“The CMO role is to be more data-focused and less creative over the next five years because of the increased pressure to prove the ROI of campaigns”, according to a report from IBM via Marketing Week.
It has become apparent during the past 5 years, that many traditional marketers have used less and less mass marketing to target their prospects. From our customer feedback, we believe that this is partly driven by a need to communicate with correct prospects, though the focus has also changed to being able to provide demonstrable ROI from campaigns.
In the direct marketing world, you would have thought that this would mean a large increase in activity, but you would be wrong.
Direct marketing through direct mail, email and telephone is measurable if done correctly though paradoxically, as a result of this, it has lost out to channels where measurement is more difficult. It is quite common to hear marketers explaining that they have to do TV, because… they have to, not because they can prove that it works. Based on the report, it appears that this has changed and now CEO’s are looking for these channels to match their direct counterparts in terms of measurability and return on investment.
Social media and online have really catalysed this change, as they provide a mass market channel to communicate directly with customers – for example a Facebook page and status updates – but these platforms also allows for measurement of response, engagement and demographics profiling of the audience with great detail as opposed to estimates. In fact, we blogged about this in one of our predictions for 2011 back in December. On the converse, it is also apparent that these new channels do not yet perform at anything like their direct alternatives.
The report in Marketing Week included a quote from Edmond Moutran, chief executive officer of Ogilvy & Mater in the Middle East and North Africa and respondent to the study says: “A year ago, one in ten clients asked us about social media. This year, it’s nine in ten. We’re in an environment where negative blogs can lead to an emergency board meeting. That is the power of social media.”
What seems to be the enduring theme of the report, is that there is a convergence between data and social media and operating in both of these sectors, we can see this being the case. As ever the b2c marketing community are leading the way, but b2b is close behind through platforms such as Linkedin and Twitter.
Have a look at the video below to find out more about the study referred to in the article.
It was carried out globally by IBM and claims that the majority of CMOs across the world still feel underprepared to meet a forecasted “data explosion” that will allow them to better measure the ROI of campaigns.Share