{"id":5347,"date":"2023-08-17T01:47:05","date_gmt":"2023-08-17T05:47:05","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2023\/08\/17\/embrace-change-concrete-steps-to-surmount-obstacles-to-a-better-media-mix\/"},"modified":"2023-08-17T01:47:05","modified_gmt":"2023-08-17T05:47:05","slug":"embrace-change-concrete-steps-to-surmount-obstacles-to-a-better-media-mix","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/embrace-change-concrete-steps-to-surmount-obstacles-to-a-better-media-mix\/5347\/","title":{"rendered":"Embrace Change: Concrete Steps to Surmount Obstacles to a Better Media Mix"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By Bryan Karas, CEO, Playbook Media<\/em><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Time and again, I talk to marketing leaders who complain about the high engagement costs on Google and Facebook \u2013 yet haven\u2019t expanded beyond those two channels in search of more efficient options.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Martech is exploding with options for marketers looking to construct campaigns with higher, more predictable ROI. There are other tried-and-true testing measures to inform marketers how much incrementality they\u2019re actually getting from each channel \u2013 and even individual campaigns within their channels. Yet all too frequently, I talk to brands struggling to embrace an approach that tackles the reality of today\u2019s attribution challenges <em>and <\/em>helps them understand where they should spend the next chunk of their marketing budgets.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">With Q4 approaching fast and <a href=\"https:\/\/www.digitalcommerce360.com\/2023\/07\/20\/survey-reveals-retailers-increase-digital-marketing-spend\/\">retail marketers citing profitability as their biggest challenge<\/a>, it\u2019s the right time to set a course for a solution. In this post, I\u2019ll lay out a few achievable steps to help you get momentum and direction toward a more optimized media mix for the long term.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">These include:<\/p>\n\n\n\n\n<ul class=\"wp-block-list\">\n \t<li>Changing your mentality<\/li>\n \t<li>Preparing your data<\/li>\n \t<li>Asking better questions<\/li>\n \t<li>Shifting your KPIs<\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\">Let\u2019s dig in.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Break free from the innovator&rsquo;s dilemma<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">The innovator\u2019s dilemma, as explored in a seminal book by Clayton Christensen, is the state of being reluctant to adopt innovation for fear of upsetting a successful status quo. In marketers, it often manifests in stubbornly clinging to last-click attribution or an unwillingness to pull budget from Google and\/or Facebook because they\u2019ve helped provide growth in the past.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Before you read the rest of this post, you need to understand that what got your brand to this point won\u2019t necessarily be what gets it to the next stage of growth. In today\u2019s complex, non-cookie-based world, and with your competitors having access to a wealth of channels outside of Google and Facebook, an outdated approach means a disadvantage at best and obsolescence at worst.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Get your data in shape<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">Once you\u2019re convinced that your approach needs to evolve, the first place to look is at your data. Namely, how\u2019s your CRM set-up? Are you connecting CRM data to your advertising outcomes? Are you honestly able to analyze traffic volume and flow on your site and owned properties? And if you increased or decreased advertising budget in a particular area, could you directionally track its effects on revenue?<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Often, there are two main courses of action at this step: CRM cleanup\/integration and a rigorous build-out of GA4. The latter is far from perfect \u2013 in fact, the July 2023 cutoff for Universal Analytics and forced shift to GA4 brought LOTS of complaints from marketers \u2013 but it\u2019s where we\u2019re all headed. Familiarity with measurement not based on cookies but on events and journeys will help insulate marketers from the effects of further privacy-based regulations. GA4 has usability issues, but it\u2019s based on a measurement framework you\u2019d better get to know.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Get curious about incrementality<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">Stop asking how much {desired KPI} each of your channels \u2013 or even the campaigns within your channels \u2013 is driving. Start asking about the <em>incrementality <\/em>of each instead.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">In other words, start analyzing the actual additive effects of each channel\/campaign. Yes, retargeting on Facebook may have resulted in {x} conversions last week, but do you know how many would have happened anyway? If you pause branded search for a month, what\u2019s the actual impact on your revenue?<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">There are linear ways to test this \u2013 holdout tests, matched market tests, and Facebook lift tests among them. If you suspect that you\u2019re spending in areas that aren\u2019t actually producing anything, it\u2019s a good idea to run a controlled test to measure the difference. (Clarity of the measurement depends on the data cleanup we just discussed.)<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Just remember that there\u2019s an opportunity cost that happens when you run these tests \u2013 you\u2019re not hitting your target audience with the full power of your media, which can decrease numbers. If you\u2019re going to run tests to assess incrementality, make sure you\u2019ve communicated when and why you\u2019re doing it to your management team so you don\u2019t get called to the carpet for an unexpected dip in volume.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Re-think your KPIs<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">Focus just on incrementality and advanced concepts like marginal return, and you\u2019ll risk losing sight of the big picture of how thoroughly and frequently you\u2019re engaging your target market. (In other words, you may cultivate the best tree out there while your competitors are gobbling huge swaths of the forest.)<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Focus on basic KPIs like reach and frequency without understanding the downstream effects, and you\u2019ll have very little control over the revenue\/ROI impact of your marketing campaigns.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">If you can blend relatively basic KPIs with a nuanced understanding of your approach to investment (for example, should you spend the same to acquire a new customer as to retarget one? How do you calculate the answer?), you\u2019ll have a great fundamental base for your marketing. You\u2019ll be able to spot your higher-leverage growth initiatives \u2013 better coverage, smarter budget allocation, audience expansion, etc. \u2013 rather than practicing an iterative rinse-repeat ROAS cycle from 2022.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019ll notice that nowhere in here did I mention AI, media mix modeling, or predictive analytics. Those tools are all out there, but until you go through the work of changing your mentality and your approach, you won\u2019t be able to leverage them effectively. It\u2019s a hard adjustment to stop chasing insights from old attribution models, but your time will be better spent renovating your marketing approach for the long term.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you can blend relatively basic KPIs with a nuanced understanding of your approach to investment, you\u2019ll have a great fundamental base for your marketing.<\/p>\n","protected":false},"author":7,"featured_media":5348,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[3],"topics":[2],"class_list":["post-5347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-brands-marketers","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - 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