Skip to content
Moving Beyond Campaign Analytics to Detailed Measurement
Marketers tasked with delivering growth amid an ever-changing landscape, need to ensure that inefficiencies are not affecting their results, which is where evaluating marketing budgets in details comes in.
This guide explores implementing a comprehensive analytical framework to evaluate marketing budget efficacy. Ensuring Marketing Procurement can either justify marketing budgets or instigate improvements to deliver better results.
Why Evaluate Marketing Budgets?
Typically, Marketers limit marketing budget evaluation to individual campaigns or channel performance without a broader context. While tactical metrics will undoubtedly shine a light on individual activities, they fail to address the broader value proposition. Quite often, Marketing lacks visibility into the finer details of their marketing budget.
Investment may get approved through assessment of vanity metrics, like engagement, clicks or likes, rather than tangible impacts on revenue. Return on investment is not calculated precisely and is not connected to overall business objectives. The right data is crucial for Marketing and Procurement to capture the actual value of their marketing investments.
Procurement can step up to help expand the marketing budget evaluation beyond tactical analytics to look at the finer details of the spend and agency performance.
Evaluating Marketing Budgets: Calculate Return on Marketing Investment
Return on Marketing Investment (ROMI) measures the results across key performance indicators like sales increases or customer lifetime value versus cost outlays. Unlike ROI, ROMI accounts for branding efforts that support conversion paths despite indirect or delayed visibility.
Procurement are responsible for helping to establish ROMI and optimise it for better returns. Looking into the marketing investment in more detail and using Marketing Procurement tools to quantify ROMI. Data tracking spend over time can be used to highlight actions and improvements that can tangibly lead to better growth, efficiencies and savings.
Rigorous analysis of Marketing Procurement data can guide the evaluation of marketing budgets and lead to increased efficiency. Marketing spend can be actively redeployed towards the agency, channels, and campaigns with the highest demonstrable ROMI.
Evaluating Marketing Budgets: Agency Reviews Best ROMI
While Marketers may be focused primarily on tactics, agency selection and the agreed contracted rates can actually have the most significant impact on ROMI.
Yet, without the right tools and marketing procurement platforms in place, both Marketing & Procurement teams can lack the visibility they need to make the right decisions.
Reviewing your agency fees – assessing contract terms versus services rendered, scoping staffing plans and compiling total fee structures – enables teams to highlight areas of excess spend and poor performance.
When it comes to evaluating marketing budgets, it’s important to apply rigorous analysis to the investment into marketing, particularly agency fees. Without this insight Procurement cannot deliver the best results back to the business. Evaluating marketing budget efficacy, not just via sales and campaign metrics, but through every last dollar of investment ensures optimisation in terms of time, resource and money.
Evolving from surface-level campaign analytics to a deeper assessments of ROMI, agency waste reduction, and internal bridge building allows Marketing Procurement to justify redeploying investment and reallocating spend.
Find out how evaluating marketing budgets to deliver significant returns with RightSpend can deliver you significant returns. Book a call today.