ogilvy at des: five data tricks brands mess up

MISTAKE #1

WE ANALYZE BUT DON’T ACT

Listening is easy

+30% lift in ROAS

MISTAKE #2

WE DON’T LEARN FROM HISTORY

+15% conversion43:1 ROI

MISTAKE #3

WE DON’T USE THE DATA WE SHOULD BE USING

new Data

MISTAKE #4

WE SPEND TOO MUCH TIME IN THE BASEMENT, NOT ENOUGH TIME IN THE

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15 ways of setting the marketing budget

1. Intuitive / rule of thumb – “enough to do the job” based on experience

2. Maintaining previous spend, sometimes inflation adjusted

3. Percent of previous sales – backward looking, compounds failure (or rewards success)

4. “Affordable” – what’s left after cost and profit requirements are met

5. Residue of last years profits – focuses on source of funds, not their use

6. Percent of gross margin – begs question of cost efficiency

7. Percent of forecast sales – most common method used

8. Fixed cost per unit of sales – like % of turnover

9. Cost per customer/capita – mostly business to business

10. Match competitors – assumes they are right

11. Match share of voice to brand share – like the above

12. Marginal return – direct response approach

13. Task approach : define objectives and cost out how to reach them – best in theory but may require modeling

14. Modeling – the most sophisticated approach: not easy

15. Media weight tests – looks empirical but usually difficult to evaluate or replicate.

Harry Henry, Cranfield Broadsheet, 1979

MISTAKE #5

WE THINK LIFE IS LINEAR

EVERYONE HAS GOT A PLAN,

UNTIL THEY GET PUNCHED IN THE FACE

- MIKE TYSON

AGILITY

OODA LOOP

SENSE

ORIENT

CREATE

INTERACT