Single channel marketing strategies sacrifice up to 20 per cent ROI, according to Paul Sinkinson, vice president of Analytics Partners.
The marketing research firm claims extensive analysis of ROI studies backs up what many marketers have long known: marketing ROI is greater than the sum of its parts.
The claims of one channel producing far greater results than another or being inherently better have been greatly exaggerated by “self interested parties”, Sinkinson said, and instead an integrated marketing mix will achieve the best marketing ROI.
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And while the point is generally understood, many marketers are failing to truly integrate their marketing mix, often swayed by the “fake news” of proponents of particular channels.
“It’s not just American politics,” Sinkinson told the audience at the IAB MeasureUp industry event in Sydney today. “It’s reached out here to Australian media measurement as well.”
He said many of the studies promoting a particular channel as superior don’t stand up to the rigor of previous studies or worse they ignore them. Sinkinson suggested digital and TV in particular had been overhyped before an inevitable backlash, with both extremes being of little use.
“It seemed like the speaking circuit was just filled with people saying ‘digital [advertising] is a fools errand. It’s fraud and anyone selling it is a snake oil salesman.’”
“We need to stop these conversations as an industry. We need to no longer entertain them.”
Sinkinson advocated for a more holistic approach to marketing activities.
“Let’s be honest, 90 per cent or 100 per cent of any one channel, you don’t have a marketing mix. I’d say you probably don’t have a marketing strategy, you’ve got a channel strategy,” he said.
Sinkinson said his marketing measurement firm, Analytics Partners, had analysed over 22 thousand pieces of industry and academic research to understand how channels converge and generate ROI, concluding a well planned, integrated mix could produce an increase of 20 per cent.
However, often that money is “left on the table” as marketers take a siloed approach to their channels.
“There’s a wealth of evidence from analytics companies, but also from academics, that the key to consistently high ROI is synergy and multimedia campaigns. It’s planning them all together, not having a channel focus.”
The ‘magic’ 20 per cent
Integrating online and offline campaigns can create an additional 20 per cent ROI, according to Sinkinson, who described the synergy as a “magic” 20 per cent because only small changes in planning are required to access it.
He argued his company’s researched showed using multiple platforms and channels in an integrated way reduced competing channel tactics and created media “synergies” which led to a deeper influence on consumer decisions.
However, often marketers attempt to integrate their channels and media too late in a campaign, minimising any integration benefits, according to Sinkinson.
“That’s money that’s generally being left on the table once a campaigns been done and something’s been added on to the end of it.”
Ultimately marketing is still fundamentally about delivering the right message to the right person at the right time, according to Sinkinson. He said the best marketers are still doing that but in a much more holistic way.
Sinkinson said his clients will often claim they do integrate but their channel mix but in reality the integration is tacked on at the end of campaign planning.