June 21, 2018 - By Ginna Hall, Senior Writer, Nielsen Visual IQ
Today’s CMOs face a fragmented marketplace, expanding media channels, and empowered consumers who increasingly use multiple platforms to connect with brands.
Digital has transformed some industries and disrupted others. Marketing has shifted from a cost center to a source of vital demand generation activities. Increasingly, CMOs must demonstrate their team’s contribution to the bottom line and make every dollar count.
The need for marketing performance measurement and insight has never been greater. Yet only one in four marketers reports high levels of confidence in their ability to measure the ROI of their media or trade spend.
This statistic and others are among many surprising findings in a new report from Nielsen. Nielsen surveyed top U.S. marketers at for-profit companies in the automotive, consumer packaged goods, retail, telecommunications, technology and travel industries to gain insight into the most important marketing trends impacting CMOs. [Download your copy of The Nielsen CMO Report 2018]
“I don’t think anyone in the industry should be very confident in their ability to quantify ROI at this point. Attribution and measurement need to catch up to the evolution of consumer media consumption habits,” said one of the CMOs surveyed.
The first in an annual series, the Nielsen CMO Report reveals how brands are navigating today’s increasingly complex marketing and advertising environment. Nielsen conducted an in-depth survey and one-on-one interviews to understand what’s happening now and to get a sense of “what’s next” for both their companies and their careers.
In today’s fast-paced, increasingly digitized world, marketers have to be able to analyze and adapt to changes in consumer behavior quickly. The ability to quantify ROI and demonstrate real business results is imperative, as is the need for continuous improvement in marketing performance.
CMOs know they must justify the investment in advertising, not to mention the media, data, technology, resources and vendors that support it.
Marketers and their agencies are clearly adapting to changing consumer media habits by taking a more strategic approach to their marketing mix, but challenges remain organizationally, technologically and in regard to consistent ROI measurement.
Nielsen asked marketers to evaluate traditional and digital media channels as well as the “walled gardens” (e.g., the “closed” media ecosystems run by operators such as Facebook, Google and Amazon). The goal was to identify the most valued media channels, to understand how confident they are in measuring ROI and to track how their budgets are being impacted now and in the future. Here are some of the findings. To learn more, register for the Nielsen CMO Report Webinar on June 27 at 1:30 PM EST.
The Nielsen report demonstrates that many brands and agencies are doing their best to adapt to the increasing complexity of the marketing landscape, but are not quite there yet.
While 62% of respondents reported being organized in a way that supports an omnichannel approach with unified reporting structures and revenue goals, many describe the need for integrated data sets and cross-channel media planning in order to understand ROI as a whole and on a per-channel basis.
CMOs want simple, actionable intelligence that can be applied easily to improve performance, reduce media waste, and align disparate marketing teams to create the best customer experience possible.