Skip to main content

Marketing Metrics and Myopic Usage of Analytics


Most U.S. marketers are using analytics. They recognize the importance of measuring marketing effectiveness, especially when they are asked to justify their spending. However, according to a report by eMarketer, there is room for improvement in formalizing approaches and communicating results.

According to a survey of senior marketing executives by Forbes Insights and MarketShare Partners, nearly seven in ten said they used analytics to measure marketing effectiveness. Marketers with large budgets were significantly more likely to do so than those with spending of less than $1 million. But, many in that group planned to adopt analytics in the future.

Many marketers still take an informal approach to measurement. Among those with budgets over $1 million, while 85 percent said they used analytics, 71 percent said they had a formalized way of doing so.

Marketers focused most on internal resources to measure the success of their programs, with 86 percent using internal data, 74 percent relying on internal teams and 52 percent on internally developed tools.

In comparison, 58 percent used third-party data and only 35 percent employed outside professional services.

Much of this effort is directed toward justifying marketing programs, but the marketers surveyed often lacked an effective way of communicating the success of their campaigns to other executives. While three-quarters of marketers begin initiatives with clear goals set out, only 56 percent have a system for assessing the campaign's business impact.

I wonder what percentage of marketers actually use analytics reports to make ongoing changes to their marketing practices. I suspect that most companies only look at the historical data to assess past performance. Few use it for forward-looking projections, or as a basis for realigning marketing spending.

Popular posts from this blog

Linux Phone Standards Forum

A new Linux Phone Standards Forum (LiPS) has been founded to promote mass market adoption of Linux telephony terminals through standardization, interoperability testing and market education. The founding members include Cellon, France Telecom, FTM Labs, Huawei, Jaluna, Mizi, Open Plug and PalmSource. LiPS will support device manufacturers and operators in bringing to market Linux-based devices at lower cost (due to lower deployment costs through standardization), while facilitating the programming and development process for software and silicon vendors. The Forum said plans to work with other organizations such as the OMTP and OMA to identify requirements of distinct device categories including smartphones, feature phones, fixed-line, or converged devices. For each of these categories, or profiles, LiPS will define standard API�s that support relevant applications and services as well as a certification process for technology providers. In keeping with the open source philosophy, L

Cloud Services Gain New Momentum in Europe

Across European nations, more CIOs and CTOs are investing in public cloud services that become the essential foundation for the design and delivery of innovative digital transformation projects. Public cloud computing spending in Europe will reach $113 billion in 2022 and will double to $239 billion by 2026, growing at a 22 percent 5-year CAGR, according to the latest market study by International Data Corporation (IDC). Investments in Software-as-a-Service (SaaS) will continue to lead most of the spending in Public Cloud in Europe in 2022, but Platform-as-a-Service (PaaS) will be the fastest-growing segment. In fact, PaaS enables digital business deployment via the quick testing and production of new software applications. Public Cloud Market Development Professional services, banking, and discrete manufacturing will be among the top spenders in public cloud services, absorbing almost 60 percent of the overall public cloud services spend in 2022.  Human-centric industries are adjustin

Strategic Digital Transformation Spending Trends

Looking ahead, many Chief Executive Officers (CEOs) continue to selectively invest in new strategic digital transformation projects that enable a significant competitive advantage. Some additional investments may go towards improving existing IT infrastructure and operations.  Worldwide IT spending is now projected to total $4.5 trillion in 2022 -- that's an increase of 3 percent from 2021, according to the latest updated estimate by Gartner. For now, most CIOs will be relieved that their budget is safe from major cuts. While IT spending is expected to grow in 2022, it will be at a slower pace than in 2021 -- partly due to a 5 percent cutback on spending for personal computers, media tablets, and printers. Digital Transformation Market Development "Central banks around the world are focusing on fighting inflation, with overall inflation rates expected to be reduced through the end of 2023. However, the current levels of volatility being seen in both inflation and currency exch