ROI is All in the Execution, Not Just in the Allocation - Bill Harvey - MediaBizBlogger

Contemplating the thoughts I shared with you two weeks ago I started to wonder which would have a greater effect on ROI how well you are allocated across broad media types what I called portfolio management versus how well you execute within each of those media typesBeing a researcher and not a betting man I had no answer I haven39t seen any empirical evidenceThen a connection happened I remembered that during the recent economic swoon in debriefing with financial advisors our family discovered that we were fine in terms of the diversification of the portfolio amp8211 it was in all the right categories amp8211 but we still lost a bundle Portfolio management right outcome still wrong Portfolio management didn39t do the whole job that needed to be doneI wonder if the folks who do their own companylevel research themselves have a higher ROI than those of us who rely on financial advisors who look mostly at sectors and only sparingly perhaps relying on what others say at the specific companies in which the investment goesTranslating this to marketing it is I now realize all in the execution It isn39t the percentage that we put into television It39s the drilldown dogwork planning and execution that makes it work It39s in the talent and quality that39s brought to that And the teamwork and culture that lets it happenWhy is thatIt39s because of the nature of a campaign A campaign is a showbusinessstyle psychological eventA company through its agency partners is reaching out to say hello to the public in a way that the advertiser hopes will be appreciated and responded to with not applause but purchases It39s that difference between the applause and the purchases that is the only difference between marketing and show businessIn both cases the message is crafted so as to evoke Resonance in the largest possible segment of the target audience The intention is to cascade from Resonance through Engagement to either Purchase or ApplauseBecause marketing is so psychological it actually matters what the message says and how well it flows from its media environment into resonance The tactical details are also important which companies to invest in within a portfolio sector Which TV shows to appear in Whether to produce traditional ads or to integrate the product into shows or a combination of bothAs in show business success lies not in having a great idea for an act or having good management for the act but in the act itselfThe act depends on the talent The same is true in marketingOne key difference is that a great act can overcome bad management whereas talented marketing people can be mismanaged into impotencyMarketing being psychological is not the accepted way of looking at thingsMarketing is looked at as an assembly line producing and refining ideas and turning them into messaging and branding and metrics and ROIAssembly lines are not the best environment for producing the ideas that turn into ROI Much marketing is so nonpsychological that it has very little of the intended effect whatsoeverSome is brilliant and leads to ROI and longterm brand equityIt all depends on the execution not only on the media type allocation of budget This is why singlesource is so importantWith Marketing Mix Modeling MMM the industry has been doing a great job of allocating the marketing budget Now all of us have to go one step further and optimize deeper down into the marketing pie wedges one at a time or all at the same time whatever our enterprise can actually achieveThe reason that is now possible for the first time in TV is singlesource It39s an idea that has been obvious in marketingmedia research since the days of Alfred Politz when it was only a dream People like Colin McDonald and Bill McKenna brought the dream into reality and Apollo validated that it works Today TRA is carrying its banner in the US Like the earlier incarnations of singlesource data is retrieved from the same household for both media exposure and purchaseIt is immediately apparent why one would want to have this link Now one can do as a scientist does and actually learn something about the showbusinesstype phenomenon called marketing in which we have been investingOne can see the correlations and even do controlled experiments to prove causations It is a low noise system without self reported data just factual data from meter reading type activitiesAs Advertising Age just reported in its article quotPackageGoods Brands Lose Loyalists in Recessionquot httpadagecomarticlearticleid137436 the recession has brought brand loyalty down another notch and brand switching is up which only adds importance to TRA39s identification of the Heavy Swing Purchasers HSPs who account for over 80 of TV39s sales effect Locating these right eyeballs program by program is critical because by limiting buys to programs which reach a brand39s HSPs ROI increases on average over 70 in cases to dateBy leveraging huge digital databases the industry has the ability to match cause and effect in ways never before seen This opportunity only accelerates with the TV digital conversion which occurred on June 12th Now the TRA Digital Universe is the total US universe amp8211 the world has caught up with usThe marriage of MMM and SS will bring about a period in which not only the portfolios will be right the execution within each silo will be right as wellBill Harvey has spent over 35 years leading the way in the area of media research with special emphasis on the New Media Bill can be contacted at billtraglobalcomRead all Billamp8217s MediaBizBlogger commentaries at Bill Harvey MediaBizBlogger

Become a Thought Leader. Share your thought leadership article with industry professionals & have them archived in Thought Leadership

ROI is All in the Execution, Not Just in the Allocation - Bill Harvey - MediaBizBlogger

Author

Publish date

Channel

Bill Harvey

Hispanic Leadership Roundtable: Inclusion, Mentorship, and Building the Next Generation (Video) - By Juan Ayala

More Videos:

Become a Thought Leader. Share your thought leadership article with industry professionals & have them archived in Thought Leadership

ROI is All in the Execution, Not Just in the Allocation - Bill Harvey - MediaBizBlogger

Enjoying This Commentary? There's More to Love

Bill Harvey

Hispanic Leadership Roundtable: Inclusion, Mentorship, and Building the Next Generation (Video) - By Juan Ayala

The payment was successful

Cookies