Martin Weigel wrote a blog post titled The tragic horizon: Resisting marketing’s drift towards the business of value destruction.
« The data from the IPA’s latest report ‘The Crisis in Creative Effectiveness’ tells a stark story. Marketing is now increasingly characterised by growing campaign short-termism, budget reductions that make effectiveness impossible, and creative juries rewarding work that does not work. »
« And so as marketing has come to [reorient] itself to the present moment at the expense of long-term, we can now see the emergent future. It is one that’s dominated by in-house client mediocrity factories, lowest-cost content bullshit artists, automated intent fracking, and business portfolios increasingly populated by the withered corpses of once vibrant and profitable brands. While the reputation of creativity as a business’s greatest source of unfair advantage lies rotting on the sidelines. »
« But as the report stresses: ”For those who have resisted – the dwindling group of long-term creatively awarded campaigns – the effectiveness picture is still relatively healthy. Looking at awarded campaigns since the effectiveness decline began in 2008, we can see that long-term campaigns dramatically outpunch short-term ones across key brand and business metrics”. »
« But when we insist that marketing marketing’s priority is not the longer-term health of a brand and business but the short-term, we are in the business not of value creation but value destruction. »
« As Andy Farr has noted, “investors will pay a premium for companies with strong brands. They are not paying for past earnings: what they are paying for is the promise of future profits leading to dividend and share-price growth.” »
« Profit maximisation is the corporation’s goal. So resist the slavish pursuit of ROI. It’s a measure of efficiency, not effectiveness. As such it often declines as advertising gets more effective… Chasing ROI maximisation can be a fast route to destroying a brand (Binet). »
« Strong brands help generate future cashflows by sustaining customer preference (i.e. they keep coming back), reducing price elasticity (i.e. people are willing to pay more), creating retailer preference (i.e securing distribution), creating new option spaces (i.e opening up new sources of future value), etc. »