We were eager to see Forrester’s latest Now Tech: Marketing Measurement and Optimization Solutions, Q3 2019 report that was released last month. In part because we were hoping to see Nepa included in the vendor list (Spoiler Alert, we were!) but also because the report helps to increase understanding of the business impact of marketing with measurement and optimization tools – a topic that we care a lot about at Nepa.
Here are a few things that jumped out to us from the report and our take on them:
“21% of B2C marketing decision makers say that their firm is lacking the capability to measure marketing results”
It’s paradoxical that at a time when marketing activity generates more data than ever, marketers struggle more than ever to understand what is most effective to separate the signal from the noise.
Marketing measurement and optimization solutions such as Attribution Modeling, Marketing Mix Modeling, Path to Purchase, and Campaign Measurement all provide marketers with an understanding of what works best.
“A marketing measurement and optimization platform enables marketers to:
• Understand the business impact of marketing budgets;
• Determine the optimal mix of channels; and,
• Forecast results of alternative marketing plans.”
Today’s C-level executives expect all functions to be accountable for contribution to the firm’s financial performance. In response to this trend Marketing needs to go beyond “soft metrics” like impressions and communicate the business value of its efforts.
This type of analysis goes well beyond reporting up the chain – by connecting activity to financial performance through statistical techniques marketers also gain valuable simulation tools to optimize the media mix and predict the results of different tactics.
“Modernize Your Marketing Measurement Strategy”
In addition to providing a list of marketing measurement and optimization vendors, the report suggests all marketers and analytics professionals take a fresh look at their measurement approaches. Here’s the gist:
Experienced measurement users – seek out new approaches to unify siloed measurement approaches.
Measurement holdouts – Choose a partner now, predictive analytics are especially useful during economic slowdowns.
Smaller brands – The cost-benefit analysis of marketing measurement investments have shifted to favor adoption, even for marketers with smaller budgets.
All marketing teams – include “analytics literacy” on the team to utilize measurement and optimization tools to be more effectively and support the missionary aspect of marketing – communicating the benefits of the measurement program up and down the organization.
Technology is evolving rapidly as senior management becomes more and more insistent on understanding marketing ROI. It’s no longer enough to have a vague sense that on some level marketing drives sale. You have to know when, where, how, and how much. And you need to be constantly improving, based on incoming data and changes in the marketplace and shopper behavior.
At Nepa, we recognize that Forrester is highly influential across multiple industries and are pleased to have been included in their analytical coverage. This report serves to further confirm the growing maturity of the marketing measurement and optimization technologies, as well as an overview of vendors in the space, including Nepa.