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December 3-6, 2006  |  Scottsdale, Arizona
Published: December 05, 2006
Media Have Changed, Why Haven't Metrics?
 

Marketing Evolution's CEO Rex Briggs talks about "redefining advertising success" at this week's iMedia Summit.

Up until now, the burden on digital marketers has been to prove online is a viable advertising channel. But we've made our point already. For example, the latest report from ZenithOptimedia predicts online ad spending will grow at a brisk 28 percent in 2007, while total ad spending will grow at a more subdued 5.8 percent.

The challenge for digital marketers now is to move past "proving" themselves to "improving," Rex Briggs, CEO of Marketing Evolution, told attendees at iMedia's Fall Agency Summit.

As budgets move online, a bell curve is starting to develop with failed advertising campaigns on one side, and "optimal" campaigns on the other. According to Marketing Evolution research, just 14 percent of campaigns can boast "optimal" performance, while 67 percent are stuck in the "significant room for improvement" zone.

"The medium works," said Briggs, "but it depends on getting the message right."

According to Briggs, there are two major components required for improvement: courage and humility. Humility means acknowledging the internet's potential is still largely untapped, and we've all underestimated that. "What if online could do more than the marketer is giving it credit for?" asked Briggs. Courage means redefining the measure-and-improve process we've all become comfortable with. "Seek the answers," urged Briggs, "not to prove, but to improve."

The example he gave was of Norelco's Elwin de Valk, who redefined the campaign measurement process at his company. Historically, campaign measurement occurred in a linear fashion: a marketing plan was put together, the plan was launched, results were collected and then used to refine the next marketing plan. Under de Valk's new plan, measurement was applied to the campaign in progress, and then used to adjust the marketing plan on the fly.

"Change metrics upfront… we want to know when we still have a chance to do something about it," said Briggs.

Following de Valk's common sense approach, Norelco market share was up five percent, the overall category picked up three percent and incremental profit surged $27 million. Briggs also noted that de Valk was promoted.

Previously, de Valk's changes would have been a challenge to implement because of technological limitations. However, in an age of real-time campaign management and minute-by-minute creative placement, the time is right for a shift. It seems only natural as the changes that make this shift possible are the same ones that make it an imperative. 

"While the marketing landscape has changed," said Briggs, "the measurement standards have not."

The shift from "prove" to "improve" also includes a reassessment of how we value metrics and the way agencies collect it. According to Briggs, under the "prove" mentality, metrics are a cost used to make a point. Under the "improve" model, measurement actively drives profit (consider the Norelco example above).

As far as the collection of data, Briggs urged independent research, rather than internal reports. Of course, Briggs runs a research company himself, but his point is that, internal (subjective) research can be misrepresented. On the other hand, independent (objective) research tends to be more authentic.

Mario Sgambelluri is associate publisher, iMedia Communications. Read full bio.