Over the past few years, we’ve seen forward-thinking brands integrate marketing effectiveness into their strategy. These brands are held up as examples and invited to speak at events on marketing effectiveness precisely because they are leading the pack. Yet too often marketers still speak about efficiency, not effectiveness, and rely on digital attribution or short-term return on investment to measure the impact of their advertising; rather than more holistic methods of measuring how marketing creates profitable growth, such as econometrics.
However, with increasing amounts of data at their disposal (and a growing number of consultants that want to help) more marketers are starting to measure what matters, not just what is easy, and retool their investments around both short- and long-term metrics. That has required hiring people (often difficult to find) with different skill sets, and these teams are starting to embed themselves within brands and really have an impact.
There is also growing pressure from the boardroom to prove that marketing investment leads to business outcomes.
Those marketers who shift attention to effectiveness will reap the rewards. According to a study by Ebiquity, if brands better allocated their marketing spend there would be an opportunity to increase business profitability by a combined £34.2bn annually. That gives an idea of the scale of the opportunity for marketers that take effectiveness learnings and apply them to their business. And it’s one the rest of the business will appreciate too.
Source: Vizard, S. (2018, December 12). Trends for 2019: Effectiveness Wins the Battle over Efficiency. Marketing Week.
Editor’s Note: From the UK: “This prediction might be more wishful thinking than based in reality, but there are signs 2019 could be the year marketers succeed in getting their businesses to prioritize effectiveness over mere efficiency.”