Tuesday, April 24, 2012

Marketing and ROI

I’ve been pretty vocal about planning a marketing program and reviewing it at least annually. I have been  especially emphatic about the communications portion of that effort. You should have measurement goals. Measurement must be a consideration in the planning process up-front. The tricky part is that so much of what falls within a typical marketing budget is either not measureable or not marketing. Most marketers are terrible at defending themselves. When you consider the results of a recent survey of top marketing people you can see why. 

Advertising Age reported (March 12, 2012) that a survey of 243 Chief Marketing Officers (CMOs) conducted in January and February of 2012 revealed that 57% don’t establish budgets according to return on investment (ROI). Furthermore, 68% said budgets are based on historical spending. 28% said they go on instinct. Finally 7% of respondents said most of their spending not based on metrics at all. 

This study by Columbia Business School Center on Global Brand Leadership and the American Advertising Association of NYC isn’t as surprising as it is evidence of our own death wish when it comes to earning the respect of other business leaders. Occasionally you will hear someone grip about wanting a place at the table in the C-suite, but I think we marketers rather relish our precarious place in the world.

What do you think? 

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