To understand why things are how they are in regards to digital and decision-making in todays business environment this blogpost from Harvard Business Review is a great read.
As usual when I post links I highlight certain parts that I find specifically relevant. On a personal note I would recommend the last paragraph in this post, the part about measuring your spendings
Analogue still outstrips digital in spending. How come? Yes, how come?
Fact: When it comes to marketing spending, analog still outstrips digital by a factor of three to one. How could this be?, you ask. Digital marketing provides targeted reach and measurable impact.
Interesting still logic. I also think there are other factors then the ones stated in the article. One is that, even if the shift has started, the analogue activities are more expensive in general and that is a factor we need to (still) take in consideration as well.
Like so many other revolutions, digital marketing has taken hold from the bottom up.
Probably one of the most true statements in the article. But as time passes by, the bottom becomes the top and those who today see the potential in digital are the next CMO’s
You can measure everything, scary or potential?
But with digital techniques, everything is measurable. Feedback loops tighten, segmentation becomes microtargeting, and optimizations can happen on the fly or even in real time. The relationship between investment and impact becomes correlated and causal — and the CMO becomes accountable down to the dime and moment by moment.
Well, everyone who know me, now wonders, why did you not posts this one as the first quote and in Arial 48pt? Well, simple because of the order in the article, but naturally I think this is one of the most important shifts in marketing we have seen. If you are not measuring, you are just guessing…..and that is never good in a management team meeting, but for some reason the traditional CMO get’s away with it, or as the article states it….
The post on HBR is written by Jake Sorofman from Gartner.
The CMO could tap dance through the average board meeting, as long as revenue tracked up and to the right. Like Mad Men’s Don Draper, the CMO became the master of the soft-shoe performance.