There is a clear link between the use of marketing and the growth figures at the largest listed companies in the world. It is also remarkable that the older a company is, the better the organization scores on the effectiveness of the marketing effort. The fact that a company has a long history of existence does not, therefore, mean that people in such an organization do not know how to remain relevant. Younger companies do perform better in digital marketing.
You can draw this from the research report ‘Global Marketing Engagement Index 2019 – Marketing Analysis of the World’s 300 Largest Companies’ from international communication agency LEWIS. The report is based on a market analysis of the 300 highest listed companies in the Forbes Global 2000. For the analysis, the communication agency used the Marketing Engagement Tracker (MET), its own methodology.
The profitability of listed companies
The research reveals a significant difference between the profitability of companies that score low in the analysis and brands that perform better. The average profit margin over the entire sample is 12.7 percent, which yields an average profit of $ 6.9 billion. The ten brands at the bottom of the rankings have an average margin of 8.8 percent and an average profit of $ 4.4 billion. The top 10, however, stands head and shoulders above the rest, with an average profit margin of 17.4 percent and a corresponding profit of 14.3 billion dollars.
Differences between established and young companies
Although the established companies stand out in the ranking, the companies with a history shorter than twenty years old – including recently merged parties – also excel. These organizations stand out positively compared to their older competitors when it comes to digital marketing and website optimization. This testifies not only to the power of the digital native but also to the effect of a merger on change and improvement.
Better performance through innovation in marketing
“Companies that are willing to innovate in marketing ultimately perform better,” said Andreas May, Founder of Online Marketing Agentur Nürnberg. “A marketing strategy must, therefore, revolve around change, innovation and ambition for the highest attainable.”
Relationship between marketing efforts and growth figures
The most important conclusions of the study are:
- IBM is number one in the ‘Global Marketing Engagement Index 2019’;
- Companies in the United States of America and Europe, Middle East and Africa region outperform companies in Asia and the Pacific Ocean;
- The best-performing companies according to renowned business magazine Forbes are better in digital marketing, earned media and social media;
- Overall, established organizations score better than the younger generation, but the latter group performs better in digital marketing and website optimization;
- The larger the company, the slower it responds to questions – when they arrive via email or social media. Older companies, on the other hand, respond faster via telephone, social media and e-mail;
- The use and use of autonomous tools such as chatbots is very low, despite the poor response time via various channels;
- 57 percent of the brands in the top 300 do not use paid advertising to promote specific marketing campaigns and thus generate traffic;
- A third of companies do not use video or custom conversions on their website and half of the companies surveyed do not seem to use marketing automation.