“Increase your ad spend during recession”
– John Milburn, CEO & Co-Founder, Nimble Digital
The overall budget will decrease across all regions in the world, opening up the doors for much cheaper Performance and Brand traffic for those bold (smart) enough.
“The findings are reflective of choppy economic waters”
– Matt Green, Director of Global Media Services, WFA
Growth 2023 – Go against the tide, wind and storm
1. Win the Market
A third of media budgets are set to decline next year – this leads to media placements becoming a lot cheaper since there’s a lot of inventory available. Also the market dry up, so there’s a ton of eyeballs viewing your ads at a lower cost. Not only this, your ads will be more memorable with less advertising from competition and in general. Perfect opportunity for growth and come out as a winner.
2. Performance Plateau
Have you heard of the “Performance Plateau”? No? Well, you can’t rely solely on Performance Marketing, you will hit a plateau. Instead a long-term strategy is needed with a shift towards Brand, to ensure synergy effects, not to mention a pure Brand focus as well. Otherwise your Performance is maxed, but not your Growth opportunities. It’s all about knowing when the tipping point to accelerate is.
3. Demand Pool
With the right Performance and Brand, a Demand Pool will be there at all times – based on Brand Awareness and Intention to Purchase. This pool will then be used for the acquisition phase to create happy customers. These customers will then be taken care of to do repeat purchases and talk well of you via word of mouth, networking etc.
4. Business Outcomes
Real Business Outcomes, that is. So instead of focusing on the much debated metric “ROI” (Return on Investment), it should instead clearly be linked towards the business goals and what real business outcomes are reached. So don’t focus solely on maximising ROI, use it to assess value for money alongside other, genuine measures of effectiveness. And remember that ROAS is not equal to business outcomes.
“Too great a focus on return on ad spend (ROAS) is leading to short-term thinking and under-investment, which in turn is stifling growth, and it has the potential to be far more damaging than ROI”
– Tom Roach, VP Brand Strategy, Jellyfish
Online Video, Facebook and Instagram and Digital Media wins over TV in 4 out of 5 categories. You can build long-term brand with digital, and it’s incredibly strong.
A significant part of ROI is generated long-term
Long-term effects matter and make up a large part of the total ROI.
Digital media is not for the short-term impact only: both traditional and digital media channels drive long-term ROI if applied correctly.
In order to drive long-term growth, advertisers should focus on broad audiences, a sufficient frequency of 2+ per week, longer campaign periods and a mix of multiple placements including video.
Consider long-term impact in your planning and implement strategies for long-term growth. Adding the long-term gives a different perspective on ROI. Using techniques like econometric modelling.
Having a combination of experienced talent, prior success with performance marketing, buy-in for the long-term, on-going education of stakeholders, a strong performance model for brand and together alignment on real business outcomes are the key ingredients for success 2023 and onward.