According to Gartner’s annual CMO Spend Survey, marketing analytics investments is the single biggest area of spend, representing 9.2% of budget in 2017. But as my colleague, research director Ewan McIntyre points out, it’s not clear that analytics efforts are aligned to the CMO’s strategic measures. During Gartner’s CMO Spend Survey webinar this past week, marketing leaders came prepared with lots of questions. Here, we’ll explore those about marketing analytics.
What are the big spending trends within CMO’s “analytics” bucket?
Two areas stand out in our conversations with marketers:
Customer data platforms: This emerging category of solutions promises to unify customer data, currently scattered across multiple databases and tools, according to Christi Eubanks, Gartner managing VP and author of the report, “Innovation Insight for Understanding Customer Data Platforms.” From July through October 2017, the number of client inquiries on this topic increased 47% compared to the first six months of the year.
Attribution systems: “Companies are still eager to move away from the biased ‘last touch’ attribution, alongside their increasing desire to show marketing ROI from upstream channels like social and display,” says James Meyers, principal research analyst.
Any talk of using AI and Analytics in the marketing mix or with digital marketing?
Most definitely. The AI revolution touches many aspects of marketing, according to Andrew Frank, Gartner VP and distinguished analyst. He’s identified the three most popular areas: marketing-facing analytics, untargeted conversational agents and real-time personalization. (The report, “Three Questions Marketing Leaders Should Ask Before Approving an AI Plan” is available to Gartner clients.)
What are 3 to 5 key metrics that you recommend CMOs track?
Earlier this year, Gartner’s CMO Strategy Survey found that CMOs lack consensus on what metrics should top the list of strategic key performance indicators (KPIs). Granular, executional data is not appropriate at this level, because it impairs the ability to see the bigger picture.
Among the metrics that should top the CMO’s list are:
• ROI of total marketing spend
• Market share versus competition
• Brand health
• Lifetime value to cost-of-customer acquisition cost ratio
Gartner clients who want to learn more can check out these reports:
CMO Strategy Survey 2017: Marketers Track Many Metrics, but Risk Overlooking What Matters Most to the Business
Use Gartner’s Hierarchy of Marketing Metrics to Link Execution to Goals
Cost Optimization: Use Efficiency Metrics to Build Marketing Spend Accountability