Marketing effectiveness equals Demand creation over time
Marketings role is to create demand
The job of marketing is to create the desire to act. It can be to vote, a purchase, change a mindset etc.
By measuring marketing effectiveness you are able to track how the sum of all activities comes together in creating mental availability that leads to a future sales or action.
Creativity and marketing has for a long time been a black box. The Goodwill created through marketing has been hard to measure and nearly impossible to quantify brand building over time. This has led to that the budgets have been moved from branding and long term to activation and short term performance, where the results have been obvious and more transparent.
Measuring Marketing Effectiveness
Marketing and effectiveness pioneers such as Les Binet and Peter Fields have devoted their time to studying the relation between effectiveness and our digital age’s vast bank of online data. They found that effectiveness can be directly linked to search behavior and volume as well as the sentiment of what is being said of brand and in what amount.
Marketing Effectiveness Metrics
Share of search:
Share of search has been determined by marketing academia as well as Google themselves as an effective measurement of market share in a digital age.
How is this possible? Two parts: first, people who wish to purchase your product/service search for it online, therefore any demand-generating marketing initiative should lead to an increase in your share of search. Secondly, share of search also takes into account your current customers as people are more likely to want information on something they already have "(if you own an Apple laptop, you’re more likely to ask questions about it").
Search and sentiment trend:
The problem with only measuring share of search and share of earned media is that it doesn’t take into account anomalies such as scandals and viral breakthroughs, Volkswagen would be deemed to have a huge spike in their market share as both people were searching and discussing Volkswagen quite radically during the 2015 emission scandal whereas we know that this was no positive event for them.
To be able to neutralize these types of anomalies Search and Sentiment trend has been developed by My Telescope. The index is an aggregate of search volume, social media & media sentiment, and volume of mentions.
By aggregating share of search and share of earned media and weighing this curve with the sentiment of what was being said about the company we became able to more accurately measure the long and short of brand building and marketing communications effectiveness.
Measure Marketing Effectiveness To Inform objectives
Without reviewing and analyzing your marketing strategies, it's hard to know where to best channel your time, creative energy, and budget to continue boosting your pipeline and revenues.
Marketing effectiveness uses key metrics to identify high and low points of your marketing strategies, so you can share this information with external stakeholders and better inform future strategies and goals.
/Rodrigo, CEO and Founder