“Moneyballing of the CMO” was written by LiveRamp CEO, Auren Hoffman, and published in MediaPost. Below is an excerpt.
Limited by the indefinite and imprecise results of traditional marketing, CMOs of the past could not realize meaningful metrics to measure success. But today’s technology has ripened, enabling sophisticated and precise decision-making. CMOs have adapted and thrived accordingly, so much so that they will soon lead not just marketing, but companies in their entirety.
The CMO as Billy Beane
Michael Lewis’ Moneyball (W. W. Norton & Company, 2004) chronicles how baseball teams evolved to embrace new and more sophisticated metrics to achieve success. Traditionally, teams looked to antiquated statistics (e.g., batting average, stolen bases) to determine a player’s worth. Around the year 2000, the Oakland A’s realized that advanced stats like slugging and on-base percentages were far better indicators of value. Building a roster with these new metrics, the A’s became one of the best teams in baseball despite one of the smallest payrolls in the sport.
Marketing is experiencing a similar revolution now. In the past, no substantial feedback loop existed to tie customer choices to marketing activity. Marketers had to do things by touch and feel, often betting their careers on the black-boxed “genius” of creative agencies or the fuzzy results of focus groups. Ultimately, CMOs simply had to hope that correlation was causation; that an uptick in sales was actually attributable to them and not some confounding factor…