Marketing and analytics company Kantar has established a marketing effectiveness practice to advise brands how to find the right mix of long-term brand building and short-term marketing activity.
The practice, led by Managing Director UKI for Kantar Insights, Dom Boyd (left), and Richard McLeod (right), who now becomes Head of Marketing Effectiveness, will push organisations to make better use of digital channels to enhance brand equity and price power, not just deliver short-term sales targets.
According to Kantar, this will help brands determine their most effective marketing strategy and best practice for measuring return on investment.
With a recession likely on the horizon, many brands are feeling the financial strain and require guidance through these turbulent times, especially when balancing short-term sales with long-term growth.
Dom Boyd, managing director of Kantar Insights UK, said: “The conversation around marketing effectiveness has been evolving for some time, but the broad 60:40 split between long-term brand building and short-term activation remains generally accepted.
“The challenge for brands now is how to apply this rule of thumb in practice in the cookieless, connected on and offline world they’re in and drive additional value in an inflationary environment. As teams come under extra pressure to justify their decisions commercially in the boardroom, it’s vital they maximise every pound of investment.”
AI-driven performance tools
Kantar Insights will aim to deliver on its promise to clients by making use of AI-driven econometrics and campaign performance tools to predict the macroeconomic impact of marketing activities on sales when compared to previous revenue data.
Ideally, this will allow brands to consolidate their current strategy and gain a clearer understanding of how to best move forward in a profitable manner, without leaving themselves vulnerable to the current economic climate.
Richard McLeod, Head of Marketing Effectiveness at Kantar Insights UK, added: “Marketing effectiveness is top of the agenda as CMOs battle to defend budgets during the current economic climate.
“Many teams will be tempted to switch spend to short-termist tactics in the coming months as stakeholders ask for immediate sales impact from activity, but we know this is the wrong way to go, and will slow down brands’ recovery in the long run.”