Marketing procurement to seek smarter metrics to boost KPIs this year – WFA
By Felicia Nwosu
A new research conducted by the World Federation of Advertisers (WFA) has revealed that marketing procurement teams at big global brands are working tirelessly to level up with their set target, to enable it align with the current challenging economic circumstances.
It stated that professionals are leading conversation on various measures to excel in identifying means of savings this year.
The research indicated that some respondents averred that several target getters across companies are not professionally versed in understanding marketing, increasing barriers between procurement, marketing and the rest of the organization even when they pursue it with relentless focus.
It further noted that as a result of this, several businesses thought leaders in the marketing procurement departments are charting new paths to seek alternative routes for smarter metrics to boost their current KPIs so as to grow their businesses.
According to the report, many feel frustrated that those who set their targets often lack marketing knowledge; only 52% said their target setters had “good” or “very good knowledge” of marketing. The result is that many are being asked to deliver blunt or disconnected objectives that are likely to make it harder for procurement to work effectively with marketers and deliver real value.
Other findings by the research also included that, the saving expectations for 2024 are higher than 2023 with 1 in 2 organisations expected to deliver 7% savings and above and a further 2 in 10 expected to save more than 11% of their marketing investments.
It affirmed that both are significant increments when compared with 2023 and indicates a year of higher expectations for marketing procurement teams.
Reacting to this, Laura Forcetti, Director of Global Sourcing at WFA, said many have failed to recognise inflation mitigation as a hard saving.
“In a world where AI could soon be telling marketing procurement how much things cost, marketing procurement could aim to redefine itself as ‘brand investment managers’, helping their organisation shape advertising and promotion investments, revealing new opportunities, reducing waste and driving out inefficiencies. All of these actions will help them become even more relevant to CFO, CPO and CMO,” she added.
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