Marketers believe the tools to identify performance are lacking. Brands identified this as a challenge, with 34% of CMOs and 51% of CTOs saying they believe marketing data is unreliable. Relying on partners to self-report generates an incentive to misrepresent or manipulate performance. The reason it’s unreliable is that it’s too complicated.
Most good marketing organizations measure marketing one way: sales. The problem is that too many brand marketers have tried to measure everything from influencers to social media and get bogged down on their value to the brand.
Marketers will spend months and hours in meetings to determine if an influencer had any effect on sales, yet they don’t take the time to go to local retailers and watch how people shop. Research with consumers via focus groups doesn’t always provide the answers either. What people say they do is a lot different than what they do.
I’ve worked with many CPG brands and have spent hours upon hours trying to quantify a single tactic applied to ROI while sales tanked. The problem is that consumer shopping habits are changing, and many brands don’t have half the equity they thought they did.
Influencers may work for some cosmetic and fashion brands, but they are a waste of money for many others. What is puzzling is the amount of money brands waste on social media when more information is coming to light about online misinformation.
Despite all the noise about digital marketing, TV still provides a better ROI. My background is in digital marketing, but I’ve found that much of the money spent on digital is wasted through fraud and wrong metrics. The problem with TV is that too many brands ignore the rules of reach and frequency until they oversaturate the market and consumers grow tired of the ads.
Instead of measuring each bucket, brand marketers should look at each bucket as a piston in an engine working to drive sales. Please stop trying to gauge whether an ad on Google is worth the money and spend more time asking current customers why they bought your brand.