In a recent survey* of attendees at the Ad:Tech San Francisco conference on advertising technology, 33.5% of the respondents said that they spent more than 41% of their total budget on online advertising.

 

 

Percent of Marketing Budget US marketers Spend on Online Advertising

 

Percent of Budget Allocated

% of Marketers Spending

6-10%

15.9%

11-20%

11.2%

21-40%

13.7%

41% or more

33.5%


That’s great data.  But what’s even more interesting is the fact that only 3.54% of respondents do a complete ROI analysis of their online ads.

 

 

Methods Used by US Marketers to Measured Online Ad Results

 

Measurement Method

% Respondents

Using Complete ROI analysis

35.4%

Click-through rates only

24.2%

Conversion metrics

18.7%

Don't measure

21.7%


And as the data shows, what’s more shocking than how few marketers do full ROI measurement is how many don’t do any measurement at all - a full 21.7%!  This is amazing given the current push to establish Marketing Performance Measurements (MPM) practices and Key Performance Indicators (KPI) for marketing and demand chains in general.

 

Certainly at DemandEdge, we are big believers in measuring the effectiveness and efficiency of demand chain.  OK, we’ve taken a different approach to how most people do it as we’ve developed the concept of an ‘operational model’ that ties together all the KPIs for a client’s entire demand chain (which makes it work a lot better!).  But it’s still surprising to us that so many marketers aren’t even measuring the most measurable programs such as online advertising.  We’re hopeful one day all of that will change…

 

*Survey and data source:  Web Trends (www.netiq.com/webtrends/default.asp) and Emarketer (www.emarketer.com)