Only about 1 in 4 digital marketers at Fortune 500 companies believe that they’re doing a very good or excellent job of managing their marketing performance data to produce a holistic view of their activities. That’s according to a report [download page] from Origami Logic and Brand Innovators, which keyed in on the activities that respondents are prioritizing in their marketing performance measurement (MPM) efforts.
On the whole, more respondents consider it a priority (essential to high priority) to track the performance of specific channels (77%) than to understand the ROI of their advertising spending overall (65%). That may be due the difficulties with tracking the returns on some specific channels such as social media and mobile, without which a better understanding of holistic advertising ROI is difficult. It also may reflect MPM efforts not being limited to ad buys…
Separately, marketers admitted that the complexity of managing and unifying data from a mix of channels, along with integration problems and siloed data, are key inhibitors to MPM adoption. That also may explain the focus on measuring specific channels.
Meanwhile, respondents are also seeking to better understand how content impacts metrics including awareness, engagement and loyalty. Elsewhere, attributing content to revenue has been cited as the top challenge to proving ROI.
MPM Initiatives Motivated by Efficiency
The most important factors driving adoption of MPM initiatives are an increased focus on measuring ROI (63%) and the desire to optimize campaigns faster (62%), per the report.
It’s interesting that campaign optimization is a key motivation, as relatively few (59%) respondents said that identifying the real-time performance of campaigns against KPIs is a high priority. It may be that faster campaign optimization doesn’t necessarily mean real-time, yet.
Meanwhile, a desire for transparency (the need to own and manage the brand’s own marketing data) is a bigger MPM motivator than concerns around the accuracy of data obtained from third parties.
Other highlights from the report indicate that:
- 8 in 10 believe their focus on MPM will increase this year relative to last;
- Around half anticipate that the structure they have in place to manage MPM will have changed by the end of this year (with other research suggesting that only basic tools are currently used); and
- Most (52%) manage their marketing performance data both themselves and with third parties, as opposed to using just their own resources (40%) or outside ones (8%).
About the Data: The report is based on a survey of a diverse group of 252 digital marketers at Fortune 500 companies across a diverse set of brands. Of the 252 respondents, 15% were senior level (SVP level or above), 58% were VP/director/manager level, and 27% were other, with the vast majority (77%) focused on marketing as their key area of responsibility.
Most companies surveyed spend less than $10 million on marketing, with 29% allocating 50% of their budget to digital marketing in 2016. Of these, 28% spent less than $1 million, whereas 24% had marketing budgets of $1 million to $10 million.