All of us want our marketing campaigns to generate new businesses and not just “increase awareness”.
Ask around and you know most marketing campaigns don’t generate attributable, tangible increase in sales. Marketing is risky. It involves trial-and-error. There are more errors than successes, if we are to be honest.
Association of National Advertisers(ANA) in 2018 estimated that 75% of digital media investment or $20 billion is squandered, due to ad fraud, use of vanity metrics and lack of tracking.
Sometimes, only 1 out of 10 campaigns actually manage to provide a positive ROI.
If you work with an agency, you have to pay for services regardless of your ROI. This means you bear all the risk associated with the uncertain nature of marketing.
All companies take on this marketing risk, among many other business risks anyway. It is just “normal”.
The reason I’m saying this. We have been doing marketing for a decade.
We think that things need to change.
Hence, we remodeled our marketing agency to take on the marketing risk for our clients.
We work on a full performance compensation plan. Excuse me, performance is not defined as likes, shares, impressions, traffic, clicks or any of the marketing metrics.
Performance is revenue. Our remuneration is tied to the revenue generated from our campaigns. Period.