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Marketing Execs Struggle to Demonstrate ROI

  • Marketing Execs Struggle to Measure ROIThe Find: With budgets being squeezed from all directions, marketing executives are under increasing pressure to demonstrate return on investment and are struggling to do so, a new study concludes.
  • The Source: A study by The Conference Board Research Working Group on measuring and managing return on marketing investment.
The Takeaway: When the Conference Board spoke to 73 companies about measuring marketing ROI, they found that two-thirds had implemented marketing ROI programs in recent years, but that doesn't mean the matter is done and settled. Of the companies that had implemented programs, "None have yet achieved their goals in measuring ROI. Only one-quarter report making "good" progress. The majority said they found the process more difficult than anticipated."

So what's making these execs' lives so difficult? Cultural resistance, lack of resources and lack of business infrastructure were among the most frequently cited frustrations.

  • 55 percent said technological deficiencies were a primary reason for their problems
  • 47 percent reported problems with data availability or integrity
  • 39 percent were troubled by resource dedication
  • 22 percent didn't have the methodology or know how to succeed with marketing ROI
Meanwhile, just shy of two-thirds of respondents (63 percent) agreed that leadership commitment was an important driver of marketing ROI success. Lorrie Foster, Vice President of Councils and Research Working Groups at The Conference Board, sums up:
Progress in this area has been difficult. Many of the expected returns from marketing efforts are intangible or long-term. Hence, measuring the return on investment in marketing is a more complex and less well-developed process than calculating investment returns in other business areas.
The Question: Is anyone who's company has mastered measuring marketing ROI willing to share the secret of their success?

(Image of tangled measuring tape by TheTruthAbout..., CC 2.0)

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