European-Based Tech Companies Lag Behind North American Counterparts in Adoption of Marketing Performance Measurement (MPM) Systems, Reveals CMO Council Europe Study
While 80 Percent of European Companies Surveyed Are Unhappy with Ability to Benchmark Marketing Programs, Nearly Half Have No MPM System in Place

PALO ALTO, Calif. (July 25, 2005) — Nearly 50 percent of European-based companies have no Marketing Performance Measurement (MPM) system in their organizations, according to the Measures + Metrics European research findings revealed today by the Chief Marketing Officer (CMO) Council. What’s more, just nine percent say they have a “formal” comprehensive system in place.

“Measures and Metrics: The European Marketing Performance Measurement Audit” yields responses that are broadly in line with the comprehensive North American study fielded last year, with notable exceptions:

• A clear gap exists between European and North American respondents in terms of MPM adoption, which widens further when European companies headquartered in North America are excluded from the responses.

• European marketers see MPM as being more problematic, and feel they face a greater challenge in securing senior management support for MPM programs than those in North America.

• Firms with European headquarters are more challenged than those in North America in measurement of “softer” marketing activities, such as analyst relations, collateral and brand.

“While both European and North American marketers have a long way to go in adopting Marketing Performance Measurement, it’s clear that European marketers feel highly frustrated in their efforts to address such a complex and challenging endeavor as MPM,” said Donovan Neale-May, executive director of the CMO Council.

Other important European study findings include:

• The key motivators behind the trend toward MPM are departmental effectiveness, justification of budgets and improved status for the marketing function within the organization.

• The most important measurements to European CMOs are revenue, qualified leads generated, sales and channel feedback, and marketing program ROI.

• Nearly 60 percent of respondents expect to increase their spending on MPM solutions in the coming year.

• There is a low awareness of solution providers in the MPM market. Only 25 percent of those polled could name a vendor.

The European survey, fielded from March to June of this year, drew nearly 200 responses from senior technology marketers. Topics explored in the study included the extent of MPM adoption; f actors driving interest in MPM; levels of satisfaction with current ability to measure marketing; primary challenges in MPM adoption; levels of investment in MPM; and return on investment via MPM.

To view a detailed research presentation of the study go to: http://www.mpmforum.org/PDF/MPMEuro_presentation.pdf.

To download the accompanying white paper visit: http://www.mpmforum.org/PDF/Eur_MPM_Report.pdf.

Because Marketing Performance Measurement is such a critical component in marketing organizations, the CMO Council has made measurement a top priority, holding eight MPM Forums in major markets in 2005. Last week marketers gathered at the MPM Forum Munich to hear peers from brand-name companies make the case for and demonstrate the value of MPM. The next Forum is scheduled for Sept. 7 in New York City at host Thomson Financial’s headquarters, with the final event hosted by Alcatel in Paris, date to be determined. For more information or to register, visit www.mpmforum.org.

About the CMO Council
The CMO Council is a private, non-profit organization dedicated to high-level knowledge exchange, thought leadership and personal relationship building among senior marketing and brand decision-makers in the global technology industry. Based in Silicon Valley, the Council works to further the stature, credibility, influence, and understanding of the strategic marketing function among business executives, opinion leaders and critical stakeholders in the technology sector. Nearly 1,500 technology companies are currently represented on the CMO Council, accounting for well over $500 billion in aggregated annual revenues. These include top decision-makers controlling more than $50 billion in global marketing expenditures for many of the world’s foremost computer systems, software, networking, communications, consumer electronics, component, distribution, and consulting brands. For more information, please visit our web site at www.cmocouncil.org.

The CMO Council is represented through regional chapters that convene in technology centers worldwide under the auspices and administration of GlobalFluency, the Independent Network of Influence. Spearheaded by Silicon Valley-based Neale-May & Partners‚ GlobalFluency consists of 114 offices employing over 650 professionals through its 41 agency partners in 72 countries. Together‚ these organizations represent more than $60 million in billings from scores of clients across the information technology‚ communications‚ systems integration and Internet service sectors. More information is available at www.globalfluency.com.