When you make an investment, you expect to see results; hiring a marketing agency should be no different.
That’s why it continues to surprise us that a significant gap exists between the respective expectations and priorities of agencies and marketers when it comes to the measurement of marketing effectiveness.
Our recently released New Year Outlook Survey took stock of what marketers and agencies are seeing in the market, and one subject we asked them about was measuring ROI in the year to come; specifically, “do you feel that you (or in the case of marketers, your marketing agency) are measuring ROI effectively?”
The numbers below offer a clear picture, and track with what we’ve seen in agency searches we conduct for marketers.
Many of those that come to us feel like their agencies aren’t delivering to their full capacity, and this feeling may be a result of the partner offering unclear answers when it comes time to prove campaign effectiveness. If this sounds familiar to you, you’re likely part of the 85% of marketers who want more from their agency’s analytics.
As in years past, the survey uncovered a discrepancy in how each side of the table views the state of ROI measurement; 33% of agencies feel that they’re effectively measuring ROI, while only half as many marketers—15% of those surveyed—feel the same about their marketing partner’s measurement capabilities.
That gap in perception is concerning to say the least, and to paraphrase Jerry Seinfeld: “what’s the deal with that?”
As marketers continue to feel pressure from the top to deliver measureable, data-driven ROI, the increased demand for these results has outpaced the agencies’ ability, or impetus, to provide them. To delve further into why agencies aren’t feeling a sense of urgency when it comes to delivering these metrics, we also asked both sides about the importance of measuring this ROI, to get an idea of where their priorities lie.
What we found is that, as expected, agencies don’t think it’s as important (compared with their marketing counterparts) to provide measurement on their efforts, especially when it comes to traditional media.
As long as this gap in urgency exists, agencies and marketers will find difficulty in finding alignment when it comes to ROI measurement expectations.
At the end of the day, marketers are left feeling unsure of the value of their marketing agency because, well, the agency is often uncertain themselves. On your search for an agency partner, don’t be afraid to dig into the candidate’s analytic methods.
How do they measure efficacy? Which channels do they prioritize measuring, and why? Do their chosen KPIs align with your own and if not, are they able to justify their selections?
In short, ensure that your agency has a firm grasp on the effectiveness of their efforts, and has a plan to deliver and demonstrate the results you expect and deserve.
If you feel you can do better than your getting from agency right now, feel free to give us a call (513-559-3101).