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Creative Efficiency Overlooked, Again

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In May, Gartner released their CMO survey results, revealing a significant reduction in average marketing budgets for 2024. Budgets have decreased by 15%, now constituting a mere 7.7% of overall company revenues. In response, CMOs are reallocating resources in an era of scarcity, and many believe that AI will come to the rescue delivering increased efficiency. This echoes previous thinking touting digital channels as the solution for efficiency, despite ample evidence suggesting otherwise. Amidst discussions on budget reallocations, there is a glaring omission: investing in higher-quality creative. It's surprising that the creative aspect remains overlooked in driving efficiency, especially years after Binet & Field demonstrated that award-winning creative is 11+ times more efficient than non-award-winning creative. High-quality creative is the most efficient investment a marketer can make to enhance the impact of their ad budget, yet its value is consistently neglected. Advert...
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I guess this proves the 'what gets measured gets managed' quote.

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Ian Gibbs Ian Gibbs • Following • Following The DMA, JICMAIL and PAMCo - Data and Insight Director / Technical Consultant The DMA, JICMAIL and PAMCo - Data and Insight Director / Technical Consultant 1w • Edited • 1 week ago 1. Performance marketing effectiveness declined for the third year running in 2023. 2. Sub-standard measurement of short-term activity was a key contributing factor. 3. 38% of the metrics being used to measure results are less meaningful campaign delivery and digital vanity metrics as opposed to meaningful business, brand and response effects. 4. Campaigns which avoid focusing on less meaningful campaign delivery effects record a 67% uplift in business effects on average. 5. Those who invest in best practice measurement (such as MMM, MTA, brand measurement and incrementality tests) generate 42% more effects on average. 6. Best practice measurement is linked to a culture of effectiveness and drives future campaign performance through shar...
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