Darryl McDonald, CMO of Teradata, pointed out a Columbia business school study with remarkable data about the (lack) of ROI in marketing:
- 57% don’t use any KPIs
- 28% set marketing budgets on gut instincts
- 7% are spending most or all of their marketing budget with “no metrics” at all.
- 29% say their marketing departments have “too little or no customer/consumer data”
- 51% use mobile ads but only 17% use KPIs
- 85% use social ads, but only 14% use KPIs
- 60% say multichannel marketing metrics is “a major challenge”
- 31% said that they believe simply measuring the audience you have reached is “marketing ROI”
However, 70% say their marketing efforts are under greater scrutiny than in the past.
This explains why Facebook can make money even if it doesn’t work: the CMOs don’t know it doesn’t work!
Read the summary of the Columbia Business School’s 2012 BRITE-NYAMA Marketing Measurement in Transition Study