The View from the Festival of Marketing 2019 – Part 3
In the third and final of the series, Fuse brings you the biggest talking points from the Festival of Marketing that have inspired us to think differently.
THERE’S NO ONE SIZE FITS ALL FOR MEASUREMENT
If there is one thing the industry can agree on it is that measurement is important. That much was apparent from the panels across the Festival of Marketing and is compounded by the fact that it is estimated that global ad spend is at $560 billion, equivalent to the 22nd biggest economy in the world.
However, as an industry we can’t agree on how we are going to measure our marketing investment. Industry experts across the Festival of Marketing tackled this in multiple discussions on the key trends within marketing measurement and the ways some brands are setting themselves up for measurement success.
Nicholas Hugh, Managing Director, Ebiquity considered recent trends that may be causing long term effectiveness to decline. For Hugh, one of the fundamental reasons behind the decline is that the use of marketing analytics is not as wide spread as it potentially should be, with 65% of CMOs feeling as though they don’t have the evidence to quantify the relationship between marketing investment and business outcome.
A focus on digital has led to fragmented KPIs
Over the past few years, the industry has focused heavily on digital and spent an increasing proportion of its budget on these channels. While digital investment is successfully implemented by many, some brands have sacrificed other marketing channels and over invested to satisfy the digital agenda. Often, this focus on short-term channels has come at the expense of brand building media which can drive long-term business health and increased marketing ROI. Hugh also discussed how the increasing complexity of both sales paths and operational structures has led to fragmented KPIs and missed business opportunities.
In response to these issues, a number of speakers looked at how brands should go about setting up a successful measurement strategy and implementation. Firstly, for measurement to succeed it needs to be top down, with CMOs setting measurement KPIs from the very beginning and not treating it as an afterthought.
With those KPIs in place, developing an understanding of your customer is key to successful measurement. Rigorous market research of offline behaviour and evaluation of online behaviour will lead to more tailored and targeted experiences, producing more data and insights that can be used to measure the impact on your chosen KPIs.
Alexis Harrison, Head of Marketing, Wowcher and Melissa Weston Marketing Lead UK & Ireland, Zalando discussed how it’s crucial to have a test and learn strategy in place. Even when marketing is working efficiently, brands need to ensure they are testing channels and creatives to find further opportunities for now and in the future. Equally, brands must recognise that it’s ok to fail: part of marketing requires brands to take risks. Brands must be willing to see tests fail providing they take action and use the insight gained to improve future marketing campaigns.
Brands can’t let measurement be a black box which simply spits out answers, for measurement professionals it’s key to communicate what the measurement is simply and demonstrate the balance of finding insights within the available data and combining it with professional experience and judgement.
Finally, given that each brand and industry is very different, there is no single measurement answer. Instead brands should consider the key themes including customer insight, personalisation and test & learn which should be part of every brands measurement strategy.
We agree that all marketers should subscribe to the same best practices and ensure that measurement is on the agenda from the outset. However, those marketers working in partnerships and sponsorships should treat this as an opportunity to get onto the measurement agenda, something which the industry has lacked in the past. It’s essential that they work closely with the wider marketing and measurement teams to create a full view on measurement.
Following the emerging evidence regarding the negative impact short-termism has had on the ROI of marketing, we believe partnerships and sponsorships can act as an effective and differential way for brands to connect with their audiences and begin to rebuild this ROI over the long-term.
Given the proliferation of digital in the traditional marketing space, partnerships and sponsorships should consider how to implement a test-and-learn strategy throughout their campaigns and begin to adopt some of the innovations across customer insight and personalisation that are being implemented in other areas of marketing.
To read our full report on the Festival of Marketing 2019 click here.