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Report claims marketing effectiveness at an all time low
Date: 24/01/2008
According to a new report, marketers worldwide believe that 65% of their marketing spend had no discernible effect on consumers in 2007. They also claim that this marketing wastage is at its highest in more developed economies, such as the US, UK, the EU and Australia, as opposed to fast emerging markets like China and India.
The Global Marketing Effectiveness Report surveyed 3,000 marketing professionals across the globe, questioning them on a range of issues such as the efficacy of different marketing tools and the pressures and concerns they experienced in 2007.
The responses suggest that their efforts reached an all-time low in perceived effectiveness - mainly for lack of accurate feedback.
The report's findings reveal:
- 65% of all marketing spend in 2007 had no effect on consumers.
- Estimated wastage rates varied from 45% for business-to-business marketers, through to 65% for business-to-consumer.
- Just one in ten of respondents have automated systems in place to track the effectiveness of their spend.
- Of the 55% of marketers who do track the results of their spending, 80% do so manually, spending hours capturing, compiling and analysing data.
70% of marketers believe that short-term revenue-boosting and lead-generation campaigns are more important than long-term intangible brand building (15%). A clear indication that marketers are under pressure more than ever before to generate results.
Tracking marketing effectiveness topped the 2008 wish lists of 35% of marketers, and made the top three for 70%
Source: WARC
Measuring the effectiveness of marketing communications investment is a key agenda items for all of our marcoms working groups, notably within media, sponsorship and now digital. Whilst these findings are interesting it is worth noting that WFA members are likely to be more sophisticated in their means of measuring return on marketing investment than the industry average. That being said, in many cases accountability goals are still a long way from being achieved, which is one of the reasons the WFA continues to champion improved media audience measurement (e.g. in emerging markets such as China) or consumer centric holistic measurement as outlined in the WFA blueprint .
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