A Brand (new) World - Part 2
Diageo & IKEA share their thoughts on what a brand marketing strategy must include
From its unique position of working with many of the world’s leading media owners, agencies and brands, Kantar Media is exposed to different views and perspectives on key industry challenges. Eric Salama, Kantar CEO, recently sat down with two of the world’s largest consumer brands – Diageo and IKEA – to debate some of the emerging issues.
Eric Salama, CEO, Kantar
Vala Magnadottir, Global Paid Media Leader, IKEA
Jerry Daykin, Head of Global Media Partnerships, Diageo
In part one
Vala and Jerry shared their thoughts on the role media plays in their brand marketing strategies; in part 2 we discuss the role data plays.
As audience consumption habits change and integrated brand campaigns become the norm, seeking the optimal media mix continues to weigh heavily on the shoulders of brands and their agencies.
Brands need quality output that engages, surprises and delights consumers. To deliver on that promise media and creative teams need to find new ways to collaborate and connect:
“There’s definitely a shift to a more balanced approach where media and creative work in parallel”
“We see great value in adopting a media first approach with creative in parallel or sequentially afterwards. It’s an important shift we’re trying to drive across our brand marketing.”
Independent, meaningful data is one answer to this. However, as Kantar Media’s 2018 DIMENSION study points out, managing the mass of data available today is a daunting task. Mining datasets for insights that will drive business success has always required a rare skill; when the datasets in question come from multiple, disconnected sources the complexity increases.
Mining for meaningful data: The road to attribution
Whilst data can indeed deliver insight to inform marketing campaigns, brands around the world recognize that common standards are needed across all platforms to allow better use of data and, ultimately, improve marketing effectiveness.
"As more purchases move online and e-commerce continues to grow we want to close the loop and understand who bought our product and where.”
"We need to be able to compare and understand how each channel is contributing to our marketing strategy. The industry needs to agree a condensed set of metrics and stick to them […] and, in turn, enhance the reputation of the industry.”
Measuring the long tail
IKEA and Diageo are both members of the WFA (World Federation of Advertisers) who earlier this year launched their Digital Manifesto. It’s the latest in a series of initiatives across the eco-system to drive more accountability across the supply chain and one which Kantar Media and other media currency providers welcome. It follows a period of what is believed to be an industry trend towards short-termism; how does this work in parallel with a brands vision to enable long-term brand building?
As Vala points out: “We need to strike the optimum balance. Around one third of our media spend is short term, two thirds long term. If we focus too much on the short term, the long term becomes hard.”
Diageo’s strategy has been consistent, moving media measurement away from a campaign by campaign basis and instead assessing the value at a long-term, 3-5 year horizon.
Both IKEA and Diageo use econometrics to measure the long-term brand impact whilst Diageo also commission Kantar to deliver an ongoing brand tracking program. Measurement is critical for everyone involved in determining the success of marketing.
Advertising, in all its forms, continues to have potential to engage consumers, build brand equity and impact the bottom line.
To effectively achieve success, the right data must be used at the right time to reach the right audience as explained in Kantar Media’s 2018 DIMENSION study. Consumers are exposed to more media than ever before and ensuring reach across devices has never been more critical for brands.
Vala Magnadottir is Global Paid Media Leader at IKEA and deeply involved in the brands consumer engagement framework.
IKEA’s vision is to create better everyday life for the many by offering well-designed home furnishing products at prices that as many people as possible will be able to afford them. There are 385 IKEA stores with over 150,000 co-workers in 48 countries.
Jerry Daykin is Head of Global Media Partnerships at Diageo joining in 2017. He leads the brands global relationships with a range of media partners.
Diageo is a global leader in beverage alcohol with a collection of brands across spirits, beer and wine categories sold in more than 180 countries. Brands include Johnnie Walker, Crown Royal, J&B, Smirnoff, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.