By Nicole Penn A recent Gartner survey provides an interesting, but not surprising, insight into how CEOs may view the impact of marketing. According to the study, just over half of senior marketing leaders can effectively prove marketing’s value and receive credit for its contribution to business outcomes. Breaking down the study The Gartner study was comprised of responses from over 300 senior marketing professionals, which included chief financial officers (CFOs) and chief executive officers (CEOs). An estimated 52 percent of these professionals reported success in proving the effectiveness of their marketing efforts. Conversely, 48 percent considered marketing to be an extra expense instead of an investment for gaining customers and sales. While this is a concerning outlook, these percentages can change for the better. And this isn’t exactly new. In 1922 John Wanamaker famously quoted: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” Communication and transparency Joseph Enever, Senior Director Analyst at Gartner, believes that the findings noted above stem from a lack of understanding and alignment. Constant communication, education, and transparency is important. Metrics alignment Alignment with your CEO, board and key stakeholders on the metrics that matter is paramount. If you’re presenting your Board of Directors with a report full of metrics, they may see them as “vanity” metrics (often likes and views get categorized this way by BODs and C-Suite). No amount of communication will help. The right measurement models A study by Forbes Insights and Neustar found that 89 percent of marketers consider improving their ability to measure and analyze marketing impact as a top priority. This aligns with the Gartner findings and emphasizes the industry-wide focus on performance measurement. If you’re in a business where direct marketing attribution is unclear, there are several tactics to consider: Implement Multi-Touch Attribution Models: We all know that the consumer journey from awareness to purchase is never linear. Be sure that you (or your agency) can leverage advanced attribution models to accurately track the customer journey and assign value to different marketing touchpoints. Develop Custom KPIs: While revenue and CAC may often be the key metrics that matter to the C-Suite, consider additional KPIs around other business outcomes: Growing AOV and LTV, customer retention, and market share. Leverage Predictive Analytics: Employ AI-driven predictive analytics to forecast the potential impact of marketing initiatives and make data-backed decisions. Consider Qual + Quant Sentiment Research: Using first-party lists to assess consumer sentiment change can help determine if your marketing is shifting sentiment or awareness—something that is not always measurable for mid-sized brands. We’ve recently completed several studies that help shine light on marketing’s impact—whether it’s for a brand’s existing customer, prospect, or channel partner/retailer. At EGC, it’s our job to be sure that CMOs and marketing departments succeed and thrive. As we look ahead to 2025, the ability to quantify and communicate marketing’s impact will become increasingly crucial for growth and competitiveness. If you need any help auditing your marketing’s ROI and effectiveness, feel free to contact us.
