PHD Perspectives: Are We Putting the Data BEFORE the Horse? - Abby Luther - MediaBizBloggers

Coming from a Search Engine Marketing background, I have always considered myself a "data purest". Meaning that I simply can not fathom developing a media strategy, solidifying a budget allocation, or optimizing a media plan without having proper data backing up my recommendations. And lets be clear, when I talk "data" I am not talking about a Nielson or comScore report that was published 3 months after the fact…I am talking about real-time data and analytics that allows us to make actionable decisions on a daily basis, outmaneuver the competition and consistently drive increased ROI for our clients.

We are currently at the intersection of a very interesting time in advertising. Due to recessionary pressures over the past two years, and a considerable change in consumer behavior (yes it is FINALLY the year of MOBILITY…thank you Apple and Google), clients are demanding that agencies account for every single dollar that they spend in market. Given my background you would think that I would be pumped to ride this tide of accountability and data centricity. You bet I am, however I am skeptical as to whether we truly know how to handle this new environment to make the best decisions for our clients.

The fundamental problem lies in the fact that many marketers think that if we get the data right, all else will fall in its place. However many of our clients' data infrastructure is broken, making it impossible for us to have usable data in a timely manner in order to make decisions. And in a world where a product like the iPad, that didn't even exist a little over a year ago, is now changing the way we advertise….waiting a few years to get our data infrastructure up and running in order to make effective decisions isn't an option. And to be honest…what is the use of two to three years worth of data when new markets of consumers are popping up every year?

You can have all the data in the world and analyze if to the minutest detail, however, if you aren't making any actionable decisions from the data models you are developing, what's the point? As advertisers we have been so focused on touting the need for a data infrastructure that we have missed the bigger picture which is actually DOING SOMETHING with this information.

Ultimately at the end of the day, data is only as good as the actions you take from it. We need to stop suffering from this data analysis paralysis and focus on shifting the 80% of our time we spend planning towards analyzing, optimizing and learning. To do so, we must parallel path developing a data infrastructure with an optimization infrastructure that will allow us to get plans into market quicker, understand performance, test, learn, adjust and grow as quickly as possible. If you were training for a marathon you would fail if you spent all of your time making sure you had the right diet, shoes, and gear etc. If you want to win the race you gotta get out there and run, test your pace, adjust your course, run in various weather conditions, you get it… Just like marathon training, developing an effective media strategy in today's environment needs to be less about the planning and more about the action and learnings based on real-time experience.

The good thing is that new technologies are now in market (at least in the digital space with the advent of the exchange marketplace) that are allowing us to make real-time investment decisions. As marketplace inventory increases, and targeting is refined, dollars will continue to shift here. In addition, as models and consumption habits continue to move from print and TV to devices (iPad, e-readers, etc.) and digital moves from a strategy to a buying model, investing in real time will begin to permeate the offline world as well. Yes, it may seem like a far off dream but it's going to happen sooner than later.

So how do you, as an agency, get ready to take on this new world of data centricity and real-time decision making? Here are a few of my recommendations:

- Don'tBecome a Slave to Data

- DoMake Your Organization Flexible and Open to Change Daily

- Don'tSpend All of Your Time Developing a Data Infrastructure

- DoParallel Path Data Development with an Effective Optimization Model

- Don't Spend All Your Time Planning

- DoGet Plans Into Market Quickly

- Don't Look at Failure as a Downfall but Rather and Opportunity to Learn

- DoTest, Learn, Optimize…and Try Try Again

Abby Luther recently joined the PHD Digital team as PHD’s Director of Digital Marketplaces. Abby can be reached at Abigail.Luther@phdnetwork.com.

Read all Abby's MediaBizBloggers commentaries at PHD Perspectives.

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