DAC Video: Marketing’s ‘Measurement Mandate’

. September 24, 2018

The advertising and marketing industry invests a trillion dollars every year. But without the guidance of sophisticated measurement, the industry is “winging it.” But as Bob Liodice, CEO of ANA points out, “You cannot ‘wing’ a trillion dollars of investment.” What’s needed, he says, is a stronger focus on measurement that will help organizations make sharper, more precision decisions. 

Video Transcript

Bob Liodice: Let me take you through what we mean by the measurement mandate. We spend a trillion dollars on marketing each and every year. And without the right guidance that we get from pragmatic, practical and useful measurement, we are winging it. And in my opinion you cannot wing a trillion dollars worth of investment.

As marketers we have to make decisions. It starts with a fundamental principle that you can’t manage what you can’t measure. And without the right information, without understanding the correlation with various actions causes and effects, we cannot make the very best decisions that we’re entitled to make.

Now you can make intuitive judgments and you can use a experienced gut to make decisions but think about how much more productive our investments would be if we had measurements that made sense, that allowed us the opportunity to make sharper or more precise decisions.

When we look at the industry, we recognize that in fact we were winging it. We did not have necessarily the companies, the decision making criteria or even the practical measurement systems that would allow us, on a cross industry basis, to make more effective decisions that would guide investments throughout the ecosystem from advertisers, media companies and agencies.

What business systems do we have? At the association level, we don’t really have anything. Who owns measurement? It’s scattered among a number of organizations and associations. All very fine and worthy in what it is that they do. But there isn’t any one organization or one group where all of this information, this knowledge, and these challenges are processed so that we can figure out how to improve ourselves.

We rely upon a lot of homegrown systems in order to be able to come up with the right answers. So we’ve had to take a step back and recognize that we have to redirect the industry to move in a more focused, more harmonized fashion in order to be able to make some progress. That’s why we think the industry at this juncture requires a mandate for better management.

 

 

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About the Author ()

Daniel Kehrer is Executive Editor of the ANA Data Analytics Center (DAC), a leading voice of thought leadership and education in marketing measurement, data and analytics. He is also the Founder of BizBest Media Corp. and previously headed marketing at MarketShare LLC, an advanced marketing analytics technology company.

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