The trends toward creative populism, personalised measurements, interactivity, open inventory platforms, together with greater consumer control, is going to generate more change in the advertising industry over the next 5 years than it has experienced in the last 50.
Increasingly empowered consumers, more self-reliant advertisers and ever-evolving technologies are redefining how advertising is sold, created, consumed and tracked, so the traditional advertising players; agencies, broadcasters, and distributors will be affected unless they can successfully implement consumer, business model, and business design innovation.
There is no primary role for linear TV any more, and we are seeing the ‘neutral’ evaluation of all media formats meaning that many of the skills and capabilities that were the foundation of success in the past will need refinement, transformation, or even outright replacement.
The latest research from IBM Global Business Services points to four change drivers which are shifting control within the industry:
Attention
Consumers are increasingly exercising control of how they view, interact with, and filter advertising in a multichannel world. TV time is now rivaled by PC time as consumers continue to shift their attention away from linear TV and adopt ad-skipping, ad-sharing, and ad-rating tools.
Creativity
Thanks to technology, the rising popularity of user-generated and peer-delivered content, and new ad revenue-sharing models, amateurs and semi-professionals are now creating lower-cost advertising content that is arguably as appealing to consumers as the versions created by agencies. The survey suggests this trend will continue with user-generated content sites becoming the top destination for viewing online video content, and established players, like magazine publishers and broadcasters partnering with advertisers to develop strategic marketing campaigns – taking on traditional agency functions and broadening creative roles.
Measurement
It is expected that 20% of advertising revenue will shift from impression-based to impact-based formats within three years as advertisers demand more individual-specific and involvement based measurements, putting pressure on the traditional mass-market model.
Advertising inventories
New entrants are making ad space that once was proprietary, available through open, efficient exchanges. As a result open platforms will start to take more of the revenue currently flowing to proprietary incumbents such as broadcasters.
Showing posts with label Measurement. Show all posts
Showing posts with label Measurement. Show all posts
Tuesday
ROI + ROE = Insightful Results
Do we rely too much on the hard metrics of an ROI model and miss the value of soft measurement factors like; what the ‘experience’ was to the consumers?
Yes many brands understand the value of giving consumers a brand experience and that evaluating the actual impact of a piece of activity is important, but although traditional ROI measurements provide us with certain information, they lack the evidence to prove just how effective they were in the long term.
A ‘Return on Experience’ model seems more fitting to accommodate to today’s consumer – a results model that provides tangible results and that proves the value of each practice. I’m not saying that we often obscure the consumer experience by the need to justify an impressive ROI figure, but that by thinking strategically, and combining the elements that drove the response rates with what aspect of the activity encouraged consumer interaction, means that we can gain a deeper understanding and a clearer holistic picture.
With an ROE model we can see the full picture. It is an essential part of measurement and one that gives insight into customers and their behaviour, and by analysing the correlation between experience and consumer behaviour means we can help give a brand an edge.
So in addition to a ROI model, incorporating a ROE element means that the hard measures of the ROI metrics; leads, redemptions, direct sales, etc., can be complimented, and overlayed with the softer measures metrics such as; brand trackers, focus groups, pre/post surveys etc.
It is all well and good if a campaign increased sales, but there are still the key learning’s to be gained as to what element of the campaign caused this, and why did it evoke such a response? Combining both models can give an all encompassing holistic view. From what the catalysts were that drove sales, to what actually influenced positive consumer perceptions of the brand, and allows us to see how well the experiences’ activities were received by the target audiences.
These outcomes are so important, especially in the current economic climate, where we need to go that little bit further to ensure that all campaign activity is strategic and caters to consumers growing demands and needs. Missing the value of soft measures, such as consumer feedback, could be seriously detrimental to a brand.
Consumer respect is earned rather than guaranteed, and so it’s the brands that demonstrate a true understanding of their consumers, ones that forge two-way relationships, and go beyond their expectations, that will prosper in these turbulent times.
Yes many brands understand the value of giving consumers a brand experience and that evaluating the actual impact of a piece of activity is important, but although traditional ROI measurements provide us with certain information, they lack the evidence to prove just how effective they were in the long term.
A ‘Return on Experience’ model seems more fitting to accommodate to today’s consumer – a results model that provides tangible results and that proves the value of each practice. I’m not saying that we often obscure the consumer experience by the need to justify an impressive ROI figure, but that by thinking strategically, and combining the elements that drove the response rates with what aspect of the activity encouraged consumer interaction, means that we can gain a deeper understanding and a clearer holistic picture.
With an ROE model we can see the full picture. It is an essential part of measurement and one that gives insight into customers and their behaviour, and by analysing the correlation between experience and consumer behaviour means we can help give a brand an edge.
So in addition to a ROI model, incorporating a ROE element means that the hard measures of the ROI metrics; leads, redemptions, direct sales, etc., can be complimented, and overlayed with the softer measures metrics such as; brand trackers, focus groups, pre/post surveys etc.
It is all well and good if a campaign increased sales, but there are still the key learning’s to be gained as to what element of the campaign caused this, and why did it evoke such a response? Combining both models can give an all encompassing holistic view. From what the catalysts were that drove sales, to what actually influenced positive consumer perceptions of the brand, and allows us to see how well the experiences’ activities were received by the target audiences.
These outcomes are so important, especially in the current economic climate, where we need to go that little bit further to ensure that all campaign activity is strategic and caters to consumers growing demands and needs. Missing the value of soft measures, such as consumer feedback, could be seriously detrimental to a brand.
Consumer respect is earned rather than guaranteed, and so it’s the brands that demonstrate a true understanding of their consumers, ones that forge two-way relationships, and go beyond their expectations, that will prosper in these turbulent times.
Subscribe to:
Posts (Atom)
Posts
