New models for thinking about advertising: Live from the IPA
Oct 17, 2024
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In a dynamic discussion, Tom Roach, VP at Jellyfish, dives into innovative marketing metrics powered by AI. Leo Rayman, CEO of EdenLab, and Jo McClintock, VP at Trainline, discuss how to encourage greener travel choices through positive messaging rather than guilt. ITV experts Sameer Modha and Kate Waters explore the financial impact of brand advertising on margins. Together, they emphasize the critical integration of sustainability into marketing strategies, reflecting a growing consumer demand for eco-friendly practices.
The emerging 'share of model' metric emphasizes evaluating brand performance against competitors through the insights provided by various large language models.
Integrating sustainability as a core business strategy is essential for brands to foster environmentally friendly consumer behaviors and enhance corporate accountability.
Deep dives
Introduction of Share of Model Metric
The concept of 'share of model' emerges as a vital new metric for brands to understand amid the increasing use of large language models (LLMs) in marketing. Explaining how this metric functions, experts discuss its goal of helping marketers comprehend what LLMs convey about their brands. The share of model platform allows brands to interrogate various models' outputs and analyze their brand performance against competitors within specific categories. This approach not only highlights the differences in data inputs across models, such as those developed by Google and Meta, but also encourages marketers to leverage these insights to better grasp consumer perceptions.
Sustainability in Marketing Practices
Amid growing environmental concerns, marketing practices are increasingly integrating sustainability as a core business strategy rather than viewing it as a peripheral responsibility. Industry leaders emphasize the necessity of positioning sustainability within business objectives to facilitate environmentally friendly consumer behavior. Practical initiatives, like Trainline's campaign encouraging train travel over car journeys, illustrate how brands can promote greener choices without shaming consumers. The focus shifts towards embedding sustainability principles in everyday business operations to balance corporate responsibility with customer engagement.
Examining Brand Margins and Advertising Effectiveness
Research suggests that brands might be underestimating the value advertising brings to their margins, with current industry practices insufficiently measuring this impact. Experts propose a shift in marketing measurement strategies to acknowledge the role of brand advertising in margin contributions alongside sales volumes. Tools are being developed to provide a category-wide perspective of how advertising affects not only sales but also profitability, fostering a greater understanding of brand value dynamics. This new approach encourages collective learning within the industry and better resource utilization for strategic decision-making.
Collective Learning and Resources for Advertisers
The development of shared models for various categories stands to enhance collaborative insights among advertisers, moving beyond traditional isolated measurements. These models can provide comprehensive data on aspects such as price elasticity and brand positioning, ultimately allowing marketers to simulate strategic scenarios to optimize value. Experts stress the importance of sharing findings and experiences with these models to build a richer understanding of advertising effectiveness throughout the industry. This collaborative effort aims to elevate advertising practices while facilitating a deeper comprehension of the interplay between brand health and profitability.
In the second of two episodes covering the IPA Effectiveness Conference, WARC's Anna Hamill speaks to Tom Roach (Jellyfish) about share of model, Leo Rayman (EdenLab) and Jo McClintock (Trainline) talk about demand switching for environmental impact, and ITV's Sameer Modha and Kate Waters discuss their research on the present value of future spend.
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