Chapter 1 What Is Marketing Analytics?

“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” So goes the traditional marketing adage, attributed to retail pioneer John Wannamaker. He’s believed to have made his witty statement in the 1800s, when advertising was coming into its own as an art form and driver of revenue. What he said, though, held true since the birth of advertising in ancient times, all the way into the Madison Avenue era of the mid- to late-20th century. Marketers have worked hard for years creating promotions designed to inform and engage consumers. And successful results have always meant increased sales. However, we know that not every ad is successful at driving customers to buy. Neither is every blog post, Instagram photo, or YouTube video. For companies, marketing represents a substantial investment. In the United States alone, companies spend hundreds of billions of dollars on advertisements, as well as on maintaining their websites, creating brochures, and sending emails. Wouldn’t it be ideal if every company could see which of these efforts led to sales, and which did not? Knowing the results of each marketing campaign allows companies to invest in their most successful programs, while avoiding wasted money on less-successful endeavors.