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Measuring Marketing Effectiveness in light of CCPA

By Frances Russell | October 25, 2019 | 0 Comments

AdvertisingData and AnalyticsMultichannel Marketing

Alas, we’ve arrived. White bed sheets adorn the trees in your neighbor’s yard, candy corn lines the shelves of your local supermarket, and you’re working up excuses to indulge in a pumpkin spice “coffee” (read: dessert)… daily. 

The holiday season is upon us. And at the end of it all, there’s one additional gift that marketers expect to arrive on New Years Day 2020: the California Consumer Protection Act, commonly known as CCPA. 

It’s everything we’ve been waiting for! 

Okay. Perhaps it’s not the most exciting “gift.” But having grappled with GDPR and other regulations in 2019, marketers are already prepared in many ways. If not just to comply with legislations, many organizations have scaled back on personalization to meet consumers’ expectations for data privacy. (For more on the implications of GDPR for advertising, see this video from my colleague, Andrew Frank, or, for Gartner clients, see our extensive research on personification). 

Of course, the inability to gather and use user- or customer-level data (cookie tags, online user IDs, IP addresses) has implications not just for our advertising strategies, but also for marketing measurement techniques. As the foundation for marketing attribution continues to crumble, most marketers are resigned to “revert” to MMM. 

But although it may be limited in the insights it can provide, MMM isn’t a totally antiquated technique. While models still rely on aggregated, historical data to approximate marketing effectiveness, “reverting” to MMM is a choice. Today’s models analyze ROI across the portfolio, comparing not just channel ROI within each product or brand, but across them. They can also account for the impact of external factors like competitor actions, weather or seasonality.

In 2020, leading marketers will proactively look to adopt such advancements.

In tandem, marketers will also look to adopt lightweight measurement alternatives, two of which are described below.

  • Return on Objectives – This approach draws clear and credible connections from marketing activities to business objectives like Customer Experience or Brand Awareness. To get the most out of this approach, use data on past performance, what’s average for your industry (Gartner can help you get these benchmarks!) or publicly available information on competitors to provide a point of comparison. Additionally, use predictive analytics, often included in marketing-specific dashboard technologies, to forecast expected performance against targets or goals.
  • Value-Point System – Specific to campaigns, this approach assigns points to each consumer interaction based on potential sales impact. This approach is simple enough to use just once, but it becomes more powerful and accurate over time as the system adjusts points based on campaign performance and business results.

Even if these approaches are less accurate or slower than what attribution once enabled, they not only ensure compliance. The cost savings can also be significant.

For more on how to build trust among internal stakeholders unaccustomed to MMM, Gartner clients can see this recently published note: Build Trust and Accountability in your Marketing Mix Model.

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