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
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.
The Fred Hollows Foundation Appoints Ardent For PR
Yes, we all like to have a joke at PR's expense. But sometimes it does important work, like this.
AI, eCommerce & Marketing Specialists Are In Increased Demand By Businesses, New Data From Fiverr Shows
Has your philosophy & anthropology degree left you with nothing but a huge HECS debt? Here's what you should've studied.
Perth’s First 3D Anamorphic Billboard Arrives Courtesy Of oOh!media
Do you love a buzzword? Now you can add anamorphic to the list as it relates to billboards, not a colleague's ears.
MasterChef Australia & Crown Resorts Launch Unique Dining Experience With ALUMNI
A pop-up restaurant staffed by MasterChef contestants! That's fine dining prices for first-year apprentice chef cuisine!
Amanda Laing Announces Resignation From Foxtel Group
Foxtel's chief commercial & content officer heads for the exits. Read nice things the bosses said about her right here.
The Lost Letters From Our Diggers: News Corp Unveils ANZAC Day Special
It's nice when brands respectfully acknowledge ANZAC Day.
Howatson+Company Acquires Akkomplice
Large indie acquires a slightly smaller indie. Much like a shark eating a tuna, just with less thrashing and blood.
Google Delays Third-Party Cookie Deprecation Again
In good news for the sale of picture library biscuit photos, Google continues to tease over the end of cookies.
Education A Low Priority For Aussies More Concerned With Cost Of Living Forethought Study Reveals
Study finds Aussies cutting back on education due to cost of living. Booze & Uber Eats sales remain largely unaffected.
“I’m Still The Same Person That I Was”: Rikki Stern Says “Fucc It” To Cancer Stereotypes
B&T always happy to promote the anti-cancer cause. Even brands that massively overdo it with the hot pink.
The Unapproved Climate Certification Allegedly Causing Mass Greenwashing
Are you left flummoxed in the canned tuna & free range eggs aisle? Just wait till this green certification gets up.
TV Ratings (22/04/2024): Fans Mock “Over The Top” Reaction To New MasterChef Judges
MasterChef returns for its 2024 season. B&T stands by putting peppercorns in Gravox & no one will be any the wiser.
Dentsu Restructure: Muddle, Harvey & Johnston Take Leadership Baton As Bass & Yurisich Exit
A large broom has swept through Dentsu's local ops this morning, taking with it some big names & the air con's cobwebs.
Industry Shares Trends Shaping The Industry This International Creators Day
B&T's asking adland creators to reveal their top trends. And it's not good news for your Jenny Kee cardigan collection.
Mable Extends HOYTS Sensory Screenings Partnership
Mable has extended its HOYTS sensory screening partnership. Vigorously defends its two-star Oppenheimer review.
Orphan Launches ‘They Need Our Help. We Need Yours’ For Children’s Cancer Institute
Anything to do with childhood cancers has B&T's 110% support. That said, we do ignore the red meat & alcohol warnings.
Smile Team Orthodontics & Keep Left Collaborate On Smile-Inducing Campaign
As parents would attest, given the cost of orthodontics you'd expect this campaign to be a lavish production indeed.
Opinion: How Video Calls Neglect Learning Diversity
Need an excuse to duck out of a video call this arvo? Show this to your boss.
DoubleVerify Achieves First-Of-Its-Kind Responsible AI Certification From TrustArc
DoubleVerify receives responsible AI certification. However, not its robotic vacuum that's been seen menacing the cat.
Smile For A Good Cause: The Social Media Campaign Giving Back To The Community
Are you known as the office Austin Powers? More for you teeth than shagability? Get snappy new fangs with this news.
Elon Musk Mocks Albo After ESafety Wins Court Injunction Against X
Albo's 2024 from hell continues - Rabbitohs in crisis, down in the polls and now feuding with world's richest man.
Real Estate Developer In Hot Water Over “Sexually Exploitative” OOH Campaign
Real estate agents again tops in the 'least trusted profession' polls, nudging used car salesmen & ad creatives.
Epsilon’s Shane Hanby: Post-Cookie Era Relies On “Teamwork” Between Brands, Marketers & Tech
This pro predicts more "teamwork" in a post-cookie era. Which spells bad news for the uncooperative or plain stubborn.