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ROI Measurement a Must

“Show me the money!”

June 18, 2009

The need for measurement and analytics is growing in importance.

According to a study by the Lenskold Group and MarketSphere, 65% of marketers said that CEOs and CFOs are demanding to see return on investment (ROI) as a part of securing budgets for marketing initiatives.

Seventy-nine percent of the marketers felt that the need to measure, analyze and report marketing effectiveness was greater in 2009 than in previous years.

But getting accurate measurements takes money, and with the downturn in full swing, funds aren’t easy to come by.

In fact, 59% of marketers felt the need to measure ROI was greater than ever but were not budgeted for the necessary effort.

Attitudes of Marketers Worldwide Toward the Need to Measure, Analyze and Report Marketing Effectiveness in 2009 (% of respondents)

Only 20% of respondents said the need to report marketing effectiveness was higher and that they had adequate funds to do the job.

When asked how much of their budgets were dedicated to measurement and analysis, 31% of marketers answered “none.”

Percent of Marketing Budget Allocated to Measurement and Analysis According to Marketers Worldwide, Q1 2009 (% of respondents)

A mere 2% of marketers allotted more than 30% of their budgets to marketing measurement and analysis.

Measuring ROI in the best of times can be challenging, but the Lenskold Group has five recommendations for how to succeed:

  • Estimate ROI potential in the planning stage.
  • Invest in measurements and analytics with immediate payback.
  • Increase experimentation and testing.
  • Prepare for aggressive competition during the recovery.
  • Pursue efficiency and effectiveness.

For more information on ROI measurement, see Will Digital Marketing Prove Profitable?


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