Max Broer - Kaimera
Max Broer, Chief Strategy Officer, Kaimera
The headlines might tell you the sky is falling, but the data suggests we’ve just changed the way we look at the clouds.
Between the persistent anxiety of the regional conflict in the Middle East, stubborn inflation, and a set of SMI figures that - at first glance - look like a bit of a bloodbath, it’s easy to see why fingers may be creeping towards the panic button.
Every agency’s favourite phrase “More for Less” is back in vogue, but what exactly does it mean in execution, and what are we really up against?
April was down 11.6% year-on-year, but honestly, that’s to be expected.
We’re comparing today against a massive election-spend cycle from last year. When you level-set the field, the market is down 5.5%. In an era of war and global volatility, that’s not a crisis; it’s a correction.
The industry response shouldn't be to trim budgets back, sit tight in vain hope and wait for the market to turn, but to get smart about "More for Less."
At Kaimera, we've seen time and again that the brands navigating periods of uncertainty most successfully aren't necessarily those with the biggest budgets, but those with the confidence to plan effectively and invest with conviction. Marketing, as we know, is a form of economics, but rarely a rational one.
When people are anxious they look for positive narratives, permission to maintain their quality of life and aspirations. The brands brave enough to embrace this by crafting the right message, amplified with the right investment in ‘proper’ broadcast channels, create a societal storytelling effect that can last for years.
Combine this with the added benefit of your dollar naturally buying a bigger slice of the pie (if you buy in the right places) when others go dark, and voila, you have a perfect cocktail for growth. The proof is well founded, it worked in the 70s, it worked in the 2000s, and it’s the play right now.
The problem is the media industry has evolved since the 70s, hell, it really looks nothing like the 2000s GFC either. Rightly, we have put significant effort into quantifying the impact of our marketing investments over the last 15 odd years, and, with the help of an explosion in martech and programmatic infrastructure, have the data to analyse the efficiency of our delivery like never before.
What’s the issue I hear? Simply put, efficient delivery does not equal effective planning. We should all know this but it’s worth repeating, just because a channel is easy to slap a ROAS on, does not make it an effective use of budget.
Our obsession with precision media, personalisation and incrementality has no doubt bestowed upon us channel specific efficiency gains, but has left us poorly equipped to confidently deliver impactful storytelling at the moments an anxious culture craves a new narrative.
Unfortunately, we can’t rely on an MMM or a forecasting spreadsheet to guarantee returns in these conditions, we need the confidence to place a bet on our brands narrative, and shout it loud and proud (with the right experimental conditions in place to know it works of course).
In uncertain times “More for Less” is not about panicked reduction, but strategic refinement and having the bravery to spend differently. Because if you’re not confident in your business, why should anyone else be?
At Kaimera, these principles have become increasingly important guideposts for helping clients navigate uncertainty: Agility, Impact, Innovation and Sacrifice.
This is where Kaimera's philosophy of Amplified Independence becomes particularly powerful.
Free from holding-company structures and empowered by direct access to decision makers, we're able to move quickly when opportunities emerge and help clients act decisively while others are still waiting for approvals.
Therefore, having the agility to capitalise on market opportunities by having a healthy budget reserve to invest when trading conditions are most favourable. Or when competitors cold feet unlock valuable storytelling vehicles like sponsorships and integrations.
Focus on impact over segmented personalisation in your planning principles as societal understanding outweighs wastage reduction.
There are few categories where you will never have a buyer so be brave, buy broadcast, and leverage data for it’s intended purpose, measuring outcomes and informing decisions, not driving execution.
Create a sense of innovation in your execution.
Whether that’s trying out new channels, embracing new partnerships, or pushing the boundaries of current executions. Novelty powers memorability and at the end of the day, if people don’t remember your ad, they are unlikely to change their behaviours.
And finally, we know you can’t always avoid budget adjustments so get comfortable with sacrifice.
When facing a “More for Less” environment, often less is more, and a focused approach to prioritising channels, markets or products to increase visibility will have greater business impact than trying to keep the lights on across a whole portfolio.
Whilst effective planning is needed more than ever in persistently volatile times, the tenants remain relevant regardless for any brand wanting to accelerate growth.
They are not revolutionary, but the application could be a revolution in an increasingly efficiency obsessed, data driven industry.
For Kaimera, that means continuing to champion effective planning over efficient buying, helping brands find growth opportunities even when the market narrative suggests caution.