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VIEW FROM THE CHEAP SEATS
Bookmark and Share   Subscribe to the View from the Cheap Seats RSS Feed February 25, 2009
ROI: Advertising's Dirty Four-Letter Word
 
Will we ever be able to prove advertising is effective?

As if the advertising industry didn’t have enough problems, now we need to show more  and more demonstrable results. There’s little accountability for our government, our banks, car makers, or mortgage brokers—but damnit, the ad industry is asked to show some, or else.

Why? Our clients want proof that advertising works.

But here’s the not-so-well-kept secret: No one knows if advertising works.

Actually, in its most base form, we know that advertising works. You can’t just open a business and not tell anyone about it, hoping they’ll show up. When you tell the world to do business with you, somebody will. So yes, advertising works.

We just don’t know how it works. Which is even worse.

Famously, John Wanamaker said, “Half the money I spend on advertising is wasted; the trouble is I don't know which half.” His department store is long gone, but that truism lives on.

Personally, I think Comcast wastes more than half. Comcast spends hundreds of millions of dollars on advertising. I’m a customer, but still they bombard me. I get direct mail from them every week—and last week, I found two different postcards on top of each other in the pile. They’re on TV,  radio, the internet, etc. There’s even a “ComcastCares” Twitter guy who responded to my customer service inquiry. Comcast is flooding the zone. So far, they haven’t tempted me with any new offers.

But let’s say I finally respond to a postcard. That one mailer gets all the credit. Boom! There’s your ROI--it must have been that shade of green on the postcard or that magic promotional offer that hooked me. Right?

Number crunchers in advertising are looking for pinpoint accuracy. Someone figured out it takes several viewings before a direct response TV spot produces a sale. But if more people order a Slap Chop during 3AM reruns of “Iron Chef,” well then they know where the media dollars need to go. Never mind if anyone saw it on YouTube first.

With the advent of new media, the formula gets even murkier. Sure, you can track how many people click through banners or visit web pages. Does a paltry clickthrough rate on a banner mean its useless. How about social media? Word of mouth? Blogs? Consumer generated content? Apps? All can play a role in the marketing mix—but no one knows exactly how.

And the quest for accountability is going even further—by analyzing your brain. Have you heard the latest buzzword--Neuromarketing? Millions of dollars are being spent hooking people up to electrodes and trying all manner of techniques to trigger their brain’s pleasure centers. It works—on marketers with way too much money. The idea of neuromarketing triggers your client’s pleasure center by attempting to prove how consumers get lured in. Are scientists going to perfect the art of advertising? Don’t bet on it.

We have access to more data, more statistics, more slicing and dicing of numbers and tactics than ever. And has advertising gotten any better through the years? Hardly. Has the creative work improved? Nope. Less wasteful? Occasionally. Is it still mostly wasted money? Absolutely.

But you will never, ever hear an agency exec get up in a presentation and say, “We don’t know if this’ll work. They won’t even say, “Well, we think it’s gonna work.” They’ll say, “It will work.” Every proposed campaign is a can’t miss. The producers of ‘Ishtar’ probably felt the same way.

If there’s one thing that doesn’t sell, it’s uncertainty. And that’s why the biggest charlatans in advertising act so confident. Of course, that absoluteness isn’t confined to the ad industry. In these days of Bernie Madoff, the permission to be a complete bullshit artist seems to come free with any order of 100 or more business cards.

We have to prove our worth, because so much advertising is worthless. In a desperate attempt to prove ourselves, ad agencies and their clients turn to any analytics, no matter half-assed or incomplete. And in the land of the blind, the one-eyed man is king. Get used to it. We need find a way to take analytics and interpret them for the creation of better work—not be a slave to imperfect numbers.

Or we could insist on conducting a real effectiveness test. Instead of what clients usually insist upon—watering down a concept and then blaming the agency for poor ROI--let’s compare results between two campaigns. One campaign produced exactly the way an agency recommends vs. one that looks the way it looks after the client messed with it.

Would that prove the superiority of the agency recommended work? I doubt it. Oh, wait—I’m in advertising. Absolutely it’ll work!


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Comments
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martin russ (Ipswich, Suffolk, UK) on 26 May 2009 at 7:00 am

Some things are just not measurable.

Some articles succeed in expressing concepts beautifully - this is one of those articles!

(aspirationally) good client (milwaukee) on 04 Mar 2009 at 11:46 pm

rejoinder to sad...

"what does it say about the future of our business when clients don't keep campaigns and agencies that exceed their expectations?"

i think what it says, potentially, is that clients are placing increased emphasis on relationships with agencies and their people vs. the work itself.

but then again, hasn't this always been true? after all, we've seen people rotate from burnett to fallon to crispin to ogilvy on and on and on -- for forever, following clients who moved the business because the client didn't want to have to educate absolutely everyone in the new shop on absolutely everything.

i don't know the answer to how to keep things from changing when new people enter. i myself just got booted from my gig as a result of same. some people just have to pee on everything to make it their own. it's sad, as you say.

Frank CD (New York City) on 03 Mar 2009 at 2:16 pm

In total agreement my friend!

I also believe the down slide of good creative advertising is being caused
more by the growth of so much emphasis on interactive space.
What happened to all the great amazing thought provoking
campaigns like we produced in 60's-80's????

Today its all flash animated-bang-boom-bam-in the pan crap.

sad to say on 03 Mar 2009 at 1:55 pm

@ aspirationally good client:

I think there are many good clients out there, I happen to work for a couple right now. What i'm trying to say, in an admittedly negative way, is that even great results don't seem to matter to a client if they're of a mind to change their campaign or the agency.

My agency lost one huge (for us) client after we had risen above all their expectations in terms of results, because a new marketing director got hired and she wanted to put "her mark" on their advertising. (P.S. after 8 months, they have yet to produce any new work.) I've also been in several losing pitches this year where we were told by all involved that our research, insights and ideas were better, but there was some political reason that they chose another agency.

I understand very well that a client needs to meet their numbers. I happen to be a very strategically-minded creative.

But what does it say about the future of our business when clients don't keep campaigns and agencies that exceed their expectations?

Disillusioned in Chicago.... (Chicago) on 02 Mar 2009 at 3:03 pm

First of all ditto to all these comments above. Secondly, I think the 800 pound elephant in the room is this fact. The more advertising and marketing messages we are bombarded with, the less advertising as a whole becomes noticed, and hence effective.

We have long since thrown the cardinal rule of communication out the window. That is, place one thing on a page and it is singularly important. Place another thing on the page and it has effectively reduced the importance of that first item....and so on.

It started fairly innocently. Since bold type appeared to lose its effectiveness, well lets make it 24 point. Since that didn't work, lets make it all CAPS! Heck, people aren't reading our outdoor messages, maybe slapping a GIANT LOGO on the side of a train will get their attention!!! Wait! That didn't do it either???? Why aren't these people LISTENING!! I'M YELLING AS LOUD AS I CAN AT THEM!!!!!!

This is the state of advertising communications today. We have compromised our principals, standards and gut feelings to make a buck and keep the revenue wheels turning while creating an unprecedented amount of visual and intellectual NOISE. And, as we seem to be discovering (thanks to guys like Martin Sorrel) made the guys at the top a gazillion dollars while many of us slog it out in the salt mines.

Joel, you hit the nail on the head. The business is grinding people up and spitting them out without teaching them anything except how to say yes to the client in 5 languages and how to make the logo bigger because some junior brand manager read in a book somewhere that if the LOGO isn't the biggest thing on the freakin' page its just doesn't have enough BRANDING. And, if I had a nickel for every time someone said that word unnecessarily, or as a reason to justify their middle management position, I would be typing this from my own island in the Caribbean.

If we dont stick to our guns, hold ourselves to a higher standard and tell our clients the truth, how can we expect them to trust us, believe what we have to say and for God sake trust their brands to us?

The reality is this. Advertising and marketing as we know it will become wholly ineffective (if it hasn't already) because technology has accelerated the speed at which people (who happen to be consumers of stuff) communicate. People have never been more comfortable or open with sharing their ideas and opinions thanks to technology. If you have a product or service that you want more people to know about, you just have to find your top 10 customers, understand how they communicate, socialize, etc then empower them to do that on behalf of your product. If you have a GOOD PRODUCT and treat your customers with RESPECT the rest will take care of itself. Your CUSTOMERS are now your most powerful MARKETING TOOL.

Good luck out there...

Greg Linnemanstons (Appleton, WI) on 27 Feb 2009 at 9:55 am

While technology has given us all vastly improved methods for measuring the impact of our work, that same tech has exponentially exploded the potential mix of communication algorithms targets are faced with, and which we're supposed to consider in our recommendations. The world we're operating in today can't be controlled for in simple experiments of ad effectiveness. Instead we should be building competencies around the ability to conduct never-ending "Tries" that are intended to move us toward the moving target of improved effectiveness.

There is no destination for what we do, just the struggle to keep our understanding moving just slightly faster than the changes happening all around us. Perfection on Earth is not possible. Being better than we were last week is.

(aspirationally) good client (milwaukee) on 25 Feb 2009 at 11:35 pm

ok, i get that agencies don't like it when clients mess with the work ... and the idea of running 2 campaigns, one unsullied by clients' red pens the other with adjustments, is compelling. tell me, would any agency foot the bill for their part of such an experiment? i doubt it. why? because, as you say, they just don't know whether it will work. they only feel better about "their version" and its likelihood of greater success because they invented it and, well, that de facto makes it better. because if clients really knew anything about advertising, they'd be doing it themselves, right?

wrong. good clients know they need good agencies. i like to think i am a good client -- or at least, i aspire to be one. and i think that any client who fires an agency that's "doing great work and achieving better than expected roi" to bring in a prior pal is a horse's ass. except, that is, if his past agency achieved even better results. in which case, he would be a horse's ass to keep the present agency unless they could, and did, elevate their work to the same level.

to the point about analytics, metrics and one-eyed men who are kings and being a slave to imperfect numbers ... i get why you guys don't like this stuff, but i'd recommend you get used to it. clients are just not going to celebrate your "big idea" without improved outcomes that translate into improved business. sure, advertising purists will say, look, this is all about doing great work, but .... why? why are we all here? the client is not paying you for his (or your) self-congratulatory infatuation over your fabulous creative, though justified it may well be. this is, in fact, not really about making good advertising at all. this is about making money. and if we don't make it, we can't pay it to you.

granted, in the end the customer cannot buy something he doesn't know about, and he won't buy something that he doesn't find compelling. which is why, when it comes to analytics, i think both clients and agencies are best served by looking at the few key drivers of choice for a particular product or categor, relative to its competitors on those dimensions. only when we can figure out how and why people think what they think -- based on advertising or any other communications -- can any of us really claim success.

Joel Kirstein on 25 Feb 2009 at 8:59 pm

It never fails to amaze me how the smarter we all seem to think we've become thanks to technology, etc. the more dumb we've become by venturing out on a some messianic quest looking for a magic bullet to blame all of our failures on!

To your point about "will this will work?", I've found that it is kind of like working for the mafia. Never promise anything except to do my best. Client's addiction to their own rancid doses of Kool-Aid must be what's responsible for their thinking that if they sever their subscription to reality, this will take them to a better place. Bad practices driving even worse gathering of inaccurate information, handled by incoherent wheel spinners.

I attribute this to the fact that our industry is in crisis because we just don't attract smart people anymore! Very sad!

sad to say on 25 Feb 2009 at 6:51 pm

Unfortunately, I'm not even sure that ROI is as important to some clients as keeping their internal beehives humming along happily and pushing selfish agendas.

Ultimately, a lot of clients will do the work they want to do and keep the agencies they want to keep, whether or not it's justified by quality or results.

Do great work, and achieve better-than-expected ROI? Too bad, you're fired anyway, because the new marketing manager wants to hire his buddy-from-way-back's agency.

Doing shitty work and getting mediocre results? Don't worry, you're so cozy with the board of directors you're untouchable. Also, the marketing manager likes the five-star hotels you put him up in on TV shoots, and enjoys writing his own body copy.

Our current economic conditions prove that a fair number of the people running companies are basically illogical, greedy, hypocritical, and arrogant power-trippers. I think the Bush administration, in a microcosm, represents the corporate world's inner workings very well. "Great Job Brownie!"

Those of us in this business with talent, intelligence, and a sense of personal responsibility are stuck wrangling with our bad clients and trying to win over the minority of clients out there who actually get it.

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Branding. Religion. Censorship. Office politics. Global politics. Sexual politics. And getting drunk during a job interview.

Since 2002, Dan Goldgeier. (a.k.a. Danny G.) has been writing the most provocative advertising columns about advertising and marketing -- over 130 of them, covering every related topic you can think of. They're witty, thoughtful and probing, and a must read for those who want a perspective rarely seen in traditional industry publications.

An Atlanta-based copywriter and ad school graduate, Dan has worked at shops big and small. He reads incessantly about advertising, and is a whiz at rock & roll trivia. Learn more about him by visiting his copywriting website. You can also follow him on Twitter.

He welcomes your feedback. Send comments, criticisms, and suggestions to Dan.

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