According to American statistician, Nate Silver, “every day, three times per second, we produce the equivalent of the amount of data that the Library of Congress has in its entire print collection.” If this is the case, it may come to little surprise that the concept of ‘Big Data’ has been coined as a huge hot topic in 2013. Yet, some companies continue to fail to integrate data analytics in measuring ROI. For instance…
- 57% respondents (to a Columbia Business School survey) are not basing their marketing decisions on ROI analysis
- On average, only 37.2% of companies use available or requested marketing analytics before a decision is made
- 71% see potential for Big Data to have a large impact on sales; only 16% have Big Data strategies for sales
- 70%+ of CMOs report feeling unprepared to harness the power of their data to make intelligent marketing decisions
To put this idea into perspective, let us consider one case of a new product campaign for a consumer electronics giant. The company used data metrics to measure how various ads prompted online sale searches that led to purchase, and found the following results:
|Ad Source:||% of Budget:||Results after data analytics:|
|YouTube||6%||2X as effective as television ads|
|Search PPC||4%||Generated 25% of sales|
A reallocation of advertising dollars resulted in a 9% increase in sales without having to extend the budget by one more penny.
Seems simple, doesn’t it? So our advice is that if you are a CMO, rely less on your gut instinct and traditional marketing methods, and take advantage of the unique data sets available in order to best achieve objectives. To learn more, be sure to register for the Online Marketing Institute’s Digital Strategy Summit on March 22nd, where our very own Alexandra Gibson will be presenting on Wrangling “Big Data” To Make The Best Marketing Decisions. We are hoping she sets these CMOs straight.