What is the Value of Time in Advertising? (Part II: Implications of Value Research for Industry)


The ARF’s Town Hall, Part 2, on the value of time in advertising highlighted the thinking of buy-side leaders, Denise Campbell, Chief Marketing Officer, AbbVie, Joanne Leong, VP, Director, Global Media Partnerships, Dentsu Aegis Network, and Christina (Chrissie) Hanson, Global Chief Strategy Officer, OMD Worldwide on the ideas presented at last week's Town Hall. Additionally, Scott McDonald, Ph.D., President & CEO, ARF, shared findings from an ARF Attention Survey, as well as providing his feedback on the issues and challenges relating to attention metrics. The ensuing discussion focused on the use of attention as a major currency metric and the business implications of the latest time-duration research. Cesar Brea, Partner, Bain & Company, served as the moderator and introduced the Town Hall by discussing the reasons why the industry is very interested in an attention-based currency as a basis for investment.

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NYCU: Do Analytics Contribute to Growth and Profit?

Business Professor Oded Netzer finds that many Chief Marketing Officers (CMOs) don’t think analytics contribute much to the bottom-line and offers a strategy to align analytics with business goals. In a recent paper in the Journal of Marketing, Oded Netzer, the Arthur J. Samberg Professor of Business and a Chazen Senior Scholar, points out that increasingly rich data from a dizzying array of sources allow marketers to capture more information on customers and competitors today than ever before and use that data to drive actionable insights. However, he finds that a 2020 survey of CMOs shows that despite steady increases in spending on analytics over the past eight years and even higher expectations for increased spending in the future, the contribution of marketing analytics to company performance has been, on average, fairly low. The disconnect comes down to this: marketing data collection efforts and analytics do not always align with growth strategy. According to Netzer and his colleagues, firms should align their data and analytics with three growth levers, informed by the customer equity framework, which suggests that a firm’s growth comes from acquiring profitable customers, making more money from existing one's customers, and retaining profitable customers:

  • Customer acquisition: Harvesting social connection data gives marketers the ability to identify potential customers who are connected to existing customers and/or have preferences and motivations similar to existing, profitable customers.
  • Customer development: Using clickstream data and other business intelligence data, companies can go beyond simply tracking a customer’s purchases with their firm and estimate how much that customer spends with competitors. Firms can leverage that data to increase their share of customer expenditures in a given category or industry (often referred to as customer share of wallet).
  • Customer retention: Firms have traditionally relied on purchase and usage data to predict customer churn, but little attention has been given to mitigating it. Underutilized data sources, including unstructured data and causal data, are more difficult to gather and work with than traditional transactional data, but can be extremely useful in identifying impending customer churn and mitigating it.
Source: Netzer, O. (2022, January 12). Beware the Streetlight Effect. Ideas & Insights: Marketing, Columbia Business School.  

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Are Non-Local Sports Fans Bigger Sponsor Patrons than Locals?


Fans who travel far to sporting events may be more valuable to sponsoring brands than previously thought. A research model tested against a cycling field study shows that “faraway” fans are more knowledgeable about the sport than locals, identify more strongly as a fan of the sport and have greater event attachment, potentially increasing their desire to support sponsoring brands.

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NYCU: The Real Marketing Word-of-the-Year

Joe Mandese argues that the marketing-word-of-the-year is not, as widely assumed, “Diversity” but “Trust.” MediaPost’s Joe Mandese concludes that Trust, not Diversity, is the “real” marketing word of-the-year, based on an Advertiser Perceptions study. The research, a survey of ad execs (both marketers and agency media-buyers), found that nearly two-thirds would likely “downgrade” or scrap a media outlet from their ad plans altogether, based on a violation of trust. While trust has always been paramount in an industry where advertisers and agencies routinely require various proofs of performance on whether their ad buys ran as promised -- pre- and post-digital -- the percentage that assert they would dump or downgrade media for violating it went up 18 percentage points over the past 18 months. That coincides with another sentiment that ostensibly grew during the pandemic: Empathy. "Two-plus years ago, we were finding things more in the 'talk, but less action' category," says Sarah Bolton, EVP at Advertiser Perceptions, who oversaw and analyzed the study's findings, adding: "But post the pandemic, the social justice movement, the trend lines are all moving toward more accountability.” "In the beginning,” Bolton said, “we were seeing it associated with things ethics of data-handling – whether that's data privacy or security: brand safety, ad fraud, trying to understand where these things stack up with performance and ROI and scale. But in the last 18 months, we've really zoomed in on brand safety and digital content safety.” She adds that the subplot here is that brand marketers and agency media buyers are becoming much more cognizant of, and guarded about, the idea that their ad budgets are financially supporting media outlets that cause direct or indirect harm to society. Source: Mandese, J. (2021, December 13). Why 'Trust,' Not 'Diversity,' Is The Real Marketing Word-of-the-Year. RTBlog, Commentary: MediaPost.  

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NYCU: ARF Launches Marketing Optimization & Insights Certification with NYU

The ARF and the NYU School of Professional Studies have launched a new program, the ARF Marketing Optimization and Insights Certificate. The course is designed to teach methods of diagnosing marketing problems and evaluating the effectiveness of campaigns. ARF members who register for the full course by December 15 will only need to pay $2,000 (a savings of 75%). Contact arfcertification@thearf.org for more information.

The program, now open for enrollment, will commence this spring and be taught by professionals from members of the ARF who will serve as adjunct instructors at NYU SPS (New York University School of Professional Studies). It will provide the real-world application of research and analytic methods and comprise one required course, Foundations of Advertising Research, and six electives, of which three must be taken. These are: Achieving Consumer Centricity, Campaign Objectives & Strategy, Discovering and Testing the Key Consumer Insight, Informing Creative Development, Media Assessment & Tactical Planning and Campaign Effectiveness Measurement. Through the program, students will learn how to apply a consumer-centric approach to the development and optimization of marketing in daily work activities, learn how to assess the requirements of an effective marketing and advertising plan to support business goals and how to draw insights from consumer and market data. Studies will offer guidance on how to integrate the research and insights process into the development, testing and optimization of messaging and creative assets. They will also show students how to evaluate the impact of media choices, the media mix and optimal media plans on reaching marketing communications and business goals. ARF President and CEO Scott McDonald says the tailored curriculum is designed to foster an environment for professionals to learn and experience first-hand, how research and analytic methods available today play a "crucial role in the full cycle of campaign development."

Source: The ARF. (2021, November 30). The ARF And The NYU School Of Professional Studies Launch Certificate Program In Marketing Optimization And Insights. NYU School Of Professional Studies, The ARF.

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Can Online Social Pressure be Good for You?

  • MSI

Virtual Support Communities (VSCs) can have both positive and negative consequences for users. On the one hand, VSCs provide information and emotional support, which can help members achieve health and wellness goals. On the other, the social dynamics are such that community managers or admins must understand how to control them, and how such forces affect consumer engagement.

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NYCU: Futurology is a Risky Business

Revisiting past predictions often reveals more about the past than the future. In a New York Times DealBook about, "the trends that will shape the coming decades," John Herrman takes a skeptical view of futurology. Reviewing predictions from 1982 he finds that most were wrong and that, "...the predictions said less about the future than about what sorts of stories people wanted to hear, and tell, in the present." He concludes that futurists' predictions are often focused on, "ripped-from-the-headlines issues," and often function like investment advice.

Source: Herrman, J. (2021, November 28). A Short History Of Predicting The Future. DealBook/Business & Policy, The New York Times.

Note: Only New York Times subscribers can read the full article.

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NYCU: Do Employees Work Better in Teams or Alone?

The pandemic has brought new relevance to the question: Are teams better than individuals at getting work done? New research finds surprising answers for managers trying to figure out the best way to assign tasks. The study was conducted by Wharton Professor of Operations, Information and Decisions Duncan Watts. In their research, Watts and his co-authors found:

  • Simple tasks are best accomplished by individuals, while difficult ones are more efficiently completed by a group.
“Groups are as fast as the fastest individual and more efficient than the most efficient individual when the task is complex but not when the task is simple,” the researchers wrote in their paper entitled, “Task Complexity Moderates Group Synergy.” Watts said the study is unique because it’s the first to make an “apples to apples” comparison in a lab setting. The scholars created an experiment that allowed them to manipulate the complexity of the same task, rather than simply giving the participants different kinds of tasks, as most previous studies have done. “In this research, we could vary complexity in a nice, systematic, principled way without changing anything else,” Watts said. Source:  Watts, D.; Almaatouq, A.; Alsobay, M.; Yin, M. (2021, October 12). Are Teams Better Than Individuals at Getting Work Done? Knowledge@Wharton: The Wharton School, University of Pennsylvania.  

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NYCU: Mastering Media Complexity

A report by Nielsen recommends that marketers focus on “three pillars” to simplify measurement in light of increasing complexity. Marketing budgets have always been subject to scrutiny, but the pandemic’s arrival and its presence almost two years later continues to spotlight the need for efficient and effective spending. That, in turn, has intensified the importance of accurate and holistic measurement, especially as brands increase their usage of new platforms and channels for their marketing efforts. In addition to navigating new platforms and channels, marketers have notably increased their spending this year, mostly across mass reach channels (after a pullback during the first half of 2020). That spending aligns with sentiment from marketers surveyed for Nielsen’s 2021 Annual Marketing Report, which cited customer acquisition and brand awareness as their top priorities. As spending increases, so does the focus on tracking ROI. And unlike digital, conversion-oriented marketing efforts, which can be measured with current martech solutions, mass reach efforts are often viewed by marketers as more challenging to correlate with actual, long-term sales. Now, while Nielsen’s experience base shows that on average, a 1-point gain in brand metrics such as awareness and consideration drive a 1% increase in sales, marketers surveyed for Nielsen’s annual marketing report aren’t confident in their existing marketing technology. Importantly, the introduction of new platforms, devices and channels—along with enhanced privacy considerations and the depreciation of third-party identifiers—increases the complexity that martech solutions need to account for. As complexity rises, Nielsen believes brands should focus on three pillars:

  • Trust: Measurement that is from an independent third party (not a media seller) and which is funded by the advertiser (lending full transparency to the advertiser directly) is critical.
  • Comparability: For the largest components of a media budget, brands need to be able to accurately compare channels with consistent methodology, to facilitate a clear understanding of relative performance.
  • Adaptability: For the largest components of a media budget, brands need to move from measuring what happened at the executed level—to what could be achieved. This will help brands improve, instead of simply validating that marketing strategies are working sufficiently. For the smaller components of media budget, brands will need a way to test and learn to ensure that successes can be scaled and investments in shortcomings can be appropriately limited.
So, there is no one-size-fits-all measurement solution. As media options multiply, so do martech solutions, potentially adding more confusion than clarity. Across the realm of measurement capabilities, marketers tell us they are least confident with measuring awareness, full-funnel ROI and multi-touch attribution (MTA). Source: Nielsen. (2021, October 27). Media is complex: Three pillars can simplify measurement for marketers. Insights: Media, Nielsen.

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