[Editor’s note: Thomas C. Noyes, Founder and CEO of Commerce Signals, was a speaker at RampUp 2017. We invited him to share his thoughts on data and marketing trends.]
The business model of marketing is changing rapidly. Execution risk is shifting from advertiser to agency and publisher. Center to this movement is measurement and attribution of sales data. In fact, the IAB calls out measurement as the TOP area of focus for 2017.
This is driven from demand for greater accountability and proof from the CFO, but marketing and finance have a great divide between them—one speaks dollars, and one speaks in impressions, GRPs, and CPMs. This divide needs to be bridged, since the ones controlling the budgets has a great impact on marketing’s ability to be effective.
One bridge between marketing and finance is measuring the actual in-store sales data and online sales results of advertising.
I’m not talking about brand lift or store visits or marketing mix modeling. While those are all important pieces of running an effective campaign, the finance department has other questions. What is the return on my investment? Are advertising campaigns driving more sales than we would have had without the advertising? Is it enough to make the cost worthwhile?
The only way to answer those questions is to know the actual dollar sales driven by each campaign.
One dataset that allows us to measure sales data effectively is credit card data—which businesses already own and have access to. This data is sensitive, though. There are privacy concerns, and the financial institutions who hold the data are responsible for keeping it in compliance.
Even though retailers have this existing payment data, most of them can’t use it in any way that actually helps their business unless the institution has found a way—or a partner—that allows retailers to use the insights from the data in a way that meets all regulations and is digestible and easy to understand. For example, what Commerce Signals is doing in market today.
With real sales data insights that tell advertisers what impact their advertising is having on sales, marketers can meet the needs of finance—on their own terms, in their own language. Only when the two can get on the same page is there opportunity for unlocking greater budgets and creating even more effective advertising campaigns in the future.
Thomas C. Noyes, Founder and CEO of Commerce Signals, was a speaker at RampUp 2017.