Less than half of advertisers are confident in data-driven insights, study says
- Marketers are struggling to determine their marketing performance and are missing opportunities for growth, with 40% using ROI measurement methods that are based on short-term sales, while 85% say blending short- and long-term measures is the best approach to determining ROI, according to Kantar’s annual study “Getting Media Right.”
- Fewer than 20% of agencies and media are very confident and less than half of advertisers are sure of their ability to create insights from data. Seventy-eight percent “strongly” or “somewhat” agree that it’s difficult to determine performance across channels. Among those surveyed, 47% of marketers report moving the optimization process to earlier in their campaigns compared to last year, with most starting during the ideas and strategy phase, with 50% of female marketers embracing earlier optimization versus 44% of male marketers.
- The report also found that advertisers' confidence in their media mix has increased over the past year, but 45% still aren’t confident that their organization has the optimal media mix. Eighty-two percent believe they have integrated marketing strategies, but these efforts are not translating to consumers.
The new Kantar research is the latest to highlight the disconnect that marketers face in determining campaign effectiveness and ROI despite a wealth of data points. The findings suggest that a lack of understanding of cross-channel behaviors and how to optimize media investments are important reasons behind these challenges. Gaining a more holistic view of how content and media strategies work together to drive growth can help marketers create new opportunities to assess ROI — but, research continues to demonstrate that marketers are not always achieving this.
One challenges marketers continue to face is cross-channel measurement. While 82% plan to increase their digital spend by an average of 49% over the next year, according to Nielsen’s new CMO Report 2018, they are looking for better insights instead of accumulating more data and see a need for better marketing technology to integrate consumer data and insights across channels.
The benefits of cross-channel deployment are clear. Campaigns that are well-integrated, with connected elements, like creative, messaging and platforms, are 31% more effective, while those that are both integrated and customized are 57% more effective, according Kantar’s AdReaction survey released in January. While most marketers, or 89%, said their efforts are well-understood across channels, only 58% of consumers agreed.
With marketing becoming more data-driven, this could leading to an increased investment in marketing automation tools. Global marketing automation spend is expected to reach $25.1 billion by 2023 from $11.4 billion in 2017, with the highest growth in “through-channel marketing automation” and “lead-to-revenue automation,” according to Forrester.
- Business Wire Marketers Struggle to Assess Their Marketing Performance, According to Kantar's Study, Getting Media Right
- Marketing Dive Study: Majority of marketers miss the mark with multichannel efforts
- Marketing Dive 82% of marketers plan to increase digital spend, but only 26% are confident in ROI