Marketers have been measuring the least helpful effectiveness metrics, according to a new report from the Direct Marketing Association (DMA). There has, however, been a slight improvement in the measurement of marketing’s impact on broader business metrics after two years of decline.
Based on a databank of more than 1,500 campaigns, the report identifies four categories of ‘meaningful KPIs’. These are response effects (short-term, performance marketing), brand effects (longer-term brand-building metrics), business effects (related to overall business performance) and campaign delivery effects (reach, frequency and impressions).
While 92% of marketers claim to be able to distinguish between these effects, the report argues they have been too focused on campaign metrics that “tell us little about overall marketing effectiveness”.
According to the DMA data, 39% of metrics used in the reporting of marketing effectiveness in 2023 were “less meaningful” campaign delivery and “digital vanity metrics”, while 61% relate to “meaningful” business, brand and response effects.
Best practice measurement methods and techniques
When it comes to marketers’ preferred measurement methods, attribution modelling/MTA comes out on top, used in 36% of campaigns. This is followed closely by brand tracking (35%), econometrics (26%) and brand uplift studies (12%), while geo-testing (3%) and pre-testing (2%) are the least popular.
A hypothetical scenario for investment in best practice measurement techniques charts how spend on each measure should result in improvement in effectiveness. Multi-touch: 35% response uplift (Year 1). Brand measurement: 229% brand uplift (Year 2). Mix modeling: 150% business uplift (Year 3).
The report warns that while taking budget from measurement to spend on media is a temptation when budgets are under pressure “it is a false economy”. Rather, it is beneficial to “sacrifice a bit of campaign reach for a lot of campaign certainty”.
fuente: https://www.marketingweek.com/wrong-effectiveness-metrics-focus/
