Measurement practices have not kept pace with the rapid increase in digital marketing spend.
A Boston Consulting Group – Meta report has revealed that despite a 12% to 34% jump in the share of digital in the total marketing budget in less than five years, measurement is not prioritised. Inadequate measurement comes at a high cost, 65% higher than the acquisition cost.
Moreover, measurement is an afterthought for most organisations, with 70% of businesses underinvesting in the segment. By focusing on optimum measurement practices, brands can experience a 60% uplift in sales; ten times return on ad spends and a 25% increase in gross margin.
Brands must begin by measuring efficacy and incremental benefits from a specific digital marketing campaign. For this, businesses must employ a mix of measurement models. Similarly, investing in running experiments on how media works can help brands understand the incremental impact.
[3 minute read]