ogilvy at des: five data tricks brands mess up
DESCRIPTION
According to OgilvyOne's Dimitri Maex, brands can -- and should -- use the data they already have to drive real revenue, but they often don't know where to start. In this session, he'll explain the five data tricks that brands mess up -- and lay out the actions they should take to remedy the situation. Speaker: Dimitri Maex, managing director, OgilvyOne New York @dimitrimaexTRANSCRIPT
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
BOARDROOM
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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