Archive for the ‘Mktg – ROI’ Category

Big Question: Will an iPhone blend?

July 24, 2015

All the hoopla surrounding  Trump’s announcing Sen. Graham’s cell phone number …. and Graham’s humorous video of ways he tried to remediate the situation by destroying his cell phone … reminded me of an ad campaign run by a company called  Blendtec.

According to George Parker of  AdScam ….

At a conference a couple of years ago. GE and their agency, BBDO, made a presentation of their new “Imagination” campaign.

After showing some nice TV spots and explaining that they’d spent $300 million on media over the last year, they proudly declared that brand awareness had increased substantially.

This generated polite applause.

image

Next up was the Marketing Director of blender manufacturer Blendtec who proceeded to blend:

  • a brick
  • some ball bearings
  • an 8 ft garden rake
  • an iPhone

He then put up a single slide showing that every time they posted a self-produced, ten dollar video on YouTube in their long-running “Will It Blend” campaign (which to-date has had more than 220 million views,) sales went up by an accurately measurable percentage.

Understandably, the crowd went nuts.  

The point being, GE spent hundreds of millions and couldn’t quantify with any certainty what they had achieved for all that money.

Blendtec spent pennies and achieved consistently significant and measurable results.

Below are the links to the Blendtec iPhone videos…  worth watching.

(more…)

Big Question Will the Apple Watch blend?

May 4, 2015

All the hoopla surrounding the Apple Watch launch reminded me of an ad campaign run by a company called  Blendtec.

According to George Parker of  AdScam ….

At a conference a couple of years ago. GE and their agency, BBDO, made a presentation of their new “Imagination” campaign.

After showing some nice TV spots and explaining that they’d spent $300 million on media over the last year, they proudly declared that brand awareness had increased substantially.

This generated polite applause.

image

Next up was the Marketing Director of blender manufacturer Blendtec who proceeded to blend:

  • a brick
  • some ball bearings
  • an 8 ft garden rake
  • an iPhone

He then put up a single slide showing that every time they posted a self-produced, ten dollar video on YouTube in their long-running “Will It Blend” campaign (which to-date has had more than 220 million views,) sales went up by an accurately measurable percentage.

Understandably, the crowd went nuts.  

The point being, GE spent hundreds of millions and couldn’t quantify with any certainty what they had achieved for all that money.

Blendtec spent pennies and achieved consistently significant and measurable results.

Below is the links to the Blendtec iPhone videos…  worth watching.

(more…)

Marketing ROI: What you get for $300 million … and for $10.

September 2, 2014

According to George Parker of  AdScam ….

At a conference a couple of years ago. GE and their agency, BBDO, made a presentation of their new “Imagination” campaign.

After showing some nice TV spots and explaining that they’d spent $300 million on media over the last year, they proudly declared that brand awareness had increased substantially.

This generated polite applause.

image

Next up was the Marketing Director of blender manufacturer Blendtec who proceeded to blend:

  • a brick
  • some ball bearings
  • an 8 ft garden rake
  • a Blackberry donated by a member of the audience

He then put up a single slide showing that every time they posted a self-produced, ten dollar video on YouTube in their long-running “Will It Blend” campaign (which to-date has had more than 220 million views,) sales went up by an accurately measurable percentage.

Understandably, the crowd went nuts.  

The point of the story …

(more…)

Big Question Will the iPhone 5 blend?

September 26, 2013

All the hoopla surrounding the iPhone 5 launch reminded me of an ad campaign run by a company called  Blendtec.

According to George Parker of  AdScam ….

At a conference a couple of years ago. GE and their agency, BBDO, made a presentation of their new “Imagination” campaign.

After showing some nice TV spots and explaining that they’d spent $300 million on media over the last year, they proudly declared that brand awareness had increased substantially.

This generated polite applause.

image

Next up was the Marketing Director of blender manufacturer Blendtec who proceeded to blend:

  • a brick
  • some ball bearings
  • an 8 ft garden rake
  • an iPhone

He then put up a single slide showing that every time they posted a self-produced, ten dollar video on YouTube in their long-running “Will It Blend” campaign (which to-date has had more than 220 million views,) sales went up by an accurately measurable percentage.

Understandably, the crowd went nuts.  

The point being, GE spent hundreds of millions and couldn’t quantify with any certainty what they had achieved for all that money.

Blendtec spent pennies and achieved consistently significant and measurable results.

Below is the links to the Blendtec iPhone videos…  worth watching.

(more…)

Pssst: Facebook is stalking you in stores ….

April 16, 2013

Why?

Ostensibly to see if its sponsors’ ads are working.

But, some skeptics (e.g. me) think that there may be other motives, too.

Here’s the scoop.

Last year, Facebook entered into a partnership with a company called Datalogix.

image

Everybody knows what Facebook does.

Datalogix, not so much.

Datalogix is a firm that records the purchasing patterns of more than 100 million American households.

When you stop by the supermarket … you probably hand the cashier a loyalty card to get a discount on your items.

That card ties your identity to your purchases.

Your sales data is sent over to a server maintained by Datalogix, which has agreements with hundreds of major retailers to procure such data.

Source: Slate

Hmmm.

Facebook and Datalogix … why the hook-up?

(more…)

Marketing ROI: What you get for $300 million … and for $10.

January 24, 2013

According to George Parker of  AdScam ….

At a conference a couple of years ago. GE and their agency, BBDO, made a presentation of their new “Imagination” campaign.

After showing some nice TV spots and explaining that they’d spent $300 million on media over the last year, they proudly declared that brand awareness had increased substantially.

This generated polite applause.

image

Next up was the Marketing Director of blender manufacturer Blendtec who proceeded to blend:

  • a brick
  • some ball bearings
  • an 8 ft garden rake
  • a Blackberry donated by a member of the audience

He then put up a single slide showing that every time they posted a self-produced, ten dollar video on YouTube in their long-running “Will It Blend” campaign (which to-date has had more than 220 million views,) sales went up by an accurately measurable percentage.

Understandably, the crowd went nuts.  

The point being, GE spent hundreds of millions and couldn’t quantify with any certainty what they had achieved for all that money.

Blendtec spent pennies and achieved consistently significant and measurable results.

Below are links to a couple of the Blendtec videos …  worth watching.

(more…)

Losing your marketing budget is a losing strategy

February 3, 2010

Key Takeaway: Even in an economic downturn, marketing should be thought of as a necessary business component.

While many companies find it simple to slash marketing budgets during recessions, others use it as an opportunity to increase awareness, improve positioning, or steal share.

Marketers understand the business from all angles, making their input invaluable during a crisis.

GE focuses on a framework of “optimize today, build tomorrow” in which marketing serves a crucial role in the overall strategy and has contributed to the company’s continued success.

* * * * *
Excerpted from BusinessWeek, “A Marketer Is a Terrible Thing To Waste” by Beth Comstock, September 21, 2009

As a result of the economic downturn, marketing budgets are being slashed and the stewards of many of the world’s largest and most prestigious brands have been forced into hibernation mode—waiting for the economy to turn around and the dollars to return to their function area.

But at GE, where I work, we’re trying to increase the volume on marketing, even in the face of these tough times.

In fact, once marketing was recognized and embraced as a potential growth driver at GE, we marketers were only too happy to hang our hats on good fortune—confident we could deliver for the company 8% or 10% growth year over year, more than double our historic rate.

Marketing budgets and resources can be an easy target because they tend to be more flexible—they’re not tied to fixed costs or capital expenditures. Some may even see marketing budgets as a good-times luxury. The reality, though, is that marketing serves as a hedge against economic crises. Good marketing minimizes negative impact and even slingshots the best ideas, innovations, and products forward.

In the current economic environment, those of us in marketing at GE have found that this framework—optimize today, build tomorrow—is incredibly useful to focus our efforts and to remind our colleagues of the vital role marketing plays in good times and bad. For most of GE’s businesses, our ambidextrous strategy unfolds as follows: 60% to 70% of our marketing efforts support today’s initiatives, with the remaining focus on building tomorrow’s initiatives. We think that’s a realistic alignment of energy and resources.

There are three core strategies we have adopted to help us Optimize Today:

• Understand the needs of customers like never before,

• Gain share, and

• Reexamine value and how to measure success.

A wide body of research indicates that companies that spend more time understanding their customers in a downturn are better positioned to do business with them when the economy recovers. On one level, it’s counterintuitive. You know your customers aren’t buying, so why bother? The reality is that there is no better time than now—no matter the environment—to listen for clues, discern insights, and refine value. Customers remember the partners who picked up the phone and called when times were tough and they were not in a position to buy.

In tough economic times, some companies will hunker down until the crisis passes. But winning organizations will take advantage of the opportunity presented to them, capture more share, and achieve lasting success.

We’ve increased our promotions spending at GE, using the current climate as an opportunity to remind customers and investors that we’re an innovative technology company with staying power—and we’ll be here when the recession is over, emerging stronger and smarter from the experience, just like we always have.

At GE, we’ve been particularly focused on understanding customer profitability. Do we understand the true cost of serving our customers? Which ones represent the highest value? Marketing can give you a laser focus on which customers are worth investing in—and which are destroying value for your company.

If your marketing radar is tuned to leading indicators and trends, maybe you were able to see signs of the downturn early enough to be prepared. It’s this ability to see the world in panoramic view that makes marketing so vital to an enterprise’s long-term viability. No other function focuses on and can integrate these key elements:

• Intelligence: What’s going on in the market, and how is the crisis affecting it?

• Customer insights: What do my customers need, and how do I serve them best?

• Value proposition: How do I articulate the value of my product or service and create differentiation?

• Commercial activation: How do I deliver via channel, marketing communications, training, etc.?

Ultimately, marketing is the key to sustainability and vitality—in good markets or economic crises.

Edit by JMZ 

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Full Article:
http://www.businessweek.com/innovate/content/sep2009/id20090921_471157.htm

Time for a makeover: the future of brand managers

November 10, 2009

Takeaway: If you are pursuing a career as a brand manager, your role may be very different than you imagined.

A report that will soon be released by Forrester will provide a redefinition of what a brand manager should be. Their groundbreaking finding: marketers should get back to marketing. Beyond focusing solely on your product, you should really get into the mind of your consumers and appeal to their needs and desires.

And with the rise of digital media, targeting specific segments can be done with more precision than ever before.

The report also claims that decisions really need to be performance-oriented, with more reliance on research and analytics.

Hmmm, recommending a focus on people and performance? It looks like those extra P’s we learned about in Markstrat were well worth it.

* * * * *

Excerpted from AdAge, “Why It’s Time to Do Away With the Brand Manager” by Jack Neff, October 12, 2009

Managing a brand has always been a slightly odd concept, given that consumers are the real arbiters of brand meaning, and it’s become increasingly outmoded in today’s two-way world. That’s why a new report is going to recommend changing the name “brand manager” to “brand advocate,” and fundamentally changing marketer organizations in response to the onset of the digital age.

The report, due out next week from Forrester, finally puts the onus on marketers to change their structures — a welcome conclusion for media owners and agencies who keep hearing how they should change, but often complain that their clients have done little to shift their organizations to cope with an increasingly complex world of media fragmentation and rising retailer and consumer power.

Among the specific recommendations in its report, “Adaptive Brand Marketing: Rethinking Your Approach to Branding in the Digital Age,” Forrester suggests “brand advocates” be responsible for rapid adaptations of global brand platforms and programs, charging centralized global brand strategists with ensuring what local managers do conforms with the brand equity and strategy.

It also advocates recognizing the brand isn’t the only organizational structure that’s important for multibrand companies, but that structures aimed at marketing to demographic or other segment cohorts are equally important. And it also maintains that marketing executives should think less about anchoring annual plans around one or two big hits and more about doing many smaller things quickly and adapting based on real-time consumer feedback and other data.

He believes marketers in the digital age need to be more “numerate,” with more training in research and analytics even if they still rely on staff for help. Marketers today need to balance art and science, he believes, not unlike architects, musicians or cinematographers.

Key to any change, the former Tide brand manager said, is a return to marketing as the focus of brand management, “rather than one of six things a brand manager does.”

“So much of [brand managers’] time is subsumed by internal management, and so much of the creative process and planning is outsourced to agencies and other parties,” Forrester’s Ms. Bradner said. Brand advocates, she said, “really need to be in charge of the heart and soul of what the brand stands for. It does move you off the generalist track to be more of a pure marketer.”

Edit by JMZ

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Full Article:
http://adage.com/cmostrategy/article?article_id=139593

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From marketing ROI to AMP: the free ride is over …

May 19, 2009

Excerpted from Brandchannel, “Achieving Accountable Marketing: Six Critical Value Levers Must Be Pulled” by Michael Dunn, April 13, 2009

* * * * *

Senior management continues to push marketers to demonstrate a strong return on investment, demanding more accountability and evidence that marketing investment is driving business growth.

It requires marketers to demonstrate disciplined planning, rigorous tracking and evaluation and, above all, continuous improvement in performance. They must also show cause and effect, quickly diagnose the root causes of any spending performance issues and make timely, fact-driven decisions to improve returns.

Call it accountable marketing performance (AMP), a goal that requires six “value levers” to be pulled effectively.

1. Strategy
This critical lever sets up a series of choices that inform most of the subsequent activities across the other levers. It encompasses a series of decisions about strategic marketing choices:

  • With which set or sets of customers does your company have the best business opportunities?
  • What are the most achievable behavioral responses from these target groups?
  • What unique benefits, attributes and ideas are most likely to elicit the desired behavioral response?
  • What specific brand or business challenges are standing in the way?

Getting smart and shared answers to these questions requires a fact-based foundation involving customer segmentation and targeting, customer-driven analysis, pathway modeling, brand equity modeling and purchase funnel analysis. When combined with equally valid qualitative insights and intuitive thinking, you create a strategic value proposition that is worth its weight in gold.

2. Content
The strategic foundation must be translated into compelling, engaging and medium-appropriate messaging ideas. The best content platforms originate from a magical combination of strategic insight and creative expression and connect in authentic yet emotionally compelling ways.

Most companies rely heavily on external agency partners at this lever. But it’s the best collaborative partnerships that inspire great work, and great content ideas can come from anywhere—agencies, similarly briefed internal teams pursuing independent and somewhat competitive paths, or single contributors who find inspiration on a walk or in the shower. Whatever the source, smart companies validate multiple messaging ideas with robust testing before deploying them across a full-scale creative campaign.

3. Marketing Vehicles
Effective vehicle choices should enable your messages to reach and connect with audiences in a timely, relevant, cost-effective and multi-platform way. But you must understand where your audiences interact with media or media-enabled experiences as well as their openness to receiving messages in that setting. You must understand the optimal strategic applications of each vehicle, their trade-offs and the underlying economics.

The wrong choices can endanger accountable marketing. You risk failure by mismatching vehicles with marketing objectives or audiences, or by having inadequate coverage across the mix. It’s equally dangerous to fail to weigh the underlying economics and potential revenue response dynamics. Finally, balance between new and traditional media is a must.

4. Investment Levels
This value lever should diagnose whether the overall marketing investment amount is too high or too low vis-à-vis the intrinsic financial return characteristics of the proposed marketing activities in relation to strategic marketing objectives. It also helps determine whether the amount invested in particular vehicles, programs or activities is too high, too low or just appropriate relative to intrinsic return characteristics and those of alternative investment options.

But it’s complicated. Marketing program returns are not static. Changes in brand maturity levels or competitive intensity can impact program-level returns. Changing media habits and changing cost dynamics of various vehicles can affect their returns. Nor are returns always linear. Despite such challenges, there’s considerable upside potential to this lever.

5. In-Market Execution
Great content still needs a great delivery mechanism; execution diligence ensures that your marketing content and your delivery mechanisms work together harmoniously.

Many tactical decisions underpin a successful and cost-effective campaign. Planning requires choices about reach and frequency, geographic coverage, and scheduling in light of insights around seasonality, purchase frequency and key decision points in the purchase cycle across all types of programs. Be warned: if poor in-market execution prevails, your failures may well be amplified in an embarrassingly public way through Web-based channels.

6. Fixed Cost Management
This lever aims for improved cost efficiency and effectiveness through both cost cutting and cost containment. Your fixed cost base depends on your mix of marketing programs and can account for 20 percent to 60 percent of the overall marketing budget. And savings can be redeployed into programs that may improve overall effectiveness.

This value lever requires applying a purchasing or procurement manager mindset. One way to start is by understanding the ratio of “working” to “non-working” spend on the fixed costs of marketing program production. If this ratio is off, try selectively applying strategic sourcing principles to pay a little less for what you buy, redefine some core programs so they can be executed more cost-effectively or re-engineer overall processes to reduce costs without compromising quality.

Accountable marketing performance is an achievable goal. By focusing on and unlocking the power of the six critical value levers, the marketing organization will prove its value to the business as a whole as the creative yet rational source of future growth.

Edit by NRV

Full article:
http://www.brandchannel.com/brand_speak.asp?bs_id=216

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The Law of Small Numbers … Measuring your MySpace ROI

April 27, 2009

Excerpted from Ad Age, “Study: ROI May Be Measurable in Facebook, MySpace After All” By Jack Neff, Apr 13, 2009

* * * * *

Package-goods brands are still cautious about social media, figuring that the return on investment can’t be accurately measured. After all, marketing on Facebook or MySpace might generate a conversation but not necessarily a sale. Now, however, a method is emerging to relate one to the other, potentially eliminating a major impediment.

Recent research from ComScore, MySpace and Dunnhumby … suggests that even relatively small outlays on social networks by package-goods brands can result in offline sales impact and deliver positive return on investment.

Generally, the ROI tool of choice for consumer package goods — marketing-mix models that rely on econometric analysis of changes in retail scanner data — can’t pick up the impact of the relatively small five- and six-figure outlays package-goods brands make on digital media.

To overcome that, MySpace teamed with ComScore, which uses a panel of more than 1 million people in the U.S. to track internet usage, and Dunnhumby, which runs loyalty programs for supermarket retailers and has access to loyalty-card purchase data from 59 million people in the U.S. …

One of the first studies was for an unnamed personal-care brand that ran a $1 million campaign on MySpace last year, including a contest in which members submitted videos of themselves and friends for others in the network to vote on … The program also included online couponing.

By the standards marketers sometimes use to measure digital-ad effectiveness, the MySpace effort wasn’t overwhelming. Of 76.9 million people exposed to the campaign … fewer than 1%, visited an advertiser page on MySpace, though roughly half who did (358,000) visited the advertiser’s website.

But by the measure that matters most, sales, the campaign appeared to pay off nicely. It produced $1.28 million in offline sales, as measured by Dunnhumby, which compared purchases among shoppers not exposed to the campaign with purchases among those who were. That amounted to a 28% return on investment, not counting returns from repeat sales among consumers the brand won via the campaign …

Particularly by package-goods standards, that $1 million digital outlay with one site was large … While a campaign that reaches nearly 77 million people is certainly large enough to generate a read in marketing-mix models, the combination of the ComScore and Dunnhumby panels into a single-source database … holds promise for more-accurately measuring many smaller efforts …

The bigger question is whether the ROI will hold up for bigger efforts, he said, justifying budgets similar to what consumer-package-goods brands spend on TV and magazines.

Digital is “incredibly efficient, because the cost per thousand is low … But it’s just not moving a lot of volume yet. And, of course, what you always grapple with is if they suddenly went [from $1 million] to $10 million in digital, would the return stay where it is? … I think the answer is no.” But it’s also a question he said no CPG brand appears to have tried to answer yet.

Edit by SAC

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Full Article:
http://adage.com/digital/article?article_id=135940

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Manage your marketing ROI … or else.

January 29, 2009

Excerpted from Brandweek, “CMOs Pressured To Show ROI” By Kenneth Hein, Dec 8, 2008

* * * * *

Some CMOs are feeling awfully paranoid these days. With good reason, a number of recent studies show that marketers’ spending choices are coming under far greater examination as the economic vise tightens. In fact, 89% of marketers said they are under more intense scrutiny than ever before…The greatest pressure being applied is the demand to show return on investment. However, many are struggling to do so, finding the ROI process complex…

Yet, most recognize a need for improvement maximizing dollars spent. 67% believe that they are not realizing the full revenue potential of customers…

So how are marketers adapting? 64% of CMO Council respondents said they were evaluating all areas of marketing spend to increase yield and accountability…“In a constrained economy you’ve got to focus monetizing existing customer relationships. It requires analytics and better use of customer data. [However], in many cases marketers struggle to integrate and leverage data.”

64% of respondents said better segmentation, profiling and targeting strategies were the top ways they were trying to better engage core audiences…

Despite years of conversation about ROI, the tactic of actually measuring marketing investments is still in its infancy…Among the reasons marketers have been slow to adopt ROI tactics: problems with data and integrity (47%), lack of technology (41%) and resource dedication (39%)…

“The mandate is to do more with less…Part of that is using new strategies and techniques to make sure money isn’t left on the table.”

Edit by SAC

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Marketer’s have long argued that marketing costs and results are difficult to measure, making ROI nearly impossible to quantify.  With the current economic situation the pressure for CMO’s to show results is not likely to go away anytime soon.

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Full Article:
http://www.brandweek.com/bw/content_display/news-and-features/direct/e3ib7f2dc11ebcfe13a1a67c9e3add4f502?imw=Y

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Kellogg : Online Marketing ROI Beats Broadcast

September 15, 2008

Excerpted from Advertising Age, “Kellogg: Digital ROI Surpasses That of TV” Sep 4, 2008

The digital divide is narrowing for Kellogg Co..its return on online investment for the Special K brand has surpassed that of broadcast TV over the past 18 months.

Kellogg crossed the $1 billion benchmark on ad spending during 2007, and its outlay is set to increase this year.

“It’s still relatively early in our learning,” Mark Baynes, CMO…said,…”But analysis of the Special K initiative of the last 18 months showed digital media exceeding that of broadcast ROI.”

The marketer described the company’s findings as “obviously very encouraging,” and predicted they would help “drive stronger adoption across the business…For the right opportunity, the [online] space offers fresh ways to commercialize new and existing brands, target specific audiences on needs more cost effectively…”

Edit by SAC

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While measuring success of online advertising continues to evolve, Kellogg isn’t the only company looking for higher returns online.  AdAge announced earlier this year that GM plans to move half of its ad spending online and a recent report by eMarketer notes that online advertising’s share of total media will double from 2006 to 2011, reaching $42 billion by 2011.

Chart Source:
http://www.marketingcharts.com/television/online-ad-spending-to-reach-42b-by-2011-budget-shift-to-accelerate-2292/emarketer-us-online-advertising-spending-2006-2011jpg/

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Full article:
http://online.wsj.com/article/SB122057760688302147.html?mod=2_1567_topbox

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