7 Insights Into How Business Leaders View Marketing Data and ROI

By eleventy marketing group

With data talk dominating the business landscape, a new report sheds some light on leadership perspectives of the importance and challenges of data-driven marketing. The report “Marketing ROI in the Era of Big Data” provides key insights into how much corporate marketers value and integrate data. It also looks at how they are using digital marketing, and how they define and measure marketing ROI. Today, eleventy positions our data magnifying glass over seven enlightening stats from the report.

About the “Marketing ROI in the Era of Big Data” report
The 2012 BRITE-NYAMA Marketing in Transition Study was conducted in early 2012 by Columbia Business School’s Center on Global Brand Leadership and the New York American Marketing Association (NYAMA) 253 corporate marketing decision makers, director-level and above, from across industries were surveyed for the study.

Seven Enlightening Statistics About Marketing Data and ROI

Here are some key takeaways from the “Marketing ROI in the Era of Big Data” report about how companies view the role of data and their approaches to gauging return on investment (ROI):

91% of senior corporate marketers believe that successful brands use customer data to drive marketing decisions

This stat shows the vast majority of marketing leaders believe in the value of data-driven marketing. In fact, the study found this belief to be “extremely consistent” across industries. Among respondents serving as chief marketing officers (CMOs), the number rises to 100%.

39% say their own company’s data is collected too infrequently or not real-time enough

While companies want to their marketing to be data-driven and believe in the value of data, many corporate leaders believe their data collection lags behind. 29% of respondents report their marketing departments have “too little or no customer/consumer data”.

51% say that a lack of sharing customer data within their own organization is a barrier to effectively measuring their marketing ROI

Many leaders report the problem with data is not collecting it but sharing it. Because data is not being shared across departments and divisions within the organization, it is not being integrated effectively. 87% of marketers agree that capturing and sharing the right data is important to effectively measuring ROI in their own company.

85% of large corporations are now using social network accounts (e.g. Facebook, Twitter, Google+, Foursquare) as a marketing tool

This high percentage shows marketers across industries are adopting digital tools far more than in years past. This is because leaders have finally begun to “buy in” to the increasing value of digital marketing. 87% of respondents report creating digital content in various forms – blogs, videos, white papers, etc., and 51% report adopting mobile marketing.

60% of marketers said that comparing the effectiveness of marketing across different digital media is “a major challenge” for their business

While companies are becoming increasingly likely to embrace digital marketing and incorporate a multichannel strategy, they still struggle to gauge and report the overall effectiveness of their efforts. But they continue to work at it. According to the report: “70% of CMOs report that a ‘cross-platform model for ROI’ is a major goal for their business.”

37% of respondents did not include any mention of financial outcomes when asked to define what “marketing ROI” meant for their own organization

This study points out that in the organizations surveyed, “managers do not appear to have a consistent understanding of what marketing ROI is.” The above statistic shows more than a third of respondents didn’t mention financial return as a component of ROI, and 82% of respondents didn’t mention ROI involves both return and spending.

57% are not basing their marketing budgets on any ROI analysis

Muddled definitions of marketing ROI and confusion over how to measure it no doubt contributed to the fact that more than half of the companies surveyed were not using ROI to develop their marketing budgets. Only 45% of the organizations surveyed are satisfied with their ability to measure marketing ROI.

The Importance of Marketing Data and ROI Moving Into The Future

The findings from this report show that, while companies are on board with the key advantages of harnessing and analyzing data for better marketing (which was not the case several years ago), there’s still work to be done when it comes to implementing data effectively. Companies also need to work to develop better ways of measuring ROI and using it as a key driver of marketing strategy. These two aspects (data and ROI) will grow increasingly important to marketing success moving into the future.