During our recent Evolving Media Mix event, we convened experts to discuss how brands can best position themselves for success as the media mix is evolving.
Keith Festa of Effectv moderated the panel which brought together Michael Piacente, VP, Media Director of MERGE to offer agency expertise, which was balanced with in-house expertise from Trupti Patil, Head of Global Digital Consumer Engagement, Consumer Insights and Analytics at Reebok. Piacente has 13 years of media planning, activation, and analytics background across healthcare and pharma, while Patil has 15 years of digital leadership experience at the intersection of tech, consumer, and data. Dive into the key takeaways from the panel below:
We Can Now Media Plan With Yesterday’s Data, Not by Looking in the Rear-View Mirror
Patil recalled how five years ago when working at Coca-Cola, broad targeting was used because you often didn’t have the information you really wanted. Now, with today’s data, brands are able to use predictive modeling on sales data from yesterday to make real-time decisions. Additionally, the attribution landscape has advanced quite a bit beyond relying on last-click data to make better sense of the contributions from all the channels at play in a media mix. We have the right infrastructure and automation at our fingertips to see results and have different discussions on effectiveness as clients are able to see ROI.
Festa adds that in some cases, the focus has shifted so much to ROI that everything can feel like DR or performance marketing. This can cause the value of long-term initiatives to be questioned when you don’t have immediate ROI or the ability to optimize daily. There will always be a need to understand reach, impression volume, and performance metrics brands create, like attention metrics. With traditional media, KPIs will never be revenue-driven.
Addressability Eliminates Waste but Complicates Creative
Addressability solves the problem of eliminating waste. You no longer have to buy a broader segment than you need to target your prospective customers. While helpful, this can also complicate the creative process and require brands to examine the customer journey much more closely. Although you may have several thousand permutations of a message to specific segments, you need to make sure you are telling the right story, both through the messages and creative. The good news is that technology can do the heavy lifting of the segmenting so that you can focus on the message to address each audience with.
Brand and Demand Are Equally Important
There is often the perception that campaigns should focus on either performance marketing and audience targeting or customer acquisition. In reality, brand and demand need to thrive together. The role of the channel should be examined to see if they impact brand or performance metrics. All brands look for the silver bullet, and larger brands tend to be focused on revenue, but retaining the consumers of today must be done in concert with attracting the consumers of tomorrow.
Don’t Mistake Diagnostics and KPIs
Measuring campaigns based on KPIs can be limiting and having too many KPIs is a problem. The KPIs you look at when measuring campaign performance are very important. When looking at ROI, think about the upper-funnel and awareness-driving tactics. Attribution shouldn’t just be about revenue, but rather how engaged the audience is when it comes to you. It is hard for attribution models to give the true value of a new visitor to the site, but it is important to examine whether this audience is engaged and able to be converted. Back in the day, when measuring TV ad effectiveness, the measure of success was whether people were talking about the ad. While this is the opposite end of the spectrum from where we are today with the data available to us, it does highlight how measuring engagement shouldn’t be overlooked.
It is also critical to understand the difference between a KPI (a true indicator that you are doing well) and a diagnostic. Companies are increasingly looking at, and measuring, user intention and social chatter, as well as cost per lead, phone call, average order value, and cost
You Can Measure It, but Can You Take Advantage of It?
Many brands are not positioned to take advantage of the data they have or don’t closely examine the difference between statistical significance and random chance when reviewing campaign results. In some cases, this may be due to technical limitations or staffing challenges given the huge demand for data science talent to help brands bridge the gap working between complex databases. In other cases, they just may not be able to compete against companies who woke up this morning with machines telling them which marketing mix to invest in. Sometimes brands have to take risks and when marketing proves itself, it can become a bright spot.
For brands starting slow, search and social would be the first two channels to dabble in and measure.