A Metrics Mess Marketing is Changing, but we still don’t know if that’s a good thing. CFO Europe – December 2006 Extractado por Ezequiel Iturain Campanile (J&J Argentina) .
The YouTube Effect <ul><li>The surprising success of BMW’s new products being broadcasted freely over the Internet has called on the attention of marketing executives on how to focus on new media. </li></ul><ul><li>The company has invested in new media advertising since 2001 with the online release of short films featuring celebrities in the likes of Madonna, in efforts to “stay ahead of the curve”. </li></ul>
The Metrics Issue <ul><li>Is there a metric, such as ROI, that’ll show the contribution of new media on the company’s sales? </li></ul><ul><li>As investment in new media tripled since 2001 to €20.5 billion in 2006, metrics have been uncapable of catching up with the companies’ requirements to measure the impact of innovative marketing campaigns. </li></ul>
Looking Forward <ul><li>As the number of channels increases, the number of metrics must increase, too. Successful metrics come from accommodating to the idiosyncrasies of each media. </li></ul><ul><li>Market share, customer satisfaction, audience cost-of-reach and brand awareness are useful, but unable to quantify the causal relationship between new media marketing and sales. </li></ul>
The Metrics Frontier <ul><li>Cutting edge metrics such as econometrics, though robust, are “still imperfect” due to their need for historical data (since they’re based on mathematical statistics). </li></ul><ul><li>Historical data on new media advertising is limited and cannot successfully feed econometric models. </li></ul>
Marketing Returns <ul><li>42% of marketing professionals agree their financial analysis is unsatisfactory. </li></ul><ul><li>A portfolio of metrics is now available: </li></ul><ul><ul><li>“ Funnel Method”: studies historical data to determine where its message will have the greatest impact in the future. </li></ul></ul><ul><ul><li>“ Brand Drive Analysis”: determines which type of message resonates with which type of customer. </li></ul></ul><ul><ul><li>“ Reach-Cost-Quality Methodology”: identifies cost/quality tradeoffs between campaigns. </li></ul></ul>
Staying Tuned <ul><li>McKinsey says companies should spend at least 20% of their budget on innovative media. </li></ul><ul><li>According to Toyota, if a campaign has worked 100%, they haven’t innovated enough. </li></ul><ul><li>However, innovation has to be based on business judgement. </li></ul><ul><li>The synergy between sales and marketing has abled Toyota to achieve good marketing metrics, since “the marketing team has become more commercially oriented”. </li></ul>
Still... <ul><li>A successful product introductory campaign is still TV based. </li></ul><ul><li>The fact that 90% of car buyers research the Internet before buying can’t be ignored, however. </li></ul><ul><li>Informational feedback has speeded up in the last 20 years. Marketing efficiency measurements can now be obtained within hours. </li></ul>