About The CMO Survey

1 About The CMO Survey2 Mission-To collect and disseminate the opinions of top marketers in order to predict the future of markets, track marketing excellence, and improve the value of marketing in firms and Survey is an objective source of information About marketing and a non-commercial service dedicated to the field of marketing . Survey operation-Founded in August 2008, The CMO Survey is administered twice a year via an Internet Survey . Questions repeat to observe trends over time and new questions are added to tap into marketing trends -The February 2018 Survey is the 20th administration of The CMO organizations-Sponsors support The CMO Survey with intellectual and financial resources. - Survey data and participant lists are held in confidence and not provided to Survey sponsors or any other Methodology3 Survey sample-2796 top marketers at for-profit companies-362 responded for a response rateSurvey administration-Email contact with four follow-up reminders- Survey in field from January 9-30, of respondents VP-level or aboveResults interpretation-M = sample average; SD = sample standard deviation-B2B = Business-to-Business firms.

2 B2C = Business-to-Consumer firmsTwo other reports are available at Topline Report: Results reported at the aggregate level-Results by Firm and Industry Characteristics: Results reported within sectors, size, and Internet salesSurvey Topics4 Topic1:Marketplace 2:Firm Growth 3: marketing 4:Financial and marketing 5:Social Media 6:Mobile 7: marketing 8: marketing 9: marketing 10: marketing 11:The CMO Survey Award for marketing 1:Marketplace DynamicsMarketplaceGrowthSpendingPerform anceSocial MediaMobileJobsOrganizationLeadershipAna lyticsMarketer outlook on the economy remains positive optimistic are you About the overall economy on a 0-100 scale with 0 being least optimistic and 100 most optimistic?

3 MediaMobileJobsOrganizationLeadershipAna lyticsMarketer economic optimism accelerates over the last quarter7 Figure you more or less optimistic About the overall economy compared to last quarter? OptimisticMore MediaMobileJobsOrganizationLeadershipAna lyticsMarketer economic outlook varies by industry8 Figure you more or less optimistic About the overall economy compared to last quarter? More 3 Industry SectorsTransportationConsumer ServicesBanking/Finance/InsuranceTop 3 Industry SectorsEnergyCommunications/MediaTech/So ftware/BiotechTop 3 Industry SectorsMining/ConstructionEducationHealt hcareMarketplaceGrowthSpendingPerformanc eSocial MediaMobileJobsOrganizationLeadershipAna lyticsCustomer outcomes generally expected to improve.

4 Price shows largest increase9 Figure customer outcomes in next 12 months (% of respondents)71%69%66%50%46%31%73%70%63%5 3%48%37%0%20%40%60%80%100%Increasedacqui sition ofnew customersIncreasedcustomerpurchase volumeIncreased purchaseof related productsand servicesIncreasedcustomerretentionIncrea sed entry ofnew customersinto the marketIncreasedcustomer priceper unitAugust 2017 February 2018 MarketplaceGrowthSpendingPerformanceSoci al MediaMobileJobsOrganizationLeadershipAna lyticsCustomer outcomes generally expected to outcomes by industryIndustry Acquisitionof new customersCustomer purchase volumePurchaseofrelated products&servicesCustomer retentionEntry of new customers into marketPrice per Packaged MediaMobileJobsOrganizationLeadershipAna lytics11 Customer priorities expected

5 To shift to serviceFigure top priority in next 12 months (% of respondents)25%24%24%16%12%27%22%19%17%1 5%25%28%19%16%12%0%5%10%15%20%25%30%Supe rior product qualityExcellent serviceTrusting relationshipLow priceSuperior innovationFebruary 2017 August 2017 February 2018 MarketplaceGrowthSpendingPerformanceSoci al MediaMobileJobsOrganizationLeadershipAna lytics12 Sector differences in customer prioritiesTable top priority in next 12 months (% of respondents)Customer Priority Overall AverageB2 BProductB2 BServicesB2 CProductB2 CServicesExcellent Product Quality MediaMobileJobsOrganizationLeadershipAna lyticsFewer companies using channel partners to go to market13 Figure of companies using channelpartnersto reach market(% of respondents)** Question asked irregularly.

6 Full time series available 2013 February 2017 February 2018 MarketplaceGrowthSpendingPerformanceSoci al MediaMobileJobsOrganizationLeadershipAna lyticsChannel partner purchase volume expected to improve in next year14 Figure channel partner outcomes in next 12 months (% of respondents)** Question asked irregularly. Full time series available partnerpurchase volumeIncreased partner purchase ofrelated productsand servicesIncreased partner powerin relationshipIncreased partnerprice per unitAugust 2013 February 2017 February 2018 MarketplaceGrowthSpendingPerformanceSoci al MediaMobileJobsOrganizationLeadershipAna lyticsMost channel partner indicators forecasted to improve15 Table channel partner outcomes in next 12 months (% of respondents)** Question asked irregularly.

7 Full time series available OutcomeOverall AverageB2 BProductB2 BServicesB2 CProductB2 CServicesIncreased partner purchase partner purchase of related products and services partner price per unit partner power in MediaMobileJobsOrganizationLeadershipAna lyticsExisting markets and offerings continue to dominate growth spending17 Existing Products/ServicesNew Products/ServicesExistingMarketsMarket Penetration StrategyProduct/Service Development StrategyNew MarketsMarket Development StrategyDiversificationStrategy* % of spending for each growth strategyGrowthStrategyAug-2017 Feb-2018 Market Penetration Development Development on growth in past 12 months*Types of growth strategiesTable in varying types of growthMarketplaceGrowthSpendingPerforman ceSocial MediaMobileJobsOrganizationLeadershipAna lyticsExisting markets and offerings continue to dominate growth spending18* % of spending for each growth strategyGrowthStrategyFeb-2018B2B ProductB2B ServicesB2B ProductB2B ServicesMarket Penetration Development Development on growth in past 12 months by sector*MarketplaceGrowthSpendingPerforma nceSocial MediaMobileJobsOrganizationLeadershipAna lyticsHaving the right talent is most important for driving future organic theright dataHaving the right technologyHaving all stakeholdersalignedHaving the right operatingmodelHaving theright talentFigure is most

8 Important for driving future organic growth in your organization? MarketplaceGrowthSpendingPerformanceSoci al MediaMobileJobsOrganizationLeadershipAna lyticsCompany sales through Internet remain modest at of company sales through the InternetMarketplaceGrowthSpendingPerform anceSocial MediaMobileJobsOrganizationLeadershipAna lyticsEducation and consumer services lead Internet of company sales from the Internet by industryMarketplaceGrowthSpendingPerform anceSocial MediaMobileJobsOrganizationLeadershipAna lyticsMarketing budget spent on domestic markets remain of marketing budget spent on domestic MediaMobileJobsOrganizationLeadershipAna lyticsWestern Europe leads sales for current international markets23 Western Europe: : : : : Europe.

9 & New Zealand: America: & SE Asia: Europe: : *South American Countries excludes BrazilSouth American Countries*: international market is currently your largest (in terms of sales)? MarketplaceGrowthSpendingPerformanceSoci al MediaMobileJobsOrganizationLeadershipAna lyticsChina and Western Europe present largest future growth opportunities24 Western Europe: : : : : Europe: East: : & New Zealand: America: & SE Asia: Europe: American Countries*: Africa: : : *South American Countries excludes BrazilFigure international market that you are currently not in is your biggest opportunity for the future?Korea: MediaMobileJobsOrganizationLeadershipAna lyticsMarketing budgets expected to change in marketing budgetin prior 12 monthsExpected change in marketing budgetin next 12 monthsFigure change in marketing budgetsPrior12 monthsNext 12 MediaMobileJobsOrganizationLeadershipAna lyticsMarketing budget growth over percent change in marketing budgets in next 12 monthsMarketplaceGrowthSpendingPerforman ceSocial MediaMobileJobsOrganizationLeadershipAna lyticsMost industries expect growth in marketing percent change in marketing budgets in next 12 months by industryMarketplaceGrowthSpendingPerform anceSocial MediaMobileJobsOrganizationLeadershipAna lyticsGrowth in digital marketing spend greatly

10 Outpaces traditional advertising2929*Refers to media advertising not using the Advertising SpendDigital marketing SpendFigure change in traditional advertising* vs. digital marketing spend in next 12 monthsMarketplaceGrowthSpendingPerforman ceSocial MediaMobileJobsOrganizationLeadershipAna lyticsDigital marketing dominates marketing spend across all economic sectors30*Refers to media advertising not using the Internet. ProductB2B ServicesB2C ProductB2C ServicesDigital marketing spendingTraditional advertising spendingFigure change in traditional advertising* vs. digital marketing spend in next 12 months by sectorMarketplaceGrowthSpendingPerforman ceSocial MediaMobileJobsOrganizationLeadershipAna lyticsBrand building and CRM spending expected to grow in next Relationship ManagementBrand BuildingFigure change in CRM and brand spending expected in next 12 monthsMarketplaceGrowthSpendingPerforman ceSocial MediaMobileJobsOrganizationLeadershipAna lyticsMarketing budgets represent of firm budgets32*Question asked in Feb-11 for the first budget as percent of firm budget* MediaMobileJobsOrganizationLeadershipAna lyticsMarketing spending is of company revenues33*Question asked in Feb-12 for the first spending as percent of company revenues*