Marc Pritchard Spells Out the Media Optimization of the Future

The new prescription does look a lot like what this advisor has been recommending for some time Not to mention Erwin Ephron and Ed PapazianThe old way still very popular today in reality distinct from the way it is described in pitches is a lot like throwing money at it in paint buckets without overaiming with an obsessive focus on getting the most impressions of whatever quality at the lowest cost targeting a sexage group as a rough approximation of a very detailed and sophisticated target that is never operationalized Making deals mostly with giant players for cost efficiency hoping for a trickledown effect which never comesNow in an epochal address Marc calls out that feeble methodquotItamp8217s not who spends the most that matters What matters is who reaches the most consumers with the greatest media precision with the highest advertising effectiveness and the optimum efficiency and delivers sustained growth and value creationquotThis is a very carefully worded description of the key elements that have been paid only lip service in the pastReach ConsumersMedia PrecisionAdvertising EffectivenessOptimum EfficiencySustained GrowthValue CreationReachquotWe find that many brands just keep the bar too low and settle for target audience reach of around 50 to 70quot Marc said quotNow why is it so low Weamp8217re resetting the bar to achieve 90 target audience reach And getting as close as possible to 100 We want to reach all consumers and each consumerquotOf course in discussing reach one must consider which time frame to measure it in the numbers Marc mentions suggests he is talking about a campaign probably within a Quarter A target audience Quarterly reach of 90100 for a given brand campaign would probably be reaching 7075 by linear and streaming TV adding another ten reach points with radio another ten reach points by all things digital including DOOH plus a drop of printThe idea of buying all networks and streamers is not really that different for PampampG They were always buying broad dispersed schedules in order to maximize reach but now they are dialing it up and doing it scientifically using optimization For example quotTide switched to programmatic mediabuying finding connected TV IDs across all platforms that could stop duplicating ad frequency increase reach and save moneyquotMedia PrecisionMedia precision is something new for PampampG Ten years ago when I was at TRA and working closely with PampampG I told them that they were buying too many rotations that it was severely limiting the ROI increases they could get from heavy swing purchasers Now their humanistic multicultural inclusivity focus demands precision so that campaigns can deliver quot90 to 100 reach among each multicultural group Black Hispanic Asian Pacific Indigenous White people with disabilities and LGBTQ consumersquotPampampG is obviously optimizing on many subtargets at the same time which we proposed in our ARF paper Crossmedia ROI Optimization Must Include CreativeMy first optimizer that could simultaneously target multiple target groups was Next Century Mediaamp8217s OptiMark addressable optimizer still about a decade ahead of todayamp8217s addressable TV platformsOne lookout I suggest to Marc be cautious in the use of virtual IDs VIDs in maximizing reach against precision targets Using actual measurements is far better than probabilitybased VIDs in achieving both reach and media precision especially against welldefined multicultural targets Probabilistic methods have already been far oversold in the marketing industry The demographics generally available today at the ID level tend to be extremely inaccurate as reportedamp160by ARF VIDs is a new techie way of doing the old Agostini and Sainsbury reach models of the mid20th Century These probability methods also tend to overstate actual reach attained Anonymizing deterministic real ID data and using calibration panels Nielsen or other at equal high quality if that can be achieved and clean rooms privacy is protected and so is accuracyAdvertising EffectivenessThis is the heart of the matter Without it nothing else counts In the optimizers of the future measures of advertising effectiveness will be taken at every level of the ARF Model and these will be used in a fast feedback loop to continuously reoptimize in flight causing new creative executions to be rapidly produced as well as media shifts That means alwayson measurements of brand campaign attention recall persuasion brand perceptions emotional engagement behavioral engagement incremental sales and projected ROI against consumer lifetime value gain projected brand equity in an acquisition net promoter score brand love and brand customer base growthCurrent optimizers are usually dealing with only one of these payoff measures which tells you when you are failing but not where the fix is neededInterestingly Iamp8217m working with several notable companies to create something like that right nowThe interaction effects sometimes the synergistic effects are as large as the direct effects amp8211 must also be taken into account Ads resonate to a greater or lesser degree with each person and to a lesser or greater degree with each context Contexts which we do not think of as being high impact will be surprisingly high impact for the ads which resonate with that context All of this must be included in a scientifically complete optimization solution The difference made is not slight itamp8217s doubledigit over optimizers which ignore internal interaction effects among variablesThe industryamp8217s collaborative efforts including those of ANA VAB ARF MRC IAB and many others are creating greater interoperability and standardization which will enable more data from more directions to inform this new scientific and pragmatic paradigm for marketing That data superhighway benefits everyone including todayamp8217s leading companies as well as startups to the degree that a company allows the old restrictions and siloed thinking to molt away Fear which drives silos and herd mentality is what crowned CPM the only arbiter in media for too many decades Itamp8217s time to transcend the fear and to achieve sustained growth as individualsOptimum EfficiencyThis is the heart of Marcamp8217s announcement He did not say quotmaximum efficiencyquot but quotoptimum efficiencyquot This is the really big and overdue change for the entire industry It has always been quotsacrifice everything else for efficiencyquot in actual practice The word quotoptimumquot conveys quotas much efficiency as we can afford without harming advertising effectiveness sustained brand growth and value creationquotIt has always been drive down the CPM as much as possible Get as much reach as you can without hurting the first principle CPM That has wasted trillions of dollars over a century or more and made CMOs the low person on the C suite totem pole Go MarcSustained GrowthIn order to sustain brand growth the brand must constantly gain new customers and innovate new products hopefully more than mere line extensionsInterestingly even mature brands like Tide have hyperlocal areas in which they are still growing today and still have headroom to grow more Local media could benefit from the widespread dissemination of the data supporting hyperlocal growth opportunities for brands considered toppedoutValue CreationWhen Marc Pritchard talks about value creation he means more than the brand equity value He includes human values improving the quality of life for customers employees shareholders and people in general Brand content created by PampampG including The Talk The Look and Thank You Mom clearly demonstrates what he means by value creation in the larger senseWeamp8217ve unpacked the onesentence tight definition of the new marketing lens offered to the whole industry by PampampG in this keynote Itamp8217s very exciting to read these words of an industry leader confirming many of the ideas Iamp8217ve been fighting for all my career and to know that PampampG is actualizing these ideas with technology right nowSelfpublished at MediaVillage through the wwwAvrioB2Bcom platformClick the social buttons above or below to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writersamp160

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Marc Pritchard Spells Out the Media Optimization of the Future

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