If ever there was a need to make marketing effectiveness a priority, it would be in the current climate.
Faced with an unprecedented cost crisis, record inflation and the prospect of a recession, marketers who can demonstrate the tangible impact of their business will be well placed to make a compelling case for investing. , even if budgets are tight.
Indeed, Marketing Week’s exclusive The Language of Effectiveness survey reveals that marketing effectiveness is fast becoming the business agenda. More than half (61.2%) of the 1,610 brand-side marketers surveyed say measuring marketing effectiveness has become a more important factor in marketing/sales decisions over the past three years.
This is compared to only 10.8% of respondents who say that measuring efficiency has become less important in business decision-making. Less than a quarter (22.2%) say measuring marketing effectiveness is as important a factor in decision-making as it was in 2019.
The sample is dominated by experienced marketers who oversee decisions made within the company, with 81.5% of respondents ranging from CMO and VP roles to leadership positions.
Defining Effectiveness and Meaningful Metrics: 5 Interesting Stats to Start Your Week
More than a fifth (26.9%) of respondents identify as working in marketing operations, followed by brand management (22.4%), digital marketing (12.7%), knowledge and marketing research (8.3%) and advertising (4.5%). Another 3.9% hold content positions, 2.8% work in social media and 2.6% in public relations.
Among this sample, more than half (51.9%) interpret the term “marketing effectiveness” as meaning the success of marketing communication campaigns according to the objectives.
The second most popular definition is ROI earned in marketing (40.8%), while 38% of respondents interpret marketing effectiveness as meaning the achievement of business goals.
Far behind, more than a fifth of the sample (27%) define effectiveness as the success of a marketing campaign in building brand value, while only a quarter (24.1%) see it as the success of a company’s destination market. strategy.
What do marketers measure?
Conversion rates (51.7%) emerge as the number one metric currently studied by marketers in their effectiveness tracking, followed closely by new customer acquisition (51.1%) and retention rates. clicks (49.1%).
Brand awareness (47.9%) was the fourth most used metric by marketers to track effectiveness, followed by leads generated (46.9%) and ROI (44.9%) .
More than a third of marketers (38.2%) measure how their business drives business results, and 34.7% analyze campaign views. Further down the metrics rankings, 31.9% of respondents actively measure customer retention rates, 31.3% measure Net Promoter Score, and 30.2% are interested in brand recall.
More than a fifth of marketers (27.8%) currently measure brand attributes in their tracking, while 27.1% measure customer lifetime value and brand affinity comes last in their tracking. follow-up issues, at 26.8%.
When it comes to what marketers test before launching a campaign, well over half of respondents engage in segmentation analysis and targeting (57.3%).
A little further behind, more than a third (35.8%) of marketers conduct proposal/concept testing, while 33.5% conduct focus groups and a third (33%) conduct usage and attitude research. Additionally, 31% of marketers conduct ad testing, while 29.7% conduct pricing research.
Interestingly, just over a fifth of marketers surveyed (28.1%) say they do market mix modeling and even fewer (19.5%) do econometric modeling and forecasting. Some 18.2% of the sample say they used field trials before launching campaigns, and only 11.1% conducted conjoint analysis.
While definitions and metrics may vary, information marketing effectiveness has become more important in business decision-making since the onset of Covid suggests that the work the industry has done in recent years to build a case strong for marketing investment is paying off.
Next week, Marketing Week will publish the first in a series of articles, drawing on exclusive data to dig deeper into how marketers are addressing efficiency, brand-performance trade-offs, and tipping back. on investment.
To read our content on the language of efficiency so far, click here.