Marketing accountability

Marketing accountability refers to the use of metrics to link a firm's marketing actions to financially relevant outcomes and growth over time. It enables marketing to take responsibility for the profit or loss from investments in marketing activities and to demonstrate the financial contributions of specific programmes to overall business objectives, including brand asset value. Return on marketing investment (ROMI), customer acquisition cost, and retention rates are commonly employed metrics.

The concept gained prominence in the late 1990s amid what consultants McKinsey & Co. described as "marketing's mid-life crisis". A 1997 Financial Times Management Reports study investigated the widespread difficulty of connecting marketing expenditure to business results. Research by the Forbes CMO Practice and the Marketing Accountability Standards Board shows that chief marketing officers face growing pressure to demonstrate returns on rising investments in marketing assets, data, analytics, and technology.

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