Marketing Accountability Programs

In today's demanding business environment, companies must know the impact of their marketing investments. The Association of National Advertisers has launched a major initiative to significantly elevate the efficiency and effectiveness of marketing programs by codifying the best accountability practices. These insights are being drawn from member case studies as well as from ongoing ANA surveys of senior-level marketers, which have been conducted since 2004.

Accountability programs must increase the productivity of the entire marketing supply chain, nurturing what's working and improving what isn't. So how can a company put the foundation of an effective accountability program in place?

The first step is to create a "culture of accountability." That starts with the appointment of an internal accountability champion - someone who can drive multiple business proficiencies, both analytical and financial, toward the common goal of better marketing performance. This is typically the CMO or senior VP-marketing.

Second, Marketers must ensure that clear, measurable goals are set, closely aligned with corporate goals and understood by all functions.

Third, Marketers need to work closely with Finance, especially in establishing metrics and methodologies for measuring marketing ROI. Also, there is a more widespread belief that marketing and finance should "speak with one voice" and "share common metrics."

Effective marketing measurement is a powerful tool when properly structured, but a severe hindrance when based on unclear goals or incomplete, inaccurate or outdated information. In determining marketing metrics and then using them to establish budgets, marketers should look at different factors and adopt the latest technology. Marketing's impact on sales is obviously the most useful measurement in establishing marketing budgets. Soft metrics of yesterday which were commonly used as benchmarks for accountability, such as consumer attitudes, are being replaced by precise performance indicators that help marketers track - in real time - how consumers interact with their campaigns and media.

Last but not least, Marketers need to be disciplined. Effective marketing accountability programs must include efficient and sustainable internal processes, determining who needs to be involved at each stage of planning and execution, and following up on the metrics that accurately track the effectiveness of marketing-program components.

There is an urgent need for marketers to push the accountability ground. By appointing an accountability champion, by creating and strengthening partnerships with finance and other analytics functions and by advocating for needed measurement quality and transparency standards, marketers will be increasingly effective in improving the productivity of their marketing supply chain and driving brand and business growth.

One challenge that remains - The industry needs an ever-improving effort across the digital landscape to adopt standardized, accurate and transparent measurement protocols.