Brightblue Covid-19 Impact: Part 2
A Story of Marketing Efficiency vs Effectiveness
As we head past the peak of infection in the UK, the Brightblue REACT proposition measures business and marketing impacts at a monthly frequency, providing a unique near real time tool to measure in the impact that dramatic changes are having on business performance.
This article looks at the factors that we have seen impacting our clients under Covid-19. The key theme is an old story of efficiency vs effectiveness.
Marketing Efficiency
Efficiency measures typically highlight the impact of an advert on driving an outcome. You serve a digital impression or deliver a TV view and then see how many customers have responded to that advert.
Based on results measured by Brightblue, the net impact on average of advertising under COVID has seen a reduction in efficiency per impression of between -15% to +5% when compared with pre-March returns. This means that for every person seeing an advert we are seeing a lower response from consumers.
An Improvement in Effectiveness: Return on Investment (ROI)
But what about if you are buying all of these impressions for cheaper?
For one client they saw a 45% year-on-year reduction in TV costs. This lead the overall ROI of TV to be over 30% higher than previously observed pre-lockdown– despite a drop in efficiency of each eyeball.
For an FMCG brand, cheaper media costs (up to 40% cheaper for some channels), has presented an opportunity to drive business returns. In fact, Brightblue measured an increase in ROI of over 15% vs the same period last year, providing the highest ROI ever recorded. This in turn has largely come via TV and VoD, with viewership also seeing huge growth across the UK lockdown period.
Action – Measure! Measure! Measure!
Overall marketing effectiveness can drive returns if brands are willing to invest in the right channels at the right times. Brands need to make sure they are monitoring data very closely and very quickly to identify where these opportunities come up. It is also important that Brands balance the long-term view to ensure that investments continue to drive returns for the business even if driving lower efficiency.
More information on the impact of Covid 19 by sector can be found on the website: https://brightblueconsulting.co.uk/blog/
Get in touch to find out more.
Brightblue Consulting are a London based consultancy which help businesses drive incremental profit from their data. We provide predictive analytics that enable clients to make informed decisions based on data and industry knowledge. Through Market Mix Modelling, a strand of Econometrics, Brightblue has a proven track record showing a 30% improvement in marketing Return on Investment for clients’ spend. If you are interested to find out more please contact us through email by clicking here and one of our consultants will get back to you shortly.