61% of marketers still relying on third-party data

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Salesforce’s State of Marketing Report finds marketers struggling to activate data and get a full view of customers.

on July 3, 2024
 
61% of marketers still relying on third-party data

Some 61% of digital marketers are still using third-party data, according to Salesforce’s latest State of Marketing Report. It also found problems with data activation, personalization and AI optimization.

Although the percentage of marketers using third-party data is down from 75% in 2022, this illustrates a problem with finding reliable information. The top three data sources, used by 84% of marketers, are customer insight, first-party and transactional data. 

While connecting customer data for personalized experiences is always a challenge, the phase-out of third-party cookies and the rise of AI are making it more important and more difficult for businesses to navigate this complex customer journey landscape. Only 31% of marketers are fully satisfied with their ability to unify customer data sources.

Activation bottlenecks

Having the data isn’t enough and marketers find leveraging it effectively remains a hurdle. A mere 48% of marketers track a crucial metric: Customer Lifetime Value (CLV). Furthermore, 59% lack real-time data for critical tasks and still rely on potentially outdated information or intuition. Even with access to live data, activation is a bottleneck. While 52% claim real-time data is available for campaigns, 59% need IT assistance to utilize it. This suggests a potential lack of readily accessible data tools or a skills gap hindering its effective use.

61% of marketers still relying on third-party data
Image from Salesforce’s State of Marketing Report, Ninth edition

What constitutes a “personalized experience” is still a work in progress. Only 32% of marketers are completely satisfied with how they use customer data to create relevant experiences. Some 43% of those surveyed use a fragmented approach to personalization — having an understanding of customer needs at certain stages and leveraging mass messaging at others.

 

Marketers are eager to harness the power of AI, with 32% already using it and 43% experimenting. However, security and customer trust are major concerns as adoption grows. The allure of AI’s benefits is undeniable, with 88% of marketers worried about missing out. But especially for executives, the fear is real: can they embrace AI without compromising data security or jobs? CMOs are particularly worried about data exposure (41%) compared to 29% of VPs and 32% of team leads.

Methodology

The report (registration required) is based on a double-anonymous survey conducted from Feb. 5 to March 12, 2024. The survey generated 4,850 responses from marketing decision-makers across North America, Latin America, Asia-Pacific and Europe.

 

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About the author

 

Staff

Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.

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