The Marketing Briefing is a weekly email that covers the latest developments in marketing and is sent to Digiday+ members every Tuesday morning at 10 am. ET. More from the series
The last five years taught us that chaos is tough, trying, and worrisome, but it can be managed. When asked to explain the current economic climate amid the tariff back and forth, brand marketers, ad agencies execs, and industry analysts all agree that chaos is a difficult thing.
Jeremy Whitt is the executive media director of Hanson Dodge. He said, “I expect chaos.” “I want to make sure we don’t forget what happened on March 15, 2020.”
Whitt explained that marketers should remember what happened during the early days of Covid, and operate in a similar way now. Whitt noted that marketers were not prepared to pull back as much as they needed to, when the pandemic struck. Whitt believes that marketers should remember these lessons, and put the right provisions in contracts. They should also be prepared to switch from brand-build advertising to performance marketing when needed. Whitt’s Covid analogy is not unique. Three other marketers and agency executives shared the same sentiment. Carrie Tropeano is chief media officer at Mekanism. She said that Covid prepared them for this environment. “This is how we plan naturally now — maybe not with this extreme forecasting and refining,” said Katya Constanse, CEO of Digishopgirl Media. “The biggest difference is that we had a stimulus program to support the economy and consumer behaviour during Covid. Here we don’t.” The volatility of tariffs has had a direct impact on the stock market. On Monday, the stock market rose following the announcement that smartphones and computers would not be subject to new reciprocal tariffs. We’ll have to wait and see if that boost lasts.
Although marketers can compare this moment to Covid, where they have become comfortable with flexibility and constant replanning, it is not a direct comparison. Marketers have to adapt to doing business in limbo. They are making plans despite price changes and advertising shifts, without a clear ending in sight. Last week, the effects of President Trump’s tariffs had just begun to be felt. Marketers planned to cut ad spending this quarter in order to deal with the effects of tariffs. Then, Last WednesdayPresident Trump announced that he would pause reciprocal tariffs, except for China. This pause hasn’t changed the game for marketing and agency executives who say that they have been constantly replanning, forecasting, and re-forecasting ever since the plans for the tariffs were announced. Whitt said that “unless there is a steady turnaround within the next 90-days, they are planning for chaos to continue 90 days from now.” “Nobody reacted in a knee-jerk way.”
Apart from assuming chaos is the norm, and that replanning will continue., marketers are relying upon agencies to “push our bounds and capabilities,” said Tropeano. He added that the agency receives more questions about how they can “use media mix modeling and attribution solution to more quickly figure our ways to optimize our entire marketing mix, instead of just looking at the media mix.” For example, if tariffs and costs are high and consumer purchases are down, we have this baseline plan. Tropeano explained that we don’t want to completely go dark. We have to ensure we have a baseline media running.
When it comes to the chaos at the moment, marketers and agency executives aren’t only planning for their clients. There are questions about what this means for their business in the short- and long-term. Danielle Wiley is the founder of Sway Group’s influencer marketing shop. She is trying to find out which businesses are not affected by the chaotic tariff climate to reduce some of her concerns about the impact of businesses she works with. Wiley is not the only one asking this question. It’s beginning to bubble up in agencies. Whitt said that there is a lot to worry about, but no one has panicked. “But we are all waiting for the shoe to drop.”
Jessica Serrano is the CMO of Dig, a fast-casual restaurant chain based in New York City. Dig is currently working on expansion plans. What does this mean for marketing strategy?
Dig has been experimenting with many different tactics. We’ve been experimenting with things like streaming audio that you can buy on a hyperlocalized basis. In the last few weeks, we’ve tried CTV for the very first time and have seen great success. Another tactic I’m really excited about is hyperlocal influencers marketing. We could talk about D.C., or whatever. But it resonates better when the foodie you’ve followed for five years comes to a Dig and shows what we have to provide.
What is the purpose of testing CTV and streaming services? What role do they play in the media mix?
The audio is a bit more of an investment in the brand. It is important to have a balance when it comes to the budget. We continue to use things that perform better, but it’s also important to allocate some dollars for audio, CTV and even out-of home, so that we can tell more about the why and not just the what, of the new menus. It’s not a very efficient tactic, but it is still important.
There is a lot uncertainty in the market right now, and marketing expenditures are being scrutinized. What impact does this have on the role of a CMO?
In some ways, the CMO role is interchangeable with that of chief growth officer or chief revenue officers. It’s not enough to focus on building brands. You must show that the brand you are building has an impact on the business. CMOs in the past may have been more focused on marketing metrics like CPMs. But today, it’s all about the business figures. You need to be able speak to both sides. You should be an expert in marketing, but you also need to understand the P&L, and how your tactics impact it. — Kimeko McCoy
By the numbers
While brands continue to navigate through the so-called cultural wars, polarization and politicization, brand safety will likely be at the forefront of their minds when it comes to deciding where to spend ad dollars. Beyond brand safety, the way users experience a social media platform is important. According to New research from Pinterest and MAGNA – a global media intelligence company – has been released. The key findings of the study are below:
- The people surveyed were 20 percent more emotionally engaged by content they saw on platforms that they perceived as positive. In general, people spend up to 15% more time viewing ads when they perceive a positive environment. In the MMM [media mix modeling] Simulations, the same creative with a finite budget produced as much as 24% more sales when brands incorporated positive viewability into their media buying strategy. Kimeko McCoy —
Quote of the Week
When I see job descriptions asking for 15 to twenty years of experience in retail, I wonder what they mean. You can’t ask for 20 years of experience in retail media because it doesn’t exist.
— Larisa Radu, head of commerce for Europe, GroupM, on the retail talent crunch.
What we’ve covered:
- Creators are rethinking revenue mix to prepare for economic slump
- Price cuts and agency pressures haven’t affected brands’ calculus on X.
- The retail media was built for growth. Now, it’s being rebuilt for risk
https://digiday.com/?p=575234
