Shane
O’Leary on why what Sir Martin Sorrell had to say recently shows there is no substitute for advertising brilliance
Sir Martin Sorrell recently said something predictably provocative. Since leaving WPP, Sorrell is creating his next act, a nimbler holding company relying on “first-party data to drive digital content through programmatic media”. Sorrell said big tent-pole campaigns are old hat. The way of the future is faster, better, cheaper.
The concept seems logical. Create micro-targeted content quickly and relentlessly, then push it out to niche-targeted groups through programmatic ads. Multiple variations on this claim have been heard over recent years from large digital marketing companies. Sorrell went on to say that the slow cumbersome process of creative development was dated and ‘smaller ads’ were the way forward.
Obviously the ability to micro target individuals is useful. But I believe Sorrell’s mindset is a symptom of a wider narrative around how efficient data-driven digital marketing is the ‘modern’ way of doing things and those who still believe in the power of the big idea, or media like TV or radio, are hopelessly outdated.
In his new book, Alchemy, Ogilvy’s Rory Sutherland (above) calls out this ‘arithmocracy’ in adland – people who believe that what cannot be easily measured does not matter. Sutherland says that as a result, investment in “messy” creativity is decreasing as companies look for measurable routes to cut costs and drive growth.
We have come to devalue creative problem solving and have fetishes about delivery mechanisms and speed. An interesting symptom of this trend comes from the IPA’s annual census in the UK. In 2018, media agency staffing levels rose by just over seven per cent while creative agencies saw a decline of just over five per cent.
But the key to unlocking growth is a mix of both: a brilliant creative idea that can be executed in many ways in tandem with more targeted sales tactics. To paraphrase a wise old adman, it’s still all about the big idea stupid. Lots of crap delivered quickly in bitesize programmatic chunks to the right person at the right time is still crap.
LUSH TURNS ANTI-SOCIAL
One of the big marketing stories of the year so far has been Lush’s decision to step off the social bandwagon. The beauty brand plans to close its UK social channels with a combined million followers and would offer customer service on its own platforms. To me there are two problems with this approach.
Firstly, the brand still uses social in the US and many of its local store social accounts in the UK also remain open, so it is not a full withdrawal. But more interesting was the fact that Lush does not want to pay to appear in newsfeeds, preferring to rely on one-to-one conversations, brand communities and influencer content.
It all sounds like something from a 2012 social media playbook. Lush has a policy of not spending much on advertising, but social is no longer an organic channel, it is an efficient paid one. The move should not impact on Lush’s retail set-up, but it is a missed chance to grow online sales while rival beauty brands are scoring on social.
Online hip for women shoppers: Women are buying more fashionwear online as stores reported a sales drop of over two per cent in the first quarter of the year, a study by Retail Excellence Ireland shows. Based on data derived from the tills of REI members and analysed by Grant Thornton and GfK, the review showed grocery sales rose steadily as did furniture and flooring. Garden centre sales grew by 57 per cent.
INTERESTING TIPPLES
The shape of Irish alcohol consumption is changing according to interesting data released by the Drinks Industry Group of Ireland (DIGI). While beer is still Ireland’s most popular tipple, other choices are catching up. Spirits represented over 20 per cent of alcohol sold last year, which is a 5.6 per cent increase on 2017 results.
Inspired branding from the likes of Jameson, Teeling, Hendrick’s and Tanqueray has spurred the growth. These distinguished distillers embraced the power of digital media like Instagram and used high quality online video to grab attention. Another interesting trend from the report is a decline of two points in overall alcohol volume.
Culturally, it has never been more acceptable – or even cool – to not imbibe. Heineken and Diageo have released non-alcohol beers. A new alcohol-free bar, The Virgin Mary, opened in Dublin. A report by the WHO says Ireland has dropped from eighth to 18th in the European drinking charts. Our teenage drinking rates have dropped too. For decades we all agreed that a pint of plain was your only man, but like most food and drink sectors, health trends and premium brands are creating interesting ripples.
Shane O’Leary is consumer strategy director at Mindshare
