marketing effectiveness culture’- how is it working in practice? · 2018. 10. 8. · driven...

‘Marketing Effectiveness Culture’-How is it working in practice?

Libby Child, Greengrass

#EffWeek

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

• To broaden and deepen industry knowledge and understanding of the current levels of ‘Effectiveness Culture’

• To establish an industry baseline against which progress can be measured

• To determine current practices around the behaviours identified in the 2017 study, exploring those which are helping and hindering the creation of an ‘Effectiveness Culture’

• To investigate the interdependencies between stakeholders

#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

Pac

kage

d go

ods

Fina

ncia

l

Ret

ail

Med

ia/

publ

ishi

ng

Tele

com

s

Util

ities

Pub

lic

sect

or

Insu

ranc

e

Tech

nolo

g y

Aut

om

otiv e

Trav

el

Cha

rity

Oth

er

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

Pla

nnin

g

Gen

eral

Man

age-

men

t

Fina

nce

Ana

lytic

s

Med

ia

Buy

ing

Med

ia-

inve

stm

ent

Res

earc

h/I

nsig

ht

Oth

er

29%

33%

11%

17%

10%

Job Title/ResponsibilityCEO/Managing

DirectorDepartmental

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 organisation.

We are at the start ofa 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 our business-

our CEO is research driven

so it is foremost inour 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%

0 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




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 plansand objectives in place for the…

5%

14%

60%

7%

22%

21%

19%

27%

14%

35%

20%

1%

34%

17%

4%

Short term (1-6months)

Medium term (6-12months)

Long term (1-3years)

0-20% 21-40% 41-60% 61-80% 81-100%Only 5% of agency respondents see the majority of their clients having long term 1-3 year, plans.

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 tomeet the demands of their marketplace

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%


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 of 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 objectives are set for 1 to 3 years but budgets only set

annually which means there can be some change.

Annual planning has been one 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 on a campaign rather than

on 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 obsession 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




1

2

3

#EffWeek

Wide range of Data Sources available for Measuring EffectivenessSales data and brand tracking most actively used 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%

Qualitat iveresearch

Brandtracking

Sales data ‘Test & learn’ Customerdata tracking

(eg NPS,loyalty)

Onlineattribution

Econometricmodell ing

MMM (mediamix

modell ing)

Our ownbespokesystem

AI/ machinelearning

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 on 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

of 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%


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 agree our marketing success criteria across all relevant stakeholders & business areas e.g.: marketing, strategic

planning, finance, research & insight

We have integrated modelling data which we use to help predict our future performance (M)

#EffWeek

Only 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, objectives 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




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 of resources (people, capability, systems and

structures) to support ‘Marketing Effectiveness’

#EffWeek

What are the accelerators and barriers?

+ There’s a greater focus on results of 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 organisational 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 our 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




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

3Develop 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 organisation learn, rather than to justify our marketing activity

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

marketing effectiveness culture’- how is it working in practice? · 2018. 10. 8. · driven...

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