More than 8 in 10 marketers in the US say that there’s either significantly more (39%) or a little more (43%) pressure on them to prove ROI/ROAS as a result of the rising cost of living and costs of doing business. That’s according to research [download page] from Treasure Data, which finds that the pressure seems to be weighted more heavily on marketers at larger than smaller businesses.
With marketers making various changes to their strategies to confront consumers’ inflation concerns, the good news is that respondents to Treasure Data’s survey feel confident that their customer data enables them to create marketing campaigns that are sensitive to consumers’ changing priorities and needs due to cost-of-living rises. Moreover, virtually all said they have either a complete understanding (74%) or a rough idea (22%) from their data of how the cost-of-living rises are impacting their customers. This is particularly the case for marketers at larger companies: 98% of those from companies with at least 1,000 employees expressed at least a rough understanding of this, with the vast majority (87%) saying they have a complete understanding of the impact on their customers.
Overall, some 78% agree to some extent that they’ve changed their marketing strategy/upcoming campaigns as a result of rising prices and the cost-of-living increases. Many are having to do so amid budget cuts, as more than two-thirds (69%) report making cuts as a result of increases in the cost of doing business.
Within this inflationary context – including the rising cost of doing business – virtually all (96%) are making it a priority to not waste ad spend, with 57% reporting that media efficiency is a top priority. There seems to be room to improve: respondents estimated that 38.1% of their budgets on average have been wasted on campaigns with poor optimization (based on customer data) or could have been deployed more effectively.
Aside from making their media spend more efficient, respondents are also prioritizing connected customer experiences to retain customer loyalty. Strong majorities will also be focusing on brand awareness as well as targeting new audience groups.
In order to do so, the top channels they’ll be focusing their spend on as this year draws to a close will be social media, email, search engine marketing, and websites (including blogs).
For more, download the study here.
About the Data: The results are based on a survey of 500 US marketers at companies that are B2C only and both B2C and B2B.