Within OTC Marketing we are strong believers in the Ehrenberg-Bass media approach calling for the maximising reach and continuity when it comes to brand comms. Especially in our case, with most of our target group being older population the main medium remains TV.
Still we are constantly being challenged to go more digital, even more in the last year when “digitalisation” hype got even bigger.
Currently I am required to prepare digital guidelines for our OTC Markets. I would be looking for your real life expertise on the actual effectiveness of digital media. Which digital strategies, touchpoints have positive ROI? How to construct synergistic TV – Digital – POS model, instead of chasing current trends – e.g. having a one off campaign in Tik-Tok?
I know that the matter here is very complex and there is no simple answer, but maybe you could share some learnings that could be a base for the further discussion.
Yes, Digital Media is one of the fastest evolving areas in marketing with changing media consumption habits, new digital platforms such as Tik-Tok and tactics like influencing marketing. We believe that now more than ever organisations require an evidence-based approach to navigate all aspects of Media and Digital Marketing.
Below we have provided a high-level evidence-based perspective on Digital Media. We also thought it would be useful to let you know about our Media Consultancy services, which partners our Ehrenberg-Bass Sponsors with our Media Experts to explore these topics in further detail (additional fee applies). Please contact us for further information on Optimising Media for Growth.
In response to your email, the first thing is to define the objective of Digital Marketing. We can broadly put the role of Digital Campaigning into two categories, Performance Marketing and Brand Building.
Performance Marketing (increase clicks to sale, lower cost per click)
Key Performance Indicators: Cost Per Click, Click, Click Through Rate (CTR), Cost Per Conversion.
For example: Google Search, Retargeting etc.
Brand Building (increase reach, views)
Key Performance Indicators: Reach, On Target Accuracy, Viewability, Views, View Through Rate, Brand Uplift.
For example: YouTube Pre-roll, Programmatic Online Video, Instagram/ Tik-Tok etc
Please note:
· Metrics such as shares, or organic reach should just be factored into the Cost Per Reach metric.
· Metrics like engagement (CTR) are only ‘vanity’ metrics and are not linked to sale (Nielsen Study)
Digital Marketing campaigns should always have a single Key Performance Indicator clearly defined as it will allow the agency to optimise the metric that matters for your brand in the platform’s tools. It also allows you to then evaluate the metrics of the digital channel vs other non-digital channels.
Performance Marketing
In the past few years there has been a move away from Performance Marketing, see recent examples; Airbnb and Adidas.
There are two key issues with Performance Marketing:
- It is focused on last-click-attribution. Return on Investment (ROI) for Performance Marketing is overstated as it doesn’t acknowledge the much more important role of ‘upper funnel’ or brand building advertising.
- It inherently targets people that are already in the market to buy your brand, normally via Google Ads. Often those who clicked on the ad were already going to buy the brand.
Please read: The Correspondent Article.
Therefore, when brands turn off Performance Marketing it often does not have a massive impact on sales. We would encourage you to review the implications of reducing Performance Marketing.
Brand Building
Really, here we are talking about video content, the key elements being, reach, continuity, and effectiveness.
The majority of time spent consuming video content is still linear TV, this includes younger audiences. Here is a UK based example: Thinkbox.
The time spent watching video on linear TV is slowly declining but is forecasted for the next decade to remain a key media. TV is not dead. This means that for most markets/ categories/brands as a rule of thumb, 20-30% of video investment should be in digital video, no more. This being subject to the right digital video quality standards.
It is also important to consider if the video content is ‘fit for purpose’ on digital channels as most consumers won’t watch more than 10 seconds worth of content.
You may get higher ROIs from other media types, but it is critical to look at the scale or the ROI. Always look at ROI and Volume Contribution, across media channels. TV will win here, as digital ROIs cannot (generally) scale efficiently.
Media Channel Optimisation
Having online video in the mix can (typically) help to do the following:
- Increase incremental reach at the same cost (normally 3-5%) on a broad target audience.
- Won’t increase reach levels but distributes more impressions to younger audiences.
This would be the first thing to check with the media agency. If it does achieve any of these then it is the primary reason to move investments to online video.
If not, digital video can still help to get multiple messages that you could not support with TV alone due to production costs, it can also help if you need to get longer-form information ‘help-content’ or links to actions, more information.
Control Digital Frequency
We recommend tracking Reach and Frequency of digital campaigns, not impressions. Frequency cap digital campaigns to help increase efficient reach and avoid annoyance. We recommend a cap of one Opportunity to See (OTS) per week.
Viewability
A common trap for the last decade is to buy cheap digital video inventory. Unfortunately, much of this is not viewable. Typically, what this is leading to is an understanding to go for more premium and visible video inventory that has more chance of gaining attention and driving brand metrics. Screen coverage is a good proxy to assess the effectiveness of the site, platform.
In addition to viewability third-party verification will also help to determine brand safety levels meaning which sites and content you don’t want your brand ads to appear on.
It is important to consider that TV has the advantage of 100% of the screen without clutter. However, the Ehrenberg-Bass Institute has shown that;
· 1/3rd of the time people are actively watching TV
· 1/3rd of the time they are passively watching
· 1/3rd of the time they are actively avoiding
Therefore, TV does not have 100% viewability.
Targeting
The main publicised advantage of Digital Marketing is that you can target. Although the quality and accuracy of targeting depends on the data sources (Peter Weinberg, LinkedIn).
We would recommend deploying methods that allow you to target the category consumer (on target accuracy) but not smaller targets. Likewise, recommending caution in deploying different creative to different segments and suggest that you test and learn to determine the upside benefit vs cost. If there are different Category Entry Points by segment, it might indicate that different creative will work on different segments.
We do not suggest over investing in tactics that target/recruit heavy consumers. It might seem counterintuitive, but you want to see a lower ROI as you want to target light and medium category consumers.
Key Opinion Leaders and Influencers (i.e., Instagram / TiK-Tok)
Key opinion leaders and influencers on Tik-Tok, Instagram etc can reach audiences with credible recommendations. There are both good and bad examples.
The risk associated with these tactics is:
a. the reach levels are lower than a simple paid strategy.
b. all category consumers demographics are not reached i.e., older audiences not on Tik-Tok.
c. the Key Opinion Leader (KOL)/influence creates clutter for the brand and brand message
d. the campaign is often not continuous
e. it can seem fake and reflect poorly on the brand
Please note:
· Metrics like Earner Media Value (EMV) used to assess the total value of the reach of an influencer are often inflated numbers.
· Influencers do not reach all their followers with each post; you should also deploy a paid media strategy to amplify the posts.
· Data transparency here is an issue, as the posts are often not controlled by the organisation’s platforms.
Social Media / New Platforms – Tik-Tok
Historically brand’s social media fan bases have been relatively small compared to the overall reach of the platform and heavily skewed to heavy brand (attitudinally loyal) buyers. These are only a small proportion of the category consumers and to grow you need to think more broadly. We do not recommend over-investing in developing fans/followers on social platforms.
With all new platforms it is important to return to the key objectives:
· Reach/Cost per Reach – considering scale.
· % On target (category buyers)
· Viewability and/or view through rate
· Brand cut-through/brand uplift
I hope this helps you to start navigating your Digital Marketing Strategy.
S.W.
24 June 2021
Link: https://sponsors.marketingscience.info/frequently-asked-questions/what-is-the-ehrenberg-bass-guideline-for-an-effect-digital-strategy/
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