- Survey finds Western European marketers actively examining the use and challenges of contextual marketing
- Marketers are collecting a large quantity of contextual information about their customers and prospects
- However, much of the contextual information is currently not used for marketing purposes—challenges and perceived risks are holding marketers back
A new survey released by The Economist Intelligence Unit (EIU) reveals that Western European marketers are examining the use of contextual information and its challenges.
Digital technology offers marketers the ability to see where their customers are, what they are doing and what they plan to do next. Using this kind of information for marketing purposes is called contextual marketing. A recent study, Beyond personalisation: A European perspective on contextual marketing, conducted by the EIU and sponsored by SAP, found that companies across Western Europe are already collecting contextual information, and yet much of it goes unused.
A number of challenges are holding marketers back, such as producing messages that are effective in particular contexts (identified by 50% of respondents), encouraging customers and prospects to share contextual information (50%), hiring people with the necessary technical (47%) and creative (45%) skills, and identifying the relevant contexts in which to target customers (45%). Marketers are also aware of the dangers of overstepping the mark by misusing contextual marketing techniques in such a way as to make customers and prospects feel uncomfortable, and thereby damaging the brand.
The research is based on a survey of 165 European chief marketing officers (from the UK, France, the Netherlands, Italy and the Nordics)—50% of whom were from retail companies—as well as on a series of interviews with marketing executives from across the region.
Victoria Tuomisto, editor of the research programme, said: “Companies are still learning how to use contextual information appropriately, which may explain their hesitation to exploit what information they already collect to the full. However contextual information offers an opportunity to achieve a more intimate understanding of customers and, therefore, to offer more relevant and valuable products and services. Marketers would be wise to learn how to use it effectively.”
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