July 22, 2005

How Effective is Advertising? Nobody Knows.

Seems most advertisers are having more pressure put on them to be accountable for their advertising campaigns, reports the New York Times.

After search marketing introduced concrete metrics such as CPO/CPA and ROI into the advertising arena, an increasing number of CEOs are beginning to seek the same feedback from their other marketing managers.

A recent study by Marketing Management Analytics shows that only 19% of respondants were satisfied with their ability to define, measure, and take steps in regards to accountability. Furthermore, an astounding 73% couldn't even tell if their advertising or marketing campaigns had any effect at all on sales.

As society becomes more reliant on technology in our everyday lives, it is becoming easier to track a person's actions or reactions. While privacy is always a concern, the advertising industry is in dire need to quickly make changes in their approach to the business or they will soon themselves out of business.

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