Why hasn’t the marketing industry disrupted itself?

93% of executives believe their industry’s rate of disruption has significantly increased over the past three years (Accenture). Yet, despite being an industry known for innovation, marketing has not yet significantly disrupted itself. A study by Forrester revealed that only 21% of marketing leaders feel they are fully utilising the latest technology to drive growth. While industries like transportation and hospitality have undergone significant transformations, marketing remains tethered to traditional practices. As someone focused on business transformation for growth, I wanted to explore some of the most disruptive innovators and what we can learn from them.

Lessons from Disruptive Innovators

Recognising Unmet Needs: Disruption starts with identifying gaps in the market. Think about Uber, which saw how unreliable taxis were, or Airbnb, which noticed the need for personalised travel experiences. These companies didn’t just improve on old models - they created new ones.

Uber used technology to offer real-time tracking and clear pricing, changing urban travel. It didn’t just improve taxis; it created a new way to move around the city, solving problems like inconsistent pricing and availability.
Airbnb allowed homeowners to rent out their spaces, creating unique lodging options that brought a personal touch hotels couldn’t match.

Embracing New Models: Disruptive companies adopt entirely new business models rather than making small improvements. Netflix’s move from mailing DVDs to streaming content and Tesla’s direct-to-consumer electric vehicles are prime examples.

Shifting from physical rentals to streaming required a complete overhaul of the Netflix business model, setting new standards for entertainment consumption.
Tesla bypassed traditional dealerships, selling electric vehicles directly to consumers, promoting sustainability and challenging the automotive sales model.

Gaps in the Marketing Industry

So, what are the gaps in the marketing industry that prevent it from making significant leaps? Here are some key areas:

Lack of Personalisation: Despite advanced data analytics, many marketing strategies still rely on broad demographic data. Customers now expect personalised experiences, but many brands are not meeting these expectations (Salesforce’s “State of the Connected Customer”).
Siloed Structures: Marketing teams often operate in silos, hindering cross-functional collaboration and slowing decision-making. Flexible and integrated team structures are necessary for agile responses to market changes (Deloitte’s “Global Human Capital Trends”).
Underutilisation of Technology: Many marketing teams are not leveraging digital tools to their full potential. Forrester’s “Analytics and Action” report shows only 29% of businesses effectively connect analytics to action, indicating a gap between technology adoption and strategic execution.
Resistance to Change: There is a comfort in sticking to traditional methods that have worked in the past. However, this mindset prevents innovation and adaptation to new market demands (Gartner’s “CMO Spend Survey”).
Inadequate Customer Engagement: Traditional marketing strategies often fail to engage customers on a deeper level. Building communities around brands and creating genuine connections can enhance loyalty and advocacy (Forrester’s 2023 research).

Moving Forward: Disrupting the Marketing Model

As economic pressures of today continue to demand that marketing does more with less, we can draw lessons from other industries that have successfully disrupted themselves. Here are key insights for advancing our industry:

Leverage Technology Beyond Efficiency: Technology isn’t just for streamlining operations; it’s a catalyst for thinking globally and leveraging communities. For example, collaborative tools and global marketplaces allow for real-time feedback and co-creation, promoting innovation and inclusivity. Adobe’s “Digital Trends” report highlights that companies using advanced marketing technologies are 2.6 times more likely to outperform competitors.
Embrace Flexible Structures: Fixed team structures limit creativity and responsiveness. By moving to flexible models, marketing can adapt quickly to changing market demands. Deloitte’s 2023 study shows that adaptable businesses perform better, making a strong case for rethinking traditional hierarchies.
Adopt a Customer-Centric Approach: Learning from companies like Airbnb and Warby Parker, marketing should leverage data to understand and anticipate customer needs deeply. Salesforce’s “State of the Connected Customer” emphasises that 76% of consumers expect personalised experiences, underscoring the importance of a customer-centric approach.
Encourage Innovation and Risk-Taking: Creating a culture that rewards creative thinking and calculated risk-taking can drive significant breakthroughs. PwC’s survey found that 54% of companies struggle with innovation, highlighting the need for cultural change.
Build and Engage Global Communities: Drawing from the success of brands like Etsy and Canva, marketing can lean into independent workforces and global talent pools. Canva, for instance, has created a marketplace where designers can sell their templates and designs, engaging a vast community of creators and providing businesses with access to a global pool of talent and creativity. This approach not only diversifies the talent pool but also fosters collaboration and innovation.

Steps We Can Take

Reflect on Your Practices: Regularly review and challenge your marketing strategies. Are you leveraging technology to its full potential? Are your structures flexible enough to adapt quickly to changes?
Experiment Boldly: Encourage your teams to experiment and take calculated risks. Create a culture where failure is seen as a learning opportunity.
Engage Authentically: Form genuine connections with your audience. Building a community around your brand can drive loyalty and advocacy.
Invest in New Ways of Working: Explore and implement new ways of working that break away from traditional models. This could involve more remote work, leveraging freelance talent, or creating collaborative spaces.

Conclusion

Marketing has made some progress, but there’s still a long way to go. By learning from other industries and adopting a more flexible, technology-driven, and customer-focused approach, marketing can break free from old methods and unlock new levels of creativity and impact.

The time for change is now. Let’s lead the charge in redefining what marketing can be!