CMOs nailing attribution twice as likely to deliver double digit growth
A study of 70 CMOs suggests traditional marketing mix modelling no longer cuts it and that marketers are still struggling to unify measurement on and offline. But those that have cracked the attribution conundrum are twice as likely to report double digit growth (CMO Club).
- Marketing mix modelling still the leading methodology for measuring performance; 63 per cent of CMOs surveyed cited using marketing mix analytics/studies. However, based on the results of the survey the traditional marketing mix modelling approach is falling short in today’s prevailing online/offline realm.
- Lack of a unified approach. Connecting all the data remains a challenge: 45 per cent of marketers admitted they do not have unified approach of measurement across online and offline channels. 66 per cent rely on media specific RoI (eg. Facebook, Google).
- Offline still important for brand. 76 per cent of CMOs say they prefer online if they had to choose which media type drives growth the best; yet a full 59 per cent say they would use a mix of digital and traditional media if budget was not an issue.
- CMOs that report having a unified approach to measurement are more than 2X as likely to report growth greater than 10 per cent.
Creating a clear, near-time view of attribution across the customer funnel is now mandatory for marketers seeking growth.
The market is evolving so quickly that looking back over an extended period of time isn’t particularly relevant in predicting the future. This, coupled with the time required and costs associated with a rigorous market mix model suggest that alternative measurement techniques be explored.
Brands need to develop their own attribution models to measure the metrics that matter in their own business and for their customers. Not every media dollar is going to result in a direct sale.
But every media cent should contribute to the brand journey that will ultimately deliver a sales or business outcome. The challenge for many clients with multiple partners executing campaigns is how to bring together all of these data points to get a complete view of all relevant metrics. This deep understanding of customers, channels and measurement is media agency heartland and presents a terrific opportunity to cement the client-media agency role of the future.