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Read Professor Moorman’s analysis of key survey results.

Why You Should Build a Digital Marketing Organization

Companies are spending more on digital marketing. The most recent CMO Survey reports that companies will spend 13% more on digital marketing compared to an 8.9% increase in overall marketing spend in the next year. However, marketing leaders report only average or below average contributions of mobile and social investments to company performance.

One reason performance is lagging may be because companies remain focused on digital strategies, not on building a digital marketing organization. A digital marketing organization means embedding digital marketing activities into the very core of the organization. This means that digital marketing activities transform how the company operates, including its culture, its leaders, how it makes decisions, employee training and incentives, cross-functional cooperation, and the role of marketing capabilities.

To examine whether the digital marketing organization is important, The CMO Survey asked marketing leaders to rate the ten indicators in Table 1 in response to the question “To what extent have your company’s digital marketing activities changed the following areas in your company?” where 1=not at all and 7=greatly. Psychometric analysis indicates these items are measuring the same idea and so I created one overall measure to reflect the “digital marketing organization.” Among the 349 companies responding, the mean score is 3.95 (standard deviation = 1.35).

Table 1. Measuring the Digital Marketing Organization

To get a simple view of its importance, I correlated the company’s digital marketing organization score with CMO ratings of the company’s marketing return on investment and ratings of social and mobile contributions to company performance. I compared these correlations to correlations of these outcomes with digital marketing spending. In all cases, as shown in Table 2, digital marketing organization scores were more strongly related—often 2x to 3x times stronger—to social, mobile, and marketing ROI performance compared to digital marketing spend.

Table 2. Digital Marketing Spend vs. Digital Marketing Organization

Table: Digital Marketing Spend vs. Digital Marketing Organization

More sophisticated econometric analysis is necessary to isolate the effects of digital marketing spending versus digital marketing organization on firm performance. However, this analysis does offer simple descriptive evidence that a company’s digital marketing performance is influenced by the strength of its digital marketing organization and that this impact is stronger than digital marketing spend levels.

So, if you want stronger digital marketing performance, build a digital marketing organization.

  1. Hey Christine your article is very much informative and i think every digital marketer should read this article. What ever the information you have written is very informative. I hope you will keep on updating such impressive articles.

  2. Great insights Christine! We have seen this trend continue in the SMB digital marketing space as well as more people use digital platforms like Google and Facebook to socialize and search.

  3. Digital marketing is powerful and profitable, and therefore, it is worth it to pay attention to it, and even better, build an exclusive organization dedicated to it. Your insights and points have been pretty clear and precise, Christine, thanks for sharing them with us!

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  5. I truly appreciate the author of this blog post. It helped me with what I needed to know about building a digital marketing organization. I hope this is helping the readers in the similar or even better way. I wish you the best for your upcoming updates on such informative topics. Thanks

  6. I think this is the best post about how to build a digital marketing organization. It has all the essentials which are important for building a digital marketing company.

  7. This guide is really amazing as it has simplified a lot of queries for me. You present your research openly for everyone to read and understand, that too without any cost.

  8. I truly appreciate the author of this blog post. It helped me with what I needed to know about building a digital marketing organization. I hope this is helping the readers in the similar or even better way. I wish you the best for your upcoming updates on such informative topics. Thanks

  9. I like your blog,informative and good .Every digital marketer should learn this blog for begin good digital marketing.

  10. Hello CHRISTINE ,

    Its a nice article for sure and digital marketing today is very powerful tool especially after covid-19 as more and more businesses today are turning towards digital marketing modes because physical existence of businesses is decreasing rapidly.
    Ovais Mirza

  11. Thanks for sharing the post. The way you narrated the post is good and understanding. After reading your post I learned some new things about digital marketing And the importance of the digital marketing .

  12. Great Informative article which is still relevant during a pandemic. This is the time when small businesses need to really leverage digital marketing and get a stronghold in the market by targeting their specific audiences. Thankyou for sharing such valuable info

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