1) Marketers are spending more on content creation than ever before as they try to reach audiences across more channels, markets, and people. However, resources are not growing at the same rate. 2) A large percentage (10%) of average marketing budgets are being invested in creating social content and marketers expect these costs to continue increasing significantly. 3) High performing brands spend about 3% more of their total marketing budgets on content creation compared to peers. Marketers are investing across both social and non-social channels like advertising, search, social media, and video.

1. Noah Brier
TheCostofCreativity:
How(andWhy)Marketers
areSpendingin2017

2. Who are we?
A single platform for managing
your social and content marketing.

3. It’sagoodtimetodowhatwedo

4. Channels
Markets
People
Brands have more channels, markets, and people available
20001980 199019701960 2010—
?

5. Channels
Markets
People
Content
They’re creating more content than ever to reach them
20001980 199019701960 2010—
?

6. Channels
Markets
People
Content
Resources aren’t growing at nearly the same rate
20001980 199019701960 2010—
?
Resources

7. Wherearethoselimitedresourcesgoing?

8. Great content takes investment and brands are doing it
Marketing content creation costs as a % of entire marketing budget
2016
2017
Marketing content creation costs as % of marketing budget
0 4 8 12 16 20 24 28 32 36 40
Source: Percolate

9. 69% of brands expect need to invest more in social content
What do you expect the trend in social content costs will be?
27%
4%
22%
47%
Will increase
Will increase significantly
Will decrease significantly
Will stay the same
10%of the average
marketing budget is
invested in creating
social content
Source: Percolate

10. In fact, marketing leaders cite “content and creative workflows”
as their #1 investment priority this year
#1 Content and creative workflows
Source: Percolate

11. 3% How much more high performing brands spend on content
relative to their peers, as a % of total marketing budget
On average, high-performing brands invest even more in
content and great creative than peers
Source: Percolate

12. No channel lives in isolation:
Brands are investing across both social and non-social
Percent of marketing budget spent by channel
Source: Percolate
10%
10%
9%
13%
10% 9%
11%
29%
Traditional media advertising (TV, print, OOH)
Search advertising
Programmatic
Social
Website and e-commerce
Brand publishing and other content marketing
Digital video
Influencer marketing and sponsorship costs

13. To be successful, you must be truly multi-channel
Percent of marketing budget spent by channel
Source: Percolate
10%
10%
9%
13%
10% 9%
11%
29%
Traditional media advertising (TV, print, OOH)
Search advertising
Programmatic
Social
Website and e-commerce
Brand publishing and other content marketing
Digital video
Influencer marketing and sponsorship costs

14. And global
Contentlocalization
Is a Top #5 operating cost contributor and priority for
marketing leaders

15. This is also reshaping the brand-agency dynamic
Internal
Brand Hub
Agency
Agency
Agency
Agency

16. 28%
29%
43%
Advertising
Other Marketing
Technology
Source: Percolate
Marketers are responding with more tech
High Performers’ budget breakdown (excluding headcount)

17. Butisittherighttech?

18. Distribute
Listening
Advertising
Social CRM
Analytics
ApprovePlan CreateCollaborate
90%
of Marketer Investment
Tech investment is focused on the end of the process

19. Distribute
Listening
Advertising
Social CRM
Analytics
ApprovePlan CreateCollaborate
90%
of Marketer Investment
But is that solving the right problem?
90%
of Marketer Impact

20. No amount of tech,
targeting or optimization can
change the laws of marketing.

21. — Mark Pritchard, CMO of P&G
“We targeted too much,
and we went too narrow.”

22. No amount of tech,
targeting or optimization can
change the laws of marketing.
So what are those laws?

23. #1 - Brands need to reach many people

24. #1 - Brands need to reach many people
15% Credit Card
Transactions
85% Cash
Transactions

25. Choosing the right audience > Targeting

26. Treat targeting as a strategy challenge, not a tech challenge
Just because you can target narrow, doesn’t mean you should

27. #2 - Creative must capture consumer attention
“Creatively awarded campaigns
are 11 times more effective at
generating long-term sales and
business growth”

28. Creativity=
Novelty+Constraints

29. Ensure constraints cut both ways
Creativity can only flourish if both sides agree on the rules beforehand

30. #3 - Marketing must reinforce the brand

31. Don’t make marketing for your competitor

32. Invest in brand governance and content quality controls
Aa
Targets
Prospects
Customers
Advocates
Awareness
Consideration
Purchase
At the scale of social there’s no other way to ensure all content connects back to the brand

33. Let’srecap

34. Laws Implications
Brands need to reach
many people
Treat targeting as a strategy
challenge, not a tech challenge
Ensure constraints cut
both ways
Creative must capture
consumer attention
Marketing must reinforce
the brand
Invest in brand governance
and content quality controls

35. Thankyou