Ma Marke ketin ting E Effe ffective tiveness Cu Cultu lture- - - PowerPoint PPT Presentation

‘Ma Marke ketin ting E Effe ffective tiveness Cu Cultu lture’- Ho How is it working g in pract actice? ce?

Libby Child, Greengrass

#EffWeek

Building on the ‘Culture First’ Report: The 2018 quantitative survey

Objectives

• To br

broaden and deepe pen industry knowledge and understanding

• f the current levels of ‘Effectiveness Culture’
• To establish an ind

indus ustr try baseline line against which progress can be measured

• To determine cu

curre rrent pra ract ctice ces s around the behaviours identified in the 2017 study, exploring those which are he helping ing and nd hind hindering ing the the creation tion of

• f an

n ‘Effectiv tivene ness Cul ultur ture’

• To investigate the inte

interdepend ndenc ncie ies betw tween n sta takehold holders

#EffWeek

Agency

113 Agency Participants, 61 Agencies 100 Brand owner participants from 61 companies

57% 20% 10% 9% 4%

Department

29% 27% 20% 24%

Job Title/Responsibility

27% 12% 8% 7% 7% 7% 6% 5% 5% 3% 3% 2% 8%

Company Type

Packaged goods Financial Retail Media/ publishing Telecoms Utilities Public sector Insurance Technolog y Automotiv e Travel Charity Other Marketing Research/ Insight Finance Analytics Other Director Research/ Insight/Analyst Manager Other

48% 33% 9% 11%

Agency Type

42% 22% 14% 5% 5% 4% 3% 4%

Department

Planning General Manage- ment Finance Analytics Media Buying Media- investment Research/I nsight Other

29% 33% 11% 17% 10%

Job Title/Responsibility

CEO/Managing Director Departmental Director Strategy & Planning Head of Department Other Creative Media Digital Other

Marketing company

#EffWeek

‘Marketing Effectiveness’ is on many a management ‘To Do’ list

Marketing

Energised focus on becoming a data/insight driven marketing

• rganisation.

We are at the start of a more co-ordinated effort (to create an Effectiveness Culture). It’s a top down focus at group/board level. Senior leaders/CEO embracing it. Senior management is valuing it more and demanding more data driven campaigns. We have recruited specific skill sets- investing in people capability.

Agency

Our clients are very committed to effectiveness as part of the process of achieving better work. Our own effectiveness drive is led by the perception that we, as an agency, are bad at it! It’s a major focus, sales tool and aim of

• ur business-
• ur CEO is

research driven so it is foremost in

• ur thinking.

Driving an agency wide culture of testing and learning, - not just something the analytics team does , but relevant to everyone. Good subject, great idea to have survey- we all have to aim towards a sustainable future.

#EffWeek

Over half rate their current Marketing Effectiveness Culture, at 6 or below

By 2020 75% expect it to be 8 or above, and a third a 9 or 10.

0% 1% 3% 6% 7% 10% 29% 29% 11% 4% 0% 0% 0% 0% 1% 2% 4% 5% 13% 44% 28% 3%

1 2 3 4 5 6 7 8 9 10 Now 2020

Very Poor Excellent

Average Rating (out of 10) Now 2020 6.0 7.9 Marketing company

#EffWeek

Findings: (What, Why, How) 3 Themes

Prevailing ‘Marketing Effectiveness Culture’ is now clearly short term in its focus. It is not yet the norm for marketing’s success criteria /KPIs/objectives to be aligned formally, upfront, across departments, channels, stakeholders. Marketing Effectiveness is increasingly a shared responsibility, yet internal ways of working can remain challenging. 1 2 3

#EffWeek

Findings: 3 Themes

Prevailing ‘Marketing Effectiveness Culture’ is now clearly short term in its focus. It is not yet the norm for marketing’s success criteria /KPIs/objectives to be aligned formally, upfront, across departments, channels, stakeholders. Marketing Effectiveness is increasingly a shared responsibility, yet internal ways of working can remain challenging. 1 2 3

#EffWeek

Only 14% of marketers strongly agree long term, 1-3 year plans in place…

We have agreed (signed off) marketing plans and objectives in place for the...

Marketing company

3% 5% 22% 20% 3% 8% 8% 8% 32% 50% 5% 8% 10% 8% 7% 10% 30% 33% 34% 41% 25% 20% 59% 50% 43% 42% 14%

Marketing Finance Marketing Finance Marketing Finance Short term (1-6 months) Medium term (6-12 months) Long term (1-3 years) Strongly agree Somewhat agree Neither Somewhat disagree Strongly disagree

89% 83% 77% 83% 39% 20%

#EffWeek

Agencies agree…

Agency

There are agreed (signed off) marketing plans and objectives in place for the…

5% 14% 60% 7% 22% 21% 19% 27% 14% 35% 20% 1% 34% 17% 4%

Short term (1-6 months) Medium term (6-12 months) Long term (1-3 years)

0-20% 21-40% 41-60% 61-80% 81-100%

On Only 5% of agency respondents see the majority of their clients having long term 1-3 year, plans.

5% 5%

#EffWeek

3% 12% 4% 14% 15% 31% 36% 31% 42% 12% 0-20% 21-40% 41-60% 61-80% 81-100%

AGENCY PERSPECTIVE

2% 2% 7% 11% 20% 25% 14% 19% 16% 42% 40% 39% 31% 18% 14% Strongly disagree Somewhat disagree Neither Somewhat agree Strongly agree

Short term needs take priority

% AGREE

73%

58% 53%

Our short term, tactical needs often take priority over longer term (12 month +) objectives We change our marketing direction regularly to meet the demands of the marketplace Our long term strategic plan consistently influences and guides our short term tactical decisions Their short term, tactical needs frequently take priority over longer term (12 month +) objectives The marketing direction changes regularly to meet the demands of their marketplace

78 78%

#EffWeek

3% 1% 3% 2% 18% 11% 16% 18% 14% 18% 27% 10% 12% 10% 17% 27% 12% 35% 47% 44% 55% 45% 24% 41% 23% 24% 12% 9% 18% Strongly disagree Somewhat disagree Neither Somewhat agree Strongly agree

Channel/campaign specific focus

Marketing company % AGREE 76%

70% 68% 67%

54% 42%

We place great importance on being able to demonstrate the ROI/payback of all of our marketing activity Our focus is on reviewing and reporting on individual campaign/activity/channel effectiveness Our measurement approach is fragmented, as we analyse separate pockets of activity (M) We have an ad-hoc approach to cross data analysis, responding to specific requests or challenges (M) I am not satisfied with our approach to measuring the effectiveness of our marketing activity (F) We have not been able to quantify the business impact

• f our long term brand building marketing activity

#EffWeek

Marketing company It is much easier to look at short term metrics, but without the long term impact being incorporated it won’t give an accurate picture. We are a low margin business and comms is one lever to pull to deliver revenue…The challenge is to keep the business honest to the long term plan. We can’t/haven’t measured success of brand building at the same time as tactical. Over 90% of budget dedicated to performance channels and the pressure for the remaining 10% is to deliver sales not brand. Too difficult to quantify long term business value of a strong brand. Largely driven by achieving short term objectives with resource allocation according to very flawed attribution models in the absence of anything better. Our hearts and minds want to have this (long term planning) and this is longed for in our team. We do have the right things in place from the perspective of the business. But we systematically ignore these things in favour of tactical wins and short term thinking. Short termism comes from senior management who are not engaged in how marketing can help drive the business but see it as a cost. Reactive market & sales campaign messaging taking priority over marketing planning & strategy. We have a long term strategy and plan but given the nature of our markets and audience behaviour changes, we need an underlying flexibility i.e. the market and the audience comes first and the strategy or a plan will change to meet a market opportunity. The power dynamics within the business mean the long term is not understood at all and long term brand effects are not factored into any decision making.

#EffWeek

Agency Short term planning is the norm. Marketing people tend to demand 5 year visions from agencies in pitches but then revert to short term planning in practice. This creates an imbalance between agency and marketing very quickly as agencies are usually more excited by long- term brand building. Generally strategies and

• bjectives are set for 1 to 3

years but budgets only set annually which means there can be some change. Annual planning has been

• ne of the biggest blockers to

long-term planning, clients appear to reset annually losing sight of that long term/vision set out by the CEO a year or two ago. Econometrics do show effectiveness but primarily

• n a campaign rather than
• n longer term so not

showing cumulative effect. Marketing people don't last very long in their jobs so they're after results, quickly. Short term focus is killing strategic planning and long term brand development/health. The

• bsession with what happened

in a 5 minute window/last week and continual course changes undermines strategy at time Short term attribution has become the key focus- possibly to the detriment of long term brand health. Tenures of Marketing Directors and C-Suites seem to be shorter than ever driving focus short term.

#EffWeek

Findings : 3 Themes

Prevailing ‘Marketing Effectiveness Culture’ is now clearly short term in its focus. It is not yet the norm for marketing’s success criteria /KPIs/objectives to be aligned formally, upfront, across departments, channels, stakeholders. Marketing Effectiveness is increasingly a shared responsibility, yet internal ways of working can remain challenging. 1 2 3

#EffWeek

Wide range of Data Sources available for Measuring Effectiveness

Sa Sale les dat data an a and d br brand tracking mo most activel ely used ed to assess marketing impact.

Marketing company

91% 89% 87% 74% 70% 60% 59% 47% 21% 11% 28% 55% 63% 16% 30% 23% 27% 23% 6% 1% Qualitative research Brand tracking Sales data ‘Test & learn’ Customer data tracking (eg NPS, loyalty) Online attribution Econometric modelling MMM (media mix modelling) Our own bespoke system AI/ machine learning Used to assess marketing impact Most actively used (Marketing only)

#EffWeek

85% 77% 89% 64% 58% 72% 56% 46% 19% 8% 19% 79% 75% 63% 65% 69% 46% 58% 47% 35% 21% 15% Used by Clients Agency has Access

Agencies confirm data sources

But have variable access Alignment on brand tracking. Gap most evident

• n sales data

and customer tracking data

Agency

Brand tracking Qualitative research Sales data Online attribution ‘Test & learn’ Customer data tracking Econometric modelling Media Mix Modelling Our own bespoke system AI/machine learning Have little knowledge

• f tools used

#EffWeek

Only 14% strongly agree success criteria established internally

Marketing company

#EffWeek

3% 1% 6% 4% 6% 8% 17% 19% 25% 25% 34% 23% 32% 23% 8% 15% 11% 8% 21% 11% 13% 44% 35% 41% 38% 37% 34% 30% 25% 24% 16% 16% 13% 14% 16% Strongly disagree Somewhat disagree Neither Somewhat agree Strongly agree

Only 14% strongly agree success criteria established internally

Marketing company % AGREE 69% 59% 57% F=18% 54%

48%

46% 50% Our marketing/customer data is both trusted and used within the business - from the Board down We systematically draw together our broad range of tools and measures, in order to develop insights & learnings (M) We make the relevant data accessible to the right people at the right time, to facilitate informed planning & decision making We consistently integrate the varied sources of performance measures (financial, brand health, customer, commercials) in order to track overall performance (M) We have appropriate marketing metrics and measures which are aligned across all our relevant business areas (markets, brands, business areas) We We agre ree our ur mark rketing suc uccess cri riteri ria acro ross all re relevant st stakehold

• lders

s & busi siness ss areas s e.g .g.: .: ma marketing, st strategic pl plannin ing, fin inance, e, res esea earch & in insig ight We have integrated modelling data which we use to help predict our future performance (M)

#EffWeek

Only 20% 20% receive briefs with clear success criteria, from ‘most’ clients

Agency

7% 12% 14% 14% 26% 57% 16% 16% 22% 25% 25% 18% 20% 26% 23% 29% 29% 8% 38% 29% 30% 25% 16% 10% 19% 17% 11% 7% 4% 8% 0-20% 21-40% 41-60% 61-80% 81-100%

They share performance (brand and customer) tracking data with us so that we can assess the impact of our activity They see us as strategic business partners and give us access to the data we need to be ‘effectiveness’ advisors We jointly agree upfront the appropriate effectiveness measures for our activity They provide the agency with written communication briefs which include clear objectives and deliverables Their briefs/briefing articulate how success will be measured, and what metrics will be used The achievement of effectiveness metrics is used as part of our remuneration

20%

#EffWeek

Marketing company Having enough internal resource to access data (is a barrier) There are challenges with holistic measurement; how to balance the abundance of lower quality high volume signals from activation activity to the slower moving but more impactful measures. Joining the dots between different data sources/agencies. There is a relative lack of readiness by marketing to accept the increased structure, visibility and quant approach to a spend area that historically did not submit to such an approach (finance). Major issue on resource- we have increasing amounts of data from a wider variety of courses but not the resource to fully leverage it. Securing clever marketing analytics at the right time. Challenge to get correct data centrally, speedily.

#EffWeek

Agency Access in theory, but client process often means access within a practical timeframe isn’t possible. Lack of experience in brand building- a nervousness about making meaningful statements. Non transparency with aims,

• bjectives and drivers,

whether internal or external. Lack of understanding on what the measures should be. Performance measurement often siloed within the organisation making it hard for clients to readily access data. Clients are protective of sensitive business data. The key barrier we encounter (even today) is that "there are so many factors influencing the outcome, how can you separate them?". We have developed ways to explain how multivariate analysis works in common-sense, real-world terms that the layman can relate to and understand at an intuitive level. Not having genuinely shared objectives.

#EffWeek

Findings:3 Themes

Prevailing ‘Marketing Effectiveness Culture’ is now clearly short term in its focus. It is not yet the norm for marketing’s success criteria /KPIs/objectives to be aligned formally, upfront, across departments, channels, stakeholders. Marketing Effectiveness is increasingly a shared responsibility, yet internal ways of working can remain challenging. 1 2 3

#EffWeek

‘Marketing effectiveness’ is becoming a shared responsibility

Marketing company

25% 24% 22% 14% 9% 2% 4% Insight and Analytics Marketing/group Marketing No single area/department, the responsibility is shared Marketing Communication teams An Effectiveness or Performance unit The Commercial/ Finance department Other

#EffWeek

Very variable ‘Marketing Effectiveness Cultures’ evident

#EffWeek

A mixed perspective

Marketing company

3% 7% 10% 12% 20% 35% 32% 30% 10% 10% 12% 17% 52% 30% 32% 31% 15% 18% 13% 9% Strongly disagree Somewhat disagree Neither Somewhat agree Strongly agree

% AGREE 67% 48% 45% 40%

We have widely understood marketing terminology (a shared language) for reviewing marketing performance Our internal capability and resource is insufficient to answer our marketing effectiveness analysis & needs We have successfully developed new structures and processes which break down legacy silos The company has prioritised having the correct mix

• f resources (people, capability, systems and

structures) to support ‘Marketing Effectiveness’

#EffWeek

What are the accelerators and barriers?

+ There’s a greater focus on results

• f campaigns from the company

leadership + CEO sponsorship is key + Change of leadership

• Marketing has traditional been

viewed by our CEO as an unnecessary expense

• Our Marketing Investment team is

currently a team of one

• Marketing Effectiveness is a

capability which requires significant investment & experienced resource + Creating a culture of collaboration + Our new structure + Can’t underestimate the

• rganisational complexity and

level of change required to ensure right mix of marketing , finance and analytics

• Siloed business units with own,

specific targets

• Politics, politics, politics- individual

targets and fiefdoms + Communication of marketing performance metrics to the wider business + We need more than one number for marketing effectiveness- should have a consistent dashboard + We are investing in data analytics

• Our finance team are sceptical of
• ur econometrics work
• The old and bad econometrics

have caused distrust

• I don’t think the industry really

knows the drivers of brand success in a meaningful way

A company wide, board level endorsed (CEO down) commitment and investment in capability Active restructure of legacy siloes & minimisation of internal politics Integrated, credible marketing measures, understood and bought into across the company, upfront

#EffWeek

Findings: (What, Why) 3 Themes

Prevailing ‘Marketing Effectiveness Culture’ is now clearly short term in its focus. It is not yet the norm for marketing’s success criteria /KPIs/objectives to be aligned formally, upfront, across departments, channels, stakeholders. Marketing Effectiveness is increasingly a shared responsibility, yet internal ways of working can remain challenging. 1 2 3

#EffWeek

Discussion: How do we-

Bring together the seemingly ‘tough to reconcile’ short/long term objectives Agree upfront, with all stakeholders, which marketing measures matter 1 2 3 Develop initiatives/ways of working which will support ‘Marketing Effectiveness’ day to day

#EffWeek

#EffWeek

On one level a rosy picture (marking own homework?)

Marketing company

2% 2% 3% 3% 2% 16% 8% 17% 14% 19% 30% 33% 5% 7% 10% 8% 16% 11% 36% 42% 43% 44% 35% 27% 49% 31% 30% 25% 17% 13% Strongly disagree Somewhat disagree Neither Somewhat agree Strongly agree

% AGREE 85% 74% 73% 69% 52% 40%

F=58%

The Marketing function and their outputs are seen as a key driver of business value Senior company management (Board level or equivalent) formally review the impact of marketing activity We consistently operate an evidence based approach to marketing decision taking Our marketing/customer data is both trusted and used within the business - from the Board down Our marketing effectiveness processes are used to help the

• rganisation learn, rather than to justify our marketing activity

Marketing spend is seen as a cost, rather than as value creation