Adnan Khan, Co-Founder of Stitch and Chair of the MA Digital Special Interest Group, discusses new research by Associate Professor Felipe Thomaz from Oxford University, challenging traditional marketing wisdom. The study reveals that optimising for reach alone doesn't guarantee strong business outcomes, and different media channels perform differently by product category. Adnan urges New Zealand marketers to reconsider media strategies, embrace differentiation, and make data-driven decisions to improve campaign performance. As more research is published, these insights could reshape the way NZ marketers approach media planning. Read below to learn more.

As marketing professionals, we're always seeking to stay ahead of the curve and deliver the best possible outcomes for our brands. A recent study by Associate Professor Felipe Thomaz of Oxford University's Saïd Business School has shed new light on some long-held marketing principles, potentially revolutionising how we approach media planning and campaign strategies.

Key Findings

Thomaz's research, based on the analysis of over 1,000 campaigns and a million customer journeys, challenges the core tenets of Professor Byron Sharp's influential book "How Brands Grow" and the Ehrenberg-Bass Institute's marketing science rules. Here are the main takeaways:

1. Reach alone is not enough: While reach remains important, optimising for reach alone rarely correlates with strong business outcomes. Only 1% of campaigns delivered meaningful double-digit business lifts, with the average being below 2%.

Adnan-Khan-Graph

Source: Bell, Thomaz and Stephen (2024) via WPP/Wavemaker data, 1,000-plus campaigns.

2. Channel effectiveness varies by category: Different media channels have varying levels of influence depending on the product category. For example, TV has a 2% chance of influencing an auto customer but a 50% chance in personal care.

3. Differentiation matters: Contrary to the idea that brands shouldn't focus on differentiation, Thomaz suggests that this approach left many FMCG firms vulnerable to nimble, differentiated start-ups.

4. The importance of nuance: There's a need for more intelligent optimisation and planning, considering the specific goals of each campaign and the nuances of different channels and categories.

Implications for NZ Marketers

As we digest these findings, it's crucial to consider how they might apply to the New Zealand marketing landscape:

1. Reassess your media mix: Consider evaluating your current media strategy. Are you
over-relying on reach at the expense of more nuanced, category-specific approaches?

2. Embrace differentiation: In a market as compact as New Zealand's, standing out from the competition could be more critical than ever. How can you highlight your brand's unique attributes?

3. Data-driven decision making: While obtaining comprehensive data sets might be challenging, start by analysing your available data on media effectiveness, lift studies, and marketing mix models.

4. Channel selection: Consider how different channels perform for your specific category. Could you be overlooking high-performing channels or overinvesting in less effective ones?

5. Balancing act: While these findings challenge some established norms, remember that reach still plays a crucial role. The key is finding the right balance between reach and targeted, category-specific strategies.

Moving Forward

As we await the full publication of Thomaz's peer-reviewed paper, expected early next year, it's an excellent time for New Zealand marketers to start questioning our assumptions and exploring new approaches. By combining these insights with our unique understanding of the local market, we can potentially unlock significant improvements in campaign performance and ROI.

Source: Adnan Khan, 15 October 2024