When marketing executives at larger firms were asked, what attribute is most important to marketing strategy,
- 58% indicated that it is a core "big idea" that guides all of our marketing initiatives,
- while only 40% indicated that it was "tools and metrics that measure ROI and ensure accountability for outcomes" that drives marketing strategy.
Measurement is Driven by Frugalnomics
Measurement is definitely more important than in the past, and is being driven because marketing executives understand that the buyer landscape has fundamentally changed. Driven by Frugalnomics, a new age of austerity which demands proof of bottom-line impact from all significant investments, marketers are implementing marketing performance measurement to prove strategic impact and justify to senior executives that marketing monies have been well spent.
According to the survey results, for those larger firms who are measuring marketing performance, the motivation for implementing a measurement program:
- 71% - make marketing more strategic and impactful within the organization
- 56% - senior executives demand some justification for the money we're spending
- 35% - improve marketing team accountability
- 27% - increased competitive pressures
- 25% - financial pressures
- 17% - changes in consumer behavior
- 15% - need to improve business planning
- 8% - need to guide product development
- 6% - need to improve advertising agency relationship and effectiveness
The macro-economic conditions are clearly driving more measurement, and in particular, respondents indicated that sentiment was driven by a more competitive landscape with more companies competing for less market opportunities, overall economic pressures, and more scrutiny from internal stakeholders. When asked what market changes were driving measurement changes to a large extent, respondents indicated:
- 65% - to remain more competitive
- 55% - because of current economic conditions
- 52% - because of internal financial pressures
- 52% - because of changing client / consumer behavior
- 49% - because of new tactics to our marketing program
- 43% - shift in marketing strategy to new media
After the technology bubble-burst in 2001, CIOs were held more accountable to bottom-line results.
Many CIOs did not shift from creative to accountable and as a result, IT budgets as a percentage of revenue has declined substantially over the past decade, even though the importance of technology has substantially increased. CIOs who did not shift to address Frugalnomics saw tenures shorten, and reorganizations that moved their leadership lower in the corporate chain of command.