Report Reveals Decrease in Growth Marketing Strategies

Growth marketing is undergoing a contraction, as indicated by the findings of Dept, a digital agency, in its third annual report on the subject.

Among the 450 senior managers or higher-ups surveyed, there has been a 40% reduction in marketers employing growth marketing strategies this year compared to the previous one.

Dept's definition of growth marketing encompasses the amalgamation of performance and brand strategies.

This decline could be attributed to several factors, including economic circumstances that have prompted marketers to allocate more resources to bottom-funnel channels and approaches, according to Sam Huston, Chief Strategy Officer for Growth.

He mentioned, "They’ve made very purposeful choices about not investing in [growth] now. They’re only going to invest in what we know works for the time being until we see what the future holds."

The report covered the current approach marketers are adopting toward three key "growth areas":

Strategy and Planning

Approximately 45% of the surveyed marketers are currently dedicating resources to strategy and planning, marking a decrease from last year's 68%.

This shift is seen as a reaction to prevailing economic conditions, where strategy and planning are viewed as a "luxury" that can be deferred.

Data and Analytics

The allocation of funds to data and analytics has also witnessed a decline. Roughly 48% of respondents are investing in analytics, down from 70% in 2022.

This reduction could stem from a lack of trust in existing models, with many waiting for the emergence of new models following the rise of AI and the decline of cookies.

Creative

While spending on the creative process has experienced a dip, the impact is less pronounced. This year, 46% of respondents are investing in creative endeavors, compared to 50% in the previous year.

According to Huston, the decrease in this area is due to the pursuit of efficiency rather than substantial cuts.

Marketers are finding more cost-effective methods to generate assets while acknowledging the potency of creativity in driving performance.

The Dept Marketing Report: Bottom Line

In essence, the report underscores a reevaluation of growth strategies by marketers, influenced by economic considerations and evolving models. As the landscape shifts, marketers are recalibrating their focus and resource allocation.