If you’re a CMO, you’ve probably been struggling to demonstrate the value of your marketing spend. According to the 27th edition of the CMO survey, digital marketing has taken the place of brand-related activities in the role of CMO No. 1. This change has made digital marketing increasingly important to CMOs. In fact, it has risen to the number one responsibility in most companies. In fact, 59% of marketing leaders say their CEO or CFO is placing more pressure on them to show the value of their marketing spend. Luckily, most marketing leaders can demonstrate short and long-term impacts using both quantitative and qualitative metrics. Of these, sales revenue is the most consistently tracked marketing outcome.
While traditional forms of marketing require large upfront investment, digital performance marketing helps brands control costs, optimize budgets, and measure results. By measuring results, advertisers can pay for only what works, while reducing the risk of failure. In addition, analytic tools provide detailed breakdowns of individual ads, allowing them to find areas for improvement and implement changes on-the-go. These advantages make digital performance marketing the perfect solution for auto insurance companies looking to increase their bottom line.
While marketers understand the importance of digital marketing for the future of enterprise, they haven’t fully embraced the method. According to the CMO Survey, marketers allocate 57% of their marketing budget to electronic marketing, and plan to increase their spending by 16% by 2023. The only problem with this strategy is that it’s a bit weaker than last year. Furthermore, 30% of entrepreneurs report only average or no returns from their electronic marketing investments. This results in difficulty when it comes to investment.
Digital performance marketing includes many forms of digital advertising. These include paid search ads, partner marketing, email marketing, social media, and native advertising. These are all methods that focus on boosting brand performance and ensuring conversions, which is the end goal of performance marketing. The ROI that these approaches produce is usually tangible and easy-to-measure. The results of these campaigns are usually the most important measurable outcome in performance marketing. They also help marketers identify which partners are working best for their businesses.