- That seems low...
- How the hell did they even come up with that number?
The person was trying to justify the digital marketing budget and get an increase for next year. Based on only 8% I would definitely cut the budget since it seems high ineffective compared to the millions that were spent. The more interesting questions though was the second thought, How were they able to attribute 8% to marketing and know it wasn't something else? I didn't see any regression models backing up the claim.
On one hand with digital marketing we are able to measure campaigns more and able to make decisions based on data. The question that remains: are we measuring the right thing? And are we attributing the cause to the right lever? How do we know it was digital marketing that caused that sale and not something else like word of mouth and the sale just happened to come through the digital channel? We got the sale, so does it really matter in the end what caused it? Yes it does if you want to maximize the return on investment. We want to invest more in things that work.
The company Marchex is trying to move the needle in the attribution game by finally tracking click-to-calls leads and provide better insights to companies. With $4 billion spent on click-to-call advertisements last year, they are addressing a significant blind-spot.
It is going to be interesting to see what other companies try to tackle this space by accurately and precisely attributing sales to the different campaigns and marketing channels to help drive more optimized marketing budgets.
Source:
http://goo.gl/bH4zy3
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