Noah Brier

The Cost of Creativity: How (and Why) Marketers are Spending in 2017

Who are we?A single platform for managing your social and content marketing.

It’s a good time to do what we do

Channels Markets People

Brands have more channels, markets, and people available

20001980 199019701960 2010—

?

Channels Markets People Content

They’re creating more content than ever to reach them

20001980 199019701960 2010—

?

Channels Markets People Content

Resources aren’t growing at nearly the same rate

20001980 199019701960 2010—

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Resources

Where are those limited resources going?

Great content takes investment and brands are doing it

Marketing content creation costs as a % of entire marketing budget

2016

2017

Marketing content creation costs as % of marketing budget 0 4 8 12 16 20 24 28 32 36 40

Source: Percolate

69% of brands expect need to invest more in social contentWhat do you expect the trend in social content costs will be?

27%

4%

22%

47%

Will increaseWill increase significantly Will decrease significantlyWill stay the same

10%of the average

marketing budget is invested in creating

social content

Source: Percolate

#1In fact, marketing leaders cite “content and creative workflows” as their #1 investment priority this year

#1 Content and creative workflows

Source: Percolate

3% How much more high performing brands spend on content relative to their peers, as a % of total marketing budget

On average, high-performing brands invest even more in content and great creative than peers

Source: Percolate

No channel lives in isolation: Brands are investing across both social and non-socialPercent of marketing budget spent by channel

Source: Percolate

10%

10%

9%

13%

10% 9%

11%

29% Traditional media advertising (TV, print, OOH) Search advertising Programmatic Social Website and e-commerce Brand publishing and other content marketingDigital video Influencer marketing and sponsorship costs

To be successful, you must be truly multi-channel

Percent of marketing budget spent by channel

Source: Percolate

10%

10%

9%

13%

10% 9%

11%

29% Traditional media advertising (TV, print, OOH) Search advertising Programmatic Social Website and e-commerce Brand publishing and other content marketingDigital video Influencer marketing and sponsorship costs

And global

Content localizationIs a Top #5 operating cost contributor and priority for

marketing leaders

This is also reshaping the brand-agency dynamic

Internal Brand Hub

Agency

Agency

Agency

Agency

28%

29%

43%AdvertisingOther MarketingTechnology

Source: Percolate

Marketers are responding with more techHigh Performers’ budget breakdown (excluding headcount)

But is it the right tech?

Distribute

Listening

Advertising

Social CRM

Analytics

ApprovePlan CreateCollaborate

90% of Marketer Investment

Tech investment is focused on the end of the process

Distribute

Listening

Advertising

Social CRM

Analytics

ApprovePlan CreateCollaborate

90% of Marketer Investment

But is that solving the right problem?

90% of Marketer Impact

No amount of tech, targeting or optimization can change the laws of marketing.

— Mark Pritchard, CMO of P&G

“We targeted too much, and we went too narrow.”

No amount of tech, targeting or optimization can change the laws of marketing. So what are those laws?

#1 - Brands need to reach many people

#1 - Brands need to reach many people

15% Credit Card Transactions

85% Cash Transactions

Choosing the right audience > Targeting

Treat targeting as a strategy challenge, not a tech challengeJust because you can target narrow, doesn’t mean you should

#2 - Creative must capture consumer attention

“Creatively awarded campaigns are 11 times more effective at generating long-term sales and business growth”

Creativity = Novelty + Constraints

Ensure constraints cut both waysCreativity can only flourish if both sides agree on the rules beforehand

#3 - Marketing must reinforce the brand

Don’t make marketing for your competitor

Invest in brand governance and content quality controls

AaTargets Prospects Customers Advocates

Awareness

Consideration

Purchase

At the scale of social there’s no other way to ensure all content connects back to the brand

Let’s recap

Laws Implications

Brands need to reach many people

Treat targeting as a strategy challenge, not a tech challenge

Ensure constraints cut both ways

Creative must capture consumer attention

Marketing must reinforce the brand

Invest in brand governance and content quality controls

Thank you