Marketers pride themselves on their ability to adapt, adopt and innovate. They are at the cutting edge of information technology and know what consumers are going to do before they even do it. So it comes as a surprise that some, particularly those in broadcasting, are struggling to take the next step in the evolution of marketing: leveraging big data analytics to optimise their TV marketing strategies.
It started with the internet and changing consumer behaviour.To understand their resistance to the adoption of data science, we need to take a quick look at the evolution of marketing. Initially, marketing focused on the product - first on cheap product and then on quality products. It was believed that if a marketer could differentiate a product from the competition’s, then people would buy it. Then marketing took a big step forward and the focus shifted to consumers. Marketing’s new mantra was 'the consumer is king' and much of what they did was aimed at aligning product design with consumer needs. It seemed as though marketing was starting to grow up.
Then something wonderful and terrifying happened: the internet. Even though TV advertising remained the best way for marketers to reach their audiences, the World Wide Web was responsible for the two biggest changes in advertising: it put a world of information into the hands of every consumer and it gave marketers a plethora of new channels with which to reach their audiences. Some of the effects were positive and anticipated, others were unexpected and alarming.
The most unexpected of these was the change in consumer behaviour. Consumers became exposed to so many ads that they eventually learned to shut out the majority of messages. Content had to be super creative for it to stand out and very often even that wasn’t enough. The problem, as far as brands were concerned, was that much advertising still didn’t deliver any measurable ROI. Brands were getting tired of pouring money into campaigns with no way of knowing whether they were having any effect.
Marketers need to embrace data science to deliver measurable ROI.Today, marketing agencies are no longer rewarded for creative alone. Marketers now expect results. They want to see where their money is going. They want to see data analytics and to be given actionable insights. Business is cut-throat and they need to economise to remain competitive. They simply can’t afford to partner with marketing agencies that don’t help them to meet their business goals.
Given the emphasis on customer wants and needs, you’d think that marketing agencies would be quick to change their ways. But some are still struggling to adapt. They see themselves as creative types, even artists. Not scientists. Scientists have poor fashion sense and suffer from a general lack of hipness. It’s an image that doesn’t sit well with the well-groomed hipsters behind so many TV marketing strategies. As a result, they are not thrilled about working with data analytics.
They prefer to dedicate their energy to the next big idea, a creative ad that will win them awards and hopefully more business. So, it comes as a bit of a surprise when their awards attract only dust, not clients. They are left shaking their heads and wondering how it’s possible that accountability has become more important than creativity.
The most successful advertising agencies know how to combine data analytics with understanding.To better serve their clients, marketing agencies needs to combine data science with a thorough understanding of their clients’ audiences. When marketers get this right, they arrive at insights that can help them fine-tune their marketing strategies for even greater ROI. Data science can often be interpreted in different ways, and much depends on the results the user expects to see. To arrive at actionable insights, a marketer has to look at data analytics with a thorough understanding of their audiences.
That’s exactly what we do at Direct Response Media, our leading Melbourne advertising agency. We measure every ad that we air for cost per response, cost per lead, and cost per sale and then we use our knowledge of specific audience segments to come up with TV marketing strategies to amend our campaigns for greater ROI.
If you are interested in leveraging the power of optimised TV for your business and would like to know how direct marketing can help to grow your business, contact us by clicking on the button below for more information.
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