As per Boston Consulting Group and Meta’s ‘Measure To Grow: Drive double-digit growth by measuring marketing right’ report states that digital is the fastest growing marketing channel in India that would soon overtake television.
Digital is the new mainstream for there has been a three time increase in the share of digital marketing spends over the last five years by India Inc. Despite the significant growth of digital marketing spends, the measurement practices have not been able to keep pace. As a result, organisations are leaving significant value on the table.
Boston Consulting Group and Meta’s ‘Measure To Grow: Drive double-digit growth by measuring marketing right’ report states a 12 per cent to 34 per cent jump in share of digital in total marketing budget in less than five years.
The report said that digital is fastest growing marketing channel in India would soon overtake television. Strategic measurement could unlock 60 per cent sales uplift and lead to ten time return on ad spends. Further, it could lead to 25 per cent increase in gross margin, it added.
As per the report, the cost of acquisition due to poor measurement was 65 per cent higher. Seventy per cent and more were still underinvesting in measurement capabilities. Only five per cent of organisations possessed quality data that could enable key business decisions.
Shaveen Garg, managing director and partner, BCG, said, “While the spends on digital marketing have skyrocketed, the true efficiency of the spend is not measured in most Indian companies. Thus, potentially leaving a lot of money on the table. As the customer journeys have become complex and intertwined between online-offline and across channels, the ability to measure business impact of digital marketing has taken a hit.”
Garg added, “Our study showed that some companies have taken a lead and are getting exceptional returns, vast majority are in early stages. There is no silver-bullet single answer to what to measure and how, but the core principle to follow is to capture incremental impact on true business metrics.”
Pratham Hegde, director and head of measurement, Facebook, India, “Digital is the new mainstream, and in order to unlock growth, there is a growing need for businesses to measure the true impact of marketing on business outcomes. The industry consensus is that there is no single measurement method or metric that will address all measurement requirements. The core recommendation for advertisers is to have an incrementality based approach at the centre of their measurement philosophy.”
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