Measuring the performance of marketing campaigns is crucial for effective long term campaign management and the implementation of adequate incentives for agencies. Campaign, client and business performance should all be measured in order to develop an adequately informed view as all major metrics should be covered.
Companies track campaign performance by surveying brand awareness through market research conducted before and after campaigns to establish and measure targets.
Advertising agencies performance can be measured and reviewed using scorecards completed by the client; a two way system can also be used to enable the agency to provide feedback to the client which can improve ways of working for future campaigns.
Business performance can be measured by monitoring the sales revenue of brands targeted by the campaign – which incidentally is the theme of 4C’s September’s Breakfast debate “The only worthwhile measure of marketing performance is seeing growth in the revenue line“. One of the most famous examples of this is theJohn Lewis’ 2012 Christmas TV ad of a love-struck snowman, which was said to have boosted online sales by 44% and overall sales by 14% for the retailer.
When does it not make sense to solely focus on the sales impacts of marketing?
For short term brand awareness it may be adequate to focus solely on the sales impact derived from the campaign, however for long term brand building it is important to consider and measure the wider impact to help develop and inform a long term brand strategy.
As a rule, any campaign that aims to advertise a brand should always aim to implement a long term strategy to build t
hat brand over a number of years. A good example of a brand which has been successful in running long term impact marketing campaigns is the technology giant Apple with their series of emotionally moving advertisements.
Implementing the right incentives
The most efficient way of turning agency-client relationships around from a failure situation to a thriving relationship is to implement the right incentives.
4C’s experience has shown that companies have been able to improve their marketing performance to a great extent by simply changing the way they manage and incentivise marketing agencies.
The above measures should first incentivise the right people in the right way (leading to better results) and second, help the agencies to work better with the client whilst actively delivering good account management, advertising results, and last but not least, good sales revenues.