CMOs struggling to demonstrate social media's ROI

The CMO report also finds data analytics is high on the agenda for chief marketing officers but many still aren't using these to drive fresh customer insights

A new survey of CMOs has found just 15 per cent can quantitatively illustrate the ROI impact of social media on their business.

According to the latest The CMO Survey report of US-based chief marketing officers, 49 per cent are not yet able to show the impact of social media on their business, while 36 per cent have a purely qualitative sense of its influence. Just 15 per cent have proven the impact quantitatively.

In addition, 14.5 per cent of survey respondents said social media is ‘not at all integrated’ with the firm’s marketing strategy on a scale of one to seven. This compared with 8.2 per cent who claimed social media was ‘very integrated’. The highest percentage of respondents (23.8 per cent) rated social media’s integration into marketing as five out of seven.

Despite the difficulties in gaining ROI from social media, spending growth across these channels continues to rise, and is predicted to represent 9.1 per cent of the total marketing budgets over the next 12 months, increasing to 15.8 per cent in the next five years. At present, overall social media spending is 6.6 per cent of the total marketing budget.

Current social media spending was valued at 5 per cent of the B2B product marketing budget, and 7.8 per cent of the B2B services budget. In contrast, current social media spending for B2C products was 7.3 per cent, and 7.7 per cent for B2C services.

As well as social media’s increased importance, The CMO report also looked into how CMOs are improving their data analytics game and not surprisingly, presented a mixed story on how far organisations have actually come. While it is clear most CMOs are aware of how important data-driven marketing is to their future customer relationships, there is plenty to evidence to suggest many still haven’t got much of a foothold.

When asked if they’re using customer behaviour data collected online for targeting purposes, more than half of CMOs admitted they hadn’t yet adopted such an approach. However, 88.5 per cent said their company’s use of such data is increasing over time.

Getting ahead with data-driven marketing: SAS CMO Jim Davis
Data management remains poor across marketers: Report
Aussie businesses are not data-driven, finds PwC

Two-thirds of respondents still aren’t evaluating the quality of marketing analytics, and just 3 per cent claimed marketing analytics was contributing ‘very highly’ to their company’s performance on a scale of one to seven. In terms of the percentage of the marketing budget spent on marketing analytics, the reported mean average is 5.5 per cent, but this is expected to rise to 8.7 per cent in the next three years.

When it is employed, marketing analytics is most commonly used to drive decision making around customer acquisition, followed by digital marketing, customer retention, promotion and pricing. Just 13.4 per cent said analytics was being used in their multichannel marketing efforts.

The survey also asked CMOs about their leadership, staffing and executive challenges and found 66.4 per cent feel increased pressure from the CEO or board to prove the value of marketing. The CMO Survey was produced by Duke University's Fuqua School of Business and based on the responses of 410 top marketers.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook:

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

People in vegan houses shouldn't throw bacon

Picture this. You’re at a Gourmerican burger joint chomping a cheeseburger, when an outspoken vegan friend starts preaching that you’re killing the planet. Last week, that same vegan downed a pricey glass of pinot before their flight to a far-flung destination, armed with their strongest mossie repellant and first aid kit. Anything amiss?

Abbie Love

Strategist, Ikon Communications

The role of the CMO is evolving: Are you keeping up?

My (amazing) vacation in the Galapagos Islands earlier in the year got me thinking about Charles Darwin and his theory of evolution. What does this have to do with the role of today’s CMO, you ask? Plenty.

Sheryl Pattek

Vice-president, executive partner

Getting your business ready for the Entrepreneurial Consumer

We all know the digital revolution has completely transformed the way consumers are interacting with brands, and that a lot of businesses are finding it hard to catch up. One way to closing this brand gap is to understand consumer behaviour and build a brand experience that meets these new needs.

Pip Stocks

CEO and founder, BrandHook


Kerry Edwards

Open Colleges taps into social for better student interaction

Read more

Or just go to sites like www.shopsthatshiptoaustralia.c... and others and be sure that the stores will send to where you live :-)


Why online shopping is like dating – RedBalloon CEO

Read more

Personalisation is the key. Customers demand a very relatable and well defined CX where the sincerity and understanding of their disposit...

Hitesh Parekh

In pictures: Improving cutomer experiences through smart personalisation

Read more

Thanks for this. The key for me is the effective of governance where it dictates and sets the proactive policy when it comes to CX. Tech ...

Hitesh Parekh

6 lessons in modern marketing from a customer experience chief

Read more

Very well said “With today’s consumers more demanding of the brands and merchants they shop, it’s imperative for merchants to not just co...


CMO's top 10 martech stories for this week - 29 September

Read more

Latest Podcast

More podcasts

Sign in