Better tracking and conversion monitoring could boost profits
Growth in internet marketing not matched by ROI measurement (Craig Swallow)
Internet Marketing needs to be Measured More to Achieve Optimal Return
Many companies are failing to use all the tools available to them to measure the effectiveness of internet ads, a study has identified.
The 2010 Lead Generation Marketing ROI [return on investment] Study determined that many firms are relying on click measurement, perhaps to the detriment of other channels. It determined that around half of business-to-business (B2B) marketers look to the last marketing touchpoint to give them all the information they need on the effectiveness of campaigns.
This could lead to untapped profit potential, the Lenskold Group emphasised, as certain areas for improving marketing strategies have been overlooked. In some cases, companies did not know how much their profits would be increased if they allocated an extra ten per cent to their marketing budgets.
However, the research determined that B2B marketers using ROI metrics were more likely to estimate their growth than those who did not. A total of 22 per cent were able to consider future revenue growth projections, compared to just ten per cent who had not used ROI metrics.
Jim Lenskold, president of Lenskold Group, commented: “It is evident that there is more profit potential in lead generation marketing that can be achieved with better tracking, effectiveness measurements and ROI discipline.” He added that marketers needed this information at their disposal in order to either “accept or request additional lead generation budget”.
Karin von Abrams, senior analyst at eMarketer, recently emphasised that online marketing is growing in popularity because of the strong ROI it offers. She said that a number of major retail sectors, such as the travel and technology industries, have started to notice the value of online metrics, which is likely to be a trend that extends to many other areas.