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M&M’s Blog goes behind the headlines to offer a running commentary on the business dynamics within the international media and marketing industry. The M&M editorial team joins forces with industry experts and local market heroes to balance a bird’s eye view of global trends with the importance of local insight.

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Measurement, ROI & effectiveness

  • Online brand-building means no more click-through

    23 November 2012

    For most of its still-young life, online advertising has worshipped at the altar of the ‘almighty click-through’. If the click-through rate (CTR) was high, says the logic, the ad must have worked. After all, people wouldn’t have clicked on it otherwise.

    That might be true for ads designed to sell products and services and thus present an immediate return-on-investment (ROI), but it’s not quite as solid a measurement for brand-building. In fact, the lack of brand focus in the past has had a trickle-down impact on everyone involved in digital advertising, from the agency to networks to publishers.

    When the click-through rules the roost it drives everyone to the completely wrong side of the funnel, where they focus solely on price to improve ROI. Demand-side platforms (DSPs) and ad exchanges have become a breeding ground for cheap inventory and cookie bombing and, therefore, have alienated premium publishers from their buyers.

    But finally, the tide is turning and companies are beginning to seek standard metrics that matter for brands. Thankfully, new brand measures are being promoted by a few leading companies and are helping those companies take a stand on behalf of publishers – a platform to educate the market on the value of quality inventory and well-branded exposure, within context, to a target audience.

    Viewable impression measures, where the ‘success’ of an ad is based not on click-through rates but on its view-ability and clarity within the browser window, are taking off. They’re giving marketers a standardised view of these creative metrics that highlight exposure, view time, and engagement, and then benchmark those metrics against the industry, category, and creative format.

    Crucially, this information will give marketers the confidence to shift more spend to digital – because they demonstrate that brand-building can work just as well online as offline.

    And brand-building marketers need a relationship with a credible partner. When trying to measure view-ability via the DSP, ad exchange, or supply-side platform (SSP), rather than directly measuring viewable impressions in browser windows, there is often a massive loss of fidelity due to unfriendly iframes and multiple inventory hand-offs. With such a complex ecosystem of technology lying between the advertising brand and the publisher, accurate measurement is a must.

    Therefore, to truly measure the impact for marketers and understand the quality of the creative execution, brands need a mechanism that is executed within the ad server or directly from the publisher's page. Using that type of mechanism promotes equality among the inventory being purchased, empowering the buyer and seller with information that can be used to fairly judge price, quality, and effectiveness.

    The industry needs a better set of metrics, capable of demonstrating more than just click-through rates, if it wants to drive more brands to spend more of their budget with digital media. It’s even more important if it wants to generate a genuine quality approach.

    by Larry Allen, senior vice-president, business development at Real Media Group

    Comments (0) | Permalink

    Posted by: Bloggers' Gallery

    Tags: Measurement, Demand-side platforms, Measurement, ROI & effectiveness, Online advertising

  • The problem in the Middle East

    21 May 2012

    Last week I was invited to the Middle East Media Forum put on by Adnative. The briefing brought together an interesting mix of stakeholders from the Middle East who spoke about the opportunities in the region for advertisers and squashed some possible misguided assumptions about the population in the region.

    HSBC’s global head of media Suresh Balaji spoke about how to target the business elite in the Middle East and why marketers shouldn’t ignore the region. Online media owner Zawya and mobile specialists InMobi peddled their wares and banged the drum for digital in the Middle East – both talking a good game except for the fact that it was proudly announced at the beginning of the session that the Middle East is probably one of the few regions where print rules the roost. And, this is where the Middle East’s media problems lie.

    Attracting international advertisers to the Middle East is by no means a hard sell; the population in this region is educated, wealthy, have cash to splash and are receptive to advertising. Keeping the advertisers is where the issues begin. Why? Measurement.

    Despite the apparent love affair with print, a long-term relationship with audits and verified circulation numbers is yet to bloom. Which brings up that question which is well established in mature ad markets: ‘What is the return-on-investment?’ From what I heard; it is hard to find. To be fair, there are the EMS Middle East measurement numbers – but with a current frequency of every two years this is hardly anything to celebrate when it comes to delivering accountability.

    One Middle East media owner sitting in the audience, said by his own admission, that the region “needs to get better” when it comes to measurement and at offering clear ROI to potential advertisers. When he launched his magazine, he said, he put audit measures in place from day one – which drew criticism and scepticism from others in the region.

    In order to attract the international ad dollars they desire Middle East media owners need to communicate in the same language that international brands understand – the language of irrefutable numbers.

    Comments (0) | Permalink

    Posted by: Martina Lacey

    Tags: Measurement, Print, Measurement, ROI & effectiveness

  • Clouds & Crowds

    16 April 2012

     Vogels

    “If your company isn’t measuring deeply the interaction with customers and using the data, you are missing out,” Amazon.com chief technology officer Werner Vogels warned delegates on stage at the Festival of Media Global in Montreux today.

    Speaking passionately about the importance of data, Vogels said that learning is the biggest accomplishment so you must “measure relentlessly.”

    He urged companies to adopt three steps when launching new products/initiatives:

    Experiment
    Measure
    Iterate or pivot

    According to Vogel, the best organisations designed to deliver new products under conditions of extreme uncertainty are starts-ups due to their ability to be reactionary. He urged companies to have a different approach to building their products and to get them in the hands of customers as early as possible.

    You can keep up-to-date with all the action from the Festival of Media Global 2012 by following #FOMG12 or check out our dedicated Festival page.

    Comments (0) | Permalink

    Posted by: Jenni Baker

    Tags: Digital, E-commerce, Advertising, Marketing, Measurement, ROI & effectiveness, Festival of Media Global

  • Is 2012 the right time to pitch your business?

    13 October 2011

    If I was a marketer I would be glad I waited out the (last) recession to review my media investments. It may prove that patience is valuable in seeking additional value from media spend. However, I would probably be getting ready to review in 2012 (if there is a current commercial imperative within the business). Get set, go!

    I wrote recently about some of the implications of media business reviewing next year and I have a few posts lined up on this subject looking at specific implications for agencies, clients, media owners and auditors.   

    For now, below are some thought starters on whether this is the right time for you:

    What does 2012 mean?

    It’s probably the year of value propositions. Agencies are likely to start seriously pushing back against the commoditization of media, a few media agencies are forming some strong new propositions based on data platforms and measurable performance. Providing for the first time a real sense that there may after all be a rational link to be found between investment and return when it comes to marketing. Hope I'm not speaking too soon but the signs are good.   

    Two scenarios: a) 2012 as a recovery market (maybe) – everything sounds better and budgets easing, time to innovate. b) 2012 as a Double-dip market (maybe) - agencies seeking volume, deals to be had, time to innovate. Take your pick...

    Plus of course its Olympics year when we all go brand crazy and marketing budgets sound like Scottish lottery syndicate winners. Perhaps not. 

    Getting ready

    Our advice at ID COMMS is always start your considerations early – it is never too early to seek help and get your own teams aligned and prepared. Reviews that rush to market too quickly (sometimes because they are prematurely leaked to the market) are not rewarding for anyone. The old adage "if you don't know where you're going just about any route will get you there" is never truer than in agency review. Pre-planning pays off in heaps, not just peace of mind but in financial gain too.  

    Opportunities next year

    Since the recession kicked in some big new client/agency contracts have created (see previous posts) this means many big trading positions have been established by reviews in 2008/09 which have left the market exposed in some places, some agencies struggling to deliver promises to clients in some areas. However there are smart clients that waited to see what their competitors did and can now take advantage of a very different media landscape whilst their competitors are ladened with savings-focused trading deals from 2009 that are not flexible enough to become value-creation deals and can't exploit the current excellent media thinking in agencies. The dust has settled, trading positions become clearer. These challenger brands are (and should be) looking for more than price reduction opportunities in the current market place. 

    Talent, talent, talent. Lots of fresh resource in agencies, the recession allowed agencies to cut out some dead wood and lose expensive resources that were underused or misused. Most agencies now seem to have much leaner, efficient, modern structures. The recession allowed them to rethink how they service clients, their propositions, how they build teams and where their strategic priorities should lie. They’ve had a couple of years to do this cleansing and rebuilding and now they are ready with fresh teams, new offices, new processes and structures. Ready to be put to the test by the next wave of post-recession / double-dip review.

    Agency world is bouncing back, the numbers are still tough but there are some strong propositions out there now, with new innovations in performance and data management. 

    If I had a budget, I'd be looking at a new approach for media next year. Start thinking...

    Comments (0) | Permalink

    Posted by: Tom Denford

    Tags: consulting, Agency/ client relationships, Business models, Agency Developments, pitches, Measurement, ROI & effectiveness

  • It is no longer about costs. It is about costs.

    14 September 2011

    Are agency rosters getting harder to manage or easier? 

    (the picture is not a clue btw, honest)

    Earlier this month I heard again another very senior marketer ask a room of people (other very senior marketers) how to best manage a large roster of agencies. This is a big question, and in our experience becoming increasingly frequently asked. It's advisable (for sanity's sake)to consider this a simple problem rather than a complex one. 

    I believe the issue has two elements, firstly to get agencies aligned and focused enough to be able to collaborate in a constructive way that does not become a distraction for the business, second to avoid serious duplication of resource and therefore duplication of non-working marketing budgets (that is the bits that get paid in fees rather than actual marketing to customers for example).

    The first thing that strikes me is that as a general rule, we still hear more negative than positive remark about agency-land. Perhaps much of that is unjustified but however much evolution, collaboration and modern thinking exists in agencies now compared to five years back, there are still some fundamental, huge issues which sit on marketers desks and are not being addressed by their (often handsomely paid) agency execs.

    For many years marketing clients have been working through a process of rationalizing costs, whether by interrogating production budgets (and agency production income) or by leveraging down mass media costs and overall agency fees. For many marketers that process has reaped many positive rewards and costs have been reasonably managed to an appropriately competitive level (usually based on volume). However now the language is more commonly about value creation (or variants thereof) which is charged directly at a specific agency "we want more value from our contract with you" or at the roster as a whole "you guys need to work better together to create greater value". Both are valid. 

    We believe that marketing will be the next frontier of corporate productivity gains. Those gains won't come from cost cutting, they will come from a strategic approach to sourcing marketing services partners ("what do we need, who can supply that, how will we measure success and how shall we pay for that success"). Its about cost-management rather than cost-cutting. In the coming months and years we expect to be advising clients how to cut (yes, I said that out loud!) their marketing budgets by designing and organising their roster more efficiently around a business marketing strategy. 

    So, in short I think the recent era of cost-cutting in marketing (the naughty procurement) will be replaced with an overdue era of diligent cost-management (the smart strategic procurement), based mainly on a roster's ability to demonstrate value delivery.

    See, I told you it was simple....

     

    Comments (0) | Permalink

    Posted by: Tom Denford

    Tags: consulting, Agency/ client relationships, Business models, pitches, Remuneration, Measurement, ROI & effectiveness, media costs, Ad Spend

  • Making the best of what you've got...

    11 November 2010

    The M&M office is always on the look out for quirky ad campaigns laced with a little bit of smut. Mention any sort of body part, or function, and you’ll find us tittering like a school girl at the back row. So it’s with great pleasure that we present to you an ad from our new favourite estate agent (they've been few and far between)... Mr Rich Will Wanket.

     

    Aside from the fact that he’s embracing his name so whole heartedly, my favourite bit is: “My real name. Birth Certificate available upon request.”

    Does anyone really think he’d make it up? Does anyone need to see a birth certificate? Could you imagine how disappointing it would be, if you realised he was making it up?

    Comments (0) | Permalink

    Posted by: Josh Colley

    Tags: Reputation, Measurement, ROI & effectiveness

  • How observant are you?

    30 September 2010

    Before you continue reading this blog cover your watch with your hand - if you are not wearing a watch this exercise is unfortunately not for you!

    Now - without peaking - can you remember what the number 6 on your watch looks like? Is it black? Gold? A line or a dot?

    Have you got the answer? Now look at your watch. Were you right? How far off were you?

    If you think about how many times a day you look at your watch it could be argued that your watch has a pretty good penetration/awareness rate.

    When this exercise was done at the CMO Conference less than 10% got the answer right; keep in mind this is a room full of people obsessed with penetration and awareness!

    Klaus-Dieter from Brand:Trust used the exercise to demonstrate the fact that awareness is not always the answer. Just because consumers see a brand does not mean that they necessarily interact with it. 

    Comments (0) | Permalink

    Posted by: Martina Lacey

    Tags: Measurement, ROI & effectiveness

  • CMO Warning!

    30 September 2010

    In order to due your job effectively CMOs need to remember 2 things:

    "CFOs are very simple minded people and procurement guys are not human beings."*

    And there you have it!

    *Disclaimer - the above does not necessarily reflect the view of M&M, in fact we love procurement guys. We don't know that many CFOs but we are sure that they are VERY intelligent!*

    Comments (0) | Permalink

    Posted by: Martina Lacey

    Tags: Measurement, ROI & effectiveness

  • Coca-Cola: Long live the big idea

    24 June 2010

    Views on the third day at Cannes from Jimmy Maymann, founder and executive chairman at goviral

    With over 1.6bn servings every day across its 500+ brands and one of the biggest marketing budgets in the world, the Coca Cola Company should command any marketers attention.

    When Joseph Tripodi, Executive VP, CMO, CCO is on stage in Cannes to discuss Coca-Cola’s new approach to marketing ”scale meets storytelling” through the lens of their FIFA World Cup 2010 campaign - any marketer should be in the audience.

    Those of us that were learned how Coca-Cola put 11 agencies in one room, told them to put collaboration over competition and how they together had pursued the  essential connective tissue - an authentic VIS system for the World Cup that could create the necessary emotional connection with consumers and maintain global scale.

    The big idea is not dead, but the process is changing.

    I am sure it will have been very messy at times, but when Joseph went through the three final chapters they ended up with all that chaos was worth it. The FIFA Trophy Tour involved 86 countries, 45 heads of state and more than 500.000 people who had their picture taken with the trophy. Roger Millar and the celebration story – leading to strong brand pjeces and thousands of UCG celebration videos on Youtube… the third chapter is of course K’naan and his ”Wavin’ flag” that we all left the auditorium humming. Anybody remember the official FIFA World Cup song by Shakira?

    Comments (0) | Permalink

    Posted by: Josh Colley

    Tags: Creativity, Globalisation, Measurement, ROI & effectiveness

  • (Almost) Everyone hates online ads

    09 June 2010

    Apple

    We all know that Apple is taking over the world. We’ve realised it's inevitable and have come to terms with it.

    In 20 years’ time, we’ll be making a call from our iPhone, browsing the internet on our iPad, getting a drink from our iFridge, going to sleep in an iBed and, probably, drinking from an iCup.

    The unveiling of the latest version of iPhone 4 and Apple’s operating system was greeted with the usual hype that any Steve Jobs product launch receives. As part of the update process a new version of the company’s internet browser Safari has been unveiled.

    Among the shiny new features that have been added to Safari is an integrated ad-blocker, which will automatically take out all of those annoying pop-up and video ads that ruin everyone’s browsing experience.

    For publishers and advertisers alike this places another hurdle on the way to turning digital into a money churner. Sure, everyone has the option of downloading ad-blocking software but there’s plenty of people who never get round to it. In the ultra-competitive world of technology it wouldn’t be a surprise to see this become standard across Firefox, Internet Explorer and so on and son.

    The path to digital prosperity just got a little rockier.

    Comments (0) | Permalink

    Posted by: Josh Colley

    Tags: Business models, Measurement, ROI & effectiveness

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