what really is marketing leadership

[email protected] Twitter.com/gregstuart1


What it Really Means

to be a Leader in

MarketingInteractive Insights Summit – Where Leaders

ConnectLas Vegas – October 13, 2010

com

TARGUSInfo


Mobile Marketing

Rocks! (and you should do it!)


What’s it mean to be a leader in marketing.

Especially in the context that half the

campaigns fail before a dollar in media is

spent!

2 Items To Cover Today

1

2


Not someone that get’s all elements in their

campaigns to be effective from the start….

…but is honest when they don’t work, and is highly effective in (and committed to)

improvement

Thesis: a Leader is…


But Let’s Look at Failure First


slide title$112 Billion Wasted


$1 Billion Ad Spending Researched

1.1 Million Consumers Surveyed

http://www.ford.com/en/links/General/www_fordvehicles_com/default.htm?referrer=home





















What Did Learn From the Research?

Motivations

36%

Messaging Media


ING’s 4 Year Campaign: Fresh Thinking


Today’s Ads For INGSimplifies A Complicated Financial World


Messaging MediaMotivations

36%

More, What Do We Know?

31%


How Big A Difference Can Creative Make?

B

A

Source: IAB Cross Media Study

VS.


Purc

hase

Inte

nt

0% 5% 10% 15% 20% 25%

2%

20%

Creative Makes A BIG Difference


B

A


Just to See it Again

B

A


VS.


Messaging Media

Yes, It’s That Bad, and Worse

Motivations

36% 31% 83%


Didn’t Measure

Mobile, but am Sure it

Rocks!


The Truth Is…Marketing is Hard

Suppose you have 5 options:• 5 Brand Positionings • 5 Customer Segmentations• 5 Ad Creative Approaches• 5 Magazine Schedules/Plans• 5 Online Plans

3,125 Combinations

10 to 10th = 1 billion combinations


What Sticks was Written to Be…

A Clarion Call* to Marketers for Change

Clarion Call * A clarion call is a powerful request for action or an irresistible mandate. Frequently used in a religious context, or in a political context, in that a politician issues a challenge for action from the public.


slide titleWhat If They Don’t

Take the Call?


Calling? That Makes me Think of

MobileMarketing


slide titleUGH! Now What?


So What is Leadership?


1. No storehouse of what makes advertising work2. General mistrust of data & research3. Knowing vs. doing gap4. Distorted lens of Marketers5. Fear of failure6. Marketing as ‘magic’ myth7. Poor alignment in incentives8. Resistance to collaboration9. Lack of systems for measurement / action

What Sticks: Nine Problem Areas


slide titleIllogical Ad World

How do the big three auto companies set their

budgets?

1 Media Director told us…


Donny Deutsch Even Said

“We did a wonderful spot…on the Superbowl… for Mitsubishi Gallant...that stops at the end and [says] go to “seewhathappens.com.”

We got about 600,000 clicks.

Was that great or that not great?

We told the client it was great, so it was great.”

[nervous laughter]

− Donny Deutsch speaking to 500 Marketers…Deutsch is the 14 largest agency in the US


Not Using Mobile, That’s

a Real Problem


slide titleSo What Do We Do?


Warren Bennis Said…

“Leadership is a function of knowing yourself, having a vision that is well

communicated, building trust among colleagues, and taking

effective action to realize your own leadership potential.”

Warren Bennis: American scholar, organizational consultant & author, pioneer of field of Leadership studies. Professor & Founding Chairman of

The Leadership Institute at the USC


1. Universal Agreement to Goals

2. Have a Back Up Plan (Plan B)

3. Know the Value of each Dollar

What Sticks’ Leadership Steps


slide titleUniversal Agreement

How many companies had universal agreement?


We Should All Agree on Mobile


slide titleHave a Back Up Plan

How many Companies had a Back up Plan?


Or Another Example

For 5 select studies, creative testing was done prior to the research launch:

Only 1 brand’s ads required no adjustment2 brands found 1/2 the ads were not effective

Diluting the effectiveness of the campaign2 brands discarded ALL ads & started all over

Both developed ads that scored much better

Who were the 5 Advertisers?

P&G J&J Kraft Nestle Target


Harvey Mackay Said It Best

"A dream is just a dream. A goal is a dream with a plan and a deadline."


slide titleKnow the Value of

Each $

More Complicated, More Expensive


-10%

0%

10%

20%

30%

40%

50%

60%

% A

ided

Aw

aren

ess

Even Bigger Came from Adjusting the Marketing Mix

Introducing New Menu Item: Grilled Chicken Flatbread Sandwich

Ad Frequency (or Budget or Time)

5pt Gain!

TV & Radio

Point of Diminished

Returns

20% ofBroadcast Budget

Reinvested 13.6%

in Online

Cut6.4%

Online + Broadcast


Betcha’ Leaders Use

Mobile


What Happens When Leadership

Works?


“Most Important Car Launch in Ford’s History.” Bill Ford

slide titleFord F-150 Case Study


The F-150 Online Ads


Mobile Reaches

Consumers in Their Cars too


How Big a Difference Can Little Changes Make?

Demo


Online = 10X Value

Interpretation: If it cost Roadblock $1 (indexed at 100) to increase purchase consideration, then it cost $1.35 for Online, $4.56 for magazine and $11.04 to TV to achieve the same increase.

Brand Metric: Purchase

Consideration (top 2 box)

Relative Cost Index Relative Cost

TV 1104 $11.04Magazine 456 $4.56Roadblock 100 $1.00Online 135 $1.35


But Does It Impact Sales?

Cost of Portal Home Page Take-Over ad in study: $500,000

Cost of Portal Home Page Take-Over ad today: $2,500,000

Priceless!

Ford Media Mix *

* Approx. $200 Million Budget

Base Plan

2.5% Onlin

e

6% Onlin

e0%

20%

40%

60%

80%

100%Equal to +$1,350,000,000 in U.S. Truck sales $$$

Equal to $750,000,000 in

U.S. Truck sales

$Tr

aditi

onal

Med

ia(T

V, M

agaz

ines

)


Ford Executive Put It Best

It isn't the incompetent who destroy an organization. It is those who have achieved something and want to rest upon their achievements who are forever clogging things up.

Charles Sorenson Ford Motor Car


In fact, Online CPM was lowest in

50% of studies

Online “Cost Effectiveness” was lowest

in changing brand metrics for 75% of studies

Why Were Marketers So Slow…When the Data is So Compelling?


Truth is…

…No marketer wants to create a campaign that doesn’t work;

And yet we do all too often


You CAN Improve Ad Effectiveness

Low High1. Cut out International impressions 18% to 43%2. Manage Frequency 50% to 70%3. Capitalize on Time of Day/DoW 10% to 15%4. Ad Size matters 20% to 54%5. Page Placement really matters 6% to 350%6. Creative is “mission critical” 0% to 400%

Total Gain Possible: 0% 2910%

+0% to INFINITY in Ad Effectiveness

+0% to INFINITY in Ad Effectiveness

Insights from the What Sticks Research


Getting to the new stuff before others do:

1.Social Media2.Mobile3.Data Driven Opportunities4.Exchanges/DSP’s

So Where are Those Opportunities Today?


What Does the Future Hold?


Did I say, Mobile is

the Future!


Steve Jobs Said…

“Innovation distinguishes between a leader and a follower.”


Will You Lead Change?

I cannot say whether things will get better if we change; what I can say is they must change if they are to get better.

− Georg Christoph Lichtenberg18th-century German scientist,

satirist and Anglophile


[email protected]+1 631 702 0682

thank you!

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www.twitter.com/gregstuart

www.facebook.com/stuartnyc

www.veoh.com/users/gregstuart

www.linkedin.com/in/gregstuart

www.gregstuart.com

www.gregstuartspeaker.comMansavesdog.wordpress.comwww.slideshare.net/gregstuart


You Should Join the MMA.

NOW!


[email protected]+1 631 702 0682

thank you!

com

www.twitter.com/gregstuart

www.facebook.com/stuartnyc

www.veoh.com/users/gregstuart

www.linkedin.com/in/gregstuart

www.gregstuart.com

www.gregstuartspeaker.comMansavesdog.wordpress.comwww.slideshare.net/gregstuart


greg stuart bio

• Greg Stuart is a recognized leader in digital media & advertising and was selected by Ad Age as one of “10 Who Made Their Mark” in 2006.

• He is the former CEO of the Interactive Advertising Bureau (IAB), the trade group for the interactive advertising & marketing industry. He grew the IAB’s revenues with a CAGR of 37% (overall +500%) while leading the industry from $6 billion to $17 billion in ad spending. The IAB customers included AOL, CNET, Google, Disney, NBD, Yahoo! & 400 others.

• Greg has more than two decades of hands-on operating experience as a proven business builder in the Digital Media and Technology arenas since 1993. He has extensive experience as CEO/Director/senior executive roles with Y&R, Sony Online Ventures, Cars.com, Flycast Ad Network and venture-backed DeltaClick.

• In the last two years he has served as Advisor, Director and angel investor to venture-backed companies with a resulting $750 million in exits, each at least at a 10x multiple. He’s also worked with AT&T, Alcatel Lucent & Meredith in redefining their digital media opportunities for the future.

• Ad Age identified his book, “What Sticks: Why Most Advertising Fails and How to Guarantee Yours Succeeds,” as the “Number one of 10 books you should have read”.

• Aside from his industry leading status in advertising and digital media, his operating expertise is in leading cross-functional teams in product development, go-to-market strategy, company positioning, business development/deal making, marketing, and scalable revenue generation with a record of success in both rapid growth businesses and turnarounds.

• He currently serves on the Board of Zimbio, a next generation webzine with nearly 20 million uniques and backed by Menlo Ventures and August Capital. He had served on the Board of Rapt (Accel backed), Inc. in SF, sold to Microsoft; and Board of Allyes (Oak backed) in China, sold to Focus Media. Greg has also served on the Advisory Boards of a dozen venture-backed companies in Search, Mobile, Video, Research, & Social Media backed by Intel, Greylock, Sierra, Conway, TimeWarner, USVP, Union Square, Oak VC, DFJ, Canaan, Spark, Intel, First Round Capital and others.

• He is a member of the National Speakers Association and speaks around the world on the failings, and thus opportunities, of advertising - Istanbul, Israel, Germany, Mexico City, Jakarta, Sao Paulo, Switzerland, Zurich, Shanghai, Sydney, Barcelona, Monaco, Tokyo and others.

• Greg has a BA in Economics from the University of Washington and completed Wharton’s intensive Advanced Management Program in 2008. He lives happily outside of New York City in Bridgehampton, NY with his wife Pamela, twin daughters and son.

• http://www.linkedin.com/in/gregstuart

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