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Tracking Local Marketing ROI Challenges National Brands

May 22, 2012

Nearly two-thirds (66.2%) of national brands invest in local marketing (i.e., they conduct marketing campaigns directed at customers in their local markets) but only 42.0% measure the return on investment (ROI) of such efforts, according to a new study by Balihoo.

By contrast, some 56% of surveyed national brands track the ROI of their national marketing campaigns:

Below, additional findings from Balihoo's Micro Study: National Brand Use of Local Marketing and ROI Metrics.

Connections Between Budget and Tracking ROI

Roughly one in five (21%) national brands invest more than 25% of their total marketing budget on local marketing, though a plurality (29%) invest 1-5% of their total spend on local efforts. 

Among all brands that invest in local marketing, 25% report they are "not able to track ROI at the local level."

However, brands that invest more in local marketing tend to have stronger measuring capabilities.
For example, among those that invest 25% or more of their budget on local marketing, only 8.7% report they are not able to track the ROI of local marketing. By contrast, 39% of national brands that spend less than 5% on local marketing aren't able to track local marketing ROI.

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