WHAT’S UP? “Board To Death,” a new report from Bango, reported that corporate CEOs have issues buying into digital Marketing tactics, specifically social media marketing. The report found that 62% of CEOs believe too much of their digital marketing budget is wasted on activities that don’t deliver meaningful results. Ouch…but true.
More than half of CEOs are skeptical of social media marketing, with 59% saying that social channels don’t generate sales for their businesses. That’s according to a new ‘Board to Death’ report from Bango, which argues that poor digital marketing practices and meaningless metrics are “putting the board to sleep.”
The research surveyed over 200 CEOs found that 62% believe too much marketing budget is wasted on activities that don’t deliver meaningful results. 60% of CEOs also think that the marketing potential of social media has been exaggerated, while 77% don’t see digital advertising as a reliable source of new customers or sales.
With 77% of CEOs expecting marketing to have a measurable impact on their business’ bottom line, Board to Death argues that this lack of targeting is becoming a major sticking point for CEOs and the wider board.
“Nobody’s saying that social media can’t add value. The problem is that this value isn’t translating to the boards of the businesses surveyed. Digital marketers have got so wrapped up reporting on clicks, likes, and engagement rates, that they’ve lost focus on the business metrics that actually matter in the boardroom — leads, sales and profits.
“But it’s not just the metrics that are wrong. Digital marketing is also failing to deliver meaningful results because of poor targeting. The rise of Facebook and Google as ad platforms has convinced marketers that what people like and share is an accurate reflection of what they will buy, so today’s marketing budgets capture browsers, not buyers. That’s why our report argues that digital marketers need to start targeting their audiences based on actual purchase behaviours. This is what will impress the board — the ability to turn social into sales.”Anil Malhotra, CMO at Bango
What in the wide world of sports is a-goin’ on here?
It’s actually quite simple. CEOs are interested in bottom-line results, while too many marketers are focused on vanity metrics. Coke, for example, has a ton of followers on Facebook but has been losing customers who are moving away from soda.
This report also comes at a time when marketers are throwing more money into social media because they’re sheep who are following the herd.
For most CPG, the best way to get customers and keep sales going is with proven marketing tactics like POP displays, FSIs, and eMail promotional offers. Social media marketing continues to be overhyped, and most marketers can’t wait to give more money to Facebook.
Accountability is going to be more forthcoming and marketers had better fall out of love with social media.