Marketers achieved ‘less ROI than ever’ last Christmas despite increased marketing investment
Marketers achieved a record low return on investment (ROI) during the last festive period despite increased ad spend, new Mutinex data suggests.
Examining the seasonal peaks and troughs, the inaugural Marketing ROI Index Report reveals that investments around this time of year don’t necessarily equate to financial results.
The inaugural marketing report analyses a pool of over $2 billion in marketing investment to uncover the state of marketing ROI.
Examining trends over the past three years, Mutinex suggests ROI during the 2023/24 Christmas period was significantly lower compared to the same period in 2021/22.
Upper funnel channels are also delivering results twice as effectively as their lower funnel counterparts, according to Mutinex. By the end of the 2023/24 period, upper funnel channels like TV and OOH outperformed lower funnel channels, such as paid search, by a ratio of 2:1.
One way for marketers to attempt to break the deadlock is to look closely at upper funnel and lower funnel investment profiles, said Will Marks, head of marketing science at Mutinex.
“The [data] indicates that channels like OHH or TV could be seriously underinvested compared to paid search, for example,” Marks said.
According to the report, marketing investment across the board has been flat for quite some time, with little fluctuations since the third quarter of 2021.
Henry Innis, Mutinex CEO and co-founder added that the current market is “tough”.
“With budgets flat, marketers are effectively doing more with less to even keep that ROI where it is,” he said.
As marketers continue to navigate through significant challenges, including high interest rates, stagnant budgets, and low consumer confidence, Marks said there is no clear sign of immediate improvement.
“In the absence of favourable economic shifts or increased budgets, marketers must focus on deepening their understanding of revenue drivers and optimising strategies.
“Adapting to these conditions with a keen eye on efficiency and effectiveness will be crucial for navigating the uncertain landscape ahead.”
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