NEWS3 November 2022

Poor data use costs a third of marketing budgets, finds study

Cost of Living News UK

UK – Marketers believe they have wasted an average of 31% of their budget, equivalent to £1.6m, over the last six months due to poor data optimisation, according to research from consumer data platform Treasure Data.

Happy face among sad ones

The research found that three-quarters of UK marketers know that their team has customer data inefficiencies.

Marketers also recognise the need for sensitive marketing during the cost-of-living crisis, with 73% changing their marketing strategies, although 61% felt they were not properly equipped to get the most out of their marketing data.

The research added that 65% of marketers have made cuts to budgets as the cost of business rises, and a further 65% are predicting more cuts to come.

The findings are based on two surveys carried out by Opinium on behalf of Treasure Data, one of which ran 31st August until 5th September with a nationally representative sample of 2,000 adults in each of the UK, UK, France and Germany.

A second survey of 500 senior marketers in each of the four countries was carried out between 31st August and 13th September.

The research found that the public were reclassifying some previously must-have items as optional ‘nice to haves’, particularly retail, which has been downgraded by 35% of UK respondents, entertainment and media (also 35%) and travel and hospitality ( 30%).

Most UK respondents ( 83%) felt marketing campaigns should be adapted to the needs and priorities of consumers during the cost-of-living crisis and two-thirds expected less marketing than usual.

The expectation for marketers to deliver demonstrable results for their business continues to grow, the research found, with 72% of marketers believing the cost-of-living crisis has led to increased pressure on them and their team to deliver return on investment.

Andrew Stephenson, director of marketing Europe, Middle East, Africa and India at Treasure Data, said: “There is an urgent challenge at hand; consumers want marketers to adapt their campaigns to be sensitive to their changing priorities, but marketers are hamstrung by slashed budgets and inadequate data management strategies.

“Ultimately, it’s those who get to grips with the unfolding customer data emergency – and stop it in its tracks – who will be best equipped to properly engage with their audiences and swim rather than sink over the coming months.”