CANNES — Many brands remain wedded to an advertising planning system developed by econometricians – but the so-called “marketing-mix modelling” doesn’t necessarily give them all the answers about campaign performance.
In this discussion panel recorded by Beet.TV, ad agency tech executives say many clients are capable of moving forward – but they are caught between two worlds…
IPG Mediabrands chief data and marketing technology officer Arun Kumar:
“The newer companies look at performance (marketing) very differently and they’re far more open to restructuring and not having silos. They’re very good at lower-funnel, they’re structured internally to do that.
“Where they struggle is, in many cases, they see that as a battle for market share, as opposed to figuring out, ‘How am I going to get to the top of the funnel?’”
GroupM North America CEO Brian Lesser:
“Market-mix modelling has been the holy grail of channel allocation fora very long time. When you come from the new school, you say, ‘Market-mix modelling is looking through the rear-view mirror, that can’t possibly be right.’
“You get part of your media plan using real-time media to buy and optimise, and part of your plan that’s looking backwards. The answer is not either-or, frankly – tis’ about updating that model more often.”
Hearts & Science CEO Scott Hagedorn:
“The big problem with the market-mix models right now is the competitive data set which powers most of those are powered by Nielsen, and 75% of Nielsen’s money comes from the TV networks – so the mixed models themselves are totally based on TV and don’t take in to account what’s really happening in digital.”
Dentsu Aegis Network product and innovation president Doug Ray:
“We’re working with a lot of our clients on, ‘How do you bring those two worlds (clients’ media team and and customer data team) together? How do you apply the precision and audience understanding that those groups had, how do you leverage the understanding that those CRM or ecommerce teams and leverage similar types of data in a mass-media ecosystem?’ That’s evolving, we’re able to apply some of those principles in the mass-media space.”
This video is from The Mastercard Automated Advertising Panel at Cannes Lions 2017. For more from the series, please visit this page.