Monday, February 2

Marketing: The Rise and Rise of ROI

Martin Sorrell is quietly taking out strategic 'digital' investments like a sniper in a tower. The latest for WPP group is an investment in Omniture, the web analytics firm whose tools are relied on by many of the largest media and brand websites in the world.

Having worked at both WPP (Mindshare London) and News Corp (Times/Sun) these investments, although small, look crystal clear in delivering greater power, influence and effectiveness for the WPP marketing stable. For many of the very media companies WPP is buying from use these analytics tools for their sprawling online empires. And many of WPP's clients or pitch-list (wishlist) also rely on Omniture for their in-house analysis and insight.

In lean times like these, advertisers will want more than "half the money they spend on advertising" to be effective (; John Wannamaker). Now more than ever every marketing $1 has to be accounted for, so it has to count. WPP can look to drive 'display' advertising yields lower by focusing clients on ROI, and drive it's own performance based commission's higher by improving ROI.

WPP strategy is doing a Marketing agency version of Google (information storage and retrieval), or News Corp (media delivery)...rather than just marketing, it's getting into owning the delivery platforms for "insight", "advertising" and "revenue". This cements it's place with media owners and clients. Smart.

But, the ROI space of digital marketing services is high-effort, high attention, high manpower, low-margin, so old media better still pay for the fancy offices for a few more years to come.


Blogger David Everitt-Carlson said...

Boy, I'm gonna throw my hands up and say "YEAH!", I got this prediction right! Sorrell's forays into digital will continue for sure.

02 February, 2009 09:50  
Anonymous Alexandr said...

'old media' and 'old methods' need to be changed or will die - it is evolutionary.

I waiting for time when this agencies will provide more information about stats - may be provide open API(not free) to there statistic data.

All biggest traffic generators share there functionality and try to do business with third party developers.

Some, of old media don't understand that more cooperation is evolution step.
As example:
RedHat use open source - CentOS duplicate there Linux distributive for FREE, and this isn't problem for RedHat.

02 February, 2009 10:46  

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