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I read an article in Marketing Week recently
Advertising perceived as low on ROI
According to the latest Marketing Trends survey amongst 1,223 marketers, by The Chartered Institute of Marketing (CIM), advertising, excluding online, produces the worst return on investment for marketers. Almost a quarter of marketers rated CRM as the best followed by PR. Sponsorship was rated as the second least effective form of marketing in the poll. David Thorp, director of research and professional development at CIM, says: “As belts tighten it is clear that marketing spend on advertising is under pressure but it’s refreshing to see that investment in ‘knowing your customer’, through CRM systems, marketers are able to wisely concentrate their spend in the most effective activities”.
Marketingweek.co.uk, 6 August 2009
Why is this even worth mentioning? Off line advertising has always produced the worst ROI particularly in terms of response and sales based metrics. The measurement criteria for advertising in general are routed in brand awareness and recall.
In addition, ‘knowing your customer’ should be standard fair for good marketers, brand and product managers, not ‘refreshing’ as the article states. It shouldn’t take an economic downturn to make budget holders want to be responsible with available spend and strive to achieve good ROI.
Marketers knowing their customers and using this knowledge to create dialogue between customer groups in order to build brand advocacy, reputation and recommendation and doing this in a non-intrusive, believable and conversational way would be refreshing.
Wake up people.
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written on August 13th, 2009 5:01 pm
Recommended further reading:
http://purplefrog.co.uk/?p=657