Ian Gibbs, founder of Data Stories Consulting and data expert for the Data & Marketing Association (DMA UK), reveals why many current marketing measurement models are inadequate and what businesses must do to fix it.
The advertising and marketing industries’ have become less effective – a lack of focused and meaningful measurement metrics are central to the problem. If all you are measuring are ‘vanity metrics’ then that’s what your marketing efforts are always destined to be: mere vanity projects that have no real-world impact on your brand or your business.
If we don’t have true visibility on marketing campaign effectiveness, then the logical conclusion can only be that we’re simply flying blind with our marketing spend, without any real clue of what is working and what isn’t.
This leaves the impact of marketing to something akin to a game of roulette with no real scientific basis on which to assess the drivers and inhibitors of campaign success.
Now in its second year, the DMA’s Intelligent Marketing Databank contains half a decade’s worth of effectiveness data, covering over 1,000 campaigns from a range of sectors and media channels. Crucially, the databank is designed to answer two fundamental questions: A) How successful are marketers’ efforts at generating campaign impact? B) How successful are marketers at measuring the effectiveness of their marketing efforts?
The industry needs to get to grips with two fundamental challenges posed by both questions, namely:
Marketers are still distorting their measurement plans by placing an over-reliance on campaign delivery metrics (like reach and impressions) and vanity metrics (like clicks and open rates) in post-campaign evaluation. Rather than true measures of impact relating to response, brand and business effects. 41% of the measures being used by marketers relate to campaign delivery metrics.
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