Home  › Marketing › Strategies

Marketing Automation: Far From Automatic

  |  November 11, 2011   |  Comments

Technology can make marketing more efficient, but there's a hitch.

Can marketing be automated? Marketers and ad technology vendors are betting that it can, although the word "automation" better describes an automobile assembly line than creative advertising campaigns.

A search on Google for "marketing automation" turns up 2.37 million results plus ads from Aprimo, Unica, Silverpop, and SAS. Marketing software company HubSpot's purchase this month of Performable, an 18-person marketing automation software company, also suggests heightened interest in this area. "The way people learn, shop for and buy products has changed, and marketers need to adapt to these changes if they want to succeed," HubSpot CEO Brian Halligan said in a blog post, announcing the deal.

Where did the term "marketing automation" come from? In the 1990s, Internet marketers Corey Rudl and Derek Gehl launched products that could be considered marketing automation tools, including MailLoop for bulk email delivery. "I would not say we called it 'marketing automation,' but it was automating your Internet business. We were always looking for tools to help with heavy-lifting tasks," Gehl recalled in a phone interview.

Fast-forward to today. Many vendors that offer marketing automation software, such as Marketo, Silverpop, and Eloqua also offer email marketing tools. So that begs the question: Is marketing automation actually email marketing on steroids? "No," said Eloqua Chief Marketing Officer Brian Kardon. "That's a common misconception." He said automation can be used for all forms of communication, including social media, SMS, direct mail, face to face, and webinars.

More Marketing Automation Strategies

Marketing automation is a "mission-critical" system for B2B companies because they must communicate with customers and prospects in new ways, said Jeff Ernst, a Forrester Research analyst, in a report. What's fueling this change? He said buyers are doing more research on their own, buying cycles are getting longer, and more stakeholders are involved in the buying process.

Applications range from those that emphasize so-called revenue performance management, which includes lead nurturing and scoring, to programs that are part of broader integrated marketing efforts that tie together customer relationship management, predictive analytics, behavioral targeting, and more.

While marketing automation programs hold the promise of making marketing and sales efforts more efficient, marketers agree that lots of preparation is needed. Obstacles to success include: poorly defined requirements; lack of coordination among sales, marketing, and information technology teams; and failure to establish a campaign strategy.

"While automation gives a 'set it and forget it' vibe, those who are constantly monitoring their campaigns and making adjustments will typically see the greatest success. Is a 30-day lead nurturing program better than a 90-day program? Which form on my landing page is getting more responses? These are the kinds of questions that require human intervention," advised Adam Blitzer, chief operating officer at Pardot.

To learn what's needed to implement an effective marketing automation program, I reached out to executives at five ad tech vendors - Teradata's Aprimo, Eloqua, Marketo, Pardot, and IBM's Unica - and asked them via email to define marketing automation, discuss pain points, and identify skills for the new role of marketing automation manager.

"Research from one of our consulting partners, Accenture, showed that a typical $1 billion brand can secure $35 million to $70 million in annual benefits by addressing marketing efficiency and effectiveness. If those efficiencies are redirected into strategic thinking and new creative programming, the potential to increase top-line revenue is significant. So as important as automation is, it can't turn that $35 million in savings into $100 million in new revenue, only people can," said Stephanie Miller, vice president, digital messaging, at Aprimo.

Bottom line: technology can help automate some marketing processes, but successful marketing programs still require smart creative people.

Anna Maria Virzi is off today. This column was originally published June 24, 2011.

ClickZ Live Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ClickZ Live San Francisco Want to learn more? Join us at ClickZ Live San Francisco, Aug 10-12!
Educating marketers for over 15 years, ClickZ Live brings together industry thought leaders from the largest brands and agencies to deliver the most advanced, educational digital marketing agenda. Register today and save $500!


Anna Maria Virzi

Anna Maria Virzi, ClickZ's executive editor from 2007 until 2012, covered Internet business and technology since 1996. She was on the launch team for Ziff Davis Media's Baseline and also worked at Forbes.com, Web Week, Internet World, and the Connecticut Post.

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!



Featured White Papers

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.