What's Happening?
At the ANA Masters of Marketing Conference in Florida, PwC's Samrat Sharma unveiled a landmark study demonstrating the direct link between effective marketing and shareholder value. The research, conducted in collaboration with the Association of National
Advertisers (ANA), analyzed five years of data from 600 of the world's largest publicly listed companies. The findings reveal that companies excelling in marketing deliver 79% greater shareholder value over a five-year period compared to those treating marketing as a peripheral function. The study emphasizes marketing's role as a strategic growth driver, challenging the perception of marketing as merely a support function.
Why It's Important?
This study provides compelling evidence of marketing's critical role in driving business growth and shareholder returns, potentially reshaping how companies allocate resources and prioritize marketing strategies. As economic pressures lead to budget cuts, the research advocates for reinvesting in marketing to fuel long-term growth. The findings may influence CFOs and business leaders to reconsider marketing's strategic importance, encouraging investment in creativity, insights, and brand connection. By quantifying marketing's contribution to shareholder value, the study aims to elevate marketing's status within the corporate hierarchy, impacting decision-making processes and resource allocation.
What's Next?
Following the study's release, PwC and the ANA plan to activate the findings by working with around 250 CMOs to implement the insights within their organizations. The goal is to equip marketing leaders with data to demonstrate marketing's value to CEOs and CFOs, fostering strategic alignment and investment in marketing initiatives. The rollout will include gathering case studies to showcase tangible improvements in company performance, further validating the study's conclusions. This activation phase aims to solidify marketing's role as a growth engine, influencing corporate strategies and enhancing marketing's influence in business decision-making.
