Sponsorship effectiveness measurement: Part 2

Brands invest billions of dollars in various events every year worldwide, but only few of them know how to measure the return they get. In this article we will see why calculating media equivalence is not enough and learn about other approaches to measuring the performance of sponsorship deals. Sponsorships give brands unique opportunities for deep customer engagement and access to huge audiences, but like with other investments their impact should be evaluated to make sure the money is not wasted. Measuring sponsorship performance has been a serious challenge for CMOs; according to a research by MASB and ANA, 40% of marketers don’t even make attempts to do it, and 70% of companies don’t allocate enough money for the necessary market research and measurements. It happens because some brands are just starting to adopt the discipline of budgeting, or they don’t have a clear sponsorship strategy and need to manage a portfolio of deals with different objectives. Another issue is the lack of tools that can cope with the task. In this article we will cover key metrics to track and tools that can be used to quantify sponsorship impact. You just need to put aside enough funds; Forbes recommends… Read more »

Sponsorship effectiveness measurement: Part 1

Since sponsorship deals provide unique value, many brands are actively investing in sport and entertainment events. But not all of them know how effectively this money is spent, because there is no standard approach to measuring the impact sponsorships have on business KPIs. In the article we will discuss how planning and executing sponsorship deals can improve their accountability. Exploiting media resources of high-profile sport and entertainment events like Oscars or The Olympics gives advertisers access to a huge audience and allows creating unique brand experience, that is why companies are expanding their sponsorship portfolios. According to Forbes, in 2020 brands were planning to invest over $68 billion in different events, and the figure doesn’t even include related costs like activations, promotions etc. Here are some benefits of sponsorship that improve brand awareness, consideration and customer loyalty: Logo visibility: it’s the most obvious value. Whether a person attends an event, watches it online or on TV or just comes across promotions for the event, they will see the sponsor’s logo.  Activations & Promotions: these are activities carried out by the brand within the event, like organizing contests or giving out free product samples. They increase brand affinity and positive associations… Read more »

Marketing spend management in a downturn

Why cutting marketing spends during a downturn is not the most reasonable solution and how marketers can negotiate and justify the necessary investments when the company is trying to save money. In this article you will learn about four tips on managing marketing spends during a slowdown more efficiently. Since during crises and downturns budgets are especially strictly controlled as companies try to save resources, marketers find themselves under even more pressure to communicate the value of their investment decisions. Simply reducing media spends will not do because in the long term it will negatively affect brand equity and future sales. Here we will discuss some advice from a recent McKinsey article that can be useful for weathering challenging periods like we are currently going through. The Covid-19 pandemic has dramatically changed the market conditions and consumer behaviour, that’s why companies need to take prompt actions to stay competitive and secure future growth. If you use Marketing Mix Modelling to evaluate marketing performance, you need to adjust your models so that they would account for Covid-19 factor. We will also tell you how our solution helps to optimize budgeting and give the best performance with limited and fixed funds. Since… Read more »

Adapting MMM models to COVID-related changes

Evaluating media budget effectiveness and finding optimal media mix has always been an important and difficult task, and it’s even more so in the current situation during the COVID-19 outbreak. In this article we will discuss Facebook and experts’ advice on adjusting marketing mix models to the situation on the market and explain how our solution can be useful to marketers today. Marketing budget allocation is a very important strategic process. And making the right decision is especially difficult when game-changing situations like the COVID-19 outbreak happen. Today it’s necessary to invest in channels that will bring measurable results. Marketing Mix Modelling is a well-tried, reliable tool that has been helping marketers to make well-informed strategic decisions and measure the effectiveness of advertising campaigns. In a previous article we said that modern MMM solutions meeting advertisers’ requirements and industry standards are perfect for cross-media measurements. But when consumer behavior and demand change so dramatically as we are witnessing today, the historic data in the currently used models becomes less relevant and the new information is not enough for analysis. The burning question here is how to update existing models so that they could be applied in the current situation and… Read more »

New era of cross-media measurement

In September 2020, the World Federation of Advertisers revealed a new cross-media measurement proposal framework developed in partnership with major digital platforms. In this article you will learn what requirements a new solution has to meet and how AdoptoMedia can benefit advertisers on this matter.  Over time with the appearance of new communication channels, media mix has become very complex. Today companies promote their goods and services through a wide range of digital and offline channels, which complicates marketers’ task of analyzing the effectiveness of advertising activities. WFA considers accurate evaluation of cross-media campaigns so important that in partnership with digital platforms, including Google and Facebook it worked for over 18 months to create a framework that should stimulate a new approach to measurement. Large advertisers, agencies and other members of the marketing ecosystem also contributed to the process as consultants. Among them were advertiser associations: ACA (Canada), ANA (US), ISBA (UK), Union des Marques (FR), OWM (DE) and high-profile brands like Deutsche Telekom, Mars, Mastercard, Nestlé, PepsiCo, Procter & Gamble, The Coca-Cola Company, Unilever and others. Cross Media Measurement is crucial to achieve real transparency of media performance. Luis Di Como, EVP Global Media, Unilever Here are three reasons… Read more »

Current state of marketing in Europe

Marketing industry is growing and developing all over the world, but everywhere the process has some unique characteristics. In this article you will learn about European marketing ecosystem, its trends, challenges and needs. We will also tell you how our solution can be useful to marketers. In May 2020 Boston Consulting Group published a report after surveying C-suite marketing managers in the UK, Germany and France. Here we will discuss what problems marketers in Europe face today and how they deal with them. Digital transformation has brought significant changes into the marketing industry, making technology and tools more complex and sophisticated to match the arising needs. To cope with the innovations and grow, 97% of European marketers turn to external partners in such areas as technology, measurement, media planning and buying, etc. Experienced agencies and consultants provide companies access to cutting edge technology and help them to increase ROMI.  Due to fragmentation of European market one-size-fits-all approach doesn’t work here, so campaigns have to be adapted to local cultures and languages. For the same reason countries progress at different pace and have different levels of digital maturity; the UK, for example, is ahead of all Europe in terms of it…. Read more »

Our solution to the current ROMI challenges

Even though marketing technology is advancing, existing tools don’t fully match arising needs and challenges of the industry. There are still no universal measurement standards, so marketers around the globe are struggling to justify huge investments, which amount to $560 bln annually, according to A. Guttmann research. In the article we will cover the limitations of the current ROMI approaches, that McKinsey experts point out, and our capabilities for dealing with them. Due to users massively shifting to online and mobile content, a huge part of the marketing spend is allocated to digital channels. It’s a reasonable strategy, but what we do wrong is measure the results of such campaigns. We focus too much on short-term results and user-level data, that seem more accurate, just because the tools like multi-touch attribution allow it, and not always because it’s necessary. Personalized messages and near-time optimization are important, but we shouldn’t forget about the upper funnel and earlier stages of the customer journey. A large share of marketing spend goes into brand-building activities, but it is not so thoroughly analyzed or its performance is evaluated by the same standards as the lower funnel spends, which results in a false understanding of the… Read more »

CMA reveals digital advertising market problems in the UK

The digital marketing spend is growing putting marketers under pressure to justify huge investments. And even with a variety of measurement techniques it’s not easy to find what really works, especially taking into account transparency issues. In this article we discuss new problems related to digital media and how to cope with them. An independent government department in the UK that promotes competition and consumer law – Competition and Markets Authority’s (CMA) – carried out an investigation of digital advertising sphere as a part of the new strategy designed to better handle quickly growing digital economy. In July 2019, they started looking into operations of online platforms, including the two biggest ones – Google and Facebook. The report voices concerns about transparency of the business, but before we go deeper in detail, let’s take a look back and see how we got to the current situation. It all started with the 2016 ANA/K2 Intelligence report on media transparency in the U.S., which was a true wake-up call for the advertising industry. The report revealed numerous non-transparent business practices like rebates in different agencies. The fact that they failed to act in the best interests of their clients severely shook the… Read more »

Why Adidas changes its marketing measurement approach?

Research shows that using marketing technology to measure effectiveness results in significant performance improvement. But what if the approach you use is flawed and measurement results are only preventing your business from making the most of advertising. Such was the case with Adidas that had been over-investing in digital channels due to MTA analytics. Turns out even multinational corporations like Adidas aren’t immune to mistakes. But who can blame them? I mean weren’t we all charmed by promising advantages of multi-touch attribution. It’s a relatively new tool that functions at a highly granular level and is especially suitable for measuring digital campaigns. MTA can analyze individual customer journey and find what marketing activities lead to conversion. This high level of granularity makes you think that the tool is more accurate than it really is, but this major strength became its main problem when legal restrictions concerning data privacy came into force. GDPR severely limits the potential of attribution. Other limitations of MTA are: It covers a limited number of KPIs Most models cover only digital channels and can’t account for offline touchpoints. It attributes too much credit to digital advertising Privacy regulations limit its functionality It’s difficult to stitch touchpoints… Read more »

How to use MMM and MTA correctly?

There is a variety of tools for measuring marketing effectiveness and even more solution providers on the market. Using the right ones is crucial for your business success. In this article you will find out how to choose the most suitable vendor and correctly apply marketing mix modelling and attribution to achieve outstanding results. Now there are no doubts about whether to evaluate marketing performance because statistics and analytics is more reliable than experience and gut feeling. According to Gartner’s 2018 survey, where 503 respondents from large companies were interviewed, marketers who use strategic measurement tools report significant performance improvement. It happens because high-quality measurement allows improving planning capabilities and increase enterprise value. The debates now are going on about which tool is the most suitable to evaluate marketing effectiveness. Keep in mind that before applying any measurement approaches define what success should look like and choose the right KPIs that align with your overall strategy. Strategic marketing measurement is on the rise for three reasons: Significant performance improvement; Increasing cost of media; for example CPM for primetime TV has increased by 43% over the last 5 years. To justify growing spends or find new, more efficient channels high-performing marketers… Read more »