What's Happening?
PwC and the Association of National Advertisers (ANA) have released a landmark study demonstrating the direct link between effective marketing and shareholder value. Presented at the ANA Masters of Marketing Conference, the research analyzed data from
600 of the world's largest publicly listed companies over five years. The findings reveal that companies excelling in marketing deliver 79% greater shareholder value compared to those where marketing is a peripheral function. The study emphasizes the strategic role of marketing in driving growth and resilience, especially in the face of economic challenges and technological advancements.
Why It's Important?
This study provides empirical evidence supporting the strategic importance of marketing in business growth and shareholder value creation. It challenges the perception of marketing as a mere support function, positioning it as a critical driver of business success. The findings could influence how companies allocate resources, potentially leading to increased investment in marketing strategies that prioritize creativity, insights, and brand connection. This shift could benefit marketers by elevating their role within organizations and ensuring they have a 'seat at the table' in strategic decision-making processes.
What's Next?
PwC and ANA plan to continue their research by tracking the implementation of marketing strategies that enhance shareholder value. They aim to develop a set of 'golden metrics' to help marketers demonstrate their impact to CEOs and CFOs. This initiative could lead to a broader industry movement towards quantifying marketing's contribution to business value. As companies adopt these practices, there may be a shift in how marketing is perceived and valued within organizations, potentially leading to more strategic investments in marketing initiatives.
