New IPA survey reveals industry’s marketing effectiveness levels
The marketing effectiveness culture of the industry – both on the agency and brand-side – looks to be in a strong position at the surface level, but there is significant work that can be done at a deeper level to boost business performance, most significantly through agencies and brands creating effectiveness roadmaps.
This is according to findings from the inaugural IPA Effectiveness Culture Monitor, supported by ISBA. Alongside the publication of the Monitor, the IPA has announced the names of the 19 successful IPA Effectiveness Accredited agencies, who are leading the way in this area.
The IPA Effectiveness Culture Monitor defines marketing effectiveness as: "The process of improving business performance from marketing activities, made easier and more impactful by people, technology, and a strong and clear focus."
How well organisations rate their performance against this definition, and against the quadrants of Focus / Process / People / Data Tools & Measurement* sets their effectiveness culture which the IPA believes has a strong influence on their business success. By analysing organisations’ performance across these quadrants, it is possible to identify ways to improve the industry’s marketing effectiveness culture.
Core findings:
State of industry’s marketing effectiveness culture is healthy overall
The surveyed agencies rate their overall average marketing effectiveness culture at 7.3 out of 10. Brands rate theirs fractionally lower at 6.9 out of 10. Although the spectrum across each set of respondents ranges from 2 to 10.
Starting the effectiveness journey boosts an organisation’s effectiveness culture immediately
The marketing effectiveness culture score of organisations increases from 3.7 among those who have yet to start, to 7.0 out of 10 once they have begun.
Buy-in from senior leaders to an effectiveness approach is a key driver of the culture score improvement across brand owners and agencies
The Effectiveness Monitor Culture scores increase from 5.7 when there is no senior buy-in to 7.4 (for brand respondents) when those values are shared by the leadership. For agencies the uplift is from 4.2 to 8.1.
More brands and agencies need to invest in creating a marketing effectiveness roadmap
An effectiveness roadmap is about having a coherent strategy and plan for continual improvement to business value across four quadrants: Focus / Process / People / Data Tools & Measurement, which is understood by the organisation as a whole.
Nearly half (49%) of respondents state that their organisation has a marketing effectiveness roadmap; 22% do not and the rest are unsure. The Monitor demonstrates, however, that there are major benefits to creating this path for both groups.
Having an effectiveness roadmap positively increases marketing effectiveness culture scores by 26%
Where respondents claim their organisation or agency has an effectiveness roadmap, the marketing effectiveness culture scores 26% higher - from 6.2 to 7.7 There are also increases across all of the four quadrants with the most sizeable in Focus – having that clear vision which understands the levers to impact and value - from 5.4 to 7.8 out of 10.
Janet Hull OBE, IPA Director of Marketing Strategy and Executive Director, IPA EffWorks: “It is most encouraging to see that according to these agencies and brands, there are so many that are understanding and realising the impact that a focus in marketing effectiveness can bring.”
