If you want sales, why are you rewarding engagement instead?

The title of my book - Why Does It Make You Want To Buy Something?  is meant to be a reminder for marketers that good marketing sells stuff.  That is its purpose.  If it doesn't sell stuff then someone gets fired - usually the agency.  Or the company goes under.

So why aren't companies aligning incentives with sales goals?

According to TrackMaven's 2017 Marketing Leadership Survey, despite the fact that 61% of marketers say their top objective is to increase sales, only 23% of compensation is based on revenue.  Instead marketers are being evaluated based on engagement (91%), consumption (82%) and audience growth (78%) despite the inability to show any correlation between these measures and sales growth. (Loechner, 2017)

Yes, that's right.  71% say their top challenge is attributing the revenue impact of social and content marketing.  (Burney, 2017)  So why assume that it is having any positive impact on the bottom line at all? 

It wasn't such a big deal when digital costs were low, but these days a premium Instagram campaign costs $1 million.  For that amount of money you could run a solid month of advertising on network television, which is still the most effective marketing medium.  And since Americans 18-24 are watching 15 hours and 36 minutes of traditional television a week, you won't lack opportunities to reach them. (2017)

No wonder I just saw a commercial for Harry's.

Loechner, J. (2017, May 4)  mediapost.com.  Misalignment Of Incentives With Goals Plagues Marketers.  Retrieved May 5, 2017, from

https://www.mediapost.com/publications/article/300186/misalignment-of-incentives-with-goals-plagues-mark.html

Burney, K. (2017, April) What Marketing Leaders Think About Strategy, Technology, and Data-Driven Change.  trackmaven.com.  Retrieved May 5, 2017, from

https://trackmaven.com/blog/marketing-leaders-strategy-technology-data/

(2017, April 24) The State of Traditional TV: Updated With Q4 2016 Data.  marketingcharts.com.  Retrieved May 5, 2017, from

http://www.marketingcharts.com/television/are-young-people-watching-less-tv-24817/

Don’t Mistake Engagement for Purchase Intent.

8/18/11

Many of you may recognize this line from my book: Does It Make You Want To Buy Something?

Well, a new global research study from Fournaise Marketing Group shows that consumer response to advertising declined by 19% in the first half of 2011, across 20 markets worldwide. (McClellan, 2011)

While the firm acknowledges that the uncertain global economic situation is partly to blame, they also point out that ads during the first half of 2011 were not arousing much consumer interest. Why? Too much emphasis on building awareness through creativity and new media, and not enough focus on consumer benefits.

Why am I not surprised? How about you?

McClellan, S. (2011, August 9). Offline, On: Ad Campaign Effectiveness Dives. mediapost.com. Retrieved August 11, 2011, from
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=155597&nid=129727