SOCIAL NEWS: Only 15% CMOs can prove social ROI
Only 15 per cent of chief marketing officers (CMOs) can prove the impact of social media investments, according to The CMO Survey.
Thirty-six per cent of the 410 CMO surveyed said they have a good sense of the qualitative impact, but not the quantitative impact. Where as almost half (49 per cent) have not been able to show that their company’s social media activities have made a difference.
Despite this, marketers are expected to increase expenditures in social media from 6.6 per cent to 15.8 per cent over the next five years.
At present, 5.5 per cent of marketing budgets is used on analytics. This is expected to increase to 8.7 per cent over the next three years.
Meanwhile, marketers are increasing their efforts in collecting data about online customer behaviors. Approximately 60 per cent collected online customer behavior data for targeting purposes, and 88.5 per cent are expected to increasingly do this over time.
Professor Christine Moorman of Duke University’s Fuqua School of Business, director of The CMO Survey, said: “Marketing leadership requires that CMOs offer strong evidence that strategic marketing investments are paying off for their firms in the short and long run. CMOs will only earn a ‘seat at the table’ if they can demonstrate the effect of their marketing spend."