Europe's biggest firms fail to check ROI on 73% of marketing spend, study says
Organisations are each allowing an average of €124 million of their individual marketing budgets to go unmeasured.
On average, only a quarter (27 percent) of European marketing channel spend is currently measured in terms of Return On Investment by procurement departments. Worryingly, more than half (55 percent) of procurement professionals report a pattern of marketing departments getting excited about new platforms, only to be disappointed by their commercial results.
In the past, the sometimes fraught relationship between marketing and procurement has been cited as a barrier against measuring marketing ROI, however, 65 percent of European procurement professionals report that this disconnection no longer exists. In fact, 61 percent concede that marketing teams are actually very helpful in measuring the impact of marketing initiatives.
Stronger relations between marketing and procurement, alongside increasingly sophisticated technology has enabled almost two thirds (64 percent) of European organisations that do measure marketing ROI to do so accurately and confidently.
In these same businesses, a staggering nine in ten (88 per cent) procurement professionals claim they can precisely calculate the business impact of activity under each marketing channel.