I found it fascinating that according to the Forrester report (most) brand marketers:
A) aportion budget based on historical spending patterns
B) do not apply media modelling to predict how media choices and spending will impact their brand
C) find it hard to credit the correct marketing medium for a sale
On point C, I saw on Twitter that @fififofum said:
RT @spikejones: Just talked to a person in a Fortune 200 that said, “Sometimes WOM is not about ROI.” Amen, brother. Preach it.
Yes marketers have experimental budgets to experiment with on new and emerging mediums like word of mouth. But if you can’t even notionally assign any sales to your experiments, guess what? They get cut.
The purpose of a business is to make money. The purpose of the marketing department is to convince consumers they need to buy from the business.
Clearly measuring ROI is tough and, truth be told, many organizations don’t set their marketing up for success in this field. But it doesn’t mean we should stop trying to measure and apportion sales to activities like WOM.