CMOs Are Measuring Big Data all Wrong
What to do with this big data?
CMOs dream of creating omnichannel marketing paradises, but their failure to harness the intelligence of Big Data is stifling their efforts. About 85% of CMOs aren't measuring their multichannel marketing performance at all, or they're measuring the data using subjective metrics such as first or last touchpoint, according to a study released this week by The CMO Club and Visual IQ.
“Only 4.8% of companies are utilizing algorithmic marketing attribution to measure the performance of their marketing ecosystem,” says Manu Mathew, CEO of Visual IQ, a provider of attribution measurement software.
Essentially, algorithmic marketing attribution is a mathematical, objective set of metrics that quantifies how channels contribute to an organization's overall marketing objective. “Given the almost universal acknowledgement on the part of marketers that first click, last click, or subjective rules-based measurement methodologies for attributing marketing success are flawed, it was extremely surprising that the overwhelming majority of marketers still use these techniques,” Mathew says.
The study, which surveyed 233 CMOs across various verticals and companies, revealed that about 86% of CMOs view availability of, and access to, data as their number one obstacle to implementing an effective omnichannel strategy. A lack of tools or technology (around 85%), and an inability to measure cross-channel performance (about 82%) follow as the second and third most prohibitive issues with implanting omnichannel strategies.
The study also found that Big Data and the implementation of mobile advertising and commerce are the two highest priorities identified by CMOs over the next year. “The recent growth in the maturity and sophistication of technology solutions and services that address these challenges provide options to CMOs that didn't exist just three to four years ago,” says Mathew.