Whether you are working for a major global corporation, or you run your own small business, marketing is always going to be limited by some type of budget. One of the most difficult things for any marketer to do is figure out the best place to spend each dollar of their budget to ensure they are maximizing their return on investment. According to a new survey conducted by Neustar, it seems that it is a good idea to invest at least 10% of a marketing budget into measurement tools or services.
The survey was taken by 800 CMOs and found that when a business invests more than 10% of their overall marketing budget on measurement, they are three times more likely to be able to beat their target sales goals by 25% or more.
This is quite an accomplishment, and there are undoubtedly lots of factors that need to be considered, but as a general rule this could be a game changer for many people. Far too many marketers think that they can get away without professional quality measurement options because they just have a ‘feel’ for how things are performing. In the vast majority of cases, this just doesn’t work out very well.
CMOs also saw 5% better levels of performance from the investment they made in marketing, and 7.5% better business growth outcomes when they were investing in measurement.
No matter what it is you are trying to sell, knowing how your advertisements and other marketing efforts are performing is absolutely essential. While few will be surprised at the results of this survey, it will hopefully spur some people toward smarter marketing in the future.