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Marketing Briefing: Marketers seek more performance marketing given the economic uncertainty

In the event that you ask marketers and agency execs concerning the ongoing economic uncertaintys effect on advertising today, youll likely hear about how exactly brands were hurt in the long-term by cutting marketing spend in 2008.

As CFOs turn to cut costs a lot more than usual, marketers need to once more prove the worthiness of advertising to keep their budgets so that it makes sense to check back at the final major downturn. But todays economic uncertainty isnt enjoy it was in 2008 and advertising budgets dont appear to be they did then.

Marketers are also coping with waves of uncertainty going back 2 yrs, making them more nimble and prepared to make moves as necessary. We see most brands come in a wait-and-see mode, said Mediahub U.S. CEO Sean Corcoran. Although some have pulled back, the majority are actively considering consumer trends and so are prepared to adjust as needed, but weren’t seeing major pullback at this stage. Plus some sectors, like travel, retail, and entertainment, have huge demand and so are way up.

To cope with the existing climate, many marketers today are pushing for more performance marketing efforts which will help them prove the efficiency of these budgets and the worthiness of these advertising efforts with some brands retooling their creative to tout the worthiness of these products or offerings. Search consultants say that brands seeking new agencies also have made performance marketing a focus.

In most cases theres more of an focus on performance, said Brendan Gahan, chief strategy officer and partner at Mekanism. That doesnt always mean value messaging. However, given economic uncertainty, were seeing a larger focus on tracking sales and ensuring buys, etc are efficient. Numerous media spends have already been concentrated around performance. Consequently, with some brands, were seeing a pause on experimental budgets/activations.

Concentrating on whats which can deliver sales or support sales isnt surprising. Having said that,ad agency execs believe clients have to be careful never to rely an excessive amount of on performance marketing over brand building as doing this can result in a lack of market share.

During every downturn, it seems sensible to double-down on performance marketing nonetheless it doesnt mean you need to cut your brand building, said Kari Shimmel, chief strategy officer at Campbell Ewald. Its vital that you help clients start to see the long-term impact of brand messaging and spend and the marketplace share and brand health metrics they are able to potentially lose if they go silent. We see brands leap-frog their competition in these moments if they lean in and build their brand when others switch off their spend.

Having said that, brand-building efforts and performance marketing efforts arent as siloed because they were in the past. Marketers and agency execs say that performance marketing efforts might need to incorporate more brand-building efforts to accomplish both simultaneously. What that appears like will change by brand and agency. (Its worth noting that search consultants say there’s been an uptick in RFPs seeking performance marketing agencies in a position to do brand-building work.)

Performance and branding arent viewed as distinctly different as before, said Gahan. It is possible to still brand build, but by the end of your day a growing number of efforts need to be linked with meaningful business goals.

3 Questions with Katie Zapata, vp of brand marketing at FreshDirect

FreshDirect celebrates 20 years running a business this season. Whats the online marketing strategy round the anniversary?

In the summertime, lots of our customers venture out to the Hamptons and Jersey Shore for the summertime. We follow them and bring our service there. Weve wrapped the Hampton Jitney, which drives around Manhattan and heads out to the Hamptons. We’ve some billboards on highways along the way there. Weve been doing aerial banners that fly on the beaches. We also did a buy on the Long Island Railroad, on the new live screens on the trains.

OOH isnt a fresh media channel for FreshDirect. Why is your team so bullish about any of it?

We start to see the results. We see people returning to the website. We look at promo code redemptions. For all of us, promo codes will be the easiest way to track whether folks are engaging with the advertising. Were seeing engagement. We see our awareness rise. Thats why were really bullish on out-of-home. Because the technology has evolved and improved, weve been there. We started advertising on [LinkNYC] probably 4 or 5 years back now. As new technologies can be found, we try them.

So what can other marketers study from your strategy?

During the past, weve been operationally-focused. We were considering ROI on each single promo code, on each media buy. Its a really mixture of media that you’ll require. You will need surround sound to attain people also to have your message resonate. Out-of-home plays an extremely big part for the reason that, especially in NEW YORK. Kimeko McCoy

By the numbers

The streaming wars are reaching a fever pitch asproviders like Netflixand Disney gear around roll out ad-supported offerings.New research from Hub research companyreveals that not merely do consumers tolerate ads on streaming platforms, they embrace them. Find details from the study below:

  • In Q2 of the year,55%of consumers say they use a minumum of one FAST (free, ad-supported TV streaming service), such Pluto TV, the free version of Peacock, the Roku Channel, TubiTV, Freevee, etc.
  • 56%of these who taken care of immediately the survey say theyd rather watch ads and pay $4-$5 less monthly for a streaming service.
  • For individuals who did remember ads that seemed highly relevant to them,69%said they enjoyed the complete connection with watching the show. For individuals who didnt see relevant ads, viewing enjoyment was just48%. Kimeko McCoy

Quote of the week

When abortion was illegal 50-something years back, the web didnt exist. Now, literally, our whole lives online are increasingly being tracked and exist in the cloud. Yes, these raise concerns, but so a lot of things raise concerns at this time.

said Jen Caltrider, lead researcher for Mozillas Privacy Not Included initiative, because the company released a written report on the info pregnancy and period tracker apps release to advertisers.

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