B2C marketers primarily measure their media marketing and advertising performance by looking at sales lift and return on ad spend, according to a report [download page] from the CMO Council and NCSolutions. While respondents are heavily focused on customer acquisition, there may be room for more attention paid to retention, per the results.
Indeed, when asked about the importance of media marketing and advertising across acquisition and retention goals, fully 8 in 10 respondents rated the importance to winning customers as extremely (37%) or very (43%) important, while only about half said the same about the importance in retaining customers (16% and 36%, respectively).
Separately, when the survey’s more than 160 respondents – primarily at retail and CPG companies – were asked where media marketing and advertising can make an impact, a leading two-thirds (66%) cited customer acquisition, while just one-quarter (24%) pointed to customer retention.
The analysts indicate that “CMOs can focus their media marketing and advertising strategies not just on winning new customers but retaining current ones and growing LTV [lifetime value].”
The tide does seem to have turned away from customer retention. While this was a primary goal of CMOs during the pandemic, it has receded as marketers instead work on building their brand. This is another area where respondents to the CMO Council and NCSolutions see the potential for media marketing and advertising, as brand lift is a key performance metric for almost half (45%).
Looking ahead, the report shows that most (67% of) B2C marketers plan to improve in-flight campaign optimization over the next year, as more than 8 in 10 see optimization as extremely (40%) or very (43%) important for an in-flight campaign. This is commonly held back by marketers missing the right data inputs, lacking expertise and resources, and not getting the tools from DSP/media partners and publishers.
Meanwhile, marketers are also planning to improve other media marketing capabilities, including accurate and efficient customer targeting (67%), measurement of campaign performance (56%) and 3rd-party data evaluation and analysis (53%).
To get there, they’ll need to overcome various challenges, with budget (50%) leading the way as the top obstacle to media marketing/advertising realizing its full potential.
For more, download the study here.
About the Data: The results are “based on a survey of over 160 marketing leaders in North America predominately in consumer packaged goods and retail.”