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Binet is in Sydney this week for the Agency Leaders Symposium and spoke to journalists about his ongoing and latest research, forthcoming book, Effectiveness in Context , and insights at a briefing organised by Australian TV lobbying and research group, Think TV. Sales activation, which delivers short-term sales volume; and brand building, which leads to long-term growth and margins.
Consumer-oriented brands need both forms, Binet said, noting the optimum balance today sits at about 75 per cent brand and 25 per cent activation. What might surprise marketers is this optimal ratio has skewed even higher towards brand building in the digital age. These figures are published by the IPA Databank. Digital realisation is leading to increased distribution efficiency, so more emphasis needs to be on brand. Binet explained sales activation style marketing is about growing physical availability, and is best served by tight targeting and relevant messages.
Of course, there is some differences in the way consumers respond to advertising depending on the goods and services being purchased. The level of product innovation and price advantage play a role as well. The problem is too many marketers are being driven by short terminism and not investing enough in broader, emotive-style advertising that drives brand, Binet said.
Attribution modelling adds to this problem. People get very excited about the idea that I just searched on such and such a thing, so they can hit me with messages right now. I think that is a problem. These remind people about the brand and build an emotional connection. This ensures that when people come to do their Christmas shopping, they will be inclined to go to John Lewis, he said.
Activation-based activity then does the hard selling job and could involve paid search or programmatic advertising for specific products. In the case of John Lewis, this could include a direct link to its website, Binet said. And this is also where one-to-one and targeted advertising plays its most important role.
Marketing is a numbers game. Based on his research, Binet suggested video content as one of the strongest mechanisms for branding building. He also claimed the combination of traditional TV with next-generation video is the best brand building combination of all. ABC News. Jamie Simpson. Chris Mulcahy. John Paul. Dayton, Ohio - City Government. Government organisation. Dayton Weather Spot Science website. Elyse Coulter. The Columbus Dispatch. Gabrielle Enright.
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