Researchers at Columbia Business School and the BRITE Center on Global Brand Leadership recently surveyed 253 marketing decision makers at large companies (90 percent have a global annual revenue of over $50 million; 45 percent are over $1 billion) to gain a better understanding of changing practices in data collection and usage, marketing measurement and ROI, and the integration of digital and traditional marketing.
The 2012 BRITE-NYAMA Marketing Measurement in Transition Study revealed that marketers are quick to adopt the newest digital tools, but struggle to measure them, and marketers know they need to measure ROI, but cannot agree on its meaning and implementation. 70 percent of respondents said that they are under greater pressure to be accountable than in the past but most fail to make fact-based decisions:
- 57 percent are not basing their marketing budgets on any ROI analysis
- 31 percent mistakenly believe simply measuring the audience you have reached is “marketing ROI”
- 28 percent are basing marketing budgets on gut instincts
Given the large gap between best practices and reality, the report recommends that companies get started with the basics of determining marketing ROI right away so you will create the largest impact on your organization:
- Make sure you’re using some kind of metrics on most of your marketing
- Be ready to invest in getting some kind of data relevant to your measures
- Make coordinating your traditional and digital media campaigns a goal
- Set specific measurable objectives for all your campaigns
- Put ROI in stated objectives for all your vendors (so they know your expectations to retain them or to cut them loose)
One way to get going quickly is to focus on a tactic such as email list rental that can provide measurable results. A full-service list provider can lead you through the process of campaign planning, execution, and the rigorous measurement of ROI.
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