This year’s Aalto University State of Marketing survey produced an astonishing result: more than a quarter of the companies that responded to the survey do not monitor the performance of their marketing. Only two-fifths of companies feel that they are able to demonstrate the impact of their marketing investments on the overall business result.

Dagmar’s data bank, which covers almost 1,400 campaign studies, proves one harsh fact. Media budgets are growing modestly in relation to the increase in the cost level, and the attention values of campaigns have remained fairly unchanged. Investments in marketing campaigns are not developing in our market.

At the same time, hundreds of sales models made for Dagmar’s customers show that the effectiveness of marketing directly supports sales. The data shows that marketing has been a positive investment in all measured cases and has generated more sales than has been invested in it. Measuring the effectiveness of marketing and ROMI (Return on Marketing Investment) modeling produces an average improvement of up to 30% in marketing effectiveness when the modeling is implemented and its findings are used to optimize marketing.

Our observation is that the goals of marketing are not clear, so performance is not measured, investments in marketing do not increase, and its efficiency measures are not based on systematic knowledge-based management.

Why don’t we dare to set proper goals?

Clear and realistic goals are the basis for marketing effectiveness and business growth. According to studies, too many overlapping goals significantly weaken the effectiveness of campaigns. Instead, a few well-chosen, business-advancing goals – like the SMART model – help marketing teams allocate limited resources correctly and measure success in a meaningful way.

Well-set goals:

1. Linked to real business challenges
2. Demonstrate return on investment
3. Guiding operations and measurements in the right direction
4. Avoid corporate jargon and are easy to communicate

Realistic goals have been created for the current customer understanding and market situation (research and find out). Clear goals help to brief the desired change internally and to marketing partners (the actions must cause a change in accordance with the goal to the designated point).

For example, if a brand’s challenge is customer loyalty, the goal might be to increase repurchases by 15% over the course of a year. If, on the other hand, the problem is awareness in new areas, the goal may be to increase awareness by 30% in the selected target group. Justified targets show the benefits of investments below the line (“if we succeed, there will be x euros more under the line”).

Without clear goals, marketing drifts, measurement loses its meaning, and resources are wasted. Setting goals is first and foremost marketing management – and it brings posture to the entire strategy.

Why don’t we get carried away with the figures?

The marketing industry is full of data analysts, and almost every company’s strategy includes investing in growth by leveraging data. So, isn’t measuring the effectiveness of marketing and developing its effectiveness directly linked to the growth strategy?

Financial management is the hardest core of business management. Scenario tools enable comprehensive marketing planning and optimization. We can report to the financial and corporate management on how much advertising investments could generate additional sales or increase potential customers’ interest and consideration of the company and our brand. We can easily calculate what the potential business value of this potential is. We are able to make analyses of how much our brand needs to grow in order to help achieve business goals.

At the end of the year, we will be able to witness how the measures have shifted market share from the worst competitor to our own company.

Board professional Sanna Suvanto-Harsaae regrets how many marketers get carried away with creativity and forget the numbers. If you’re naturally creative, you need to learn the math side and vice versa. Both numbers and storytelling are needed!

Is a Finnish marketer an impatient sprinter?

Marketing produces business benefits in three different time windows.

1. Immediate effect: advertising causes rapid action and the sales spike can be seen even in the same week.
2. Carry over: the campaign is still visible as a boost in sales a few weeks after the end thanks to the longer memory trace it produces.
3. Continuous impact: the full impact of advertising is only visible after a year or even two, when the preference for the company, advertised product or service has developed positively.

Is the immediate short-term selling pressure so great that measuring the continuous impact is overlooked? And on the other hand, are there so many enthusiasts among us who work in marketing that we always want to experiment and create the next new one?

That’s what it seems like. If you constantly try new things instead of having the energy to implement, measure and optimize in the long term, you will never really get to the marketing marathon, i.e. building continuous impact and growth.

Consistent goal setting combined with systematic measurement allows you to align your company’s entire marketing strategy and ensure that you get the full benefits of your investments in the long run.

READ OUR ARTICLE: Satisfaction with the immediate results of marketing is an optical illusion

Who has the energy to be persistent?

We asked artificial intelligence what professional marketing is. It replied as follows:

1. Marketing is consistent and long-term, not just running after trends, but systematic work where mistakes are learned from and operations are constantly developed.
2. Marketing results are measured regularly and operations are developed based on data, which means that resources are used efficiently and marketing turns from an expense item into an activity that produces results.

Perseverance with choices and key metrics is really important for marketing results. As the jury said of Tokmanni, the winner of Effie Finland 2024: “An excellent demonstration of long-term marketing work that has succeeded in creating a great concept that stands the test of time, draws attention, speaks to a wide target group and has genuinely changed perceptions. The execution is brilliant and the results are staggering. “
So, how many of us can say that we have stuck to the core concept for more than eight years…

Try a marathon too!

Marketing management should be able to understand the direct financial impact of marketing investments and thus actively participate in the discussion about the company’s future growth opportunities.

Holistic understanding consists of the following:

1. The short-term effects of marketing
2. Long-term effects of marketing
3. The impact of brand building on sales
4. The tasks set by the company’s strategy for marketing and the different investment options for these tasks.

Marketing measurement has developed rapidly towards more accurate, real-time and comprehensive analytics. Scenarios help you make better choices and investment decisions, as well as optimize marketing strategies.

READ OUR ARTICLE: How to see how your brand affects your sales and marketing affects your brand

After all, we would rather plan investment proposals together than expense items?

Building growth consistently and persistently is an experience quite like a marathon:

In the beginning, the tension and energy are high, the muscles are still flexible and the body feels strong.

Halfway through, it can be mentally challenging, as the finish is still far away, but fatigue starts to be felt. It is important to continue regular hydration and intake of energy = data.

The approaching finish brings new energy and enthusiasm. Data enthusiasts can feel great relief and pride in their achievement. At best, reaching the finish line brings a huge amount of endorphins and joy. And possibly even an increasing investment budget for next year.

Knowledge-based management requires business and marketing goals, a common framework for measurement, data capabilities, operating models for teams, and tools and analyses.

Need help with your journey? Dagmar’s experts are at your disposal!