Creativity vs Performance Data (or are they friends?)
The number of marketing channels being used has increased by 4x since 2016. So just how important are creativity and messaging, given this range of brand-to-consumer touchpoints?
We spoke with Nancy Smith, Founder & CEO, Analytic Partners, for insight on the impact of creativity on marketing performance:
Covid has transformed so many things: how we shop, work, learn, and live. Our economy and supply chains are still struggling through significant changes. Advertising has changed, but how much have the fundamentals of advertising effectiveness changed, and to what extent?
Insights from the Analytic Partners ROI Genome® found that the number of marketing channels being used has increased by 4x since 2016. Even casual observers know that delivery mechanisms, sales channels and messaging have changed dramatically. However, the essential concepts of advertising synergy, the importance of messaging, and understanding the big picture of long-term campaign performance remain the same and are critical to supporting brand growth.
Our ROI Genome® shows that companies which adopt analytics to support decisions drive at least 5x the growth versus those that don’t. Understanding advertising effectiveness through data and analytics will enable brands to maximize potential.
The Power of Synergy
Despite the disruption of the past few years, one key concept remains true: advertising effectiveness is amplified by synergies across media channels and the brand portfolio. Advertising via multiple media channels improves the overall effectiveness of advertising campaigns. ROI Genome® findings indicate that the synergistic impact of using multiple marketing channels can increase the impact of advertising efficiency by 35%. To put that in perspective, the average brand spending €10 million on an advertising campaign would be able to increase its impact by more than €8 million – simply by spreading its investment across multiple channels versus consolidating into one.
Brands also benefit from halo impacts which drive portfolio synergies and therefore stronger advertising effectiveness. Halo is a term that explains the positive impact that advertising for a specific product has on other products within the portfolio or brand franchise. In fact, we’ve found advertising that drives strong halo will have 2x the impact versus advertising that doesn’t halo onto the portfolio.
The Creative Impact
Messaging is key. The quality of creative has far-reaching impact. For example, we found that two thirds of the opportunities to improve video advertising performance is driven by strong creative quality, versus executional elements like targeting, placement and timing. Balancing brand and performance messaging is another critical consideration. ROI Genome® has found that brand messaging outperforms performance messaging 80% of the time.
The Long-term Impact
Even with synergistic and creative considerations in mind, too often the success of an advertising campaign is judged prematurely. In reality, two-thirds of the impact of advertising happens after the week it appears. Many longer-term impacts don’t happen until months later.
This concept gets sticky when marketing and finance leaders look at the immediate impact of advertising. When comparing the impact of advertising to promotions, for example, this approach downplays the value that media brings versus other offers and discounting efforts that are only immediate. When comparing the impact of advertising across different types of media, some tactics like TV, OTT and OLV will impact sales for a longer period than most search or display. Looking only at the immediate returns will lead to incorrectly undervaluing or overvaluing channels in driving conversions, let alone the longer-term impacts of brand building.
Find Opportunity through Data-Driven Decisioning
The entire world is going through significant economic disruption that is changing the way we advertise, and the way consumers interact with brands. Despite this disruption, the key fundamentals highlighting the importance of advertising synergies, messaging and long-term brand building have remained the same. Data-driven decisions based on solid analytics provide confidence in what is true, and this is the best tool to provide insights for a rapidly evolving marketplace.