Tag Archive: programmatic

  1. The effectiveness battle: performance marketing versus brand marketing

    Comments Off on The effectiveness battle: performance marketing versus brand marketing

    One of the key themes at DMEXCO earlier this month was the effectiveness of performance marketing versus brand marketing, and the related tension between offline and online marketing.

    A trending topic

    A week or so ago, ECI attended DMEXCO in Cologne, and there was a lot to take in from the 1000 exhibitors on over 100,000sqm of exhibition space! We shared our summary of what we learned straight after it finished, but there is one topic that particularly piqued our interest that we explore in more detail in this article. That topic? The trends and debate around the effectiveness of brand marketing compared to performance marketing and the related tension between offline and online advertising.

    Short-term results versus long-term relationships

    As online media generates a vastly larger amount of data than traditional media, and much more rapidly, it is tempting to find ways to obtain higher click and conversion rates from digital campaigns. Marketers and their bosses have always been under pressure to prove the impact of marketing and, ideally, to cut out the parts of a media plan that aren’t working as hard as others. Performance marketing is a relatively new term for short-term, sales-driving online marketing that often uses layers of data and targeting to ensure that as few impressions as possible are served to people who are unlikely to register a conversion that can be attributed to the campaign in question. Performance marketing therefore contrasts directly with traditional brand marketing, for which TV is still a key channel. Brand marketing techniques are the result of decades of academic research which have concluded that high brand equity – and resulting long-term sales growth – are the result of moderately frequent messaging that resonates thanks to evocative creative. Those fundamental truths have not changed with the invention of online media spaces. However, it might never be possible to prove a direct and independent cause-and-effect relationship between a specific ad impression and a sale. So while brand marketing is great for building consumer relationships, it’s difficult for any responsible marketer to turn down a form of marketing that actually has the word ‘performance’ in it!

    The word on the street at DMEXCO

    At DMEXCO, the advantages of both brand and performance marketing were covered in detail – with tools to support the latter dominating the exhibition floors of the expo, while the advantages of a more sustained brand marketing strategy were extolled on the stages of the conference. There has long been feisty and fascinating debate between marketers about which should be given the lion’s share of a marketer’s budget, especially their online media budget. At the DMEXCO debate entitled ‘How marketers can be enlightened, empowered and enabled in a mobile world’, the MMA’s Chris Babayode explained how conversion attribution modelling accentuates the tension between performance marketing (the champion of last touch attribution) and brand marketing (which looks better when using multiple touch attribution).

    Last touch attribution of conversions for example is a common, simple method. It tends to demonstrate that methods such as search and retargeting generate a large number of conversions, leading many marketers to shift significant budget into these areas. Multiple touch attribution, on the other hand, recognizes that a click on a Google search link is not itself the cause of a conversion, and that various recent campaigns and on- and offline touchpoints should be taken into account. Multiple touch attribution can, for example, reveal what audiences and what sites will generate conversions further down the road.

    Don’t pick sides

    An interesting take on the debate appeared in an article by Mark Ritson in Marketing Week last month. It’s a well thought-through piece which we strongly recommend that any marketer

    reads, but Ritson’s conclusion is that, in fact, marketers shouldn’t pick sides: the best way forward for your business in the long term and the short term is to keep up a traditional mix of more long-term branding and more short-term sales promotion. Ritson quotes Peter Field and Les Binet’s book The Long and Short of It: you want ‘60% of your budget invested in long-term brand building and 40% on more immediate activation’.

    The effect of GDPR

    It is interesting to see how the introduction of GDPR in the European Union has further blurred the line between the trackability of off- and online channels and therefore the distinction between which should be used for performance or brand marketing purposes. Many people have stopped allowing brands to track their data, meaning there is, and will continue to be, a large market for non-trackable impressions that are therefore similar to offline impressions. This shift in supply and demand is a huge, although likely temporary, opportunity. Several speakers at DMEXCO remarked on the drop in programmatic supply after GDPR was rolled out in May this year – despite the fact that media consumption of course didn’t drop.  It’s all about choosing the right media for the right job – a truism that was illustrated perfectly by the exhibitors of some of the world’s most advanced ad tech companies using paper fliers for their marketing at DMEXCO!

    Demonstrating how online can be an effective channel for brand marketing campaigns

    An interesting case study into how effectively online platforms can be used for brand campaigns was highlighted in the YouTube-hosted event ‘How consumer choice has changed the video landscape’ by Johnson & Johnson’s Northern Europe Marketing Director Meghan Davis. She related the story of how J&J briefed a few different creative agencies to create an ad, independently of one another, using the same dental hygiene brief. All three resulting videos were then tested on YouTube and the one that performed the best was run on a wider scale. This brilliant campaign showcases how using quick-effect metrics and the flexibility of online media can improve the impact of a branding campaign across both online and offline; and demonstrates how live data can inform decisions to optimize a campaign and maximize its short- and long-term impact. We believe that this is an online strategy that could be adopted by more marketers looking at how online media can be leveraged for brand campaigns.

    As is so often the case with advertising, the answer to the brand marketing versus performance marketing conundrum is not binary. The best results lie in achieving the right balance: as Ritson says, ‘a great brand plan will deliver short-term results within the year and set up longer-term, enduring advantage from stronger brand equity and improved funnel conversions. A great brand plan manages to hit short-term sales targets while also funding longer-term brand objectives that focus on brand health metrics.’ That means just the right mix of on- and offline channels, working in harmony to drive brand equity and meet sales targets. And to achieve that holy grail, robust strategies and creative messages and visuals that resonate, backed up with insight and measured with the right KPIs, are of critical importance.

    To see how ECI can help you to obtain the perfect balance, contact us at .

    Thumbnail image: Shutterstock

  2. ECI’s DMEXCO download

    Comments Off on ECI’s DMEXCO download

    ECI was at DMEXCO in Cologne this week: from ethical hackers to in-housing, here’s what we learned.

    Important questions and lots of answers

    ECI joined thousands of fellow ad industry professionals at DMEXCO in the German city of Cologne this week. The digital marketing and advertising trade fair and conference has become a key feature on advertisers’ calendars as they seek to understand and capitalise on the countless opportunities – and avoid the pitfalls – offered by ad tech. There are so many questions on these people’s minds – should I bring my ad tech in house? Who are the right suppliers? How can I best leverage my company’s proprietary data? If the answers to these questions are anywhere, it’s at DMEXCO – although you have to filter out a lot of noise on the way…

    We came away from our two days at DMEXCO with two big takeaways. The first is how cluttered the marketplace is and the (perhaps related) knowledge gaps, particularly among those who should really know better. The second – quite possibly a result of the first, as we’ll discuss later – is the debate around inhousing ad tech versus outsourcing it.

    A cluttered marketplace and knowledge gaps

    DMEXCO is crowded, noisy, hot and very exciting – much like the industry that it showcases! As we found while we were there, the more you learn, the more you realise just how much there is to learn, and the effort required to keep up with the latest developments in online marketing. As is so often the case in the digital world and particularly the digital marketing industry, buzz words and phrases were swirling around – ‘performance marketing’, ‘attribution’, ‘intelligent’, ‘data’, ‘personalisation’ and ‘disruption’. Our old friend ‘email marketing’ is still up there, with general consensus that it remains an important tool. The new phrase on everyone’s lips – one to watch out for – is ‘ethical hacker’, the information security experts who identify vulnerabilities that non-ethical hackers could exploit: critically important in these times of cyber threats and security breaches. We observe, with a wry smile, that DMEXCO is perhaps the only place where the words ‘AI’, ‘machine learning’, ‘algorithm’, ‘performance’ and ‘optimisation’ can be used in the same sentence unironically.

    Despite this lack of irony, there was some healthy scepticism at the conference. Taking to the stage in the event ‘The next mission in marketing’, Philipp Markmann talked about the ‘absurd level of complexity’ in the media market, with far too many services to choose from, meaning that advertisers are overwhelmed by choice. Is this because publishers and vendors are targeting and talking directly with CMOs rather than focusing on agencies, who traditionally identified the best solutions on their clients’ behalf?

    Perhaps this is partly down to surprisingly low levels of knowledge in the industry. A common opening line from exhibitors at DMEXCO was “do you know a bit about ad tech?” We raised this with one of them who explained that a large proportion of attendees had a lower than expected knowledge of ad tech and digital advertising. AppNexus, one of the largest ad tech suppliers which was recently sold for $1.6bn, was mistaken for an app creator by more than one attendee, while one ad tech exhibitor said that they met with a media agency rep who didn’t know the difference between a first and second price auction, let alone the implications of each. There is evidence that the struggles, illustrated here, to keep up with online media markets are leading to irresponsible media buying, ultimately resulting in advertisers taking matters into their own hands by bringing their activity in house.

    In-housing or outsourcing?

    It was no surprise, therefore, that the in-housing of media buying was the subject of many of the events and discussion at DMEXCO. It’s being driven by a feeling that media agencies need to be doing more to earn their clients’ trust, but also by the understanding that marketing and sales in general, and online marketing in particular, should be closely integrated with a brand’s core business – especially when it comes to technology and strategy. Philips’ global head of digital marketing Blake Cahill, speaking at an event entitled ‘Brave the seismic shift – the future of creative digital consultancy’, recommended a mix of in-house and agency, with the latter focusing on media strategy and planning. This consultancy role would allow them to increase their fee – a glimmer of hope for agencies alarmed by clients taking activity in house. Meanwhile, in ‘The next mission in marketing’ event, speakers concluded that, in order to thrive into the future, agencies need to be experts, strategic and proactive thinkers, and reduce their complexity. Interestingly, as we reported last week, WPP’s new CEO, Mark Read, announced this as part of his strategy to future-proof the group.

    Media and creative agencies were notably quiet at DMEXCO – is that because of the problems they are having keeping abreast of developments in the space? Advertisers and publishers, as well as Google and Facebook, were prominent on the stages, while ad tech providers and publishers dominated the exhibition floors.

    But that’s not all

    Of course, discussion at DMEXCO also went far beyond whether advertisers will move their tech stacks in house and what that means for their agency partners and others. To succeed in digital advertising, marketers must ‘focus on the real consumer needs, understanding their behaviour’, as Alexander Ewig said in ‘The next mission in marketing’ talk. Rahmyn Kress, Henkel’s Chief Digital Officer and Debora Koyama, Mondelez’s CMO, also spoke about what success looks like in digital marketing at the ‘Future skills in brand marketing: how to transform into a modern marketing department’ event. They agreed that the FMCG sector is lagging behind when it comes to digital marketing, and that they – and all brands – must focus on the problem they want to solve, rather than the tools at their disposal. Kress and Koyama also concurred that data must be at the very heart of digital marketing; this is indisputable, but there was also a feeling across DMEXCO that advertisers should seek a balance between hard data and a more human gut feeling.

    A final observation has to, of course, come from Google. Their space on the exhibition floor was colourful, eye-catching and designed to look like a garden, complete with a wooden fence around the perimeter. A witty take perhaps on how Google and fellow tech giant Facebook are often called walled gardens for their reluctance to allow third-party tracking? We mentioned this comparison to a Google rep outside the fence, who laughed and then gave a very reasonable explanation for the fence: some advertiser heavy-weights were inside, making important deals with Google. Funny that in our world of AI-optimisation, data driving and agile bidding, business is still done over coffee and sealed with a handshake.

    Thumbnail image: Helene Kruse

  3. New WPP chief hits the ground running

    Comments Off on New WPP chief hits the ground running

    WPP has filled its CEO vacancy – and there’s a lot to do.

    A popular choice to fill big shoes

    Since Martin Sorrell’s acrimonious departure from the top job at WPP earlier this year, there has naturally been speculation around who would replace him. Charismatic and combative, and the chief architect of WPP’s growth from a wire and plastics company into the world’s largest advertising company, Sorrell left big shoes to fill.

    WPP announced this week that those shoes have been filled by Mark Read, who had been running the organisation on an interim basis, alongside Andrew Scott, since Sorrell’s departure. Read is a popular choice both within WPP and among shareholders, and was the leading internal candidate for the role. He has a proven track record in running WPP digital agency Wunderman, as well as in digital leadership and as a board member from 2006 to 2015. He is viewed as a steady pair of hands and someone who can hit the ground running – perhaps less charismatic and pugnacious than his predecessor, but that is widely seen as a good thing.

    Read has industry challenges to contend with…

    Read has his work cut out for him. The day after his appointment was announced, WPP suffered a sharp drop in share price, and the company recently announced a somewhat mixed set of results, with a small Q2 global revenue growth of 2.4% but a continued decline in its North American business, which dropped by 2.9%.  WPP is suffering from many of the same problems as its industry peers, including navigating the seismic shifts that the advertising industry is experiencing thanks to rapidly advancing technology. Many clients are looking to take at least some of their marketing activity in-house, forcing agencies and in particular media agencies to re-examine what the future looks like. Those that aren’t yet taking their activity in-house are simultaneously cutting costs and demanding greater transparency in the wake of brand safety scandals and the like. Furthermore, a new generation of competitors is springing up: not just the small boutique and niche agencies, but also in the form of companies such as Accenture and other consultancies, who are establishing capabilities in high margin marketing services such as data and programmatic

    …and in-house problems too

    Read’s challenges aren’t just those faced by the advertising industry at large: WPP has its own set of unique issues to resolve. It is famously huge, with hundreds of agency brands across the world, more than could ever be needed to manage conflict and who indeed often compete with one another. The many P&Ls

    make it unwieldy and, crucially, ‘impenetrable to understand’ for clients, in Read’s words. This is a major cause of concern for some of the group’s key clients such as P&G and Unilever, while Ford – WPP’s biggest client – announced earlier this year a review of its global creative business, currently handled by GTB, the dedicated agency established by WPP for the automotive brand.

    ‘Radical evolution’ is needed

    In response to WPP’s issues and in order to future-proof the organisation, Read has announced a ‘radical evolution’ strategy that will streamline WPP’s structure, consolidating some of the 170,000-strong workforce across 112 countries and 3000 offices. As Read said, “WPP needs to come closer together, not further apart. There are many good things about the business. It is a question of simplifying the offer, refocusing the portfolio and investing more in data and technology alongside creativity.”

    Read has ample experience in the digital side of the WPP business, and his transformation strategy includes turning WPP’s approach to how it works with data and tech on its head. He recognised that, in a world where the likes of Facebook, Amazon, Google and Alibaba own the lion’s share of consumer data, the most realistic way for WPP to monetise its data capabilities is to effectively borrow data from the tech companies and charge clients for data consultancy, rather than execution. GroupM agency MediaCom is already progressing in this area.

    Other elements of Read’s approach include actively helping clients take elements of their marketing in house by consulting on the strategy rather than focusing on the execution; and management of their data investment or research portfolio – it appears likely that Kantar Media could be sold in the not-too-distant future.

    The keys to success: steady hands and an open mind

    Mark Read is stepping to the fore at a time when strong winds are buffeting WPP and the wider advertising industry. However, a combination of steady hands at the helm and a willingness to transform the organisation’s structure and model could well be just what WPP needs to stay on course.

    Thumbnail image: Shutterstock.com

  4. The power of transparency in programmatic

    Comments Off on The power of transparency in programmatic

    Programmatic is growing up

    Programmatic has finally come of age. It is celebrating a decade of existence with ever-increasing prominence in the advertising sector. In the US, eMarketer has projected that by 2019 83.6% of digital display ad dollars will be spent programmatically – that’s not far short of $46bn. It is also finally maturing, becoming more stable and reliable as the major players start to take responsibility and drive transparency.

    Scandals, scams, wastage and a lack of understanding

    It was not always thus. Programmatic has long been seen as the wild west of advertising: while advertisers see and have enjoyed the benefits, many have major concerns around a perceived lack of transparency, leading to issues such as wastage and a lack of brand safety. Some sources believe that up to 60% of investment in programmatic was being lost by the time it reached the publisher, while Digital Market Asia estimates that 80% of ad dollars are ‘lost’ to the programmatic chain: SSPs, third party data, trading desks, exchanges and the DSP. Ad fraud scares such as the Hyphbot scam, and the brand safety scandals of 2017 did nothing to help the reputation of the sector.  

    At ECI, we believe that a key issue has been a lack of understanding on the part of the advertisers, who often don’t know what data to request and how to scrutinise and analyse it. This allows agencies and ad tech providers to play faster and looser with their clients’ investment than they might otherwise. As they say, ‘mystery means margin’.

    Forcing programmatic to be more responsible

    In the last 12 months or so, advertisers, agencies and even governments have forced ad tech suppliers to start taking their responsibilities seriously. Armed with knowledge and the right talent, they have been taking ad tech providers to task – P&G, for example, announced earlier this year that it would slash its digital spend by $200m,

    having identified last summer that, in Q2, $100m of their digital investment had little appreciable impact on their business. Meanwhile, GroupM took heed of advertisers’ concerns by updating its viewability standards for display and video ads, and the Guardian sued an ad tech supplier for failing to disclose fees earned from advertisers that appeared on the publisher’s site.

    New initiatives are driving transparency and trust

    In short, advertisers and agencies are pushing for more control over media performance and what it costs, meaning that they are demanding better targeting, better viewability, less wastage, less fraud and improved brand safety. Suppliers are delivering, with initiatives such as ads.txt and first-price auctions providing more transparency, and mergers between ad tech vendors and content providers eliminating many of the middlemen who make the process so murky. ECI strongly recommends set-ups where advertisers have full rights to all the data related to their buying; we have established a comprehensive set of best practice guidelines on how to buy programmatically in a selective way that minimises risk and costs, while maximising value. These guidelines have been proven to solve issues around transparency, viewability and quality, often dramatically improving ROI.

    Transparency will drive success for advertisers, agencies and ad tech providers

    Transparency is a real business differentiator – not just for advertisers, but for those providing programmatic services. As is so often the case, trust and openness are absolutely critical, and those agencies and tech providers who guarantee transparency will be the winners in this lucrative area. For advertisers, the win will be in choosing the right partner for great performance and transparency, and having a thorough understanding of the data and processes.

    Thumbnail image: Best-backgrounds/Shutterstock.com