“We’re in an era of disruption again and out of that is being birthed this new economy that impacts consumer marketing and B2B marketing.”
The economy has evolved, and the marketing playbooks we’ve all relied on for decades are on their way out the door. It’s time for a new playbook that takes the last several years of constant disruptions into account. Michael Hayes, Chief Growth Officer and Client Officer for the Goodway Group, shares his take on what he considers a “New Economy,” what key disruptions and challenges face marketers today, and what he envisions for the marketing playbook of the future.
What Is the “New Economy?”
“The new economy is characterized and centered in… three things now. One is just innovation. Number two, it’s rooted in data and technology. And number three, it’s iterative and very agile.”
These characteristics help create an image of what this new economy is, but what led us here? Michael shares 3 key disruptions that he’s identified:
- The “deprecation of third-party cookies”
- The “huge decline in TV ratings”
- The “evolution of commerce”
The Marketing Playbook of the Future
These disruptions have led to sweeping challenges for marketers — challenges that Michael tells us require a new playbook for marketing.
“Number one… the consumer journey has changed. It’s less linear [and] more complicated… Number two is this consumer shopping experience disruption… Number three… brand building is elusive. You need demand creation and it’s hard to get reach in scale and audiences are less engaged… Number four is this media channel mixed allocation needs to be figured out as part of the playbook. And number five… is there’s… ad measurement kind of issues.”
Have Metrics Changed a Lot?
Michael doesn’t believe “the metrics have changed so much.” But he does point out a change in “the rise of media mix modeling.”
“Econometric modeling or media mix modeling has been around for a long time, going back to the heyday of traditional media, but what’s changed is the importance of media mix modeling.
And what’s happening, I think in the industry, is we’re doing light versions of media mix modeling rather than the heavy lifting.”
Why Have Some Brands Fallen Behind?
Michael explains that some brands leaned into “performance advertising” rather than focusing on building their brands. This is placing the cart before the horse — an attempt to try to achieve demand without first creating demand. In Michael’s view, this marketing approach caused some brands to fall behind.
“A lot of marketers, whether it was in travel or whether it was in automotive or other categories, they bit on this gold rush, if you want to call it, of performance advertising. And it’s not that that was bad, but what it did was — you worked for Google. The truth is if all the television ads were turned off for like three years, the volume of search queries for automotive would literally naturally decline. The truth is… Google paid search is not really a demand creation tool for most advertisers. It is in some instances, but it’s primarily a demand fulfillment. People are looking for things that they’ve known about. They have that awareness. So… those brands… neglected their brand in favor of huge page search, huge direct response, performance type marketing stuff.”
About the Guest:
“Michael Hayes is chief growth officer leading worldwide business development, client experience and marketing at Goodway Group.
A digital media and marketing leader and pioneer, Hayes spent more than two decades building digital businesses at startups, professional service firms and blue-chip brands.
Most recently, Hayes was chief revenue officer and chief marketing officer at UberMedia, a leading data and technology startup (part of the Idealab portfolio of companies). Under Hayes, UberMedia had triple-digit growth, achieved profitability and secured partnerships with Amazon, Disney, Verizon, Lexus and many more.
Before UberMedia, Hayes was worldwide president, chief digital officer at Initiative, a top global media agency under Interpublic Group. At Initiative, Hayes established the agency’s digital practice, growing annual digital billings to more than $1B.”
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