Debate! Outcomes Era vs Quality Era with Erez Levin
Feb 12, 2025
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Dive into a lively debate between the Outcomes Era and the Quality Era in digital advertising. Erez Levin offers insights on what truly defines an outcome, challenging traditional models. The conversation highlights the shift from branding to measurable outcomes, emphasizing the hurdles advertisers face in a changing landscape. Expect a clash of ideas on the importance of media quality versus profit-driven metrics. The hosts spice things up with colorful metaphors, likening the debate to a boxing match, making complex topics engaging and accessible.
43:21
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Quick takeaways
The podcast discusses the conflict between the Outcomes Era, prioritizing measurable sales results, and the Quality Era, emphasizing media effectiveness beyond superficial metrics.
A significant concern is the struggle small to medium-sized businesses face in adopting performance advertising strategies, given their limited resources and attribution capabilities compared to larger enterprises.
Deep dives
Navigating the Outcomes Era
The transition into the outcomes era of advertising focuses on measurable results, with an emphasis on driving actual sales rather than merely brand visibility. Major industry players, particularly Google and Meta, have dominated this space by offering performance-driven advertising solutions that cater to e-commerce brands and small to medium-sized businesses. With the growing concern over traditional brand advertising methods, there is a push for accountability in realizing genuine transaction outcomes, as evidenced by Omnicom's recent strategic moves. Furthermore, the outcomes era promotes a landscape where performance advertising is prioritized, influencing agencies to rethink their approaches to media buying.
The Role of Quality in Advertising
The podcast highlights a debate between two perspectives: one that prioritizes outcomes and another that emphasizes quality in media and advertising practices. Quality is proposed as a crucial metric for advertisers, as it enables them to discern the actual effectiveness of their campaigns beyond superficial metrics that often inflate perceived success. A key argument brought up relates to the historical issues of measuring outcomes, where factors like viewability and completion rates do not necessarily equate to successful sales conversions. Thus, the conversation revolves around redefining what constitutes a valid outcome and how quality can serve as a benchmark for media effectiveness.
Challenges for Small Businesses in Performance CTV
The discussion identifies challenges faced by small to medium-sized businesses in adopting performance CTV advertising strategies. While larger enterprises can leverage advanced measurement techniques to quantify returns on advertising spend effectively, local businesses often lack the sophistication to assess direct outcomes from their marketing efforts. Examples from the podcast suggest that without proper attribution models, smaller businesses may struggle to determine the effectiveness of their CTV ads amidst competing advertising channels. This reality raises concerns about how achievable incremental sales are for smaller businesses setting them apart from larger enterprises that have more resources to invest in performance marketing.
Anticipating Future Developments
The conversation traverses potential future developments in the advertising landscape, particularly as traditional tracking methods like third-party cookies begin to phase out. As a result, advertisers recognize the necessity to adapt strategies that pivot from cookie-based metrics to alternative solutions emphasizing media quality. The focus is expected to shift towards probabilistic models and partnerships with technology startups that can innovate measurement solutions. Overall, this impending evolution suggests that companies will increasingly seek media that not only drives outcomes but also meets heightened standards of quality, reflecting a paradigm shift in the advertising ecosystem.
Adtech influencer and product guy Erez Levin joins Eric Franchi and Joe Zappa on the pod to debate Joe's thesis, the Outcomes Era, and present an alternative, the Quality Era. They debate whether Outcomes or Quality is the dominant paradigm of digital advertising, what constitutes a quality or real outcome, and whether media should be primarily valued based on its quality or its propensity to drive sales, among other points. Eric leverages his experience refereeing fights in his dojo gym to moderate.
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