If there’s one lesson merchants have learned from the recent recession, it’s that they must measure return on investment (ROI) to track and improve profitability. Merchants are especially keen on measuring the ROI on their marketing investments. But good data on specific types of marketing remains elusive.
In issuing its 2011 State of Marketing Measurement Report, ifbyphone analysts say only 29% of marketers claim they can measure ROI across all channels. Not all marketers even try. Smaller firms tend to forgo this exercise as it’s costly and larger firms are content to write off a certain amount of marketing expense as goodwill. The desire to obtain accurate data is highest in companies with between 100 and 5,000 employees. These days, the analytics associated with many types of digital marketing are meeting expectations. It’s the other type of marketing programs that are posing measurement challenges. Marketing executives, in the following percentages, say these programs are most difficult to track:
- Public Relations (82%)
- SEO (76%)
- Social media (74%)
- Tradeshow Marketing (72%)
- Print campaigns (66%)
- Online ads (60%)
- Direct mail campaigns (59%)
- Email marketing (53%)
Ifbyphone CEO Irv Shapiro also noted that young marketers are not as likely as CMOs to believe that measuring campaign results is important. This may change as these staffers move up in the organization and are given responsibility to prove that their campaigns are effective. Shapiro observed that more businesses are also attempting to measure results of social media investment.
As more merchants look for ways to measure the ROI of their marketing dollars, vendors will develop new tools to help with this effort.[Source: ifbyphone Survey Reveals 4 out of 5 Marketing Executives Expect Measurable Campaigns. Ifbyphone.com. 5 Dec. 2011. Web. 23 Dec. 2011]