The Association of National Advertisers (ANA) has released the results of a survey showing that the metrics most widely used by marketing procurement professionals today differ from those they believe should ideally be used. Similarly, while some metrics currently aren’t perceived as being very important, respondents recognize that ideally, their priorities should differ.
Looking first at the metrics currently used by respondents to measured the success and/or contribution of marketing procurement, the study shows that cost reduction (94%) and cost avoidance (84%) are most popular, while metrics such as improved marketing ROI (30%), sales/market share increases (16%) and improved brand health metrics (16%) are relatively ignored.
There were some large swings when measuring the metrics that ideally should be used. For example, 64% of respondents believe that marketing ROI should ideally be used, although just 30% currently do. Other metrics with similar disparities include innovation (68% ideal; 44% currently using); improve brand health metrics (38% and 16%, respectively), process improvements (82% and 62%) and sales/market share increases (40% and 20%).
The same dynamic applied when respondents were asked to rate the importance their companies currently place on the various identified metrics. On a 5-point scale (with 5 being extremely important and 1 not important), respondents rated cost reduction (4.57) as by far the most important metric. By comparison, metrics such as improved marketing ROI (3.31) and sales/market share increases (3.28) are currently perceived to be relatively less important.
Rankings of the metrics by ideal performance differed greatly. In this scenario, improved marketing ROI (4.32) rose to the top. Metrics including industry intelligence (3.96 ideal; 3.14 current), sales/market share increases (4.05 and 3.28, respectively) and process improvements (4.08 and 3.4) were also ideally more important than they currently are.
- Only 17% of respondents said that the success metrics for marketing procurement at their organization are very closely aligned with the success metrics for marketing.
- Focusing on the marketing ROI metric, the study found that current use of the metric was higher among respondents who had more mature marketing procurement organizations.
About the Data: The survey was fielded in December 2012 and January 2013 and received 113 respondents, with virtually all respondents being marketing procurement professionals at ANA member companies.