So, have you gone digital yet? New research reveals the link between digital marketing and profitability
Interesting new study in this week’s newsletter revealing a clear link between better marketing engagement and bottom-line performance. The study analysed the top 300 companies from the Forbes Global 2000 list using a proprietary methodology.
The LEWIS study found a significant gap between the margins and profitability of low scoring companies and higher performing brands. An average improvement of five margin points separated the high performers.
This translates into profits of $6.9 billion across the global 300. The top ten brands in the study, however, showed an average margin of 17.4% / profits of $14.3 billion. The bottom ten brands in the ranking showed average margins of 8.8% / profits of $4.4 billion.
The best performing businesses were stronger at digital marketing, earned and social media. Older companies outscored younger ones overall, but the latter had better digital marketing and website optimisation scores.
Interesting stuff which will be examined in detail at our upcoming flagship Customer Engagement Summit next month. Look forward to seeing you there.