Sometimes a relationship between CMO and CFO generates tension.
When sales rise, the CMO / CFO relationship works. When sales slow, however, more meetings and calls happen.
CFO to CMO:
- We need to cut budget
- We need to understand which advertising expenditures drive revenue and which don’t
Both questions trigger a faster heartbeat.
But the question which collapses a relationship between CMO and CFO, is the latter: revenue accountability.
That revenue accountability question…is why ad dollars shift away from offline advertising (TV, Print, etc) to the Internet. The Internet is the most accountable advertising format in our lifetime.
But despite the $30 billion/year spent in U.S. online advertising, revenue accountability systems are outdated, and unfortunately, wrong.
Thus…lingering questions from CFO to CMO linger.
And the honeymoon wanes.
But for CMO’s deploying Enterprise MTA, a CMO / CFO love affair has started.
How is this happening?
First, the Breakup…
Sadly, most of today’s Internet measurement systems give 100% transaction credit to the very last clicked or last viewed ad before an online transaction.
So if four Internet ads contribute to a transaction, today’s outdated systems allocate entire credit to the fourth, last ad–ignoring the first three, which actually drove the revenue.
Blame our decade-old ad tracking systems possessing zero media attribution capability.
Now, the Love Affair…
Enter full funnel media attribution systems.
Robust media attribution systems like C3 Metrics recognize that credit should be assigned to a team of Internet ads versus just the last one.
At a basic level, C3 assigns credit to every touchpoint based upon a machine-learning statistically based model.
All media sources are captured from the top of the funnel where sales are originated, all the way to the very bottom of the funnel. So for a $100 transaction, each touchpoint would get a fraction of that $100 attributed to them.
But just like a CFO who knows where every penny is…100% of the revenue is attributed —accounting for the actual drivers of revenue. This is then matched to the cost of those media sources, producing a single, easy-to-use metric which accounts for every penny.
After deploying media attribution, things change in a CMO / CFO relationship. All along, both yearned for: transparency, knowledge down to the penny, and revenue accountability.
Order more chocolates–the love affairs are starting!