State of Marketing

FOURTH ANNUAL State of Marketing Insights and trends from 3,500 global marketing leaders

About This Report State of Marketing 2 In our fourth annual “State of Marketing” report, Salesforce Research surveyed 3,500 marketing leaders worldwide to explore how: • Customer experience continues to reshape the marketer’s mindset • Shifting priorities are sparking organizational changes • Technology, particularly AI, is raising the bar for efficiency and personalization 1,450 Throughout this report, high-performing marketing leaders are defined as those who are extremely 1,000 satisfied with the current outcomes realized as a direct result of their company’s marketing investment, as well as their overall marketing performance compared to their competitors. See page 3 for detailed performance information. 700 350 Data in this report is from a blind survey conducted in April 2017 that generated 3,500 responses from full-time marketing leaders — those holding a manager or higher leadership role within their organization — in the U.S., Canada, Brazil, U.K./Ireland, France, Germany, the Netherlands, Japan, and Australia/New Zealand.* All respondents are third-party panelists (not limited to Salesforce customers). Due to rounding, not all percentage totals in this report equal 100%. All comparison calculations are made from total numbers (not rounded numbers). Salesforce Research provides data-driven insights to help businesses transform how they drive customer success. Browse all reports at salesforce.com/research. * For further survey demographics, see page 48.

About This Report State of Marketing 3 Breakdown of Marketing Performance Levels High-performing marketing teams represent 12% of the overall survey population. Marketers surveyed include B2B, B2C, and B2B2C teams. For additional demographics, please refer to page 48. Moderate performers either are “very or moderately satisfied” with their current outcomes realized as a direct result of their company’s marketing investment or are “extremely satisfied” with it but not with their marketing performance compared to their competitors 76% Underperformers High performers are “slightly or not at all satisfied” are “extremely satisfied” with the with the current outcomes current outcomes realized as a realized as a direct result of their direct result of their company’s company’s marketing investment marketing investment 12% 12% Salesforce Research

Table of Contents State of Marketing 4 Executive Summary ..................................................................................................................................................... 5 Introduction: Customer Experience Is the Brand Battlefield ................................................................................ 6 Marketers Move to Evolve Journeys, but Data Woes Linger ...................................................................... 8 01 Shifting Priorities Spark Organizational Change .......................................................................................... 14 02 Marketing Tech Makes Waves ........................................................................................................................ 19 03 Marketing Embraces the AI Revolution ........................................................................................................ 23 04 Last Look: What Makes Top Marketers Tick .............................................................................................................. 26 Country Profiles ............................................................................................................................................................ 27 Appendices .................................................................................................................................................................... 37 Survey Demographics ................................................................................................................................................. 48 Salesforce Research

State of Marketing Executive Summary 5 Four Key Takeaways Today’s companies compete 01 Marketers Move to Evolve Journeys, but Data Woes Linger on the basis of customer (See page 8) experience — and marketers On the path to delivering connected customer experiences, marketers continue to wrestle with gaining feel called to lead the charge. a single view of the customer and leveraging data from different sources. The difficulty of gaining this But what does it take to single customer view is compounded by elevated customer expectations and the tremendous growth of newer marketing channels. While high-performing teams are better at coordinating marketing across deliver a well-executed channels, a majority fail to evolve their message from one channel to the next. customer experience? Shifting Priorities Spark Organizational Change A majority agree this is 02 (See page 14) the endgame, but progress With the rising flood of available customer data, companies are rethinking everything from job roles to toward that goal runs how marketing functions in the broader organization. From account-based marketing to closer alignment the gamut. with customer service, top marketers are change agents staying ahead of the curve. Here’s an overview of 03 Marketing Tech Makes Waves (See page 19) how emerging marketing Marketers expect that usage of marketing technologies — from IoT/connected devices to lead scoring channels, organizational tools — will skyrocket over the next two years. High-performers tend to be heavier tech users, with most changes, and technologies reporting that their current tech stack aids collaboration, increases productivity, and drives a more are disrupting the status quo. cohesive view of customer data. Top teams also cite data management platforms as the most essential tool for 1-to-1 marketing across every touchpoint. 04 Marketing Embraces the AI Revolution (See page 23) Artificial intelligence (AI) is the leading technology where marketers expect the most growth in the next two years. Internally, marketers view AI as a means of creating more efficiency in their operations. For customers, most marketers see it as a way to get more from their data and ramp up personalization without burdening their teams. Salesforce Research

Introduction State of Marketing 6 Customer Experience Is the Brand Battlefield Last year’s “State of Marketing” research Marketers Compete Based on Customer Experience established customer experience as a significant marketing focus. It’s common for today’s marketers High-performing marketers are more likely to compete based on customer experience and to lead to look beyond the traditional marketing scope to those efforts across their company. understand and influence customers’ interactions with their company as a whole. Percentage of Marketing Leaders Who Strongly Agree High Performers vs. But beyond focusing on customer experience, or Agree with the Following Statements Underperformers marketing leaders are now battling over it. Customer experience is central to their go-to- 86% Marketing is increasingly competing 69% 2.0x market strategy, in how they aim to win new on the basis of customer experience 43% more likely customers, and in how they’re keeping current customers happy. Marketing is leading customer 89% experience initiatives across 66% 2.7x the business 33% more likely 68% of marketing leaders say their High performers Moderate performers Underperformers company is increasingly competing on the basis of customer experience. Although delivering a superior customer experience requires attention from every facet of the business, marketing leaders — particularly high performers — feel they’re leading the charge. Almost two-thirds of marketers say their team is leading customer experience initiatives across the business. Among top teams, that number rises to 89%.

Introduction State of Marketing 7 Customer Experience Is the Brand Battlefield Over the past 18 months, 64% of marketing Customers Will Walk If Experiences Aren’t Personalized leaders say their company has become more focused on providing a consistent experience In a separate study of over 7,000 consumers and business buyers worldwide, a majority of across every channel as a result of changing customers said they would switch brands or vendors if communications weren’t personalized.* customer expectations. This begs the obvious question, “Why?” The short answer is that customers increasingly expect consistent, personalized experiences — and their loyalty is on the line. This applies to consumers and business buyers alike. While more than half (52%) of consumers are likely 52% 65% to switch brands if a company doesn’t make an effort to personalize communications to them, of consumers are likely to switch of business buyers are likely 65% of business buyers say the same about brands if a company doesn’t to switch brands if a vendor vendor relationships.* personalize communications to them doesn’t personalize communications to their company Marketers have historically walked a thin line between wanting to personalize communications but not wanting to pry too far into customers’ personal data. But the tides are changing, and consumers are more willing to trade data for better experiences. Among Millennial consumers, 58% will share personal data in exchange for product recommendations that meet their needs (as will 52% of Gen X consumers). Business buyers also want deeper relationships; 89% expect companies to understand their business needs and expectations.* * “State of the Connected Customer,” Salesforce Research, October 2016. Salesforce Research

01Marketers Move to Evolve Journeys, State of Marketing 8 but Data Woes Linger In the quest to connect customer experiences, Marketers Continue to Battle Disparate Data marketers’ struggle with disparate data isn’t a new issue — but it is a persisting one. As Marketers at all performance levels struggle to leverage data from different sources in their quest marketing leaders continually strive to gain to execute a connected customer experience. a single customer view, customers’ elevated expectations make this an increasingly complex Top Challenges Marketing Leaders Face in Creating a Connected Customer goal to reach. Experience across the Customer Lifecycle by Performance Level For high-performing marketers, the central High Performers Moderate Performers Underperformers challenges are obtaining a single view of the customer and leveraging data from different sources. For underperforming teams that Creating a shared, single Budgetary Budgetary aren’t quite as far down this path, they struggle 1 view of the customer constraints constraints more with foundational issues such as budget restrictions and outdated technologies. Difficulty leveraging data Difficulty leveraging data Insufficient internal 2 from different sources from different sources resources Budgetary Insufficient internal Difficulty leveraging data 3 constraints resources from different sources Salesforce Research

01Marketers Move to Evolve Journeys, State of Marketing 9 but Data Woes Linger Gaining a single view of the customer is a goal Emerging Channels and Email Show High Growth made even more challenging by the frenzied addition of marketing and communication While video advertising tops both growth charts, B2C teams pump up their email efforts and B2B channels. Customers expect they can switch teams double down on mobile and advertising on new platforms. between any connection — mobile browser, mobile app, social, desktop, and so on — and Actual Channel Growth 2015–2017 have a consistent brand experience. This expectation has sent marketing into a tailspin trying to cover it all. On average, marketing leaders today say 34% of their budget is spent on channels they didn’t know existed B2B* B2C five years ago — and they expect that to reach 40% by 2019. Over the past two years, we’ve seen an explosion 204% Video advertising 141% Video advertising in the use of newer channels like video two-year growth two-year growth advertising, SMS, mobile apps, and native advertising/sponsored content. The percentage 197% SMS/text messaging 106% Email marketing of both B2B and B2C marketers using video two-year growth two-year growth advertising, for example, has risen by triple digits over the last two years. Despite its well-established presence in the 161% Mobile apps 103% Mobile apps two-year growth two-year growth B2C marketer’s toolbox, email is still growing at a significant rate. Email’s number two spot Native advertising/ indicates that marketers may be testing new 147% sponsored content 92% SMS/text messaging channels in conjunction with proven ones to find two-year growth two-year growth combinations that work for their consumers. 130% Advertising on 81% Native advertising/ social platforms sponsored content two-year growth two-year growth * B2B also includes respondents who identified as B2B2C. Salesforce Research This is a partial list. Please refer to the Appendix for complete data.

State of Marketing 01Marketers Move to Evolve Journeys, 10 but Data Woes Linger Over the past 12–18 months, 63% of all Top Teams See Channel Coordination as Key marketers say their company has become more focused on expanding marketing efforts across Creating a connected customer experience begins one channel at a time. High performers are channels and devices. 12.8x more likely than underperformers to heavily coordinate marketing efforts across channels. But for high-performing marketing teams, * Volume of Channel Coordination by Performance Level channel discussions focus more on “how” than “how many.” Driven by customers’ expectations 43% 47% 11% to be consistently recognized and remembered High performers across every interaction, top marketers pay special attention to how they’re coordinating marketing Moderate performers 16% 69% 15% across channels, not just how many channels they touch. 3% 58% 38% Underperformers High performers are 12.8x more likely than underperformers to heavily coordinate their Heavy coordination Moderate coordination Minimal coordination marketing efforts across these channels. Channels included in the survey were email, website, mobile (e.g., SMS, push notifications), social media marketing, display/banner ads, advertising on social platforms, organic search, paid search, video advertising, and native advertising/sponsored content. * Heavy coordination is defined as coordination across 10–11 of the channels defined. Moderate coordination is defined as coordination across 4–9 of the channels defined. Minimal coordination is defined as coordination across 0–3 of the channels defined.

01Marketers Move to Evolve Journeys, State of Marketing 11 but Data Woes Linger Coordinating marketing across channels is easier Most Marketers Broadcast Identical Messages across Channels said than done. The gold standard for a customer journey is that each subsequent message Most marketers say about half of their campaign messages are identical broadcasts builds on the customer’s actions to evolve from one channel to the next. communications in a true 1-to-1 experience. But the reality is marketers say only about a quarter Extent to Which Marketers Coordinate Messages of their messages evolve from channel to in the Following Channels with Other Channels channel in this highly personalized way. Social media marketing 33% 48% Most marketers say about half (51%) of their campaign messages are identical broadcasts Website 31% 50% from one channel to the next. This approach is 30% 51% akin to the early days of email marketing, when a Advertising on social platforms “spray and pray” mindset was the norm. But with 29% 51% customer expectations for personalization on the Email rise, static messages can give the impression that 29% 49% a company doesn’t see customers as individuals. Customer communities For example, if a customer has already purchased Video advertising 28% 53% a necklace via an email offer, but continues to see the exact same necklace advertised on Mobile marketing 27% 51% social platforms, the customer could infer that 27% 51% the company doesn’t know (or care) that she Paid search already purchased the item and doesn’t value 25% 54% her business. Display/banner ads Native advertising/sponsored content 25% 54% High performers are twice as likely as underperformers to evolve messages across Organic search 25% 53% channels — but still only 43% currently do. Leveraging customer data to deliver Messages evolve across channels based on customer actions hyper-relevant experiences takes a new level Identical messages are broadcast across channels of marketing intelligence, which section 4 covers in more detail (see page 23). Salesforce Research

State of Marketing 01Marketers Move to Evolve Journeys, 12 but Data Woes Linger Most marketers haven’t cracked the code on Continued Attention to Journeys Yields Big Benefits creating ideal customer journeys — but not for lack of trying. Sixty-seven percent of marketing High-performing marketers overwhelmingly agree that a connected customer journey across all leaders say creating a connected customer touchpoints and channels is a boon to business, lifting everything from loyalty levels to revenue. journey across all touchpoints and channels is critical to the success of their overall Percentage of Marketing Leaders Who Strongly Agree or Agree High Performers vs. marketing strategy. That a Connected Customer Journey Positively Impacts the Following Underperformers While the term “customer journey” was just 91% 71% 2.1x hatching a decade ago, it’s now top of mind — Customer loyalty 43% more likely and with good reason. The positive benefits associated with customer journey efforts speak 89% 71% 2.1x for themselves. A staggering 91% of high Revenue growth 42% more likely performers agree that a connected customer journey across all touchpoints and channels 91% positively impacts customer loyalty. Another 89% 70% 2.1x Customer engagement 43% more likely say the same for the impact on revenue growth. 91% But overall, only 23% of marketers are Customers’ willingness to recommend 70% 2.2x products and services 42% more likely extremely satisfied with their ability to leverage customer data to create more 88% relevant experiences. To understand how 68% 2.1x Customer satisfaction (CSAT) scores 41% more likely marketers expect personalization capabilities to evolve over the next few years, see section 4. 88% 65% 2.6x Customer churn rates 33% more likely High performers Moderate performers Underperformers Salesforce Research

Spotlight State of Marketing 1313 Email’s Exponential Impact Email lands a top-five place among channels “Email Plus” Equals Awareness, Engagement, and Acquisition exhibiting the highest growth over the last two years (83% growth). A closer look reveals the Combining email with a myriad of other marketing channels delivers exponential benefits. impact of combining email with other channels. Marketers report higher levels of awareness, engagement, and acquisition. The three biggest benefits cited are improved awareness, higher rates of customer engagement, Top Three Benefits of Combining Email with Other Marketing Channels and improved customer acquisition. Email provides a window into customer behavior — such as which emails they open, what device they use, and which offers they redeem — making it a natural candidate to leverage alongside other channels to boost personalization and + engagement. While email plus other channels can help reinforce a message and extend reach, using the data available to evolve the message can have a bigger impact. This is a missed opportunity for most marketers who aren’t evolving messages between email and other Social media Mobile Organic and Digital Content Website channels based on customer behaviors or marketing marketing paid search advertising marketing actions. About half (51%) of the emails they send are identical messages to what they’ve = broadcast in other channels. IMPROVED IMPROVED IMPROVED AWARENESS ENGAGEMENT CUSTOMER ACQUISITION Salesforce Research

02Shifting Priorities Spark Organizational Change State of Marketing 14 Marketers’ tectonic shift toward customer Marketing Roles Are Transforming to Reflect Customer Focus experience is having a ripple effect on roles within the marketing department. Over the past High performers realize that traditional marketing roles may not meet heightened 12–18 months, 61% of marketers say they’ve customer demands, and are more likely to make the necessary changes. become more focused on evolving from a traditional marketing structure to roles aligned with a customer journey strategy. Recent years Percentage of Marketing Leaders Who High Performers vs. have introduced a slew of new positions, ranging Strongly Agree or Agree with the Following Underperformers from “customer experience analyst” to “lifecycle Our business is aligning marketing marketing manager.” roles to a customer journey strategy 89% vs. traditional roles (e.g., by marketing 62% 2.4x Fifty-nine percent of marketing leaders say that channel/function) 37% more likely traditional marketing roles limit their ability to engage customers. Top marketing teams are High performers Moderate performers Underperformers more apt to recognize this need for organizational change, and are 2.2x more likely to feel limited by traditional roles. Percentage of Marketing Leaders Who Are High Performers vs. Extremely or Very Satisfied with the Following Underperformers 89% of top teams are aligning Ability to engage customers 60% 95% 4.4x marketing roles to a customer journey across channels at scale 22% more likely strategy. High performers Moderate performers Underperformers Coincidentally, high performers are also 4.4x more likely than underperformers to be satisfied with their ability to engage customers across channels at scale. Salesforce Research

02Shifting Priorities Spark Organizational Change State of Marketing 15 Beyond influencing changes within marketing, Marketing’s Place in the Broader Organization Is Also Shifting customer journey strategies are upending marketing’s role in the broader business. Top teams are happier with the collaboration between marketing and other departments Sixty-four percent of marketing leaders (e.g., sales, service, IT). believe customer journey strategies require organizational shifts — for example, redefining how sales, service, and marketing teams work together. 93% High performers are happier with the level of collaboration between their marketing team and other departments. They’re likewise 3x more likely than underperformers to extensively use CRM tools. High Performers vs. Underperformers While 73% of marketers with a CRM system High performers use it for a shared customer view between their 3.7x Moderate performers service and sales teams, more than a quarter more likely to say they’re extremely 25% Underperformers don’t — creating a rift in how those teams view or very satisfied with their their customer data, and ultimately hindering collaboration with other departments their ability to drive a cohesive customer journey across departments. 60% Salesforce Research

02Shifting Priorities Spark Organizational Change State of Marketing 16 Digging deeper into the collaboration habits of Top Marketers Align Closely with Sales Teams high performers, they’re at least twice as likely as underperformers to align with sales teams in a Given that top teams’ number one challenge to creating a customer experience is getting a shared, variety of ways. For top teams, this alignment single view of the customer, the need for marketing and sales alignment is at a peak. starts by being empowered to collaborate with sales, sharing common goals and metrics, and Percentage of Marketing Leaders Who Strongly Agree or Agree understanding how their efforts impact individual High Performers vs. accounts and customers. with the Following Statements about Their Relationships with Sales Underperformers I understand how marketing’s efforts 92% 2.0x Winning marketing teams keep close tabs on impact individual accounts/customers 70% more likely their sales counterparts’ needs, and value two- 45% way communication. High performers are 90% 2.2x more likely than underperformers to say Marketing consistently provides 70% 2.2x marketing consistently provides sales with quality sales with quality leads 41% more likely leads — and 2.1x more likely to say sales regularly 91% provides key insights that shape marketing efforts. Marketing and sales are 69% 2.0x empowered to collaborate 45% more likely Marketing and sales share 91% 2.1x common goals and metrics 69% more likely 42% Marketing understands what 89% 2.0x sales needs to succeed 68% more likely 45% 91% Sales regularly provides key insights 67% 2.1x that shape marketing efforts 43% more likely Marketing shares data insights 90% (e.g., channel usage, campaign 67% 2.1x effectiveness) 42% more likely High performers Moderate performers Underperformers Salesforce Research

Spotlight State of Marketing 17 Account-Based Marketing Helps Personalize to B2B Audiences B2B Marketers Take a Closer Look at Personas Over the past 18 months, 60% of B2B marketers have become more focused on improving As previously stated, business buyers show even audience segmentation and personas. higher expectations for personalization than Percentage of B2B Marketing Leaders Who consumers. However, in a B2B marketing scenario High Performers vs. where your decision-maker is not an individual Strongly Agree or Agree with the Following Statements* Underperformers but a group, how do you achieve that level of 93% personalization? This issue is one that account- Marketing and sales share 69% 2.1x based marketing (ABM) aims to solve. ABM is common goals and metrics 45% more likely the practice of marketing and directing content 92% to targeted accounts, instead of a traditional I understand how marketing’s efforts 70% 2.1x top-of-funnel approach. impact individual accounts/customers 44% more likely The success of ABM hinges on a healthy High performers Moderate performers Underperformers relationship between marketing and sales. High-performing B2B* marketing leaders are 2.1x more likely than underperformers to be aligned with sales on goals and metrics. They’re also 2.1x more likely to understand how their efforts impact individual accounts. 60% Top B2B marketers are 2.9x more likely to extensively use data targeting and segmentation. of B2B marketers say they’ve been While data targeting is a foundation, it’s not as far more focused on improving along the personalization spectrum as it could be. audience segmentation and Top teams are looking to emerging technologies personas over the past 18 months to move the needle. High-performing B2B marketers who use or plan to use AI are 1.7x more likely than underperformers to say it will have a transformational impact on customer segmentation/lookalike audience modeling. * B2B also includes respondents who identified as B2B2C. Salesforce Research

02Shifting Priorities Spark Organizational Change State of Marketing 18 As with successful sales partnerships, high- Service and Marketing Unite for Consistent Customer Experiences performing marketing and service teams align to ensure a more consistent experience for Top marketing teams are more than twice as likely as underperformers customers. Top teams are 2.2x more likely than to collaborate with their service counterpart. underperformers to alert service to special offers and promotions — and 2.5x more likely to say Percentage of Marketing Leaders Who Strongly Agree or Agree High Performers vs. service alerts them to suppress marketing when with the Following Statements about Their Relationships with Service Underperformers there’s a known issue. Since a company’s brand is often defined as “the Marketing and service collaborate 90% 2.1x on a regular basis 66% more likely sum of all conversations” happening, the role of 42% service in branding cannot be overstated. Most 87% service professionals, in fact, feel that service has Marketing alerts service to special 67% 2.2x the largest impact on how customers perceive promotions and offers 39% more likely their brand.* Regardless of whether marketing agrees with that sentiment, the takeaway is that 89% brand reputation depends on collaboration Marketing and service share 64% 2.3x common goals and metrics 39% more likely between these departments. Service collaborates with marketing 88% Thanks to the boom in social media, 65% of to manage and respond to social 64% 2.4x marketers agree that customers broadcast inquiries and issues 37% more likely positive experiences more publicly than they did five years ago (and 61% say the same Marketing is suppressed when a 81% 2.5x about negative experiences). To accommodate customer has an open service case 55% more likely changing customer behaviors, 64% of marketing 33% teams work in tandem with service to manage High performers Moderate performers Underperformers social inquiries and issues. * Salesforce Research “State of Service,” Salesforce Research, January 2017.

03Marketing Tech Makes Waves State of Marketing 19 While marketing teams navigate organizational Emerging Tech Expected to Gather Speed in the Near Term change in the pursuit of a connected customer experience, marketing technology plays a Over the next two years, AI and IoT/connected devices are expected to rack up the prominent role behind the scenes. Marketers’ highest growth in usage among marketers. ability to orchestrate touchpoints in a journey is as much a technology challenge as a Percentage of Marketing Leaders Who Use or Plan to Use Anticipated teamwork challenge. the Following Tools or Technology over the Next Two Years* YoY Growth In terms of performance levels, top teams are 51% 27% 4.3x more likely than underperformers to Artificial intelligence (AI) +53% extensively use a data management platform Internet of Things (IoT)/ 66% 23% (DMP) and 4x more likely to use a customer connected devices +34% identity and access management (CIAM) 67% 21% platform. For more on DMP, see page 21. Marketing automation platform +31% 67% 20% Marketers anticipate the biggest growth in Social listening tools +31% technology to be in AI, which you can read Customer identity and 68% 20% more about in section 4. Other foundational access management (CIAM) +30% technologies not among this top 10 — but 68% 20% ranking high in overall usage — can be found in Mobile campaign management +30% the Appendix on page 37. For instance, 92% 66% 20% of marketers will use marketing analytics and Loyalty program platform +30% 91% will use a CRM system by 2019. 66% 20% Lead nurturing and scoring tools +30% 68% 20% Guided selling +29% 70% 19% Data management platform (DMP) +28% Currently use Plan to use * This is a partial list. Please refer to the Appendix for complete data. Salesforce Research

03Marketing Tech Makes Waves State of Marketing 20 Leading teams also lean more heavily on an array High Performers Rely on Tech Stack for Collaboration and Productivity of marketing technology. High performers report using, on average, 15 out of the 17 tools and Top marketers see better results from their current tools and technologies. More than eight out of 10 technologies included in this survey compared high performers say their current tech stack is very effective at achieving the following attributes. to only eight for underperformers. This means top teams are 14x more likely to be heavy tech Percentage Who Say Their Current Technology Stack adopters. Even though top teams are using more * Is Extremely or Very Effective at Delivering the Following technologies, they’re making a greater effort to ensure the end messages they’re sending Collaboration across the business 30% 56% 88% 3.0x customers are more coordinated between (e.g., across sales, service, and marketing) more likely channels, as covered in section 1. 27% 55% 88% 3.2x Zooming in on the specifics of their technology Collaboration across marketing functions more likely stack, top teams’ current tools are significantly 36% 61% 86% 2.4x more effective. For instance, high performers are Increased productivity more likely 3x more likely than underperformers to say their current tech stack is very effective at driving 31% 59% 86% 2.8x collaboration across the business (e.g., sales, Better analytic insights more likely service, and marketing). They’re also 2.4x more Improved marketing efficiencies 32% 58% 86% 2.6x likely to say their current tech stack is very (e.g., automating tasks, etc.) more likely effective at increasing productivity. 35% 58% 86% 2.4x More efficient spending more likely 32% 59% 85% 2.7x More cohesive view of customer data more likely High performers Moderate performers Underperformers * This is a partial list. Please refer to the Appendix for complete data. Salesforce Research

State of Marketing 03Marketing Tech Makes Waves 21 With 1-to-1 marketing as the ultimate goal, Tools and Technologies Most Essential to 1-to-1 Marketing which technologies do marketers find essential to achieving it? For survey purposes, 1-to-1 High performers report that a DMP is their most essential technology for delivering personalized marketing was defined as marketing strategies customer interactions. Marketing analytics/measurement tools maintain a strong presence among emphasizing personalized interactions with all performance groups. customers to foster greater loyalty and better return on marketing investment. Assessing overall rankings, the top two that are most essential to Most Essential Tools and Technologies to Create delivering this are CRM and marketing analytics/ 1-to-1 Marketing across Every Touchpoint measurement tools. High Performers Moderate Performers Underperformers However, looking at performance level reveals an interesting mix. Top marketers say the most Data management Customer relationship Data targeting and essential technology to achieving 1-to-1 1 platform management system segmentation marketing is a DMP, defined as a centralized system for collecting, integrating, and managing data from disparate sources. By comparison, underperformers’ focus on data targeting and Customer relationship Marketing analytics/ Marketing analytics/ segmentation implies they’re not as mature in 2 management system measurement tools measurement tools their 1-to-1 strategies. Marketing analytics/ Guided selling (e.g., 3 measurement tools Social publishing tools opportunity ranking by potential value, sales activity effectiveness)

State of Marketing Spotlight 22 While Tech Makes Waves, a Major Messaging Trend Surfaces Barriers to Delivering Purpose-Driven Marketing Purpose-driven marketing is on the minds of more marketers, but it brings its own challenges. The right technology can empower marketers The main hang-up is that marketing leaders don’t want to risk sending a message that could polarize their audiences. to drive 1-to-1 connections — but the tech itself is still just a vehicle. The message that’s being delivered matters more than ever. Top Issues Hindering Marketing Teams from Delivering Purpose-Driven Marketing Customers increasingly have opinions about what a company stands for and how it behaves as a corporate citizen. Recent research has shown 1 We don’t want to risk putting out a message that polarizes our audiences that 60% of consumers are likely to switch brands if a company isn’t socially responsible* and 80% of business professionals believe companies have a responsibility to go beyond 2 Unsure how to connect our values to our marketing strategy profit to make an impact on society.** This shift is why more marketers are talking about purpose-driven marketing — defined in 3 Insufficient executive buy-in the survey as any positioning that represents an organization’s greater purpose and beliefs. For examples, look no further than recent Super Bowl ads from international brand giants. Marketing, often the broadcasting voice of a company, holds a unique position to navigate this values-based positioning. In the last 18 months, 60% of marketing leaders say they’ve become more focused on purpose-driven marketing. Top marketers are 2.2x more likely than underperformers to leverage purpose-driven * State of the Connected Customer survey, Salesforce Research, June 2016. Data may or may not be represented in the “State of the Connected marketing to reflect the values of their company, Customer” report. brands, and customers. ** Workforce Values and Equality survey, Salesforce Research, February 2017. Data may or may not be represented in the forthcoming related report. Salesforce Research

04Marketing Embraces the AI Revolution State of Marketing 23 It seems AI is making headlines across every Significant AI Growth Starts Now industry these days, and marketing is no exception. In fact, AI is the leading technology High performers are ahead of the curve in their AI usage, but more than a quarter of overall where marketers expect the most growth over marketers (regardless of performance level) plan to begin using AI within a two-year timeframe. the next two years. Marketers anticipate AI use will grow by 53% — a much higher rate than any other tech types. As the new kid on the High performers block, AI is attracting attention for its emerging Moderate performers and future marketing use cases. Underperformers About half (51%) of marketing leaders are already using AI, with more than a quarter planning to pilot it in the next two years. Unsurprisingly, high performers lead the way with 72% reporting current use. While High Performers vs. usage seems high for a tech type that’s still in Underperformers its infancy, AI has its roots in tactics like product recommendations and predictive lead scoring, 72% 2.2x which successful marketers have been using more likely to say they’re currently for years. using artificial intelligence (AI) 32% 50% Salesforce Research

04Marketing Embraces the AI Revolution State of Marketing 24 Growth in AI has been established — but what AI Expected to Transform Marketing Efficiencies and Personalization are the particular uses where marketers think AI will pack a punch? Over the next five years, Internally, marketers see AI as a means of creating more efficiency in their operations. In terms of most marketers think AI will substantially customer-facing benefits, most view AI as a way to get more from their data and personalize their impact their capacity for improving efficiency marketing without burdening their teams. and advancing personalization (see chart). Areas Where Marketing Leaders Expect AI Will Have a Substantial Among marketers who already use AI, 64% or Transformational Impact on Their Business over the Next Five Years say it has greatly or substantially increased their overall marketing efficiency. Productivity of marketers 59% ving Campaign analytics 59% o ficiencyDigital asset management 59% 57% of marketers using AI say it’s ImprEf Business insights across data and systems 59% absolutely or very essential in helping their company create 1-to-1 marketing across Lead scoring 57% every touchpoint. Hyperpersonalization of content 61% Dynamic landing pages and websites 61% Delivering the right message, A third area where marketers anticipate an AI on the right channel, at the right time 61% impact is surrounding customer experience tionHyperpersonalized product recommendations 60% innovations. Fifty-seven percent of marketers expect AI will substantially impact automated ancingalizaProgrammatic advertising and media buying 60% social interactions using chatbots and dv interfaces. Another 58% expect the same A ersonPredictive journeys 60% P impact on marketing via IoT-enabled products. Hyperpersonalization at scale 59% Customer segmentation/ lookalike audience modeling 58% Sentiment analysis 56% Salesforce Research

State of Marketing 04Marketing Embraces the AI Revolution 25 A separate survey found that only 26% of Roadblocks on the Path to More Intelligent Marketing business leaders (including marketing, sales, and service) have complete confidence in their While top marketing teams have privacy and data concerns around initiating AI, underperformers organization’s ability to define an AI business lack a defined AI strategy and the skill sets to back it up. strategy.* AI interest persists, but many are grappling with what it means for their business. And while AI is on the tip of marketers’ tongues, Primary Roadblocks Marketing Leaders Face in Executing an AI Strategy roadblocks still exist. The obstacles to executing an AI strategy High Performers Moderate Performers Underperformers vary by performance level. Top marketers are more likely to say their AI challenges include Customer privacy Budgetary Budgetary customer privacy concerns or wrangling 1 concerns constraints constraints data stored in separate systems. Meanwhile, moderate and underperforming teams say that their AI strategies are thwarted by budget constraints and lack of internal skill sets. Budgetary Customer privacy No defined AI 2 constraints concerns business strategy Data is stored in Lacking the right Lacking the right 3 disparate systems internal skill set internal skill set (e.g., too few data scientists) (e.g., too few data scientists) * AI Snapshot survey, Salesforce Research, February 2017. Salesforce Research

State of Marketing Last Look 26 What Makes Top Marketers Tick From connecting customer experiences and embracing organizational change to pushing the boundaries of personalization with AI, high-performing marketers stand out from the pack. Customer Journey Data Artificial Channel Alignment Integration Intelligence Coordination High Performers vs. High Performers vs. High Performers vs. High Performers vs. Underperformers Underperformers Underperformers Underperformers 2.4x 4.2x 3.1x 12.8x more likely to align marketing roles more likely to be satisfied with their more likely to extensively use more likely to heavily coordinate to a customer journey strategy ability to leverage customer data to artificial intelligence (AI) marketing efforts across channels create more relevant experiences

* Country Profiles Salesforce Research * Please keep in mind that cultural bias impacts survey results across regions.

Country Profile State of Marketing 28 United States (600 Marketing Professionals) Marketers Move to Evolve Journeys, but Data Woes Linger Marketing Tech Makes Waves say a connected customer journey across all touchpoints and channels Tools and Tech Most Essential to 1-to-1 Marketing 78% positively impacts revenue growth Customer relationship management (CRM) Marketing analytics/ Data management 1system 2measurement tools 3platform (DMP) say a c onnected customer journey across all touchpoints and channels 78% positively impacts customer loyalty of marketers say their current tech stack is extremely or very effective at 70% increasing productivity and delivering better analytic insights Top Challenges in Creating a Connected Customer Experience Outdated tools/tech and of marketers say their current tech stack is extremely or very effective at providing a Insufficient internal creating a shared, single 68% more cohesive view of customer data and delivering more efficient spending 1Budgetary constraints 2resources 3view of the customer Shifting Priorities Spark Organizational Change Marketing Embraces the AI Revolution o arketers say they’re aligning marketing roles to a customer journey strategy f m of marketers say they use AI extensively or on a limited basis with another 25% 71% vs. traditional roles (e.g., by marketing channel/function) 48% piloting or planning to use within two years of marketers who use AI say it’s absolutely or very essential in helping their company o arketers are extremely or very satisfied with their 61% create 1-to-1 marketing across every touchpoint f m 70% collaboration with other departments (e.g., sales, service, IT) Primary Roadblocks in Executing an AI Strategy of m arketers are extremely or very satisfied with their ability to Lacking the right internal 69% engage customers across channels at scale Customer privacy skill set (e.g., too few data 1Budgetary constraints 2concerns 3scientists) Salesforce Research

Country Profile State of Marketing 29 Canada (400 Marketing Professionals) Marketers Move to Evolve Journeys, but Data Woes Linger Marketing Tech Makes Waves say a connected customer journey across all touchpoints and channels Tools and Tech Most Essential to 1-to-1 Marketing 69% positively impacts revenue growth Data management Marketing analytics/ 1platform (DMP) 2Social publishing tools 3measurement tools say a c onnected customer journey across all touchpoints and channels 69% positively impacts overall customer engagement of marketers say their current tech stack is extremely or very effective at 58% increasing productivity Top Challenges in Creating a Connected Customer Experience of marketers say their current tech stack is extremely or very effective at Difficulty leveraging data 56% improving marketing efficiencies (e.g., automating tasks, etc.) 1Budgetary constraints 2Too many channels 3from different sources Shifting Priorities Spark Organizational Change Marketing Embraces the AI Revolution o arketers say they’re aligning marketing roles to a customer journey strategy f m of marketers say they use AI extensively or on a limited basis with another 27% 60% vs. traditional roles (e.g., by marketing channel/function) 49% piloting or planning to use within two years of marketers who use AI say it’s absolutely or very essential in helping their company o arketers are extremely or very satisfied with their 52% create 1-to-1 marketing across every touchpoint f m 55% collaboration with other departments (e.g., sales, service, IT) Primary Roadblocks in Executing an AI Strategy of m arketers are extremely or very satisfied with their ability to 57% engage customers across channels at scale No defined business Customer privacy 1Budgetary constraints 2strategy for AI 3concerns Salesforce Research

Country Profile State of Marketing 30 Brazil (350 Marketing Professionals) Marketers Move to Evolve Journeys, but Data Woes Linger Marketing Tech Makes Waves say a connected customer journey across all touchpoints and channels Tools and Tech Most Essential to 1-to-1 Marketing 84% positively impacts customer loyalty Marketing analytics/ Data targeting and 1measurement tools 2Social publishing tools 3segmentation say a c onnected customer journey across all touchpoints and channels 81% positively impacts overall customer engagement of marketers say their current tech stack is extremely or very effective at 77% providing a more cohesive view of customer data Top Challenges in Creating a Connected Customer Experience of marketers say their current tech stack is extremely or very effective at Difficulty leveraging data Creating a shared, single 75% increasing productivity and improving collaboration across the business 1Budgetary constraints 2from different sources 3view of the customer Shifting Priorities Spark Organizational Change Marketing Embraces the AI Revolution o arketers say they’re aligning marketing roles to a customer journey strategy f m of marketers say they use AI extensively or on a limited basis with another 35% 81% vs. traditional roles (e.g., by marketing channel/function) 49% piloting or planning to use within two years of marketers who use AI say it’s absolutely or very essential in helping their company o arketers are extremely or very satisfied with their 67% create 1-to-1 marketing across every touchpoint f m 73% collaboration with other departments (e.g., sales, service, IT) Primary Roadblocks in Executing an AI Strategy of m arketers are extremely or very satisfied with their ability to 75% engage customers across channels at scale Customer privacy No defined business 1Budgetary constraints 2concerns 3strategy for AI Salesforce Research

Country Profile State of Marketing 31 United Kingdom/Ireland (400 Marketing Professionals) Marketers Move to Evolve Journeys, but Data Woes Linger Marketing Tech Makes Waves say a connected customer journey across all touchpoints and channels Tools and Tech Most Essential to 1-to-1 Marketing 73% positively impacts revenue growth Customer relationship management (CRM) Marketing analytics/ 1system 2measurement tools 3Social listening tools say a c onnected customer journey across all touchpoints and channels 73% positively impacts customer satisfaction (CSAT) scores of marketers say their current tech stack is extremely or very effective at 63% increasing productivity Top Challenges in Creating a Connected Customer Experience of marketers say their current tech stack is extremely or very effective at Difficulty leveraging data Creating a shared, single 58% delivering more efficient spending 1Budgetary constraints 2from different sources 3view of the customer Shifting Priorities Spark Organizational Change Marketing Embraces the AI Revolution o arketers say they’re aligning marketing roles to a customer journey strategy f m of marketers say they use AI extensively or on a limited basis with another 28% 60% vs. traditional roles (e.g., by marketing channel/function) 48% piloting or planning to use within two years of marketers who use AI say it’s absolutely or very essential in helping their company o arketers are extremely or very satisfied with their 53% create 1-to-1 marketing across every touchpoint f m 61% collaboration with other departments (e.g., sales, service, IT) Primary Roadblocks in Executing an AI Strategy of m arketers are extremely or very satisfied with their ability to Lacking the right internal 61% engage customers across channels at scale Customer privacy skill set (e.g., too few data 1Budgetary constraints 2concerns 3scientists) Salesforce Research

Country Profile State of Marketing 32 France (350 Marketing Professionals) Marketers Move to Evolve Journeys, but Data Woes Linger Marketing Tech Makes Waves say a connected customer journey across all touchpoints and channels Tools and Tech Most Essential to 1-to-1 Marketing 78% positively impacts customer loyalty Guided selling (e.g., Marketing analytics/ opportunity ranking by 1measurement tools 2potential value) 3Social listening tools say a connected customer journey across all touchpoints and channels positively 74% impacts customers’ willingness to recommend their products and services of marketers say their current tech stack is extremely or very effective at 63% delivering better analytic insights Top Challenges in Creating a Connected Customer Experience of marketers say their current tech stack is extremely or very effective at Insufficient internal Difficulty leveraging data 62% improving collaboration across marketing functions 1Budgetary constraints 2resources 3from different sources Shifting Priorities Spark Organizational Change Marketing Embraces the AI Revolution of marketers say they’re aligning marketing roles to a customer journey strategy of marketers say they use AI extensively or on a limited basis with another 26% 66% vs. traditional roles (e.g., by marketing channel/function) 60% piloting or planning to use within two years of marketers who use AI say it’s absolutely or very essential in helping their company o arketers are extremely or very satisfied with their 61% create 1-to-1 marketing across every touchpoint f m 66% collaboration with other departments (e.g., sales, service, IT) Primary Roadblocks in Executing an AI Strategy of m arketers are extremely or very satisfied with their ability to 67% engage customers across channels at scale Customer privacy It’s not a marketing 1Budgetary constraints 2concerns 3priority Salesforce Research

Country Profile State of Marketing 33 Germany (350 Marketing Professionals) Marketers Move to Evolve Journeys, but Data Woes Linger Marketing Tech Makes Waves say a connected customer journey across all touchpoints and channels Tools and Tech Most Essential to 1-to-1 Marketing 68% positively impacts customer satisfaction (CSAT) scores Guided selling (e.g., Customer relationship opportunity ranking by Marketing analytics/ management (CRM) 1potential value) 2measurement tools 3system say a c onnected customer journey across all touchpoints and channels 67% positively impacts customer loyalty of marketers say their current tech stack is extremely or very effective at 65% providing a more cohesive view of customer data Top Challenges in Creating a Connected Customer Experience Disconnected tools/tech of marketers say their current tech stack is extremely or very effective at across the business 61% delivering more efficient spending 1Outdated tools/tech 2(e.g., disparate systems) 3Too many channels Shifting Priorities Spark Organizational Change Marketing Embraces the AI Revolution o arketers say they’re aligning marketing roles to a customer journey strategy f m of marketers say they use AI extensively or on a limited basis with another 29% 57% vs. traditional roles (e.g., by marketing channel/function) 48% piloting or planning to use within two years of marketers who use AI say it’s absolutely or very essential in helping their company o arketers are extremely or very satisfied with their 57% create 1-to-1 marketing across every touchpoint f m 61% collaboration with other departments (e.g., sales, service, IT) Primary Roadblocks in Executing an AI Strategy of m arketers are extremely or very satisfied with their ability to Lacking the right internal 57% engage customers across channels at scale Customer privacy skill set (e.g., too few data 1Budgetary constraints 2concerns 3scientists) Salesforce Research

Country Profile State of Marketing 34 Netherlands (350 Marketing Professionals) Marketers Move to Evolve Journeys, but Data Woes Linger Marketing Tech Makes Waves 62% say a connected customer journey across all touchpoints and channels positively Tools and Tech Most Essential to 1-to-1 Marketing impacts customers’ willingness to recommend products and services Customer relationship management (CRM) Mobile campaign 1Social publishing tools 2system 3management say a connected customer journey across all touchpoints 62% and channels positively impacts overall customer engagement of marketers say their current tech stack is extremely or very effective at 55% delivering better analytic insights Top Challenges in Creating a Connected Customer Experience of marketers say their current tech stack is extremely or very effective at Difficulty leveraging data Outdated organizational 54% improving marketing efficiencies (e.g., automating tasks, etc.) 1Budgetary constraints 2from different sources 3structure Shifting Priorities Spark Organizational Change Marketing Embraces the AI Revolution o arketers say they’re aligning marketing roles to a customer journey strategy f m of marketers say they use AI extensively or on a limited basis with another 31% 58% vs. traditional roles (e.g., by marketing channel/function) 54% piloting or planning to use within two years of marketers who use AI say it’s absolutely or very essential in helping their company o arketers are extremely or very satisfied with their 49% create 1-to-1 marketing across every touchpoint f m 52% collaboration with other departments (e.g., sales, service, IT) Primary Roadblocks in Executing an AI Strategy of marketers are extremely or very satisfied with their ability to Lacking the right internal 47% engage customers across channels at scale skill set (e.g., too few data Data is stored in disparate 1Budgetary constraints 2scientists) 3systems Salesforce Research

Country Profile State of Marketing 35 Australia/New Zealand (350 Marketing Professionals) Marketers Move to Evolve Journeys, but Data Woes Linger Marketing Tech Makes Waves of marketers strongly agree or agree that a connected customer journey across Tools and Tech Most Essential to 1-to-1 Marketing 68% all touchpoints and channels positively impacts overall customer engagement Customer relationship management (CRM) Marketing analytics/ Mobile campaign 1system 2measurement tools 3management of m arketers strongly agree or agree that a connected customer journey across 67% all touchpoints and channels positively impacts revenue growth of marketers say their current tech stack is extremely or very effective at 62% increasing productivity Top Challenges in Creating a Connected Customer Experience of marketers say their current tech stack is extremely or very effective at Difficulty leveraging data Creating a shared, single 57% improving collaboration across marketing functions 1Budgetary constraints 2from different sources 3view of the customer Shifting Priorities Spark Organizational Change Marketing Embraces the AI Revolution o arketers say they’re aligning marketing roles to a customer journey strategy f m of marketers say they use AI extensively or on a limited basis with another 23% 61% vs. traditional roles (e.g., by marketing channel/function) 59% piloting or planning to use within two years of marketers who use AI say it’s absolutely or very essential in helping their company o arketers are extremely or very satisfied with their 58% create 1-to-1 marketing across every touchpoint f m 58% collaboration with other departments (e.g., sales, service, IT) Primary Roadblocks in Executing an AI Strategy of m arketers are extremely or very satisfied with their ability to Lacking the right internal 60% engage customers across channels at scale Customer privacy skill set (e.g., too few data 1concerns 2Budgetary constraints 3scientists) Salesforce Research

Country Profile State of Marketing 36 Japan (350 Marketing Professionals) Marketers Move to Evolve Journeys, but Data Woes Linger Marketing Tech Makes Waves of marketers strongly agree or agree that a connected customer journey across Tools and Tech Most Essential to 1-to-1 Marketing 52% all touchpoints and channels positively impacts revenue growth Content management Marketing analytics/ Data management 1platform 2measurement tools 3platform (DMP) of m arketers strongly agree or agree that a connected customer journey across 52% all touchpoints and channels positively impacts customer loyalty of marketers say their current tech stack is extremely or very effective at 45% improving marketing efficiencies (e.g., automating tasks, etc.) Top Challenges in Creating a Connected Customer Experience Disconnected tools/tech of marketers say their current tech stack is extremely or very effective at Insufficient internal across the business 43% increasing productivity 1Budgetary constraints 2resources 3(e.g., disparate systems) Shifting Priorities Spark Organizational Change Marketing Embraces the AI Revolution o arketers say they’re aligning marketing roles to a customer journey strategy f m of marketers say they use AI extensively or on a limited basis with another 20% 43% vs. traditional roles (e.g., by marketing channel/function) 44% piloting or planning to use within two years of marketers who use AI say it’s absolutely or very essential in helping their company o arketers are extremely or very satisfied with their 55% create 1-to-1 marketing across every touchpoint f m 38% collaboration with other departments (e.g., sales, service, IT) Primary Roadblocks in Executing an AI Strategy of m arketers are extremely or very satisfied with their ability to 36% engage customers across channels at scale Customer privacy No defined business 1Budgetary constraints 2concerns 3strategy for AI Salesforce Research

Appendices Salesforce Research

Appendix A State of Marketing 38 Customer Experience Is the Brand Battlefield Marketers plan to increase spend for social more than any other channel. Although social media marketing tops the list of spend for all marketers, other top areas of spend vary by performance level. Percentage of Marketing Leaders Who Are Increasing Spend in Each Area over the Next 12 Months 66% 66% 65% Social media Advertising on Website marketing social platforms Top Channel Spend Top Channel Spend Top Channel Spend for High Performers for Moderate Performers for Underperformers Social media Social media Social media 1 marketing marketing marketing Advertising on Advertising on Website 2 social platforms social platforms Video Mobile apps Advertising on 3 advertising social platforms Salesforce Research

Appendix A State of Marketing 39 Customer Experience Is the Brand Battlefield Top teams are happier with their journey capabilities. High-performing marketers are better able to create a shared, single view of the customer and personalize experiences across business units. Percentage of Marketing Leaders Who Say They’re Extremely Satisfied High Performers vs. or Very Satisfied with Their Ability to Do the Following Underperformers Create a shared, single view 93% 3.8x of the customer 58% more likely 24% Create personalized omni-channel customer experiences across all 93% business units (e.g., sales, service, 59% 4.5x marketing) 21% more likely High performers Moderate performers Underperformers Percentage of Marketing Leaders Who Say They’re High Performers vs. Much More or More Focused on the Following Underperformers Evolving from a traditional marketing 73% structure to roles aligned with a 61% 1.7x customer journey strategy 43% more likely High performers Moderate performers Underperformers Salesforce Research

Appendix B State of Marketing 40 Marketers Move to Evolve Journeys, but Data Woes Linger Several channels experienced triple-digit growth over the past two years. B2B marketers are playing catch-up on their use of channels considered the domain of B2C companies, for example, video advertising and SMS/text messaging. Percentage Growth in Actual Channel Use over the Past Two Years (2015–2017) B2B* B2C 176% 24% 66% 204% 141% Video advertising growth growth growth 142% 24% 59% 197% 92% SMS/text messaging growth growth growth 135% 27% 64% 161% 103% Mobile apps growth growth growth Native advertising/ 113% 32% 68% 147% 81% sponsored content growth growth growth 83% 41% 75% 56% 106% Email marketing growth growth growth 80% 40% 72% 88% 69% Display/banner ads growth growth growth 73% 44% 77% 80% 68% Social media marketing growth growth growth 47% 56% 83% 26% 69% Website growth growth growth 47% 44% 64% 47% 37% Organic search growth growth growth 43% 44% 63% 44% 31% Paid search growth growth growth 2015 usage 2017 usage * B2B also includes respondents who identified as B2B2C. Salesforce Research

Appendix B State of Marketing 41 Marketers Move to Evolve Journeys, but Data Woes Linger Social platforms remain a mainstay for marketers. However, mobile channels like SMS and apps will see substantial growth over the next year. Percentage of Marketing Leaders Who Use or Plan to Use the Following Channels over the Next 12 Months 77% 15% Social media marketing Advertising on social platforms 75% 17% Website 83% 13% Mobile apps 64% 23% Video advertising 66% 21% Content marketing 72% 17% Display/banner ads 72% 17% Customer communities 67% 20% Email marketing 75% 14% Mobile text messaging (SMS) 59% 20% Paid search 63% 21% Native advertising/sponsored content 68% 20% Organic search 64% 20% Currently use Plan to use Salesforce Research

Appendix B State of Marketing 42 Marketers Move to Evolve Journeys, but Data Woes Linger Extent to Which Marketers Coordinate Messages High Performers vs. Top teams are more likely to evolve their in the Following Channels with Other Channels Underperformers marketing messages across channels. Still, the percentage of those doing so is relatively low and 48% 36% 1.9x shows room to improve. 32% 50% more likely Social media marketing 25% 51% to evolve 39% 43% 1.8x 23% 56% more likely Display/banner ads 23% 53% to evolve 37% 45% 1.8x 23% 54% more likely Organic search 20% 52% to evolve 43% 39% 1.8x 23% 54% more likely Paid search 24% 49% to evolve 45% 38% 2.2x 26% 52% more likely Customer communities 20% 46% to evolve 47% 39% 2.2x 27% 53% more likely Email 21% 52% to evolve 46% 40% 2.4x 29% 51% more likely Website 19% 54% to evolve 41% 42% 2.2x 26% 52% more likely Mobile marketing 18% 52% to evolve 41% 43% 2.6x Native advertising/ 23% 55% more likely sponsored content 16% 61% to evolve 43% 40% 2.0x Advertising on social 28% 54% more likely Messages evolve across channels based on customer actions platforms 22% 53% to evolve High performers Moderate performers Underperformers 40% 42% 1.8x 26% 55% more likely Identical messages are broadcast across channels Video advertising 22% 50% to evolve High performers Moderate performers Underperformers Salesforce Research

Appendix B State of Marketing 43 Marketers Move to Evolve Journeys, but Data Woes Linger High performers use nearly twice the number of channels as underperformers. However, those messages don’t live in a vacuum and are more likely to be coordinated across channels as discussed in section 1. Average Number of Channels Used by Performance Level .18 Mean = 11.1 Standard Deviation = 2.46 .16 Mean = 9.1 Standard Deviation = 3.09 .14 Mean = 6.4 .12 Standard Deviation = 3.43 .10 .08 .06 .04 .02 .00 High performers Moderate performers Underperformers 0 2 4 6 8 10 12 14 Channel Adoption by Performance Level* 44% 52% 4% High performers Heavy adoption Moderate adoption Minimal adoption Moderate performers 17% 71% 12% Underperformers 3% 61% 36% * Heavy adoption is defined as the use of all 13 of the channels defined. Salesforce Research Moderate adoption is defined as the use of 6–12 of the channels defined. Minimal adoption is defined as the use of 0–5 of the channels defined.

Appendix C State of Marketing 44 Shifting Priorities Spark Organizational Change Modern marketing is dependent on relationships between business units. Sixty-nine percent of marketing teams share common goals and metrics with sales teams; 64% say the same for customer service. Percentage of Marketing Leaders Who Strongly Agree or Agree with the Following Statements about Their Relationship with Service Marketing and service collaborate on a regular basis 66% Marketing alerts service to special promotions and offers 66% Marketing and service share common goals and metrics 64% Service collaborates with marketing to manage and respond to social inquiries and issues 64% Marketing is suppressed when a customer has an open service case 56% Percentage of Marketing Leaders Who Strongly Agree or Agree with the Following Statements about Their Relationship with Sales I understand how marketing’s efforts impact individual accounts/customers 70% Marketing consistently provides sales with quality leads 69% Marketing and sales are empowered to collaborate 69% Marketing and sales share common goals and metrics 69% Marketing understands what sales needs to succeed 68% Sales regularly provides key insights that shape marketing efforts 67% Marketing shares data insights (e.g., channel usage, campaign effectiveness) 67% Salesforce Research

Appendix D State of Marketing 45 Marketing Tech Makes Waves AI leads the charge in marketing-tech anticipated usage rates with 53% growth. However, across all tools and technologies surveyed, growth rates remain healthy. Percentage of Marketing Leaders Who Use or Plan to Use Anticipated the Following Tools or Technology over the Next Two Years YoY Growth Marketing analytics/measurement tools 75% 17% +23% Currently use Plan to use Customer relationship management (CRM) 73% 18% +25% Email campaign management 73% 17% +23% Social publishing tools 72% 18% +25% Content management platform 72% 18% +25% Internal collaboration tools (e.g., messaging apps, internal social networks) 71% 18% +25% Data targeting and segmentation 70% 19% +27% Data management platform (DMP) 70% 19% +28% Guided selling 68% 20% +29% Customer identity and access management (CIAM) 68% 20% +30% Mobile campaign management 68% 20% +30% Marketing automation platform 67% 21% +31% Social listening tools 67% 20% +31% Internet of Things (IoT)/connected devices 66% 23% +34% Loyalty program platform 66% 20% +30% Lead nurturing and scoring tools 66% 20% +30% Artificial intelligence 51% 27% +53% Salesforce Research

Appendix D State of Marketing 46 Marketing Tech Makes Waves High performers are using twice the number of tools and technologies as underperformers. Top teams are 14x more likely than underperformers to be heavy tech adopters. Average Number of Tools and Technology Used by Performance Level .14 Mean = 14.7 .12 Standard Deviation = 3.37 Mean = 11.8 .10 Standard Deviation = 4.40 Mean = 7.5 Standard Deviation = 4.83 .08 .06 .04 .02 .00 High performers Moderate performers Underperformers 0 2 4 6 8 10 12 14 16 Tools and Technology Adoption by Performance Level* 43% 54% 3% High performers Heavy adoption Moderate adoption Minimal adoption Moderate performers 17% 71% 13% Underperformers 3% 58% 38% * Heavy adoption is defined as the use of all 17 of the channels defined. Salesforce Research Moderate adoption is defined as the use of 7–16 of the channels defined. Minimal adoption is defined as the use of 0–6 of the channels defined.

Appendix E State of Marketing 47 Marketing Embraces the AI Revolution Marketers expect AI usage to jump in the next two years. However, AI is most hindered by budget constraints, privacy concerns, and lack of skills. Percentage of Marketing Leaders Who Use or Plan to Use Anticipated the Following Tools or Technology over the Next Two Years YoY Growth Artificial intelligence 51% 27% +53% Currently use Plan to use 64% of marketing leaders who use AI say it’s substantially or greatly increasing Primary Roadblocks Marketing Leaders Face In Executing an AI Strategy their overall marketing efficiency 1 Budgetary constraints 2 Customer privacy concerns 3 Lack of the right internal skill set (e.g., too few data scientists) Salesforce Research

Survey Demographics Salesforce Research

Survey Demographics State of Marketing 49 Industry Country Department Consumer products and retail ..........................17% United States .........................................................17% Executive management ......................................55% Financial services ..................................................16% United Kingdom/Ireland ....................................11% Marketing ...............................................................45% Technology ............................................................13% Canada ...................................................................11% Manufacturing ........................................................ 8% Brazil ........................................................................10% Role within Marketing Engineering, architecture, Germany ................................................................10% construction, real estate ....................................... 7% France .....................................................................10% Communications ................................................... 7% Japan ......................................................................10% Director, manager, or equivalent .......................25% Healthcare and life sciences ................................ 5% Netherlands ...........................................................10% VP of marketing ...................................................... 9% Professional services .............................................. 4% Australia/New Zealand .......................................10% CMO........................................................................23% Automotive .............................................................. 4% CEO, owner, or equivalent ..................................44% Education ................................................................. 4% Region Media and entertainment .................................... 4% Agriculture and mining ......................................... 3% Energy ....................................................................... 2% EMEA ......................................................................41% Americas ................................................................39% Company Size APAC .......................................................................20% Small (1–100 employees) ................................................27% Medium (101–3,500 employees) .....................................57% Enterprise (3,501+ employees) .......................................16% Generation Baby Boomers/Traditionalists .............................. 9% Gen Xers .................................................................34% Millennials ..............................................................57% SalesforSalesforcce Re Researesearchch

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