Study: Companies Focused On Marketing Accountability

"53% of survey respondents said they are shifting advertising investment from brand-building initiatives to promotional marketing..."

An article in MarketingDaily reviews the outcomes of a recent study, conducted by the ANA and MMA.

Companies have stepped up their emphasis and focus on marketing accountability practices, according to a new survey by the Association of National Advertisers and Synovate's Marketing Management Analytics.

The 2009 ANA/MMA Marketing Accountability Survey, conducted by New York-based 'mktg', surveyed 95 senior-level marketers in June 2009. According to the results, marketers are being forced to do more with less in this economy: 75% of respondents reported a decrease in their marketing budget in 2009, while 67% of respondents said marketers were expected to drive more sales with the same or a lower budget.

As a result, marketing accountability programs have taken on much greater significance. Creating closer, more collaborative partnerships between the marketing and finance functions has been on the rise. This has resulted in an increase in cross-functional marketing accountability teams, with 32% of respondents saying their teams included representation from marketing, finance and research. This is up from 22% in 2008. Meanwhile, 38% agreed that marketing and finance share common metrics (up from 27%), while 205 agreed that strategy is developed jointly (up from 9%).

Virtually all the firms that took part in the survey (92%) said they are taking steps to improve marketing effectiveness without spending more in 2009. To do so, they are employing significant tactical changes, including shifting investments from traditional to digital media (70%), shifting advertising investment from brand-building initiatives to promotional marketing (53%) and shifting into lower-cost media -- i.e., local vs. national TV spots, 15-second vs. 30-second, etc. (38%).

Looking ahead, the 2010 marketing outlook is one of cautious optimism. While 33% said their marketing budget would remain the same next year, 36% said they expect it to increase, with 12% saying it would go up by more than 10%. Fourteen percent said their marketing outlay would decrease by more than 10% in 2010.--Tanya Irwin