Boston Consulting Group (BCG) has launched a report titled, “Measure To Grow: Drive double-digit growth by measuring marketing right”, in collaboration with Meta, that brings together an industry consensus on optimal marketing measurement for marketing spends.
The study provides a comprehensive view on the best-in-class marketing measurement practices that can unlock exponential business growth for businesses, small and large.
The key highlights of the report are that digital platforms are becoming mainstream with a 3x increase in share in the last five years. Also, there has been a 12% to 34% jump in share of digital in total marketing budget in less than five years. It further says that digital is the fastest growing marketing channel in India and is likely to overtake TV soon.
As per the report, strategic measurement can unlock 60% sales uplift and up to 10x return on ad spends, along with 25% increase in gross margins.
Moreover, it highlights that inadequate measurement leaves significant value on table, including 65% higher cost of acquisition due to poor measurement, 70% organisations still underinvesting in measurement capabilities. It says that only 5% of organisations have quality data that can enable key business decisions.
For the purpose of this study, BCG and Meta collaborated with marketing measurement specialists, including Adobe, Analytic Edge, AppsFlyer, Cartesian Consulting, Nielsen, and RainMan Consulting, as well as 18 digital-first organisations from India across five key industries (Financial Services, EdTech, E-commerce, Travel, Media/OTT) to present this view.
The report findings highlight that there has been a 3x increase in the share of digital marketing spends over the last five years by India Inc. However, despite its significant growth, the measurement practices have not kept pace. As a result, organisations are leaving significant value on the table.
“Measurement in India is largely at a nascent stage, and most organisations are still in the early stages of the journey,” said Shaveen Garg, Managing Director and Partner, BCG. “While there do exist pockets of measurement excellence across industries, a lot of ground remains to be covered before organisations can accelerate their measurement journey to unlock unlimited potential and growth within the purview of digital marketing.”
Pratham Hegde, Director and Head of Measurement at Facebook India, said, “Digital is the new mainstream, and in order to unlock growth, there is a growing need for businesses to measure the true impact of marketing on business outcomes. The industry consensus is that there is no single measurement method or metric that will address all measurement requirements. The core recommendation for advertisers is to have an incrementality based approach at the centre of their measurement philosophy.”
“Organisations today need to make multiple marketing decisions – defining media mix, budget allocation, campaign optimisations. However, in a complex measurement ecosystem, with multiple stakeholders (app measurement, web analytics, platform-driven campaign performance reports), with divergent recommendations, they often find it difficult to identify the right measurement approach,” said Pallavi Malani, Managing Director and Partner, BCG. “Our studies show that while leading global companies are significantly ahead on the measurement journeys (deploying Marketing mix models and statistical multi-touch-attribution), most Indian organisations have just started their journeys towards measurement maturity – with encouraging, yet limited, pockets of measurement excellence, primarily in financial services, eCommerce, education technology and media.”