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Which Marketing Channels Deliver the Biggest Impact on ROI?

June 20, 2016
Aaron Polmeer

By Sherice Jacob

ROI-channels

A new report released by eConsultancy, in collaboration with Oracle Marketing Cloud, has revealed precisely which channels marketers feel deliver the biggest impacts on their return on investment, and how they bring those priorities to light within their respective teams and companies.

If your efforts to squeeze relevance out of marketing initiatives leaves you feeling frustrated and confused – it turns out you are not alone.  So which channels were the most worthwhile, and what efforts should you be investing more time and money into?  Let’s take a closer look:

The Big ROI Catch-22

Not surprisingly, the report noted that the biggest roadblock to bigger investments in digital marketing was, simply, budget constraints.  Staff constraints followed second, as did company culture and an inability to measure ROI. The report itself asked the question, “Is the culture of ROI stifling innovation?”

This creates an interesting catch-22 in that if you cannot accurately measure your ROI, you can’t provide the proof management wants.  And without proof, you don’t get an increased budget to work with.  So which channels deliver the kind of proof you need? Here are the results:

Marketing With Confidence

Marketers rate their confidence in measuring ROI from different types of digital channels

Looking carefully at this chart, you’ll see why there’s such a disconnect between marketing investment and marketing results:  paid search was the only channel where at least 50% of respondents noted that they felt “good” about ROI measurement. Other channels, including email marketing for acquisition, and email marketing for engagement and retention came close, but as the report notes, only a handful of companies would rate their confidence as “good” in these areas.

Note the considerable drop-off after this point – automation, analytics, even content marketing takes a notable hit here.

What’s Causing the Drop?

As much as we embrace and encourage the use of many of these marketing channels, it’s clear that marketers are struggling to take the information they collect and turn it into actionable insights that have marked results in their campaigns.  According to the report, there are three main factors contributing to such a steep decline in measuring ROI confidence:

Budget Plans

If you’re thinking budget woes stem from a tight squeeze on marketing spending (on account of a lack of provable, measurable results), that’s not quite the whole picture. Nearly 75% of respondents on both the client and supply sides expected their digital marketing technology spending to increase.

However, a little over half of those same respondents acknowledged that it was easier to get executive buy-in and support to increase those budgets. This means there’s still quite a bit of work to do to convince the board room that these efforts are simply stepping stones toward the bigger picture of measurable results that they’re seeking.

The Customer Experience

There’s a lot of talk in marketing circles about “the customer experience” – but just how much of an impact does it have on spending? As it turns out – a lot.  Making sure the customer experience is seamless across all channels …read more

Source:: Kiss Metrics Blog

      

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