More than three-quarters (78%) of CEOs would increase digital marketing budgets if marketers could demonstrate that their online activities have a direct impact on sales, according to new research.
The Bango study surveyed more than 200 CEOs and analyzed top management’s current attitudes toward marketing budgets.
Unfortunately, while CEOs are open to increasing budgets, they currently feel that most digital marketing activities cannot be tied to their business results.
Bango’s research found that 62% of CEOs feel that too much marketing budget is wasted on activities that don’t deliver significant results, while 60% feel that the impact of digital tactics like social media marketing has been exaggerated.
Bango’s report shows that while CEOs feel they have been disappointed by social media in the past, they would be willing to invest more budget if marketers could demonstrate that they are reaching the right audiences and therefore have a direct impact on sales.
In fact, 71% said they would increase the budgets of their marketing departments if activities could be more directly targeted at buyers.
Bango’s chief marketing officer and co-author of the report, Anil Malhotra, explains: “CEOs are primarily concerned with fundamental business KPIs, the most obvious of which are activities that help increase sales. Marketers, however, tend to justify their activities by presenting results through a variety of digital marketing metrics, but these statistics are often too far removed from business fundamentals and ultimately make no sense to the board. .
“If marketers want to secure larger budgets, they must align their digital marketing campaigns with sales and revenue results. Guidance based on buying behavior allows marketers to directly link their activities to the business outcomes that matter most to the board: sales. “
To achieve this, the Bango report advocates for the adoption of ‘Buying Behavior Targeting’ across the entire digital marketing mix, a niche targeting feature introduced by platforms like Facebook, which can be supplemented with purchase data from a variety of consumer channels.
See Bango’s interactive research report here