Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

How immediate ROI focus kills brand?

12 views

Published on

An attack on short-term thinking, created by digital. (not an attack on digital)

Published in: Marketing
  • Be the first to comment

  • Be the first to like this

How immediate ROI focus kills brand?

  1. 1. HOW DOES “I WANT IMMEDIATE SALES FROM ALL MY ADS CAMPAIGN.” KILL BRAND GROWTH?
  2. 2. THIS IS AN ATTACK ON SHORT-TERM THINKING, CREATED BY DIGITAL. (NOT AN ATTACK ON DIGITAL)
  3. 3. “SHORT TERMINISM IS PARTLY DRIVEN BY DATA – BIG DATA SEEMS REALLY HOT, BUT IT NEARLY ALWAYS MEANS SHORT-TERM DATA. PEOPLE GET VERY EXCITED ABOUT THE IDEA THAT I JUST SEARCHED ON SUCH AND SUCH A THING, SO THEY CAN HIT ME WITH MESSAGES RIGHT NOW. IT’S INCREDIBLY SHORT TERM.” LES BINET
  4. 4. FOCUS ON SHORT-TERM ROI OR IMMEDIATE SALES MEANS CONCENTRATING ON THE LOWEST HANGING FRUITS (ONLY PEOPLE HAVING PROPENSITY TO BUY).
  5. 5. IN OTHER WORDS, SALE-DRIVEN ADS WILL EXPLOIT THE CURRENT MARKET, INSTEAD OF DEVELOPING THE MARKET.
  6. 6. FOCUS ON SHORT-TERM ROI MEANS TRYING TO GROW THE BRAND BY GETTING THE EXISTING PEOPLE TO BUY MORE (LOYALTY). BUT … BRANDS DON’T GROW VIA LOYALTY. BRANDS GROW VIA PENETRATION. (HOW BRANDS GROW, BYRON SHARP)
  7. 7. FOCUS ON SHORT- TERM ROI MEANS ELIMINATING WASTE. BUT, WASTE IN ADVERTISING IS THE PART THAT WORKS.
  8. 8. THE WASTE IN MARKETING IS THE PART THAT MAKES PEOPLE: - TRUST THE BRAND - WILLING TO PAY HIGHER FOR THE BRAND - INFLUENCE OTHER PEOPLE TO BUY THE BRAND In picture: Goldman Sachs Lobby Goldman Lobby art costs more than $10 million. A marketing waste to signal the bank’s wealth
  9. 9. FOCUS ON SHORT-TERM ROI MEANS FOCUSING ON “SALES ACTIVATION”, AND IGNORING COMPLETELY “BRAND BUILDING” WHICH GROWS BRAND IN THE LONG RUN.
  10. 10. FOCUS ON SHORT-TERM ROI WILL SEE IMMEDIATE UPLIFT IN SALES, BUT FAILS TO SEE THE LONG-TERM SALES GROWTH.
  11. 11. FOCUS ON SHORT-TERM ROI MEANS EARLIER, BUT NARROWER PAYBACKS.
  12. 12. THE PERFECT SPLIT BETWEEN SHORT-TERM AND LONG-TERM: 40:60
  13. 13. REFERENCE AND FURTHER READINGS: • http://effworks.co.uk/ten-best-charts-binet-field/ • https://adage.com/article/digitalnext/efficiency-killing- brands/310832/ • https://www.cmo.com.au/article/646133/binet-digital-has- skewed-marketers-too-far-into-sales-driven-advertising/

×