Mindshare Video: The Return to Long Term

For the past few years many companies have been trading longterm success for shortterm gains amp160However weamp8217re now in the midst of a backlash as longevity is making a comebackamp160 Research from IPA shows that the average number of very large business effects like profit and market share per ad campaign dropped by nearly 20 in the last few years thanks to a big increase in the percentage of shortterm campaigns launched by marketersIt is understandable why brands would favor a shortterm approachamp160 Not only is it easier to observe and measure but CMOs and brand managers are increasingly pressured by quarterly sales goals amp160But immediate results arenamp8217t always a good thing amp160This shortterm outlook inhibits innovation and makes the economy less competitive impacting the stock market amp160This means that more companies are staying private according to the Wall Street Journal the number of US publicly traded companies has dropped by almost 50 since the 1990s amp160Startups are also taking longer to IPO with the National Venture Capital Association showing that the median amount of time increased from 31 years in 2000 to 82 years in 2017As the issues with shorttermism become more apparent some are shifting to a more longterm strategies amp160For example the LongTerm Stock Exchange is a model backed by Silicon Valley venture capitalists that operates using amp8220tenure votingamp8221 amp160That means shareholders who have their stocks for a longer period of time get more votesIn another example Netflix anticipates it will spend 2 billion on marketing this year after spending 13 billion in 2017 amp160While this may seem like a huge increase in spend this will support the more than 700 pieces of original content that will be released amp160Netflix decided to start producing said original content because while it may require a big upfront investment the longterm benefits of owning their own programs versus solely relying on licensing from others outweigh the shortterm costsFor marketers it is important to ensure that youamp8217re setting the right KPIs for longterm growth amp160and balancing brand building and sales activations in your creative and media strategy amp160Are you thinking longterm amp160Donamp8217t be so quick to change course if the impact is not immediate because wrath is never something you want in businessFor more episodes and information on the latest in adaptive marketing visit MindshareInTheLoopcomClick the social buttons above or below to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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Mindshare Video: The Return to Long Term

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Mindshare Video: The Return to Long Term

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