March 01, 2018 - By Ginna Hall, Senior Writer, Visual IQ
One of the biggest benefits of the digital era is the ability to engage with real people. But along with the upside come new demands on marketing teams, especially CMOs. Read on to see how multi-touch attribution can solve your needs for marketing intelligence.
79 percent of CMOs report they are not prepared to pursue digital marketing opportunities.
Digital channels are addressable, meaning they offer individual, user-level data (such as cookie data). Addressable channels allow marketers to move from marketing to anonymous personas to engaging with actual individuals. This type of people-based marketing enables brands to reach the right audience, with the right message, at the right place and time.
Marketers are embracing addressable channels for good reason. Online ads, video, social media, digital TV, and email can be more efficient and effective compared to traditional, non-addressable tactics. Your investment pays off in better results, higher engagement, and improved loyalty.
The reality is that many marketing chiefs are now “CMTOs.” Gartner reports that it found parts of sales, IT and customer experience report into the CMO at more than 30 percent of companies, while CMOs are responsible for digital commerce at 62 percent.
While CMOs lead their organizations, driving resources and setting strategy to produce results, many CMOs have less experience coordinating the resources and systems required to be successful in the digital era.
The role itself is under scrutiny and greater accountability. The average tenure of a CMO is roughly four years. For many, their tenure is short because they are ill-equipped to deal with the trends and the technology required to be successful. According to a recent study, 79 percent of CMOs report they are not prepared to pursue digital marketing opportunities.
Setting your team up for success is tougher than ever. A key factor in the complexity of marketing is the structure of the organization itself. Most marketing organizations are split between marketing (direct mail, website, mobile, email, SEO, social, PR, events) and media (display, paid social, SEM, affiliate, print, radio, TV).
In addition to VPs and directors of each channel, there are layers of managers and specialists executing tactics and spend for each channel, not to mention multiple agency and vendor relationships. Each has individual goals and incentives and may not work together to boost performance and enhance experience along the entire funnel.
If your organization sets individuals goals and incentives by silo, you may be hurting rather than helping performance. Assuming that every part of the organization is doing all they can to feed the funnel and drive results is no longer enough.
Today’s addressable world requires multi-touch attribution (MTA). MTA lets you take advantage of the unique set of data produced by addressable channels to understand effectiveness at granular levels, by audience, and at a much faster cadence.
It’s the difference between understanding how TV, print, radio, email and paid social impacted sales last quarter, and which display ad worked best yesterday to drive in-store sales, so you can boost ad spend for the winners while the campaign is still in-flight.
To be effective, marketing organizations and their agency partners must rely on a data source that offers a holistic picture of performance and makes it possible for everyone to work toward shared goals. At the same time, each team member has different needs for actionable marketing intelligence at a different cadence.
Let’s take a look at how differently CMOs and Channel Managers use data.
The CMO develops strategy and is responsible for annual budget allocation across all channels. They manage numerous marketing and advertising channels, multiple direct reports and the teams under them. The pressure to drive results and bottom-line revenue is increasing.
As the leader of the marketing organization, the CMO needs a holistic view of performance and results. S/he needs information to make sure the team is working together to the best of their abilities. With input from the team, ideally data-driven, the CMO divides spend between marketing and media. The CMO must also enable the team to work as efficiently and effectively as possible.
It’s budget planning time. The CMO of a large retailer needs to justify current marketing spend to other C-Suite leaders and decide how to allocate budget and coordinate messages and experiences across online and offline channels. S/he asks VPs of marketing and media to report on which channels are driving business objectives for each target audience and uses that information to reallocate budgets to achieve higher top-line growth and better bottom-line efficiency.
There are a number of roles that specialize in a particular owned or earned marketing channel or paid advertising channel. Managers of paid channels such as display, paid search, social, and affiliate need to optimize those channels and their spend on a daily basis. These roles are very tactical in nature and less strategic. They're responsible for executing on very distinct campaigns or buys using channel-specific technology.
Direct mail, website, mobile apps, and email are four owned channels that generate a significant amount of first-party data for the organization. Because each channel is addressable, managers can see which users are responding to their direct mail flyers, visiting the website, logging in and converting, and abandoning shopping carts, for example.
They know which emails are opened, clicked through, and converting. These teams optimize rapidly and frequently, with continuous A/B testing and adjustments to creative messages, offers and content in real-time. They need daily or real-time insights that will give them recommendations against these dimensions.
It's Monday and there are campaigns rolling out on Tuesday and Thursday to different audience segments. The email channel manager needs to boost click-through rates to meet the weekly KPI. He checks the response to last week's campaigns and sets up A/B tests for the emails going out this week, tweaking creatives for each audience segment to see which raises CTR. He then optimizes the email by segment and pushes those out to generate a higher return.
Digital innovation has created a new set of opportunities and challenges for marketers. To be effective, every member of your team and your agency partners need a holistic picture of performance. New tactics require new solutions that make it possible for your organization to work together toward shared goals.
Download our ebook Crossing the New Digital Divide: Your Guide to Marketing Effectiveness to learn more about advanced measurement solutions and the steps marketers can take to meet their attribution goals.