Last Thursday, marketing data and analytics company, Neustar, agreed to acquire marketing analytics technology provider MarketShare Partners, for $450 million. Neustar is an information services company, providing everything from complex registry management to deliver marketing insights. MarketShare Partners provides advanced analytics technology to help c-level executives improve marketing’s impact on revenue.
The Neustar acquisition of MarketShare means:
A powerful insights engine will come to market. The Neustar acquisition of MarketShare for $450 million indicates one thing:data is not enough. Neustar needed to expand on its existing data, marketing, and identity solutions and add an analytics technology layer to help CMOs measure, analyze, and optimize marketing initiatives. The acquistion of MarketShare helps Neustar clients bring all that rich data to life, and will give MarketShare clients access to even more customer based data to enhance its current analytics.
Neustar to gain more access to CMOs . Neustar’s primary stakeholders sit right below the c-suite. This acquisition will hopefully change that; MarketShare’s strong experience as a trusted advisor Fortune 1000 to clients such as USAA, Hilton, and Neiman Marcus. MarketShare has a proven track record of guiding executives through marketing planning decisions, changes in prices, and change management decisions. This acquisition will potentially give Neustar more credibility with C-level executives, if they can speak their language.
Every week I get calls from Forrester clients asking how they can measure engagement on Facebook and Twitter. And every time, I tell these marketers the same thing: You must stop measuring social engagement.
I understand that it’s hard to measure social success: Marketers tell us measurement is their single biggest social challenge. And I know that tracking engagement feels like an easy option. But the simple fact is, engagement is not a useful social marketing success metric.
We’ve spoken with scores of social vendors who measure engagement, and none has proven if — or how strongly — engagement correlates to business success metrics like loyalty or sales. Even Facebook itself says engagement doesn’t prove success: In its marketing collateral, Facebook warns that engagement metrics are “not a reliable indicator” of whether social marketing improved your business.
Some say that engagement matters because when people like or share your posts, they reach a broader audience. And your social posts’ reach will go up slightly if people engage. But engagement can’t overcome declining organic reach. Brands’ Facebook reach is already low, and heading lower still. And data from Socialbakers shows that even the Facebook posts that receive the highest level of engagement still get 99% of their reach from paid, not organic, impressions.
Blogged in collaboration with Rebecca McAdams, Research Associate, serving Customer Insights professionals.
Consumers are connected, constantly influenced by marketing messages, their friend’s social posts, blog posts, reviews, mobile messages, and Twitter posts. In fact, US Adults have an average of three connected devices. Consumers are leaving breadcrumbs of information behind, across multiple channels and devices. Marketers are jumping at the chance to connect with their customers through proactive marketing campaigns and even through non-marketing interactions. But which interactions actually drive impact? What interactions are responsible for sales conversions, and which interactions merely "assist" conversions? CI Pros and marketers are stumped; they must measure these complex interactions to help drive future marketing and media investments and to actually measure their marketing efforts.
Last year, my colleague Srividya Sridharan published The State Of Customer Analytics 2012 (subscription required). Using the results of her annual customer analytics adoption survey, she uncovered key trends of how customer analytics practitioners use and adopt various advanced analytics across the customer life cycle and highlighted challenges and drivers associated with customer analytics.
This year, I have the pleasure of teaming up with Sri on her yearly survey, to further explore the adoption of advanced analytics, measurement, and attribution. Please read her blog post to learn more about the survey. This survey will explore the adoption and usage of measurement techniques, including attribution, and the adoption of advanced analytics methodologies. With this expanded survey we want to understand how you use and apply measurement and analytics in your organization to optimize both cross-channel marketing campaigns and customer programs.
In particular, we’re fielding questions to understand the goals and challenges associated with measurement and analytics, the adoption and application of measurement and advanced analytics methods, the use of several marketing and customer metrics, the customer insights process and workflow, and the organizational aspects that support measurement and analytics. We encourage you to participate in this survey, as this information will help you benchmark your measurement and analytics adoption efforts.
The end of a quarter forces me to reflect on what I learned in regards to my coverage area: measurement and attribution. From customer insights (CI) pros and marketers, I saw an increased interest in advancing their measurement approaches. On the attribution front, there is an appetite to learn about specific methodologies, use cases, ongoing attribution management strategies, and attribution applications to marketing/media buys. On the vendor side, I saw more advancement in tools, approaches, and offline and mobile data integration. I predict attribution — and general consumer and marketing measurement — will continue to be a hot topic for marketers and CI professionals well into 2014. Specifically, I expect to see more attribution adoption and usage of attribution to measure customer purchase paths and to learn more about customer behaviors and motivations.
In the meantime, let me recap the Q3 2013 measurement takeaways:
Yet B2B CMOs can't continue to rely on measures like brand awareness, trade show scans, or website traffic to demonstrate the benefit their departments deliver. Those who do will be shown to the door as CEOs and CFOs raise the bar on accountability -- and getting the right attention here is a substantial challenge when so few execs rely on marketing data in their decision making (see figure to the right.)
Last month, together with the ITSMA and VisionEdge Marketing (VEM), Forrester launched a research study to understand whether business-to-business (B2B) marketers have become more proficient in using marketing metrics and analytics to inform marketing decisions, predict buyer behavior, improve marketing performance, and help their firms better analyze markets and forecast trends.
This is the 12th year that VEM has undertaken this research, and we were pleased to be a part of such a rich legacy. The 2013 MPM Survey captured input from more than 400 respondents, helping us uncover valuable insights on the performance measurement and management challenges marketers face today.
Depending on which side you stand on the executive debate about how to assess the value of marketing to your organization, the findings of this year's study may (or may not) surprise you.
Even though marketing measurement has become more automated and operationally commonplace, B2B marketers continue to struggle to prove marketing's contribution to the business instead of using metrics and performance management to improve it. One of the most telling findings that leads us to this conclusion is the percentage of executive peers reported to use marketing data to make strategic decisions — as revealed by marketers themselves.
Cross-channel attribution. For customer insights and marketing practitioners, attribution is a white hot measurement topic. It’s viewed as the best way to measure effectiveness of marketing and media campaigns; a way for firms to assess…truly assess… the value of the customer journey. For the past 18 months, I have been living and breathing this topic and today I am happy….no, I’m elated…to announce the official publication of the Cross-Channel Attribution Playbook.
What’s a playbook, you ask? Well, a playbook is a framework to help organizations develop expertise around a specific business topic. The Cross-Channel Attribution Playbook helps marketers and customer insights professionals to take strategic steps in building an attribution strategy within their organization. It includes 12 chapters, including an executive overview, which covers different aspects of developing and managing a cross-channel attribution measurement framework. The four “chapters” specifically help organizations:
Ask CMOs what tops their challenges list, and most admit that improving marketing's accountability ranks right up there.
B2B marketing execs worry about measuring marketing performance a bit more than B2C since a direct sales force and/or channel partners are largely responsible for the last mile of the customer purchase process.
Managing marketing performance is a perennial issue all marketers face.
Unlike revenue growth or margin, there are few accepted answers to the question, "What value does the business get from your marketing investment?" Typical answers focus on pipeline, which Sales then hotly contests.
I've noticed a disturbing trend in one of the markets I study. Thirty percent of marketers say their top social media goal is creating brand impact, but only 10% tell us they measure brand impact — a gap of 20 percentage points. But then while just 4% say sentiment or engagement are their top goals, a whopping 26% measure these numbers —leaving us with an almost identical gap of 22 percentage points, but in the other direction. It’s clear what's happening here: Marketers are using sentiment and engagement numbers as a proxy for brand impact surveys.
Deep down I love the idea of measurement proxies. A properly constructed and proven proxy could be a cheap, quick, and effective stand-in for direct measurement of things that are quite frankly hard to measure — like brand impact.
But there’s a big problem here: I've been looking pretty hard for good measurement proxies for a while now, and I’ve found very few that could be described as "properly constructed and proven." And I'm pretty sure none of the marketers in our survey have proven their proxies — because if they'd tried, they'd have almost certainly failed.