“Everybody’s talking at me. I don’t hear a word they’re saying,” observed Harry Nilsson in 1969. 45 years on, it seems a lot of people are still not listening – but brands should be. New findings from Gallup suggest marketers may be pinning the wrong hopes on social media.
It’s an old bias but a telling one. Finance people accuse marketers of only spending money. Marketers accuse finance teams of only counting it. It’s another re-run of the analytical versus emotive debate yet it has the potential to carry deep bias into decision-making. As Brad VanAuken observed in this article, “I have found that many scientists, engineers and finance and operations professionals view marketing as a soft skill that lacks the rigor of other disciplines and that it deserves less attention and investment.”
Analytics have changed not just what marketers measure but how brands now appraise success. The temptation is to see all the metrics we have access to as correlated and, by inference, of similar and perhaps even related measurable value. We look at one analytic and wonder what its impact will be on another and on the bottom line.
This article from some time back by Jagdish Sheth and Rajendra Sisodia sheds fascinating light on the business case not just for expanding brands but also shrinking them as well. According to the authors’ “Rule of Three”, the quest for scale is quite literally a race first for dominance and then for survival. But if you can’t win, don’t try.
A study by Catalina Marketing appears to cast significant doubt over a veritable pillar of media marketing. Demographic targeting, it seems, often falls wide of the mark. Catalina researchers looked at 10 brands targeted at households headed by women ages 25 to 54. They found that, on average, just 15 percent of the ads playing in those households reach the people that account for 80 percent of sales.