Which Way Now? Justin Gibbons, work.research

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In this presentation, Justin Gibbons summarises the key findings from our new research and concluded that as an industry, we value what we measure but we are measuring the wrong stuff; not what drives performance.

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Which Way Now? Justin Gibbons, work.research

  1. 1. 2010 Media Performance Industry Survey Report A work.report Wednesday 3rd November 2010
  2. 2. Background • The 2010 Media Performance Industry Survey was commissioned to assess the industry’s thinking in relation to Media Performance, specifically exploring the very latest thinking on the measurement of media performance. • In context of re-examining value and values in media, this research sets out to unearth how leading influencers in the industry view the management of relationships and strategies for managing change • The survey was conducted online in October 2010 – with 250 responses obtained from a sample composed of media agencies, media owners and client-side marketers
  3. 3. Key findings • We value what we can measure • A new view of performance, and new metrics required • It’s not just about buying • Integration can save advertising • We know where we need to get to, it’s how
  4. 4. Contribution vs. Measurement 74% 63% 63% 50% 50% 46% 9% 15% 12% 39% 13% 56% Communications planning Media planning Engagement strategy Conversion rate optimisation Media innovation Media buying Perceived to contribute towards media performance (top 2 box out of 6 point scale) Perceived to be succesfully measured by the industry in terms of performance (top 2 box out of 6 point scale) Planning contributes but is measured poorly. Media buying makes less contribution, but is well measured
  5. 5. Media Performance Projections 2% 3% 4% 4% 24% 16% 32%24% 30% 46% 49% 46% 67% 56% 75% 68% 50% 48% 30% 17% 13% Buzz and reputation monitoring Web analytics Econometric modelling Conversion rate optimisation Awareness tracking Competitive monitoring Media auditing Q. For each of the following performance management activities, state whether they will be of more, less or of equal importance over the next 5 years? More important Of equal importance Less important Big growth areas are ‘buzz monitoring’ and ‘web analytics’.
  6. 6. Media Performance Metrics 2% 3% 2% 4% 5% 45% 43% 24% 26% 29% 39% 49% 45% 51% 75% 71% 70% 57% 46% 9% 7% Revenue creation Engagement metrics Customer value Cost per sale / action Conversion rates Cost per thousand (CPT or CPM) Reach and frequency Q. Do you expect the following performance metrics to become more or less important in the next 5 years? More important Of equal importance Less important The industry standards are becoming less important. Revenue creation, customer value & engagement metrics are becoming more important
  7. 7. Role of Media Agencies 23% 15% 32% 23% 39% 27% 43% 47% 38% 58% 25% 30% All respondents Media Agency respondents Media Owner respondents Client-side respondents Q. Do you think the media agency’s role will become more or less important over the next 5 years? More important Of equal importance Less important Overall, responses diverge
  8. 8. On the one hand ... Media agencies are the best placed to be the guardian of the process from comms strategy to evaluation, but they need to take this place proactively More of the value chain is converging on media agencies
  9. 9. ... on the other Media agencies are the best placed to be the guardian of the process from comms strategy to evaluation, but they need to take this place proactively Clients have a greater understanding about the consumer than ever before, through the data that they have its more possible to be able to deal direct with the media owners. More of the value chain is converging on media agencies Agencies are struggling to get the right talent at the top of their organisations to win the battles. Equally there will be a trend for clients to move buying in house as they seek to "own" data and not rely on agencies to be the guardians of it - search is first , online display will follow and other media will follow after that.
  10. 10. Media Agencies 5% 24% 24% 33% 12% 3% Q. How well do you think media agencies are equipped to meet the challenges of their clients? 1 - Not well 2% 3% 4 5 6 - Very well Only 48% of respondents believe that media agencies are well equipped to meet client challenges. NET % Well equipped to meet client challenges = 48%
  11. 11. Getting left behind? Media agencies are incentivised to continue to promote the use of traditional media as that is what they understand and that is where their current revenues are derived. Media agencies do not fully understand data and developments in technology and are not structured sufficiently to deal with key issues like convergence and the opportunities available
  12. 12. Media Performance: Agency Attributes 81% 76% 69% 69% 66% 63% 46% 41% 31% 63% 68% 16% 55% 40% 39% 80% 52% 31% Strategic input Innovative thinking Talent development Client servicing levels Consumer journey insights Marketing effectiveness capabilities Buying performance Category expertise Proprietary technologies Perceived as an important media agency attribute in terms of delivering performance to clients (top 2 box out of 6 point scale) Perceived as an important media agency attribute in terms of determining the outcome of media pitches (top 2 box out of 6 point scale) Buying is the pitch winner
  13. 13. Media Performance: Delivering performance 79% 78% 70% 75% 75% 70% 45% 36% 33% 76% 73% 68% 66% 65% 60% 46% 46% 39% 96% 86% 82% 57% 61% 57% 61% 54% 29% Strategic input Innovative thinking Client servicing levels Talent development Consumer journey insights Marketing effectiveness capabilities Buying performance Category expertise Proprietary technologies Q. How important are the following attributes of a media agency in delivering performance to clients? Media agency respondents Media owner respondents Client-Side respondents Strategy and innovation are the shared performance priorities
  14. 14. Media Performance: Pitch outcome 82% 74% 65% 46% 53% 45% 40% 38% 17% 78% 59% 61% 51% 54% 32% 28% 25% 15% 74% 82% 93% 78% 54% 50% 71% 25% 25% Buying performance Innovative thinking Strategic input Client servicing levels Category expertise Consumer journey insights Marketing effectiveness capabilities Proprietary technologies Talent development Q. Now rate these media agency attributes in terms of how important they are in determining the outcome of media pitches Media agency respondents Media owner respondents Client-Side respondents Client priorities are very different from their pitching agencies (oops!)
  15. 15. Client Media Performance 79% 65% 54% 54% 25% 21% 19% 16% 15% Developing integrated media strategies Developing cross platform initiatives Engaging more with media owners Changing media performance metrics Tightening media buying targets Changing media agency’s contract Holding a pitch Improving compliance Changing the media agency team Perceived as beneficial to a client's media performance (top 2 box out of 6 point scale) Integration is the challenge
  16. 16. Client Media Performance 74% 54% 51% 37% 17% 20% 7% 9% 9% 70% 68% 53% 83% 23% 15% 23% 21% 15% 93% 81% 59% 59% 44% 26% 33% 26% 30% Developing integrated media strategies Developing cross platform initiatives Changing media performance metrics Engaging more with media owners Tightening media buying targets Changing media agency’s contract Holding a pitch Improving compliance Changing the media agency team Q. Using the scale below, how would you rate the following activities in terms of their benefits for a client's media performance? Media agency respondents Media owner respondents Client-Side respondents Media owners are very keen to engage more with clients
  17. 17. Media Performance by Channel 25% 21% 16% 16% 12% 11% Sponsorship Online media Out of home media Mobile Print media Broadcast media Q. In your view, for which of the following media channels is the assessment of media performance at its weakest? Assessment of media performance weakest in sponsorship and online, strongest in TV and Press
  18. 18. Guess the survey The research used does not reflect the reality of either circulation or readership or attention. A survey gives an average for a page in a title? The metrics are based largely on cover & frequency, much less on role or relationship for communication. Agencies create nonsense plans based on cost ranks and beating an auditors pool. We are buying the cheapest collection of food to make a meal vs. planning a meal to make it appealing. Now going to connect itself into online in the wrong way.
  19. 19. Media Auditing 54% 47% 31% 15% 1% 1% 0% 67% 38% 47% 36% 15% 8% 15% 67% 63% 78% 52% 33% 33% 19% media auditing has lowered media costs for clients media auditing has improved agency financial transparency media auditing improves an agency’s contribution to client performance media auditing improves an agency’s client service media auditing encourages neutrality in media planning media auditing measures the most relevant metrics media auditing enhances the creativity of a media agency Q. To what degree you agree/disagree with the following statements about media auditing? NET % agree with statements Media agency respondents Media owner respondents Client-Side respondents Base – all respondents (247) Auditing is a one way street
  20. 20. Thank you

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