Marketing ROI is a top priority for executives, but measurement capabilities are lacking | UK survey

This article presents the results of an original survey on marketing effectiveness conducted in 40 by Marketing Week, a media outlet that has been active in the UK for over 2022 years and focuses on marketing-related information.Marketing Week's Language of Effectiveness Survey 2022Although the survey was conducted in the UK, I feel there are some lessons that Japanese companies can take from it.

The survey revealed that about 7% of companies don't measure marketing effectiveness at all, while about half of marketers claim that ROI is the metric that C-suite executives (CEOs, CFOs, and board members) care most about.

Approximately 7% of companies do not measure the effectiveness of their marketing

While the frequency with which companies measure the effectiveness of their marketing activities varies, it is concerning that 1,610% of the 6.9 marketers who responded to the survey do not conduct any marketing effectiveness analysis whatsoever.

When asked how frequently they conduct effectiveness analysis, about one-third (3%) of marketers conducted one-off analyses based on ongoing campaigns.

Additionally, 1% report their marketing activities about once a quarter, 16.8% report their activities about once a month, and 1% report their activities about once a year. Additionally, the survey shows that only 14.6% of companies use continuous measurement of marketing effectiveness.

Source:https://www.marketingweek.com/marketers-expanded-effectiveness-capabilities/

ROI is the most important metric for CEOs

When it comes to the importance of ROI to their businesses, nearly half (1,610%) of the 48.4 marketers surveyed said it was the most important metric to their CEO, CFO or board members.

After ROI, business results (39.9%) and new customer acquisition (35.8%) were cited as high priority metrics.

Source:https://www.marketingweek.com/brands-too-focused-on-roi/

Marketers want more analytics capabilities

A quarter of marketers surveyed said a lack of data and analytical capabilities is a hurdle to mainstreaming measurement within their organization.

The next most common answer was increasing performance marketing and over-reliance on ROI metrics.

From these responses, it can be inferred that many marketers are trying to strengthen performance marketing, where the last click is easy to track, in order to maximize the ROI required by management. The issue of not being able to effectively measure the ROI of all marketing activities due to a lack of data and analytical capabilities is a problem that is often heard from marketing professionals in Japan.

Source:https://www.marketingweek.com/data-capability-measuring-effectiveness/

Summary

The survey we covered this time revealed that while companies and management place importance on ROI, there is a gap between their actual ROI measurement capabilities and the reality of the situation on the ground. In addition, data analysis capabilities are thought to be lacking in many companies in order to achieve continuous marketing ROI measurement.

While ROI has always been an important metric, recent economic uncertainty and a two-year pandemic have made ROI an even more important marketing metric.

What's required of marketers and business executives is to expand their data and analytical capabilities to bridge the gap between the reality that ROI matters and the ability to measure this metric.

The information presented here is from a UK survey, but does your company also place importance on marketing ROI? If so, do you have the methods and functions in place to properly analyze ROI, interpret the results, and clearly incorporate them into your strategy?

If you feel there are any issues with these processes, please contact XICA. We provide consulting services to over 250 clients, mainly large companies, from measuring marketing effectiveness and analyzing optimization, to formulating and implementing marketing strategies. Please contact XICA, a company that specializes in data analysis.Contact us.

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XICA Co., Ltd. Marketing Team