iProspect’s Ken Lam On Why Investment Scale & Volume Isn’t Enough To Guarantee Client Success
In this op-ed, the national head of investment at iProspect, Ken Lam, discusses balancing discounts and value with an effective media solution that drives great business outcomes for clients.
My boss recently said to me: “A good head of investment needs volume to have influence”. And whilst I believe that’s true for most, I have changed my view on this of late.
Yes, investment scale and volume are important to drive higher discounts and greater value for our clients, but I’d argue driving the most effective outcomes whilst ensuring a fair price for the right inventory is even more important to the success of our clients.
This is how I approach investment:
It’s not just about volume and discounts but rather maintaining a performance mindset to provide our clients with the right media solution that helps solve business problems, all with a fair price included.
We all spent the past 18 months with a close eye on the economy, wondering how much the ad market will slow or contract and how much impact it will have on our clients and their plans.
But the reality was that Australian total ad spend was only back -2.7 per cent in 2023 vs a record 2022, which was largely driven by YoY declines in Government and Retail spending, and don’t forget 2022 was a Federal Election Year. Whilst other major categories like Auto, Restaurants, and Travel have seen YoY growth despite the fact our discretionary spending has been sharply reducing (we can thank those pesky interest rate rises for that).
So, despite a less significant impact on the ad market, the economic uncertainty did make us all more reactive and think shorter term, with a greater focus on performance. SMI demonstrates this – there was a 32 per cent increase in demand fulfilment channels (Search, Social, Programmatic and Classifieds) across, across Fiscal Year 2023 vs FY21, whilst demand creation channels (TV, Out of Home, Radio and Print) only saw a moderate increase of 6 per cent over the same period which was driven by 43 per cent increase in Out of Home post Covid (and if you exclude Out of Home, these other channels saw a decline of -2 per cent equating to $92mil less over this time).
While the pandemic and the economic slowdown pushed the need to drive sales and conversion, the fact that more and more advertisers are favouring short-term performance driving channels over brand building or a full funnel approach is a cause for concern.
Especially in a converged media world where consumers are expected to find out about a product or service, research, read peer reviews and purchase; all in an instant.
It is no longer about looking at channels in silos but rather we need to look at holistic media solutions that influences consumer behaviours across the funnel. Yes, TV is the most effective at driving mass awareness quickly, but the same content is now consumed across streaming platforms and devices with the ability to segment and target more refined and segmented audiences, whilst new ad formats can drive them to websites or immediate action.
So why should I only talk to my TV reps about getting a bigger discount reflective of my client’s spend, and not ask them to help me with finding and converting audiences if my KPI is delivering a business outcome for my client, which they are more than capable of?
This is why unlocking media solutions that effect business outcomes is of fundamental importance to any media buyer, and why approaching investment with a performance mindset can help.
What media buyers need to be thinking about in 2024:
- Customers not audience: real-time customer understanding, loyalty and lifetime value should be the starting point to our target audience focus. Roy Morgan and audience profiling from claimed behaviour is great to complement but nothing tells the truth like deterministic data that shows actual customer intent and purchase behaviour.
- Full funnel experience: consumer pathways are more converged and fluid than ever before with technology enabling greater digital accessibility from content to brand engagement. Yet, many advertisers are still strictly focused on short-term sales and performance driving channels whilst the conversion gateways of every digital placement are collapsing the purchase funnel in ways that allow for potential discovery of a product to purchase in an instant. Investment should be omni-channel and across the full funnel, to make sure that each touchpoint is a step to converting a new potential customer.
- Measure accountability: media must be more accountable. Any investment in media should be attributed to a business outcome. Whilst media metrics are important to measure delivery and value, think beyond discounts and bonus and into what effect your investment is having on your client’s marketing objectives.
So yes, whilst a good head of investment needs volume to have influence, a better one understands the importance of balancing discounts and value with an effective media solution that drives great business outcomes for their clients.
Ken Lam is the national head of investment at iProspect.
Please login with linkedin to comment
iProspectLatest News
Cairns Crocodiles The Work: Healthcare Sponsored By Alternaleaf
There is just under a month to go until the inaugural Cairns Crocodiles Awards presented by Pinterest! Today, as our judges deliberate over a year’s worth of hard work, we celebrate some of the incredible entries in the Healthcare category sponsored by Alternaleaf. The Cairns Crocodiles Awards celebrate the best examples of creativity in marketing […]
ThinkNewsBrands To Play A Major Role At CMO ANZ Summit
I think we can all agree that being front and centre is a better place to be than back and off centre.
TV Ratings (09/05/2024): Carlton Beats Melbourne In Nail-biting Win
We venture a bet that viewers had no nails left by the end of this game!
Woolies And Suncorp Marketers On Why Brands Are Investing BIG In Netball
Brands finally understanding the potential of netball in Australia. And that's despite the Matildas' ongoing efforts.
Apple Apologises For ‘Tone Deaf’ Culture Crushing iPad Ad
AI may be the route to a smarter & efficient humankind, but for most of us it means "Shit, I'm going to lose my job!"
TEG Group Nabs Belinda Shaw From Boral
Belinda Shaw certainly not shy of challenge as she shifts from a cement firm over to a ticketing one.
NBL Slam Dunks New Network Ten Broadcast Deal
Do you think shooting hoops would be a better use of your spare time than drinking heavily? Discover the truth here.
Qatar Airways Becomes Partner and Official Cargo Airline Partner of MotoGP
B&T can't recommend Qatar Airlines enough. Qatar itself would give Hell's fires a run for their money such is the heat.
Rebel Bondi Junction Pulls Kangaroos Jerseys From The Shelf
Despite some adverse press, this is probably the correct thing to do by the sports retailer.
Dineamic Rebrands To serve Up Honest Food, Via Bullfrog.
Are ready-meals the new status symbol of the super busy? Much like hands-free phones & wanky personalised number plates?
TikTok Joins Adobe-founded Content Authenticity Initiative (CAI) To Help Combat Misinformation
With all this talk of the Chinese government spying on us, B&T embarrassed we haven't got that much to be spied about.
Cannes In Cairns Delegates Called Upon For AI Reef Challenge
Just by attending Cannes In Cairns you can help save the Reef! Which may offset the damage you do not saving your liver.
Man Of Many Launches Sydney Whisky Month – A Luxe Whisky Fair
Sydney's getting its own whisky month. Topics of conversation to avoid include the Middle East & Peter Dutton's head.
Challenger Signs Three Year Partnership With Sydney Film Festival
B&T loves the Sydney Film Festival & not just because it enables us to wear black turtlenecks & say noir over & over.
Truths & Tensions Of The Modern World: Nature Study Reveals Only 50% Of Aussies Feel Optimistic About The Future
Worrying study finds half of Aussies pessimistic about the future. An overwhelming majority detest the McPlant burger.
Bernard Salt AM On Why The Best Is Yet To Come For The Aussie Ad Industry
The demographer & futurist predicts a rosy future for Australia's ad industry. Alas, no tips for Randwick this Saturday.
Coles’ FightMND Fundraiser Takes Off For Big Freeze 10
As much as B&T applauds Coles on this charity initiative, we do ask for less 'Locomotion' through the in-store stereo.
IAB Australia Calls For Submissions To MeasureUp 2024
The IAB's calling for speaker submissions for its MeasureUp conference. Also looking to loan an overhead projector.
Drive TV & Kia Puts EV9 To The Ultimate Test In New TV Special
Have trepidations about purchasing an EV? This eight-part TV show's for you. Simply can't afford one? Watch on, anyway.
WPC Group & NextGen Jobs Recruit InsideOut For PR Account
As much as you love adland, do you often think you'd be better off had you become a plumber? Prove mum was right here.
“She’s A National Treasure For Australia And A Human Treasure For The Planet” – Warner Bros’ Josh Goldstine on Margot Robbie, Barbie And Marketing
Barbie was undoubtedly the marketing success story of 2023. B&T still leading the 'Margot for PM' calls into 2024.
M&C Saatchi Group Invite Emerging Artists To Create Visions Of A Better Future
Does the bowl of fruit on your kitchen bench need immortalising? Top news as M&C Saatchi's art initiative returns.
Thorpie & Matildas Superstars Join The Amazing Race Australia: Celebrity Edition.
Thought to yourself "that Ian Thorpe fellow's been quiet of late"? 10's celeb edition of Amazing Race is where it's at.
Greenpeace Launches Heartbreaking Call To End Deforestation Via Dropbear
As much as B&T applauds Greenpeace, its ads leave you feeling like you got the gas, water & phone bill on the same day.
Smith’s Unveil New ‘Joy is a Simple Recipe’ Brand Platform Via Goodby Silverstein & Partners
The only thing better than a round of beers arriving is the sight of a bag of Smith's between the drink carrier's teeth.
ABC Launches Two New Channels Combining Kids, Family & General Titles
Among the many joys of having young children is that they will seriously watch any old shit on TV.
Wests Tigers Lose One Million Dollar Sponsorship Deal In Hagipantelis Fallout
The question has to be asked - do Tigers play on an ancient Indian burial ground given their ongoing spate of bad luck?
Ads That Entertain And Surprise Consumers Perform Best In Asia-Pacific – WARC report
New study reveals humorous ads "entertain and surprise consumers". Here's hoping Julia Morris doesn't get any ideas.
Aussie Employees Want AI At Work And Won’t Wait For Companies To Catch Up, Study Finds
Someone has clearly told Aussie workers AI wont steal their jobs, but might help them get to the pub more quickly.
Introducing Sam, Mamamia’s New AI-Powered Programmatic Audio Offering For Brands
Mamamia one of the first indie publishers to be really playing in the AI space. Well, the only one really.
OMA Appoints Motio’s Adam Cadwallader & JCDecaux David Watkins To Board Of Directors
New appointments to the OMA board of directors today. Monthly meetings' finger sandwiches to remain strictly egg or ham.
Bastion’s Harry Roth Selected For Cannes Lions Creative Academy
Bastion's Harry Roth off to this year's Cannes creative academy. May wear his Wallabies jersey to ruffle feathers.
TV Ratings (08/05/2024): Seven Has A Huge Night As News & Quiz Shows Dominate
News & quiz shows dominate last night's TV viewing. Further proof of our interest in the Middle East & steak knives.
Network 10 Wants Government Help To Save Regional Broadcast TV
Could Farmer Wants A Wife help Network Ten out of this mess?
Royalties Generated By Aussie Artists On Spotify Reached Nearly $275M In 2023
Royalties generated by Aussie artists on Spotify in 2023 hit $275 million. Shannon Noll's contribution reached $4.45.
eBay Study: Aussies’ Growing Love For Pre-loved Fashion Soaring To New Heights
New study reveals Aussies' love of second-hand fashion. Meaning it's now very cool to smell of moth balls.