Ads deliver worst ROI

Advertising delivers the worst return on investment for marketers according to a new survey by the Chartered Institute of Marketing (CIM), while Customer Relationship Management gives the best.

David Thorp
David Thorp

Nearly a quarter of marketers polled by Ipsos Mori for the CIM’s latest Marketing Trends survey said advertising, excluding online, gave the worst return on investment. Almost a quarter of marketers rated CRM as the best, with PR activities coming in second highest in terms of ROI.

CRM was particularly rated by marketers working in financials services and other services firms (31%) and those in technology and telecoms (30%).

Sponsorship was rated as the second least effective form of marketing in the poll while PR was praised as the discipline second highest in delivering good ROI.

David Thorp, director of research and professional development at CIM, says: “As belts tighten it is clear that marketing spend on advertising is under pressure but it’s refreshing to see that investment in ‘knowing your customer’, through CRM systems, marketers are able to wisely concentrate their spend in the most effective activities.

The online questionnaire was completed by 1,223 marketing professionals in April.

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