Worsening global economy puts pressure on CMOs to prove their ROI​

By our News Team | 2022

Despite evidence that shows it’s a bad idea, marketing budgets are often the first to be scrutinised and tightened in times of uncertainty.

More than three-quarters (77%) of chief marketing officers are feeling the pressure to prove short-term return on investment (ROI) on their marketing campaigns, according to a recently published study by LinkedIn.

The survey of more than 2,900 C-suite employees around the world finds that corporate leaders are prioritising cutting costs in marketing, advertising, technology and workforce talent as a result of the current economic uncertainty.

Marketing ROI

Photo by Antoni Shkraba from Pexels

And with 40% of businesses saying they are “financially preparing” for tough times, nearly a third of CMOs are concerned that they will have to operate more reactively, while a similar proportion are worried that they will need to limit creative campaigns.

“Despite the evidence of the long-term damage pausing ad spend can have on brands, marketing budgets are often the first to be scrutinised and tightened in times of uncertainty,” said Tom Pepper, Senior Director at LinkedIn Marketing Solutions for Latin America, Europe, Middle East and Africa. 

“Maintaining existing budgets and strengthening future ones is dependent on marketers’ ability to speak the language of the CFO, ask the right questions and pull the right strategic levers that ladder up to business objectives.”

Demonstrate business impact and befriend the CFO

He added: “By turning data into information which demonstrates business impact, and nurturing relationships with important leaders like the CFO, brands will put themselves in a much stronger position now and in the future.”

Meanwhile, a separate study by LinkedIn’s B2B Institute in conjunction with market research and data analytics firm YouGov, found that cutting back on marketing spend can potentially be devastating for brands, with a drop in memorability being far more costly in the long term. 

The researchers found that when advertisers paused advertising for a year or more, sales for brands of all sizes – whether small, medium or large – dropped by nearly 50%.

To stay top of mind, B2B marketers are keen to continue focusing on brand building, with more than a third (39%) planning to maintain or increase spend in this area over the next six months. B2B marketers say that measuring campaign effectiveness and proving ROI of marketing investments is their biggest challenge currently.

According to a media statement from LinkedIn, the social media platform will be launching new tools and ad formats for B2B marketers across the globe in the coming months, including a new Revenue Attribution Report measurement tool. This connects CRM data to LinkedIn marketing campaigns to measure the impact of work on sales metrics.

Marketers will also be able to promote individual employee posts from company pages, and Click to Message Ads is a new service that will allow buyers to click on an ad and start a message with a brand from their LinkedIn feed, meaning that marketers can better guide potential customers through every touchpoint of the purchasing journey.

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.