How to Cut 40% of Ad Spend and NOT Lose Revenue with Ben Dutter
Aug 17, 2023
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Ben Dutter, Senior Vice President of Strategy at Power Digital, boasts over a decade of media experience and a knack for smart marketing metrics. He shares a jaw-dropping story of saving a client $6 million in wasted ad spend while holding revenue steady. Discover the intricacies of multi-touch attribution and learn about his innovative BEATS framework for measurement. Ben emphasizes the importance of creative ad performance and structured experiments in navigating the complexities of marketing metrics. Stick around for a special opportunity at the end!
Marketers need to adopt a multi-faceted measurement strategy, integrating various methods to avoid misleading conclusions in media performance.
The BEATS framework encourages marketers to align measurement efforts with business goals, prioritize experiments, and embrace uncertainty for innovative decision-making.
Deep dives
Navigating Marketing Measurement Challenges
Marketers are currently facing significant difficulties in accurately measuring the performance of their media investments due to evolving privacy regulations and changes in technology, particularly after developments like iOS 14.5. The traditional reliance on multi-touch attribution (MTA) has diminished as professionals recognize the absence of a definitive tool that can serve as a single source of truth for media performance. It has become evident that marketers must broaden their measurement strategies by incorporating multiple tools that can provide insights into their marketing effectiveness. This multi-faceted approach allows for a more comprehensive understanding of how different channels contribute to overall success.
The Need for a Triangulation Approach
The concept of triangulation in marketing measurement is gaining traction, emphasizing the importance of integrating various measurement methods such as marketing mix modeling (MMM), MTA, and experimental testing. Marketers have started to understand that relying solely on any one of these methods can lead to misleading conclusions about their performance. By collaborating data from these various sources, marketers can reach a more nuanced understanding of their operations and tap into what actually drives growth. This shift reflects a broader recognition that the marketing landscape requires flexibility, experimentation, and validation, especially in an era of increasing data restrictions.
Framework for Effective Measurement: The BEATS Model
A new framework called the BEATS model has been proposed to aid marketers in prioritizing their measurement efforts effectively. This acronym stands for Business, Experiments, Analyses, Technology, and Surveys, outlining an order of operations that begins with aligning marketing efforts to business goals and financial metrics. Experiments followed by analyses provide critical insights, while technology can support practical day-to-day actions and surveys can help gather customer insights. Following this hierarchy encourages a strategic approach to measurement, ensuring that marketers are first focused on their overarching business objectives.
Embracing Uncertainty in Decision-Making
As marketers navigate challenges related to data inaccuracies and uncertainties, it's essential to shift the mindset from seeking absolute truths to reducing uncertainty in decision-making. This probabilistic approach allows marketers to evaluate performance better, understanding that different metrics will often yield varying insights. Emphasizing creativity and strategic experimentation over blind data reliance can lead to more innovative campaigns that effectively engage consumers. Ultimately, fostering an environment that encourages calculated risks and embraces uncertainty may prove beneficial as the marketing landscape continues to evolve.
Ben Dutter, Senior Vice President of Strategy at Power Digital, has a lot of great stories about making or saving clients a lot of money by being smart about how they measure marketing performance. Like the one in the title of this episode - they saved a client $6 million (!) in wasted ad spend while keeping revenue flat.
In this episode, he shares his thoughts on marketing attribution, how to think of multi-touch attribution (MTA), and he shares the BEATS framework (which I highly recommend) for making sense of all the different measurement methods.
And stick around to the very end - Ben shares something you'll want to take advantage of!