Creating the most efficient marketing mix possible and quantifying the effect of that mix on sales has become the holy grail of modern marketing. Yet in DataXu’s new research report, “Modernizing the Mix: Transforming Marketing Through Technology and Analytics,” 41% of the 532 global marketers surveyed identify creating the most efficient mix possible as their biggest marketing challenge today.
How can this be? What is preventing marketers from moving forward to solve their “mix” problem and optimize marketing efforts? There are three main roadblocks standing in the way:
1. Few partners or platforms offer marketing technology solutions which reliably address cross-channel analysis and optimization.
Real-time cross-channel marketing mix analysis and optimization is the only true solution to the challenge of creating the most efficient mix possible to drive results, but it’s not easy. Sophisticated technology is needed to identify the most efficient mix possible to drive ROI. DataXu provides one (if not the only) available marketing technology solution within this category through our Market Pulse real-time media mix optimization software.
2. Marketers are busier than ever juggling technology, execution, reporting and vendor management.
Traditional econometrics studies or bottom-up attribution methods leading to cross-channel optimization take significant amounts of both time and resources; two items that few marketers today have excess of.
As seen in the report graph below, “Being stretched too thin due to working with and managing too many marketing technologies/vendors” is identified by 23% of global marketers as the single greatest threat to the success of their marketing team. Marketers manage a broader set of technologies and responsibilities than ever before, and unfortunately few find themselves with the time needed to screen a new set of cross-channel analysis providers or develop the necessary skills to conduct a thorough analysis and optimization in-house themselves.
3. Platform-specific success metrics or measurement standards unique to individual “walled gardens” such as Facebook or Google cause headaches later when attempting to analyze marketing return on investment (ROI) and/or channel performance.
Aggregating and normalizing channel-specific campaign data for which “apples-to-apples” equivalents may not exist to create a single holistic performance report can be time-intensive and challenging. The lack of normalized performance data available to marketers today directly impedes their ability to create the most efficient mix possible in the future.
As seen in the graph below, the second greatest self-identified threat to the success of U.S. marketing teams is poor visibility into metrics on whether or not marketing efforts are working. Inability to prove the effectiveness of each marketing channel is also identified as a significant threat.