital Media Budget Growth SoDA. All rights reserved. April 2020.08 Evolving our internal culture and organizational structure #1 Cultivating a better unders

23、tanding of our customers needs #4 Attracting and retaining top talent #5 Embracing emerging technology before our competitors do #6 Differentiating our brand through innovation #7 Competing more aggressively on price #9 Creating a more effective and nimble partner ecosystem #8Top Investment Areas fo

24、r Org Success Expanding into new geographic markets #10 Launching new products and services #11 Adopting new methods/processes for working collaboratively #2 Leveraging data to make smarter and faster decisions #3 “Very Prepared External Partners Client leaders force-ranked the Top 3 areas where the

25、y are investing most heavily to fuel their organizations success. Culture, org structure, working models and data topped their list of investment priorities. (Q4 2019) Investing in Organizational Success SoDA. All rights reserved. April 2020.09 Digital Strategy Digital Campaigns Programmatic Adverti

26、sing Digital Design / UX Emerging Tech Projects Digital Products & Services Data Analytics & Research Digital Media Plan & Buy Native Mobile App Dev Digital Content Production Social Media & Marketing 53%23%20% 28%33%35% 29%35%27% 32%31%27% 32%31%29% 35%27%29% 36%24%28% 36%28%25% 40%22%29% 43%22%29%

27、 32%34%28% Primarily Internal Teams Primarily External Partners Websites & Web-based Exp23%44%27% 4% 5% 8% 9% 7% 8% 11% 10% 8% 5% 5% Not Applicable 5% 3-Year Trend moving in-house moving external moving external static static static static static static moving in-house moving external moving externa

28、l A Mix Internal + External Client leaders identifi ed whether they primarily use internal teams, external partners or a mix of the two for major digital capabilities. The 3-year trend indicates directional movement of each capability. (Q4 2019) Insourcing Digital Capabilities SoDA. All rights reser

29、ved. April 2020.10 Cost Savings #1 Quality of Work#4 Strategic Focus#5 Brand Knowledge#6 Better Results / ROI#7 Top Benefits of Digital Insourcing Control / Visibility#8 Integration #9 Time to Market #2 Flexibility / Agility #3 “Very Prepared External Partners Client leaders force-ranked the Top 3 b

30、enefi ts of digital insourcing. Cost Savings, Time to Market and Flexibility / Agility were the top benefi ts with Quality of Work a distant forth. Interestingly, Better Results and ROI was ranked near the bottom of the list. (Q4 2019) Benefits of Insourcing SoDA. All rights reserved. April 2020.11

31、Different Pricing Models #2 Stronger Strategic Leadership #5 Stronger Data Capabilities #6 Faster Production / Turnaround #7 More Collaborative #8 Deeper Specialization #10 More Training & Staff Augmentation Services #9 Top Areas of Improvement for Partners Deeper Understanding Of Our Core Business

32、#11 Broader / Integrated Capabilities #12 Stronger Design / UX / Creative #3 Stronger Technology Leadership #4 More Flexible/Nimble Working Models #1 Improvement Areas for Partners Client leaders force-ranked the Top 3 areas where theyd like to see their agency partners improve. More Flexible / Nimb

33、le Working Models topped the list and likely refl ects the needs of an increasingly mixed model with which clients tackle work between in-house teams and multiple external partners. (Q4 2019) SoDA. All rights reserved. April 2020.12 The term “digital” continues to be a meaningful way for client-side

34、 leaders to differentiate both agency types and marketing activities related to technology. In 2017, while 90% agreed that “digital” was still a relevant, 76% said they expected the term, as a meaningful differentiator, to disappear within 5 years. In year 3 of that 5-year window, it appears that th

35、e relevance of the term “digital” isnt going anywhere anytime soon. (Q4 2019) Digital Distinction Hangs On SoDA. All rights reserved. April 2020.13 “Digital” is still a meaningful way differentiate marketing activities and agencies related to technology. 2018 80% 2019 90% 2017 90% Director / Manager

36、, Marketing 24% 14% CIO 49% CEO / COO / President CMO 16% VP, Marketing 26% 8% Director / Manager, Technology Business Line / Product Lead 4% VP, Technology 6% 2017 Director / Manager, Marketing 27% 14% CIO 31% CEO / COO / President CMO 13% VP, Marketing 16% 17% Director / Manager, Technology Busine

37、ss Line / Product Lead 13% VP, Technology 18% 2018 Director / Manager, Marketing 26% 22% CIO 40% CEO / COO / President CMO 19% VP, Marketing 18% 17% Director / Manager, Technology Business Line / Product Lead 14% VP, Technology 19% 2019 SoDA. All rights reserved. April 2020.14 Digital Decision Maker

38、s On the client side, the primary decision-makers in selecting partners for digital initiatives has held relatively stable over a 3-year period with most categories holding within a 5-8 point margin. Theres no doubt that digital decisions are a collaboration across the C-suite, marketing and technol

39、ogy departments. (Q4 2019) 2019 Customer Exp. who is the primary lead? Executive Leadership (CEO) 40% Marketing Leadership (CMO) 20%23% Technology Leadership (CIO/CTO) 16%39% Operations Leadership (COO) 12% Sales Leadership (CRO) 6%12% Product Leadership (CDO/CPO) 2%5% Interdisciplinary / No Single

40、Group 4% 2020 Digital Strategy who is the primary lead? Executive Leadership (CEO) 42% Marketing Leadership (CMO) 16%28% Technology Leadership (CIO/CTO) 23%45% Operations Leadership (COO) 10% Sales Leadership (CRO) 3%8% Product Leadership (CDO/CPO) 2%4% Interdisciplinary / No Single Group 4% 2020201

41、9 SoDA. All rights reserved. April 2020.15 CEO In Charge of Digital & CX As “digital strategy” and “customer experience” pervade the enterprise, the CEO begins to step in. (Q4 2019) Three-quarters of client-side executives note the relative importance and impact of several industry issues. Top of Mi

42、nd Issues SoDA. All rights reserved. April 2020.16 Data Privacy 74% agree that growing concerns over data privacy has had a major impact on the way they plan for and execute digital marketing initiatives up from 64% last year. Person alization 75% agree that producing and publishing personalized dig

43、ital content more cost-effectively, is a major priority for their business. up from 67% last year. Design Ethics 75% agree that design ethics is a major priority for how we approach projects and the work we create. Note: This is the fi rst year weve asked this question. Impact of AI 76% agree that A

44、I technology is impacting the way we design for customer interactions today up 18 points from 58% last year. Trans- parency 78% that they are demanding greater detail and transparency from our agency partners in how they report on budget spending up from 66% last year. AGENCY LEADERS Data highlights

45、 from agency leaders on the state of their business, readiness for disruption and a revised outlook for 2020. SoDA. All rights reserved. April 2020. AGENCY LEADERS A snapshot before and at the beginning of a period of uncertainty. Data in this section juxtaposes sentiment coming into the year (Q4 20

46、19) and a snapshot of perspectives and revised expectations near the beginning of an accelerating global pandemic (March 13-22, 2020). The sentiment and anticipated actions by agency leaders will undoubtedly evolve through the year. 1 3 Agency strength, decisiveness and resilience to be tested. Agen

47、cies delivered solid financial performance in 2019 and many entered 2020 in a strong financial position. Timing and severity of impact on revenue for agencies will be distributed unevenly depending on industry focus, client mix and project types. Cash position, cultural resilience and decisiveness a

48、re critical for every agency. 2 Duration and depth of impact unknown. Agencies have taken initial steps to adapt to remote teams, travel restrictions and a diminishing revenue outlook for 2020. Economic stimulus is ramping up from governments across the globe and the duration and severity of communi

49、ty health measures will likely vary by region. Its still early days and we should view this initial market response as Phase 1. Before you begin this section A couple of thoughts to keep in mind before you review the data related to the agency leaders and the 2020 outlook. SoDA. All rights reserved. April 2020.18 60% of agency leaders reported strong fi nancial performance in 2019 with 21% calling it was one of their best years on record. In SoDAs Digital Outlook Study (Q4 2019), 53% reported improved margin