Marketing effectiveness declined last year, says DMA

An analysis of DMA Awards entries suggests that marketing effectiveness declined sharply in 2021, based on the number of effects* generated by the average campaign.

Key findings

• Overall marketing effectiveness declined by 23% in 2021.
• The average campaign generated 2.4 effects in 2021, down from 3.1 effects in 2020 (which was the highest figure recorded since 2017). 
• There has been a marginal improvement in the brand effectiveness of campaigns in 2021 (up from 0.5 to 0.6 brand effects year-on-year). 
• The decline in response effectiveness over the same period has been greater (declining from 2.1 to 1.6 response effects year-on-year).
• Marketers continue to measure the performance of campaigns without evaluating their true value – measuring metrics that are most accessible, not what really matters to the business.

Why it matters

The Data and Marketing Association (DMA)’s Meaningful Marketing Measurement research provides a perspective on the evolution of marketing effectiveness in recent years, including views on multi-channel, brand, response, retention and acquisition campaigns.

Key quote

“Effectiveness lessons learned in the previous few years seem to have been lost as volume and spend return to the ad market” – Tim Bond, director of insight at the DMA.

*Of the 170 measures used by DMA Award entrants, 41% relate to campaign delivery measures, and 59% to business, brand or response effects. 

Sourced from DMA, Salesforce [Image: Getty]