Kaimerians @ AdWeek: Reading the room
Without data, the impact of advertising is invisible. It’s a critical tool for measuring effectiveness (fun fact- the roots of modern AB testing stem from the advertising industry, not from science), as well as getting your CFO to sign off on a budget (woop woop). Unfortunately, it’s starting to feel like data is driving advertising instead of supporting it.
So where do we draw the line between data and creativity?
The topic was touched on throughout a few sessions at AdWeek APAC at Luna Park, most critically, a conference concluding debate by David Shing and Rory Sutherland. Here are my takeouts:
When using data, use it effectively. Not having enough data is no longer an issue. We have too much. What’s important now is quality. One interesting insight shared by Jason Juma-Ross (Director of Technology Industry Strategy at Meta) was the role of machine learning in counteracting the panic of a cookie-less world. As machine learning improves its ability to ingest 1PD, fill gaps as need be, and determine lifetime value predictions, we move closer and closer to targeting possibilities that generate significantly better ROI. Great news for anyone already embracing the cookie-less world and investing in a CDP/Machine Learning integration.
However, in his debate with Rory Sutherland David Shing noted the dangers of having such an expansive amount of data at our fingertips. In the hands of a good data scientist, it is an incredible asset; but data alone, is dangerous. A lack of human questioning results in misattribution. To simplify, it’s much more important to read the room than count the number of people in it.
We can easily measure what we do, but we rarely allow ourselves to do anything we can’t measure. With all this new data and measurement, it’s no wonder we’re addicted to attribution. This makes it very scary to venture beyond the numbers and innovate. The industry has become so obsessed with quantification and attribution, that more often than not, restrictions are being put in place to only use channels that deliver results within a short timeframe. This leads to an over-crowding of bottom of the funnel (if you’re a sucker for a funnel) or weakened mental availability in the lead up to a purchase trigger (if you’re a sucker for brand growth loops).
Venturing beyond the tried and true is what separates good brands from the great. Campaigns that are innovative are glorified by the public, ultimately keeping brand culture alive. In 2021, New Balance was seen as a dad brand. They wanted to ensure their brand success for the future. 50% of their budget went towards data proven strategies they knew worked, 30% went towards slight evolutions of that strategy and 20% went towards testing new ideas such as sneaker collab and in-game advertising. The result? A 129% increase in sales.
Fame drives brand equity. Sales isn’t the only key metric. If we judge campaigns based on one sole KPI, we ignore a plethora of other positive impacts on brand growth and equity. Famous brands access a whole range of perks which can’t be linked back to data and attribution. They attract more talented staff working cheaper, they unlock a price premium, and they’re more trusted, allowing for greater flexibility when it comes to further innovation. These are just a few immeasurable effects of brand fame, which ultimately drives brand growth and market share.
Do what you can with what you’ve got. The elephant in the room of course, is that innovation and testing the unknown is costly. Sometimes it pays off and sometimes it doesn’t. It would be foolish to ignore the role of data and the positive impact it can have on ROI. Small brands and businesses often don’t have the privilege of innovation culture. ROI matters- especially in the current economic climate. Ultimately, however, innovation should accompany growth. As brands grow, it is important for them to exploit the data to deliver on what they know, but also to set budget aside to explore what they don’t. Adweek seminars by Petra Perry (CMO of Qantas), Rebekah Cooke (Global Brand Media Lead at Canva) and Susan Coghill (CMO of Tourism Australia), all spoke to this point and the critical role of experimenting with the immeasurable to drive growth.
In summary, data is an incredible asset, but weakens brands if used in isolation without human questioning and experimentation. Hot tips:
Prioritise quality data over quantity. Invest in 1PD and AI/machine learning systems to fill in the gaps.
Exploit what you know and explore what you don’t. Use data to drive efficient ROI AND as a means of insight generation to drive experimentation (New Balance’s 50/30/20 rule is a great starting point).
“Not everything that can be counted counts and not everything that counts can be counted…” – Albert Einstein