The National Advertisers Association and the Marketing Management Analytics released their annual survey with some rather interesting results. Here are a few highlights:
45% of organizations lack marketing ROI definitions (up 20% from last year).
61% of marketers said there is only “some” cooperation between finance and marketing.
42% of marketing executives said they are dissatisfied with their marketing ROI metrics.
Those are some ugly numbers! This seems to be an endemic problem at many companies, this poor relationship between finance and marketing. I can only speculate what the root problem is. But I think it is up to marketing to fix their end. Having a lot of friends in finance I often get the impression that they think marketing is fluff, kind of a fluff department that really doesn’t add any value beyond cute pictures and slogans. Unfortunately that is sometimes true on some companies. In a lot of companies if these numbers keep up, it won’t help change this perception. Better analysis of marketing activities are needed and needed in a lot of organizations.
This is not the first study that shows similar numbers so this is certainly not a one off situation or unique. More marketers need to ask and address the questions regarding how they can directly demonstrate their impact on the bottom line.