Analysis: Why measurement and management of marketing data needs renewed focus if European marketers are to make the most of their campaigns
According to research from marketing services production specialists Charterhouse, current approaches to managing and using marketing data are seriously undermining European companies’ investments. Charterhouse also found that marketing data is currently being stored in silos across organisations, leading to a lack of efficiency and missed opportunities.
The report noted that 41 per cent of marketers at European businesses admit that they are missing opportunities to accurately measure campaigns and learn from these insights. While around a third (35 per cent) feel that current approaches to managing and using marketing data are holding them back from identifying the most effective channels, accurately targeting individuals and identifying new target audiences.
81 per cent of marketers surveyed admit that not all marketing data is stored centrally in their organisation, while only a third agreed that their company has an overarching strategy for marketing data initiatives. At the same time, more than half (53 per cent) of marketers are only seeing a medium or low level of return from their marketing data investments, and a 19 per cent admit that there is a lot of duplication of effort between people and teams.
The study also suggested that, because European companies are planning on increasing spend on marketing data in the next twelve months, there is a real opportunity for brands to win competitive advantage through managing and utilising their databases more effectively.
53 per cent of the marketers surveyed spend 10 per cent or more of their budget on data, and four fifths (82 per cent) expect to maintain or increase their level of expenditure in the next year. Customer data is the biggest spend area according to a third of marketers (32 per cent), with just under a third (29 per cent) saying that market analysis receives the lion’s share of the budget.
Anthony Hawkins, director at Charterhouse, commented that based on this research a strategy needs to be put in place: “From our research it is clear that companies are investing heavily in data, but not putting the right systems and processes in place to make the best use of it. Big data has the potential to provide valuable insights into campaigns, customers and the marketplace – but only if it is managed and used effectively.
“In the current economic climate, business can no longer afford to take a piecemeal approach to their marketing data initiatives. They need an overarching strategy and long-term ownership, and someone who is responsible for making sure that the business uses these insights to improve company performance.”