©IDG Communications, Inc. Photo contributed by Matthew Mikaelian.
For all marketing’s obsession with return on investment, it’s not used to set budgets, according to a new study. A survey of 243 CMOs and other marketing executives found that 57% don’t establish their budgets according to ROI measures. Sixty-eight percent of respondents said they base their budget decisions on historical spending levels, while 28% said they go with gut instinct. And 7% said most of or all their spending decisions aren’t based on any metrics at all.