There are countless alerts about the economic hardships nowadays. The current financial crisis affects everything and recession is here. Consumption and growth are stagnant, advertisers are pessimistic, the media are scaremongering, and agencies are puzzled.
However, from a more objective perspective, it is clear that this crisis is different from previous ones, as it is the first one that Marketing and Communication Managers will have to face following the digital revolution.
The evolution of new media in recent years has changed the marketing and communication world considerably, not only because the Internet has become an essential strategy tool, but because digital has changed consumer behaviours and has demonstrated that it is now possible to run more intelligent, creative and measurable marketing campaigns.
Performance measurement and dynamic campaign management (based on results per cluster or per individual), is the new benchmark of quality marketing. Performance-based advertising and KPI-based compensation have become addictive for advertisers that have tried them, making it difficult for them to understand why these methods aren’t possible across all their marketing initiatives.
This new era of measurability and performance positions marketing as a credible and reliable investment once again; a rationale that Marketing Directors will strongly need to highlight when their CFOs discuss cut-backs. Rather than stopping marketing investments completely, the focus should be on those initiatives that are proven to have a positive effect on business results.
This approach works not only online, but across all marketing vehicles.
We live in an era of customization and of real-time production – from large-scale retailers to factories. This approach has proven successful, and the means are there, so why is the marketing industry unable to react in the same way?
We are able to accurately correlate the relation between investments per channel and client acquisition, between a website’s audience and in-store sales. The current crisis gives us the opportunity to move the industry forward. The British would say that “need is the mother of invention” and while the need is there, there’s actually very little to invent. It is sufficient to simply apply the existing tools and methodologies at our disposal and launch a predictive and manageable performance-driven marketing approach.
Digital marketing has changed the scope of measurement and reactivity opportunities and the current economic environment will ensure that those who know how to apply them both on and offline, in an integrated manner, will be capable of driving and optimizing their investments and results successfully.
Another interesting saying is “if you can’t measure it, you can’t manage it”. In marketing today, within the context of the crisis, this means that if it cannot be measured, it simply shouldn’t be considered.
On Monday, we will publish the first article from our new series “Crisis management handbook for the Marketing Director”: a compilation of posts written by employees of the FullSIX Group around the world, giving strategic, creative and tactical advice (along with examples and case studies) for dealing with the upcoming hardships, backed up with proven methodologies and concrete “tried and tested” approaches.
Recession periods move boundaries and create new leaders. We strongly believe that, whatever the magnitude of the crisis, this will be an opportunity for numerous advertisers to accelerate their adoption of alternative marketing and communication strategies. The market is going to witness the first crisis of the Digital Age but those who adopt the new rules and opportunities will have the chance to emerge as winners.
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Marco TINELLI - CEO, FullSIX International. Marco has been at the forefront of marketing communication and technology evolution for 15 years. In 1997, Marco founded Grey Interactive which became the innovative, integrated marketing services agency FullSIX in 2001. Under his leadership the FullSIX network has expanded considerably, with over 500 employees in seven countries. The different networks created since 1997 are FullSIX, OTO Research, Seven, Sixandco, 6:AM, Backelite and SiXtizen. The group’s clients include Whirlpool, L’Oreal, Procter and Gamble, Adidas, Renault, La Banque Postale, Coca-Cola, SNCF, SFR, Nokia, ClubMed, Canal + and Danone. Marco still manages the marketing strategy of some major clients. Outside work Marco enjoys spending time in Tuscany with his family.
The doll in the picture is The Recession Monster, created by the FullSIX NYC team for their clients and partners. This furry cutie, way less scary than the real-life recession, was brought to life by Diane Koss.
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