European Marketing Procurement Prioritises Investing in Measuring ROI in the Next 6 Months

Marketing departments face mounting pressure to demonstrate the value they bring to the table. In an increasingly competitive landscape, simply spending budgets is no longer enough. Today's marketing leaders must be able to quantify the impact of their initiatives and show a clear return on investment (ROI).

This trend is particularly evident in Europe, where our recent survey of top marketing procurement professionals revealed a significant shift in priorities. Forty per cent of respondents indicated that they plan to invest in measuring marketing ROI within the next six months. This surge in interest suggests a burgeoning recognition of the importance of data-driven decision-making in marketing.

Why the Focus on ROI Measurement?

Several factors are driving this increased focus on ROI measurement in European marketing procurement:

Scrutiny from senior management: In today's economic climate, businesses are tightening their belts and demanding greater accountability from all departments. Marketing is no exception, and senior management is increasingly asking for concrete evidence of how marketing spend translates into business outcomes.

Rise of data-driven marketing: The availability of marketing data has exploded in recent years, with tools and platforms generating insights on everything from website traffic to social media engagement. This abundance of data has empowered marketing professionals to move beyond gut feeling and make decisions based on objective metrics.

Evolving marketing landscape: The marketing landscape is constantly changing, with new technologies and channels emerging all the time. Measuring ROI helps marketers understand which channels are performing well and where they can optimise their spend for maximum impact.

What Does This Mean for Marketers?

This shift towards ROI-driven marketing presents both challenges and opportunities for European marketers.

Challenges

Developing measurement capabilities: Not all marketing teams have the necessary skills and resources to effectively measure ROI. This may require investing in training, tools, and technology. Defining clear objectives: Measuring ROI starts with setting clear and measurable objectives for marketing campaigns. This requires a deep understanding of business goals and how marketing can contribute to achieving them. Attribution challenges: Accurately attributing results to specific marketing activities can be complex, especially in today's multi-touchpoint customer journey. Marketers need to be aware of these challenges and choose attribution models that are appropriate for their objectives.

Opportunities

Demonstrating value: By effectively measuring ROI, marketers can gain a seat at the decision-making table and secure the resources they need to thrive. They can also use data-driven insights to optimise their campaigns and achieve even better results.

Building trust with stakeholders: When marketers can clearly show the impact of their work, it builds trust and credibility with stakeholders like senior management and finance teams. This can lead to increased support and collaboration.

Data-driven decision-making: Measuring ROI provides valuable data that can inform future marketing decisions. This data can help marketers identify what's working, what's not, and where they can invest their resources for the greatest return.

Looking Ahead

The trend towards ROI-driven marketing in Europe is likely to continue. As data becomes more accessible and marketing technologies evolve, measuring ROI will become even more essential for success. Marketers who embrace this shift and develop strong measurement capabilities will be well-positioned to thrive in the competitive landscape.

This topic will be covered in detail in the ProcureCon Marketing event. To download the event agenda, click here.