The ARF held 2 presentations at last month’s New York Advertising Week Conference. The following content was from the first presentation on How Advertising Works, which consisted of 2 parts:
The first part of the presentation was a review of the ARF’s “How Advertising Works” in today’s cross-platform world. Recap of key findings from this ground truth research – the team looked at over 5,000 campaigns around the world, covering over 1,000 brands/sub-brands representing over 375 billion dollars. Five key takeaways highlighted by Jasper Snyder – EVP, Research & Innovation: Cross-Platform, The ARF:
- The more platforms, the more effective (increasing return on investment)
- Combinations of platforms: adding print to TV increases ROI 19%, adding radio increases it by 20% and adding digital to TV produces a “kicker” effect of 60% higher ROI
- Optimum blend between traditional and digital media is almost the same among Millennials as it is for adults in general
- Once you serve more than one digital impression a day to the same consumer, you run the risk of harming the brand sales, i.e. frequency is an issue.
- About 75% of the impact of a campaign is generated by the creative; unified creative strategies where the campaign is linked across platforms are the most effective
The second part of the presentation showcased a panel of five trailblazers who discussed a variety of current and future industry issues.
The following are key highlights and quotes from the panel:
Steven Rosenblatt – Chief Revenue Officer, Foursquare:
In the future, everything will have a chip on it, which will allow us to make decisions in real time. We’re not going to skip ads if we like them and they’re relevant and apply to us – If I go to the movies once a year studios should not be advertising to me.
We still work in the metrics that are good for us, but not good for consumers.
Dave Morgan – CEO & Founder, Simulmedia:
We come from a world where we are trying to recreate the agency of the 1950’s. I believe we can bring as much creativity in math, in the algorithms we use or the methodologies and approaches.
Customers don’t want reports and insights, they want foresight. They want to know what’s going to happen in the future.
People will be able to decide what messages that they are willing to receive or not.
Decentralization of data with more transparency.
Radha Subramanyam – President, Insights, Research & Data Analytics, iHeartMedia
Content absolutely matters!
We need neuroscientists, and people with a design background, we need people who are classical analysts, your python people and your R people. If you are going to do art and science (and that is the only way forward) you have to get everyone in the room.”
We keep talking about advertising as it has been in the past. What is advertising going to look like? We have to start thinking about reimagining advertising.
Howard Shimmel – Chief Research Officer, Turner Broadcasting
We need to change our perspective. From the trading of GRP’s and impressions to trading outcomes.”
Not all big data is good data (concurring with Betsy Rella).
One of the challenges is that we, as an industry, have not done a good enough job in putting the different pieces of data piece together to get a complete understanding of the consumer, their engagement in the category, with friends using things like social data. We need to put together an industry data map.
You can’t let the need to have everything syndicated third party slow down our progress. We rolled out a series of (Turner created) targeting tools that we believe is best in class.
Betsy Rella – VP, Research, TiVo Research & Analytics:
We have to be building larger data sets to get to the granularity.
More tailored, the customer journey… what’s going to prompt them to buy.
Predictive analytic tools are required.
Jasper Snyder – EVP, Research & Innovation: Cross-Platform, The ARF:
It’s super important that we embrace as an industry the balance between media and creative. And you can make a very strong case that in the past five or ten years it has been overly focused on the media, and run the risk of ignoring the creative.
Gayle Fuguitt – CEO & President, The ARF:
The people that I see will that are going to win are able to combine different systems and solutions, and not placing all their eggs in one basket with a single solutions provider.
Some of the best work I have done I get competitors to collaborate.
We have to connect Madison Avenue and Hollywood and Silicon Valley.
To view the event (40 minutes) go to http://newyork.advertisingweek.com/replay/#date=2016-09-26~video-id=32~venue=9
We will share the highlights from the second ARF presentation in an upcoming NYCU.