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ROI measurement unites global marketers
03/09/2013
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Research by the World Federation of Advertisers and Ebiquity has found that all marketers now undertake some form of action to measure and approve their media ROI.
The tools used to achieve that goal vary significantly but 84% agreed that independent and objective ROI measurement is “very important” with the rest regarding it as “important”.
The results are based on a survey of 20 member companies across nine different categories.
Despite this focus on ROI, however, the survey found that many marketers still use softer metrics and KPIs such as awareness, media cost and media quality to judge performance rather than ROI.
Econometric modeling was used by 79% of respondents and sales results were used by 89% but 95% tracked advertising awareness and 100% of respondents used brand awareness/attitudes.
Usage of more analytical tools was however significantly higher than the previous WFA study on these issues in 2011, with a 20% increase in the use of these key KPIs.
There is still scope for marketers to do more to feed ROI measurements into their future plans. A third of respondents said they didn't use this information for budget setting and or sales projections.
Two key considerations for marketers are:
To ensure that KPIs are linked closely to financial performance and that media delivery data such as ratings is not the only measure of business performance.
KPIs need to be tracked regularly enough to align cause with effect and fewer, more meaningful measures are better than a host of infrequent metrics.
For more information please see our recent report on digital KPIs or contact Matt Green at [email protected].
Sign up to monthly WFA news
The tools used to achieve that goal vary significantly but 84% agreed that independent and objective ROI measurement is “very important” with the rest regarding it as “important”.
The results are based on a survey of 20 member companies across nine different categories.
Despite this focus on ROI, however, the survey found that many marketers still use softer metrics and KPIs such as awareness, media cost and media quality to judge performance rather than ROI.
Econometric modeling was used by 79% of respondents and sales results were used by 89% but 95% tracked advertising awareness and 100% of respondents used brand awareness/attitudes.
Usage of more analytical tools was however significantly higher than the previous WFA study on these issues in 2011, with a 20% increase in the use of these key KPIs.
There is still scope for marketers to do more to feed ROI measurements into their future plans. A third of respondents said they didn't use this information for budget setting and or sales projections.
Two key considerations for marketers are:
To ensure that KPIs are linked closely to financial performance and that media delivery data such as ratings is not the only measure of business performance.
KPIs need to be tracked regularly enough to align cause with effect and fewer, more meaningful measures are better than a host of infrequent metrics.
For more information please see our recent report on digital KPIs or contact Matt Green at [email protected].
Sign up to monthly WFA news
