In 2012, big data evolved from computational experiment to strategic investment. Successful CMOs now embrace big data analytics because they understand its impact on their organizations.
They know that technology can give them an accurate view of their entire campaign ecosystem, including insights into how to improve performance through optimization. They are using data analytics to improve new key performance indicators (KPIs), such as attributed conversions, cost per attributed conversion, attributed revenue, return on ad spend (ROAS), and even increase in revenue. Data analytics provide CMOs with a way to increase the marketing department’s credibility, confidence, and trust within the organization. Essentially, by stepping beyond their traditional scope and thinking more like a CIO, CMOs have a means to prove how marketing activities deliver leads to the sales organization.
But recent surveys have demonstrated that most CMOs feel unprepared for the expected level of complexity driven by an increasingly interconnected world over the next five years. Meeting that complexity head-on is a challenge, but a good place to start is by forging a strong collaboration with IT. Many forward-thinking CMOs already have by proactively participating in purchasing decisions that affect their organizations. When CMOs work with IT to unravel the mysteries of big data, they are fostering an analytical culture within their organizations, which is atypical to the previous one. Marketers can immediately interpret and act on results to keep pace with the changing landscape of media planning and buying.
Moving Past ‘Analysis Paralysis’ To Reap The Rewards Of Big Data
It’s not necessary for CMOs to understand the ones and zeros behind analytics, but they do need to understand what they can do for their organizations. Scenario modeling, for instance, can integrate different media plans to let you understand the impact optimization will have on campaign results. Leveraging historical data, both across channels and within channels, can help predict the results of campaign modifications. Analyzing the effect of a campaign change or optimizing desired KPIs can identify effective cost-per-action (eCPA) figures and determine media saturation points to avoid overinvesting across and within channels.
Big Data Attribution: A CMOs Gold Mine
At the end of the day, it really isn’t about the data itself. It’s about the customer insights analytics can provide. For marketers, the ability to measure and quantify the effectiveness of advertising spend has never been more critical. Previously, accessing the effectiveness of marketing campaigns felt more art than science, but with today’s attribution tools and techniques, it is now possible to evaluate campaigns in an increasingly granular way, down to the level of the individual customer. This allows marketers to discuss investments in a way that conveys tangible value to the business, and it improves marketing program performance by taking out the guesswork. Analytics enable organizations to deliver personalized, real-time messages to the right customers at the right time—proactively improving the customer experience. Without it, businesses will continue to operate status quo, ignoring valuable insight and overlooking the opportunity to prove impact to the bottom line.
By reaching outside their comfort zone and embracing new technologies, CMOs now have the tools and skills necessary to prove and enhance campaign ROI.