To increase brand awareness and drive sales, marketers are struggling to create accountability programs that effectively measure the impact of marketing, according to a new study from the Association of National Advertisers and Marketing Management Analytics.
Although a plurality of companies with a marketing accountability process tend to house that function within the marketing department, there is growing collaboration between marketing and finance, finds the study.
Overall, marketing accountability has a presence in nearly every company; however, a growing number of programs are siloed within marketing departments: 45% of respondents indicated that their accountability programs were based within the marketing group, a jump of 14 percentage points over the prior year.
Moreover, 23% of respondents expressed dissatisfaction with accountability metrics.
Despite accountability programs’ becoming more entrenched within marketing departments, the survey showed progress in improving the relationship between marketing and finance:
- 33% reported “full cooperation and an open dialogue” in establishing metrics and methodologies for marketing ROI – up from 22% in 2007.
- Nearly half of respondents found “some cooperation.”
Goals for marketing accountability varied greatly:
- 40% of respondents said marketing ROI goals were based on internal benchmarks within the marketing department.
- Approximately one-third reported that marketing ROI goals were closely aligned with overall corporate goals.
- However, one-third indicated that there were no written goals for marketing in their companies.
In the case of marketers that had established accountability metrics…
- 61% measured marketing’s impact on sales, and 73% viewed them as useful in establishing marketing budgets.
- 60% looked at consumer attitude, but only 39% considered these metrics to be useful.
Marketers are investing in accountability programs such as brand and customer equity models (53%); predictive models for direct response (43%); recency and frequency monetary value models (45%); and customer lifetime value models (27%).
Importantly, over half (57%) use their marketing accountability programs as a factor in increasing or maintaining their marketing budgets.
Key strategic marketing accountability challenges:
- Understanding the impact of changes in consumer attitudes and perceptions on sales (45%)
- Understanding the offline impact of online advertising (26%)
- Understanding the impact of experiential marketing, such as event sponsorships, on sales (23%)
- Measuring long-term ROI for a time period greater than one year (19%)
About the study: The 2008 ANA/MMA Marketing Accountability Survey, fielded by CoActive Marketing, surveyed 128 senior-level marketers in May 2008; they have conducted similar studies together since 2005.
