65% of CEOs demand that the return on investment of marketing campaigns be finalized before they are approved
Taking into account the latest study published by Lenskold Group and sponsored by MarketSphere about the importance of the return on investment of marketing campaigns, affilinet, Spain’s leading company in results marketing and online affiliation, analyzes how marketing professionals they feel pressured to demonstrate the ROI of marketing campaigns and present measurable, concrete and reliable results.
According to this study, 65% of managers and financial managers of companies today demand more than ever to demonstrate a return on investment (ROI) reliable, concrete and measurable when investing in marketing campaigns. “This percentage reflects the difficulty that companies have to measure the economic results of their marketing campaigns. The lack of metric of traditional marketing campaigns implies a lack of knowledge about whether the strategy has impacted the consumer, and whether the expected objectives have been achieved. Therefore, affiliate marketing is one of the best alternatives to be able to demonstrate the results of the campaigns, since it offers the ability to measure and account for real impacts, “says Cristina Berzal, director of affilinet.
The financial situation of companies has been changing over the years, and as a result, the need to take more advantage of their investments has increased, severely influenced by the impact of the recession. Consumers demand more, they want specific information to cover their needs, and it is necessary to reach them directly, saving time and costs. Almost 80% of retailers have recognized the need to measure and analyze the effectiveness of marketing campaigns in order to estimate the necessary budgets for each of them. That is why new complementary channels are growing to analyze and measure campaigns and their results, enabling the marketing team to adapt campaigns to make improvements and thus increase ROI.
“The relevance of online membership campaigns at this time is due to the transparency they offer, an essential element to know when and at what time the activity peaks will occur. For its part, the affiliation provides continuous monitoring of costs and also the technology and resources needed to increase sales, “adds Cristina. “Affiliate marketing is a useful, profitable and affordable tool that gives companies the ability to react immediately in a heterogeneous environment such as the online world. The value it brings is due to its ability to measure the ROI of the campaigns and the segmentation capacity it offers. ”
According to this study, more than half of companies (51%) try to estimate the ROI of marketing activities within their planning strategy. The problem is that the metrics that are usually found in traditional marketing are very ethereal and difficult to link only to the effort of the campaigns. As indicated by the Forbes Insights study in association with George P. Johnson, the main measuring points that marketing managers usually use to evaluate the results are customer retention (58%), sales (44%), profits per customer (35%), and repeated purchases (33%). “The increase or decrease of these parameters may be due to the work of the different departments of the company and not only to the effort of marketing activities,” says Cristina. “Nevertheless,
Even so, there is still 49% that does not estimate budget for marketing activities, being a basic and necessary strategy to improve the management and development of marketing profitability. “Affiliate marketing can become the solution for this percentage of companies, since it offers high segmentation, reliability and an economic cost, and also has the possibility of direct online sales, making the Internet a very important distribution channel.