I was surprised to read a study last week that claims nearly 90 percent of marketers are not trained in marketing performance and marketing ROI.
The study, (Global Marketing Effectiveness Program), was conducted by UK market researcher, The Fournaise Marketing Group, surveyed 1,200 CEOs, and management and marketing decision-makers in North America, Europe, Asia and Australia.
The study also stated that 80 percent struggle with being able to properly demonstrate to their top management the business effectiveness of their marketing spending, campaigns and activities.
This caught me completely off-guard given that the study comes at time when CEOs are putting even more pressure on marketers to generate and prove they generate incremental customer demand for the companies’ products/services.
Other findings from the study:
· 67% of marketers don’t believe marketing ROI requires a financial outcome.
· 64% of marketers use brand awareness as their top marketing ROI KPI, 58% place “Likes”, “Tweets”, “Clicks” and/or “CTR” in their top 5 marketing ROI KPIs, and 31% still believe simply measuring the audience they have reached is marketing ROI.
· 63% of marketers don’t include any financial outcome when reporting on and presenting marketing results to their CEOs and top management.
· More than 80% are unable to write a P&L and Balance Sheet correctly when given a simple business scenario. These marketers are unable to give the correct definitions of basic Financial KPIs used every day by CEOs and Boards (such as EBITDA, P/E Ratio or ROE), and are unable to correctly explain the impact marketing can have on a company’s Balance Sheet.
As a performance marketer, I’ve always been quizzed about the revenue performance of the programs we manage. Branding, likes, tweets, CTR are very seldom discussed, regardless of the fact that performance marketing drives great brand awareness and SALES.
As long as these, shall we call them brand marketers, marketers fail to grasp basic metrics such as ROI and lack the ability to prove to top-C-Level executive that marketing efforts are an integral part of helping drive revenue for their respective businesses, they will not be taken as seriously and likely not see additional funding and resources.
And a corollary for performance marketers we need to stress the revenue growth we deliver, the ROI, and be able to deliver and describe brand performance as part of our value proposition.