Core Media and the Association of Advertisers in Ireland have released a new report entitled Marketing Multiplied, which reviews the macroeconomic and microeconomic impact of marketing communications.
Authored by economists Chris John and Jim Power, and Alan Cox, CEO of Core Media, the report highlights the importance of marketing for corporate performance but also economic activity on a wider scale. Advertising in particular is shown to drive considerable growth. Every €1 invested in advertising in Ireland typically delivers a gross sales return of €8.26 and a net return on investment of €5.44.
However, corporate boardrooms tend to underestimate marketing’s contribution to an organisation’s success. Marketers are often absent from the boardroom, causing marketing to remain misunderstood and seen as an expense rather than an investment. The report recommends that marketers up their game by providing more accountability and demonstrating the strategic value of marketing, to help changing this mindset and gain recognition for their efforts.
Marketing Multiplied also warns against the rise of short-term marketing, which delivers weak long-term growth. Barry Dooley, CEO of the Association of Advertisers in Ireland, says this shift is damaging the effectiveness of creativity and the return on investment it generates. “Marketing really matters […]. It enriches the brands that people enjoy and trust. It contributes to society, not least by funding an independent, varied media and, fundamentally, it facilitates choice.”
Get the report on coremedia.ie