The Homa Files

Excerpted from Brandweek, “CMOs Pressured To Show ROI” By Kenneth Hein, Dec 8, 2008

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Some CMOs are feeling awfully paranoid these days. With good reason, a number of recent studies show that marketers’ spending choices are coming under far greater examination as the economic vise tightens. In fact, 89% of marketers said they are under more intense scrutiny than ever before…The greatest pressure being applied is the demand to show return on investment. However, many are struggling to do so, finding the ROI process complex…

Yet, most recognize a need for improvement maximizing dollars spent. 67% believe that they are not realizing the full revenue potential of customers…

So how are marketers adapting? 64% of CMO Council respondents said they were evaluating all areas of marketing spend to increase yield and accountability…“In a constrained economy you’ve got to focus monetizing existing customer relationships. It requires analytics and better use of customer data. [However], in many cases marketers struggle to integrate and leverage data.”

64% of respondents said better segmentation, profiling and targeting strategies were the top ways they were trying to better engage core audiences…

Despite years of conversation about ROI, the tactic of actually measuring marketing investments is still in its infancy…Among the reasons marketers have been slow to adopt ROI tactics: problems with data and integrity (47%), lack of technology (41%) and resource dedication (39%)…

“The mandate is to do more with less…Part of that is using new strategies and techniques to make sure money isn’t left on the table.”

Edit by SAC

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Marketer’s have long argued that marketing costs and results are difficult to measure, making ROI nearly impossible to quantify.  With the current economic situation the pressure for CMO’s to show results is not likely to go away anytime soon.

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Full Article:
http://www.brandweek.com/bw/content_display/news-and-features/direct/e3ib7f2dc11ebcfe13a1a67c9e3add4f502?imw=Y

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This entry was posted on January 29, 2009 at 7:09 am and is filed under Analytics, Mktg - ROI. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.