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ROI Remains a Tough Metric for CMOs: Study Finds a Drop in Accountability for Marketing Budgets, Impact on Ad Spend

ad spend, Chief marketing officer, CMO, Jason Wadler, Leapfrog Marketing Institute, Leapfrog Online, Marketing, marketing budget, marketing metric, marketing ROI, Pr, Public relationsChief marketers still find it hard to prove and measure ROI, according to a survey by the Leapfrog Marketing Institute, the research arm of Leapfrog Online. The new report, 2016 Planning Report—Evolving Strategic and Financial Plans for the Always-On Consumer, illustrates a surprising drop in accountability for marketing budgets.

When marketers were asked to what degree their budgets must produce measurable ROI, only one in ten said 75 percent or more of their budget is accountable—a dramatic drop from 2015, when 40 percent of marketers stated they were planning to measure ROI at that top quartile.

“Despite the increased priority to measure the impact of their campaigns, CMOs have expressed a downward shift in accountability. Although there is a desire for every marketing dollar to be accountable, it is very hard to achieve that level of measurement,” said Jason Wadler, chair of the Leapfrog Marketing Institute, in a news release. “In the report, our advisory panel members share thoughts on what may driving this change, such as marketers’ continued investment in social marketing where ROI is still unclear.”

The study focuses on how marketing executives are evolving their strategic and financial plans to become more consumer-centric, and uncovers trends about marketers’ overall priorities, the impact of digital and mobile on spending and how Millennials influence budget planning.

Another key focus area is the level of collaboration between marketing and IT executives in strategic planning and budget development. Of note, 54 percent of marketers collaborated with internal partners in technology or operations functions, such as a CIO or CTO, to develop their plans. The majority participated in the planning process by prioritizing projects with their marketing colleagues.

“This is another surprising finding, given that the ability to prioritize and build consumer-centric approaches require a tight collaboration between these functions,” said Wadler. “As a group, we expected this number to be higher—however, it aligns with data from our CMO Digital Benchmark Study last year. It is these insights that drove us to add CIOs onto our Advisory Panel this year.”

Download the complete study here.

Source: PRWeb; edited by Richard Carufel

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