Kate O’Loughlin – Media - @katieoloughlin:
In a recent Procter & Gamble earnings call with analysts, Jon Moeller, the company’s Chief Financial Officer, said:
“We are strengthening marketing – greater reach, higher frequency, greater effectiveness, at less overall cost.”
According to The Wall Street Journal, “Procter & Gamble is targeting $200 million in ad agency-related savings this year, as the world’s largest advertiser continues to eye cost-efficiencies to boost bottom-line results.”
This should hit home for each and every agency and technology marketer in this space.
We’ve come to a crossroads where sexy ideas and innovative technology solutions can no longer stand on concept alone -- they have to positively affect the bottom line.
The tenants Moeller highlights in his quote are the exact issues we’ve been attacking over the last 5 years.
Greater reach: A core value proposition of cross-device technology is the ability to communicate with your audience, wherever they are, on whatever device they’re using. By extending the consumer view beyond only mobile or only desktop, and into new avenues like TV and gaming consoles, we’ve empowered marketers with reach never before achievable. The Device Graph now includes more than 1.2 billion targetable devices, which we leverage to build the single-most scalable and accurate cross-device solution in the market. That accurate, privacy-safe amplification is Tapad’s scalable way to find your most valuable consumers, everywhere.
Higher frequency: Getting frequency right is a crucial piece to marketing strategy. There are times when higher frequency is indeed more impactful, especially with the right recency. However, there are also times when higher frequency results in fatigue or inefficiency. By grounding frequency decisions in real cross-screen data, savvy marketers get their frequency capping right. Cross-device analytics gives us, for the first time, the insights needed to understand what the most optimal frequency really is. There isn’t a set number as this changes from campaign to campaign, but with quality measurement we can alter strategies to gain the greatest results, which leads me to Mr. Moeller’s next point…
Greater effectiveness: Mr. Moeller isn’t discussing ‘greater reach’ and ‘higher frequency’ for the heck of it -- as we all know, these are crucial elements to ROI. What’s most important, however, is ensuring these elements are connected. Increasing reach to the right audience and optimizing frequency based on engagement testing drives greater effectiveness. Truly achieving greater effectiveness requires accurate and holistic measurement across all media and transaction touch points. TV and digital can no longer live in silos. Offline measurement must be included in the mix. To be a trusted partner, we marketers have to work with our brands to ensure we’re delivering on the promise of data-driven advertising: efficiency and results.
Less overall cost: While I can’t speak on behalf of P&G, I would venture to say this desire to cut costs is not the result of choppy waters -- it’s simply smart business. The biggest advertiser in the world wants to know they, and their partners, are being good stewards of allocated marketing budgets. What makes a good steward? Making strategic decisions that build brand awareness and drive sales-- optimally. We employ this approach with each and every one of our marketing partners. Every campaign is unique and should be approached with a laser focus on achieving results in the most efficient way possible.
P&G’s decision to question ad budgets comes on the heels of what AdWeek described as ‘MediaPalooza.’ Companies across every vertical are questioning how their media budgets are being used. These reviews, coupled with issues like viewability and adblocking, have brought us to a new phase in digital advertising, a phase where we must take the next step in challenging the technology we’ve worked so hard to build.
We, as an industry, must align our goals, work together in an open ecosystem and deliver on what we’ve promised -- results.