Measurement and Accountability Are More Important Than Ever for Marketers

NEW YORK & LOS ANGELES--(BUSINESS WIRE)--In response to the uncertain economic climate, U.S. companies are demanding more accountability from their senior marketing executives and marketing departments. However, many companies still have a way to go toward implementing a consistent, formal approach to measuring marketing, according to a study released today by Forbes Insights and MarketShare Partners, a provider of cross-marketing optimization software and analytics.

“In the existing economic environment, CMOs want a more quantifiable measure of their return on investment, and more accountability than ever before is required of them”

The study, entitled “The Accountability Evolution: Marketers Turn to Metrics to Boost Their Strategic Value,” is based on a survey of more than 100 senior marketing executives. It examines the current marketing landscape, as well as the strategies and methodologies being put in place by companies. It also looks at how approaches vary between those companies with marketing budgets over $1 million and those under $1 million.

"The study demonstrates that mastering marketing science and its promise of creating a process to more efficiently and effectively allocate marketing dollars is an aspiration for most marketers, especially during challenging economic conditions. However, clearly the best marketers have invested in both the art and science of marketing and that metrics must be equally weighed with a "big idea" that serves as a core theme guiding all marketing initiatives," said Bruce Rogers, Chief Brand Officer of Forbes Media.

The study can be downloaded at: www.forbes.com/forbesinsights/accountability

Among the key findings from The Accountability Evolution are:

Big idea vs. metrics: Marketers with budgets of less than $1 million favored metrics (58%), whereas marketers beyond the $1 million threshold felt that having a “big idea” was more important (58%).
Measurement in the workplace: The use of metrics to prove marketing ROI has certainly become an internal focus. The majority (68%) of marketing executives in the survey confirmed that they have analytics in place to measure effectiveness and ensure accountability.
The metric implementation chasm: Yet, at the same time that measurement is being employed, many marketers do not have formalized systems implemented. Only 56% of respondents (compared to the 68% who confirmed some usage of metrics) have a defined system in place.
Diminishing accountability in campaigns: Despite 75% of respondents confirming each marketing initiative begins with a comprehensible goal, just 56% verify there is a concrete system at the conclusion of a campaign to communicate the marketing impact.

“In the existing economic environment, CMOs want a more quantifiable measure of their return on investment, and more accountability than ever before is required of them,” said Jon Vein, co-Founder and CEO, MarketShare Partners. “The study provides a compelling case that marketers need to take a second look at their accountability programs to ensure that they are optimizing across channels more effectively to have a meaningful impact on the bottom line.”

“The Accountability Evolution” is based on a survey of 103 senior marketing executives, fielded between February 9, 2010 and April 1, 2010. Half of the respondents (50%) had marketing budgets of more than $1 million, 39% had marketing budgets of less than $1 million, and the remaining declined to specify their marketing budgets.

About Forbes Insights

Forbes Insights (www.forbes.com/forbesinsights) is the strategic research practice of Forbes Media, publisher of Forbes magazine and Forbes.com. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights’ custom research covers a wide range of vital business issues, including: strategy; marketing; technology; talent management; financial benchmarking; risk and regulation; and more.

About MarketShare Partners

MarketShare Partners (MSP) is the industry’s leading cross-marketing optimization firm that is transforming the world of resource allocation and marketing measurement. Founded in 2005, MSP has helped companies of all sizes enhance their advertising and sales programs, including many of the world’s most recognizable brands. By evaluating key drivers of a company’s business, MSP helps marketers and agencies make smarter decisions regarding where to most effectively spend their marketing, sales and promotional dollars as well as media owners make more consultative, higher value add integrated sales. For more information, go to www.marketsharepartners.com.