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their marketing and measurement strategies and those of their agencies.
When asked to rank the perceived importance and effectiveness of digital media channels, marketers placed search and social channels at the top of the list. Television continues to hold its own as the highest ranked traditional media channel across perceived importance and effectiveness measures. Radio continues to lead all channels in terms of weekly reach and a full 45 % of respondents thought radio to be an effective channel. Digital ad spend has eclipsed traditional channels and we expect that trend to continue.
When forecasting the next 12 months, 82 % of respondents expect to increase their digital media spend as a percentage of their total advertising budget. By comparison, only 30 % of respondents
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plan to invest more in traditional media channels in the near term.
CMOs also reflected on a critical piece of the marketing mix, trade spend( e. g., in-store discounts, coupons, special offers, etc.). They voiced a desire for a unified approach to trade and media strategy in order to correctly allocate spend ratios. Sixty-six percent of respondents expect either no change( 44 %) or a decrease( 22 %) in trade investment.
In terms of measurement, only one in four marketers reported high levels of confidence in their ability to measure the ROI of their media spend, regardless of type, or their trade spend. Not surprisingly, 79 % expect to increase their investment in marketing analytics and attribution in the next 12 months.
Marketers reported being most concerned with improving media efficiency by limiting advertising waste across
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the digital ecosystem. The top three capabilities they chose to make this happen were: 1) reach and frequency measurement( 82 % ranked it the most important capability), 2) ad viewability( 73 %), and 3) data management platforms( 62 %).
There is good news here for media agencies, as 43 % of respondents plan to increase spending with their agencies over the next 12 months. This is likely due to their confidence in the agencies’ ability to deliver a strong return on investment, as reported by 84 % of respondents.
Finally, the report illustrates some of the progress that marketers have made around omnichannel marketing, which we define as being media agnostic and oriented around customer needs. In support of this, respondents reported improvements in aligning their media channel strategy with their primary
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campaign objectives. The most highly ranked campaign objective was customer acquisition, which was associated with mid- and lowfunnel strategies that favored digital media channels like search. In second-place was brand building, which was associated with top-funnel strategies, which favored traditional media channels like TV and radio.
Marketers and their agencies are clearly adapting to changing consumer media habits by taking a more strategic approach to their marketing mix, but challenges remain organizationally, technologically and in regard to consistent ROI measurement. As Charles Darwin once said,“ It’ s not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”
Effective advertising takes more than keen instinct and business sense. In today’ s fastpaced, increasingly digitized world you’ ve got to be able to
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46 August 2018 |