A trading desk alone is not enough

Posted: Sep 10, 2013 in Agencies, Business, CRM, Marketing, Product Development
Tags: , , , ,

Not enough

Scenario: Revenue has been declining for years and the CEO is pointing the finger at acquisition marketing to grow business. Planners are very familiar with this scenario.

I wrote an article recently that all programmatic buying should be in-house, but if a brand is expecting that this alone will solve a decline in revenue, then they need to wake up and smell the coffee.

With ad spend over £15bn / year in the UK alone, this brings a lot of hungry salesman to your door insisting that their product is the best and that you should invest, which puts pressure on CEO’s and CMO’s to potentially waste a lot of money testing out the same option over and over again or testing out an option which only has a 1% chance of working to key KPIs. Also accepting a post-view window across their display buys as default because they’ve been constantly told that ‘the flashy banners are driving all organics’ is something which gets banded around often. With that amount of ad spend floating about also brings an opportunity for large sums of money to change hands under desks without the brand (if it’s an agency) or without the investors finding out.

Just because there is more hype than ever when it comes to advertising eg. programmatic buying, DSP’s and trading desks, it doesn’t mean that focus and investment should divert away from other core business areas. Many CEO’s feel that obsessing about acquisition marketing is the way forward because of the simplicity of delivering an ad which a potential customer can click on in conjunction with hundreds of salesman saying that this is the answer, but for those who are keen to work backwards – finding out why high value customers are leaving feeding this back into dev and marketing, developing products across all devices, looking at CRM and key promotions are the ones who will survive and therefore be able to afford a significantly higher CPA than competitors, giving the trading desk plenty of ad options which competitors cannot afford to buy.

If all of the below areas work together to achieve a common goal then the long term consequence of this will be shown in bottom line results and staff retention rates in a positive way:

Capture

It was really nice to read Marco Bertozzi’s article the other day where he used a personal example to demonstrate that spending money on advertising isn’t the only way of generating revenue and growth.

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