NEWS12 December 2012

Lack of data insight ‘could waste £2.5bn annually’

Financials UK

UK — A lack of data-based decision making in marketing departments could be costing the industry up to £2.5bn annually, according to a study by Cint and marketing software firm marketingQED.

In a poll of 459 UK marketers, the firms found that 76% of companies had never employed a data professional to provide evidence to back up a campaign idea, while 22% said they undertook no evaluations to determine whether their choice of marketing channels had been effective. Overall, the proportion of respondents who reported basing their decisions primarily on algorithmic forecasts was just 3%.

When asked what most influences their marketing decisions, almost 40% of respondents said they were more likely to simply follow what their firm has tended to do in the past rather than look to data for advice.

Glenn Granger, CEO of marketingQED, said: “Most marketers make decisions based on instinct, convention or their experience of what tended to work well in the past. The problem is that this seldom works, and there is massive wastage as a result.”