Nearly half of marketing directors say marketing is viewed as an expense rather than a strategic investment
Posted: Wed Dec 04, 2024 6:31 am
A recent Gartner report reveals that less than half of CMOs have managed to demonstrate the strategic value of their activities and receive adequate recognition for contributing to the achievement of business objectives. According to a survey conducted in April and May 2024, only 52% of CMOs and other list of antigua and barbuda consumer email senior marketing executives claim to have been successful in this task. In fact, many of them point to resistance from other key executives, such as CFOs and CEOs, who are skeptical about the impact that marketing can have on company results. This is a significant challenge, because, as Joseph Enever, senior analyst at Gartner, points out, the entrenched belief that marketing is an expense and not a strategic investment remains a major obstacle.
Despite the challenges, some marketing leaders have found success by taking a more holistic, long-term approach to demonstrating the value of their initiatives. The survey shows that those who employ this strategy—focused on measuring marketing’s impact in areas such as sales, customer experience, and operations—are the most successful in gaining recognition for their contributions. By expanding the narrative about marketing’s value, these leaders are able to align their efforts with company goals more effectively. The key, according to Enever, is to take a broader, more disciplined view that resonates with all stakeholders in the organization.
Metric sophistication also plays a crucial role in demonstrating marketing value. Gartner identifies three types of metrics that offer deeper insight into marketing impact: relationship metrics (such as customer lifetime value), transactional metrics (such as return on ad spend), and operational metrics (such as stakeholder satisfaction). Leaders who employ at least two of these highly complex metrics are much more likely to demonstrate marketing value than those who stick to a simpler approach or don’t use these metrics at all.
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An essential aspect of achieving recognition within the organization is active participation in data and analytics initiatives. The survey highlights that CMOs who are directly involved in activities such as creating marketing dashboards and developing measurement strategies are significantly more likely to demonstrate the value of marketing. Furthermore, those who regularly interact with data analytics teams and other key leaders report greater success in this regard. Integrating marketing with the company’s analytics capabilities is therefore a key factor in generating value.
Despite the challenges, some marketing leaders have found success by taking a more holistic, long-term approach to demonstrating the value of their initiatives. The survey shows that those who employ this strategy—focused on measuring marketing’s impact in areas such as sales, customer experience, and operations—are the most successful in gaining recognition for their contributions. By expanding the narrative about marketing’s value, these leaders are able to align their efforts with company goals more effectively. The key, according to Enever, is to take a broader, more disciplined view that resonates with all stakeholders in the organization.
Metric sophistication also plays a crucial role in demonstrating marketing value. Gartner identifies three types of metrics that offer deeper insight into marketing impact: relationship metrics (such as customer lifetime value), transactional metrics (such as return on ad spend), and operational metrics (such as stakeholder satisfaction). Leaders who employ at least two of these highly complex metrics are much more likely to demonstrate marketing value than those who stick to a simpler approach or don’t use these metrics at all.
adxs
PuroMarketing Podcasts
Listen to all our podcasts. Also available on Spotify, Ivoox and Youtube
puromarketing.com
An essential aspect of achieving recognition within the organization is active participation in data and analytics initiatives. The survey highlights that CMOs who are directly involved in activities such as creating marketing dashboards and developing measurement strategies are significantly more likely to demonstrate the value of marketing. Furthermore, those who regularly interact with data analytics teams and other key leaders report greater success in this regard. Integrating marketing with the company’s analytics capabilities is therefore a key factor in generating value.