A recently launched EY-FICCI report on Media & Entertainment 2024 revealed that ROI measurement reigns as the top challenge for marketers in today’s era. It's almost like a treasure hidden in a maze of data and analytics, and despite all the tools and technology at their disposal, many marketers are still scratching their heads trying to crack the code.

Picture this: you're leading a fast-paced marketing team, finding your way through numerous consumer preferences. Your goal? To deliver results that not only drive growth but also impress the stakeholders and keep the revenue flowing. Sounds exhilarating.

Well, it is. Until you hit the ROI roadblock, say CMOs.

Ironically enough, according to Sidharth Pisharoti, Chief Revenue Officer of CleverTap, regardless of the size of organisations – small, medium and large enterprises, ROI is in the top five priorities of almost all organisations.

The plot twist is that most require validation in less than 3 to 6 months. Not surprising, considering that time and again, a range of marketers from different industries have told exchange4media that they are under pressure from the top management to cut down on tech spends because they are not able to show ‘immediate ROI’.

The EY-FICCI report noted that around 62% marketers say that there is a need to improve their martech tools. “However, upper management typically requires hard numbers to justify such decisions,” adds Pisharoti.

The Measurement Menace

CMOs know this struggle all too well. For them, demonstrating ROI isn't just a box to tick; it's the fuel that powers the growth engine. But in a digital-led world where every click, impression, and conversion counts, measuring ROI has become more complex than ever.

“Over the past few years, ROI has become highly contextual, starting with martech software. From pre to post customer acquisition, demonstrating ROI for the tools being used are a big challenge for marketing teams,” Pisharoti shared.

Think about it: with such a large pool of martech tools and platforms available, each promising to revolutionise brands’ strategy and boost the bottom line, how does one even begin to calculate the ROI of their campaigns? “It's like trying to solve a Rubik's Cube blindfolded – frustrating, to say the least,” says a senior marketer from the fintech space.

“A one-size-fits-all approach is a shortcut most marketers take and is equally destined to fail even before launch,” Karan Kumar, Group Chief Marketing and Growth Officer, ART Fertility Clinics pointed out. “Therefore, the challenge is taking the shortcut and not painstakingly defining and codifying success metrics unique to each channel, medium, or objective being driven on either.”

And then there's also the issue of data fragmentation. Experts note that marketers today have to deal with bits and pieces of information scattered across multiple platforms, each telling a different story about their campaign performance.

Pisharoti feels that while ‘ROI measurement’ may on the surface seem like a very straightforward term with a simple formula; in a field as dynamic and at times, siloed as marketing, things can get out of hand quickly. It's like trying to solve a complex puzzle, with each piece representing a different aspect of the marketing strategy.

‘Point’ to be noted

Experts also feel that a potential reason as to why marketers are still struggling with ROI measurement are ‘point-marketing solutions’. Pisharoti explained that as brands scale, their marketing needs change. While the early stages may mandate only a limited selection of tools including analytics platforms; as it grows, this array of marketing tools and needs expands.

“This typically manifests in a brand initially choosing the minimum viable solution and then quickly growing out of it. Eventually, they look at other options that satisfy their more-evolved need while usually still retaining the previously onboarded minimum viable solution provider,” he added.

The result? A hodgepodge of solutions providers with skewed visibility into the metrics of one’s campaign.

“Most marketers and, by extension, their agency partners do not put in the hard yards to correctly define appropriate success metrics for each type of campaign they run or execute. As a result, performance measurement is inconsistent with proper benchmarks, leading to a poor understanding of ROI,” adds Kumar. 

It seems as though it is high time for marketers to get down to the nitty-gritty of defining success metrics that are tailored to each channel, medium, and campaign objective.

The takeaway?

For starters, ROI measurement may be a challenging puzzle, but it's not an impossible one to solve. According to marketers dealing with this challenge everyday, with the right tools, strategies, and a dash of creativity, they can navigate their way through the vast pool of data.

And who knows? Maybe one day, measuring ROI will be as easy as solving a crossword puzzle. But until then, marketers need to roll up their sleeves, sharpen their pencils, and dive headfirst into this challenge – because when it comes to driving growth and delivering results, there's no puzzle too puzzling to solve!