Companies of all industries and sizes are experiencing a groundbreaking shift: New direct-to-consumer brands that have been around less than a year are challenging 100-year-old brands. Dollar Shave Club, BarkBox, Casper, and the list could go on and on. Driven by the success of online marketing, digital advertising has become the front line and a pivotal factor in determining a brand’s future.
So, it’s not surprising that marketers worldwide will spend over $515 billion on digital advertising by 2024. With total advertising investment in five years projected to be around $800 billion, we’re seeing the digitization of advertising budgets achieve meaningful scale. And yet, many CMOs are still struggling to communicate their digital marketing results in a way that gets leadership buy-in. In fact, recent research shows that over 80% of CMOs say aligning their marketing strategy with corporate goals keeps them up at night.
Released last week, our president Jay Friedman’s newest book Prove Your Advertising Works is specifically designed to flip the script and showcase marketing as a growth engine within a company. The book reveals the challenges CMOs face in harnessing, communicating and acting on digital marketing results and offers powerful tools for CMOs on how to discuss marketing’s results confidently and in terms that leadership values.It’s a quick read but packed with plenty of powerful tips and tools. We’ve rounded up a handful our favorite insights here to inspire you.
CMOs have spoken: The most important metrics to demonstrating the value of marketing and advertising to the enterprise are ROI, customer loyalty and retention, sales revenue, customer acquisition cost and customer lifetime value. Viewability, paid search click-through rates, social likes and shares, and even cost per outcome have their place in marketing campaign conversations but aren’t what you take to the C-suite table. Instead, use metrics that clearly connect ad spend to business outcomes.
There are three common traits of successful in-housing – technology, data strategy, and meaningful spend levels to justify the time, effort and costs necessary. However, most brands are far better off partnering with a sophisticated agency that can keep their brand ahead of the market or choosing a hybrid approach.
If a brand personalizes content, one in three consumers are more likely to make an unplanned purchase and almost half will become loyal to the brand. Balancing privacy and personalization is important, but CMOs must remind apprehensive executives that ads are better for everyone when we know more about our customers and tailor the experience to the individual.
One out of three companies who reward test and learn practices achieves successful digital transformations. Machine learning and advanced algorithms can speed up this process, but even if your organization isn’t at this level yet, you can begin the practice now with some easy steps designed to ensure decisions are backed by proven results rather than guesswork.
Goodway Group is the digital partner advertisers trust to drive campaign performance and media efficiency. Proud to be completely independently owned and operated, Goodway provides trustworthy expertise that meets its clients’ needs — and no one else’s. Using predictive intelligence, Goodway helps advertisers get the most value out of every impression across all paid digital media. Through the combination of employing the smartest technology and the most experienced people in the industry, Goodway delivers authentic results.
Goodway Group. Honestly Smart Digital.