Building brands while improving marketing ROI

Today's mass marketing model needs to evolve or marketeers will erode their ability to build brands, which is critical to avoid commodization. Today's media measurement systems needs to evolve to facilitate the marketer building brands while improving the marketing ROI.

Improving the marketing ROI starts with understanding how to improve the personal relevance at receptive key touch points with the consumer; at the moments that most influence their decisions.
(Source: Future of Advertising Project, Y. Wind)
Which moments most influence purchase decisions?
Digital technology is fundamentally transforming (1) consumer purchase behaviour and (2) media consumption habits. Gaining superior insights on media consumption behaviour - from a better understanding of the relationship between changing shopping and media usage - is necessary to improve the marketing ROI.

New technologies are changing consumer purchase behavior
Consumers are increasingly adopting new behaviours when it comes to researching and buying products. Traditionally, marketers' view of the purchase process has been based on a "funnel" with five successive stages:

1. awareness
2. familiarity
3. consideration
4. purchase
5. loyalty
   

This model is becoming increasingly outdated, as consumers much more activily reach out to the recommendations of their (online) peers to understand their options. "The real new medium is the voice of the consumer"(Peter ter Kulve, CEO Unilever Benelux).

New technologies are changing media consumption habits
Truly understanding the increasingly complex media consumption behavior of consumers allows marketers to more accurately anticipate on the impact and synergistic effects of media; to reach (or better, touch) their target consumers more effectively and efficiently at receptive moments, via relevant content that serves consumers' interests.



Media & Marketing measurement systems must leave their single media silo approaches and accomodate multi-media measurement. Unduplicated reach across different media will become a necessity, engagement and relevance will need to be researched too....to make the next step in improving the marketing ROI.



David de Boer, Manager Marketing Intelligence Sales, Sanoma

Managing Media Companies • time to shift from Advertising Sales to a true B2B Marketing approach

Only a few TV channels apply sophisticated yield management techniques for the sales of scarce time-slots, similar to the techniques used by airlines when selling airline seats. Most advertising sales forces are managed traditionally, that is they are often organized by B2B customer size and region and selling only one type of media. The sales approach is mostly push, that is sell the available products, with little room left for the advertiser to shape the proposition.

Revision of advertising sales
The digital transition will foster traditional media companies to fundamentally revise their approach to advertising sales and implement sophisticated B2B marketing strategies. An aggressive sales force on its own will not suffice. The advertising sales process should be transformed into B2B marketing with a focus on targetability and measurability. For this, media companies will have to develop a much deeper understanding of their B2B customers' needs. With these deeper B2B customer insights, a value-added proposition has to be developed, based not only on strategically designed (crossmedia) advertising products, but also on a service offering along the whole advertising value chain.

(Source: Future of Advertising Project, Y. Wind)
Media companies have the unique chance to interact with advertisers in the concept phase, based on their understanding of target groups and storytelling abilities; in the media selection phase, based on their knowledge of media-usage patterns; and finally in the measurement phase, by providing consumer-usage data.

Tying this all together into a coherent approach will make the media company a strategic partner for advertisers/brand marketeers.....rather than suppliers of ad inventory.

Integrating sales forces
In many media companies the sales forces for offline and online are still separated. With the growth of online media and the increased need for integrated offerings, this approach will have to be revised.

Traditional media companies will have to manage the transition from price-based to value-based competition in advertising sales. This will entail a fundamental shift in mindset and innovative approaches in creating value for customers. Managing the complexity of more differentiated offerings, ensuring an effective use of resources and securing a constructive cooperation with the media agencies will be the main challenge in implementing this strategy.

David de Boer, Manager Marketing Intelligence Sales, Sanoma

(Source 1: Managing Media Companies, A. Aris and J. Bughin)

(Source 2: The basics of B2B sales succes, McKinsey)