The Strategist Leading the Advertising Revolution

Technology, algorithms and machines are playing an increasingly important and indeed dominant role in the world of communications. So what role does the strategist have in this world order?

Nowadays, every decision taken on a daily basis is affected by devices we trust in order to facilitate our lives. Mobiles, computers, tablets are predominantly integrated with algorithms and machine learning systems in applications and websites to decide, for example, the best restaurant to go to, the cheaper price for the same item or watch a movie we like. It changes our perception on making choices and drives our behaviour differently. The consumer journey has never been so difficult to map out making the approach for the strategist more challenging. They have responded by increasing the scope and complexity of their roles beyond planning but also generating insights for stronger marketing plans, better creative ideas and ultimately improving effectiveness of every campaign. In this essay, we will go through the main topics to determine what role the strategist has in this world order through the use of accurate data and research, the development of meaningful strategies and the communication of integrated ideas

Managing use of data accuracy and research

Technology innovation has allowed us to collect all kinds of data which has become the main source of trading in the digital industry  (eMarketer, 2016). In the centre of this marketplace, Big Data and research are the components of new technologies that strategists have to adapt in their role and ways of working. Big data is a site-centric measurement for businesses collecting information about a single person across multiple data points such as device, location, demographic, etc in a data warehouse and through a DMP, where information is made available for the strategist when refining targeting, working directly with data analysts (data mining) and planners. The example below shows the journey of the user information through media channels and recycled in powerful data solutions to improve strategist analysis and recommendations

These technology structures are getting more efficient when targeting desired niche audiences which are either based on deterministic (relies on information provided by the user when they register on Google, Facebook, Amazon, etc) or probabilistic data (matches users through the use of algorithms such as AdBrain, Tapad or Adelphic): the strategist is now able to use data to target users across multiple devices reducing expenditure wastage. Additionally, existing pieces of research on industry segments, syndicated studies (Kantar Media, TGI, Nielsen) and dynamic social data (Crimson) are used in order to complete a lack of data due to limited historical records building econometric sources and business models. The accuracy of this measurement is key to understand objectives and key metrics such as view-ability and social engagement being in the centre of advertising attention taking Facebook viewed video count  (MarketingLand, 2015) or Publisher View Rate for Google (ThinkwithGoogle, 2014) as example

Develop meaningful strategies

Now, strategists have access to the relevant studies and market research, they can focus on establishing strategies. Ultimately, it aims to transform business perspectives as a matter of making choices about where they want to go, where they play and how they win a set of objectives and actions. They have to choose which input and insights to build a valid framework. The insights can be pulled directly from a data visualisation tool (Tableau/Power BI) helping them understand the significance of data searching for anomalies, confluence, frustrations, orthodoxies and analogies that might go undetected in text-based data. Hence, the strategy includes creating solutions to unforeseen problems and running with unexpected opportunities. 

Even though the increasing number of online channels and devices has become complex, businesses are working towards a stronger integration providing a better indication of the consumer journey through micro-moments (Google, 2015). McKinsey Loop and AIDA business models have demonstrated the value of their approach across multiple clients in automotive, PC and telecom industries (McKinsey, 2009). However, behavioural economics has provided advanced understanding on how people actually make decisions changing the view of previous business models based on the simple assumption that users act rationally since Rosser Reeve in 1940 to Thaler in 2008 (The Guardian, 2015). Agencies and more particularly MEC have recently developed a tool that closes gaps in understanding between what buyers do during the purchase journey with an active and a passive stage (MEC Global, n.d.). Strategists are able to create short and long term approach matching specific users with accurate targeting capabilities and tracking them in their media consumption.

Integrate Ideas and Communication

A communication strategy must have an idea at its heart for people to get involved. Strategists need to take into consideration the power of emotion and fame over data and insights to create the right measurement between creativity and effectiveness. Depending on the brand size, product and objectives, they should maintain focus on the framework: Awareness, Preference or Conversion initially briefed by the client. It helps product life cycle to maintain responsiveness, carry strong reputation or increase number of lead/purchase. For instance, Harrods is very familiar and people just need to be made aware of a particular piece of information. They have demonstrated this for years when simply making people aware the sale is on. This awareness campaign is mainly based on their message which is very consistent. Depending on the budget available or the recommendation, it can improve the Share of Voice to be above the equilibrium level hence improving market share. This is best practice to allocate optimum budget between brand and activation 60:40. Moreover, a strong competition analysis should help to determine the market dynamics and find the most appropriate timeline to win share of market. Additionally, strategists have to find the right integration between ideas and data-led insight to create a communication strategy either integrated, advertising-led, brand idea-led and participation led. For instance, HSBC “World’s Local Bank” campaign started life as an advertising idea, but the requirement to deliver meaningfully against the promise in the creative execution rapidly turned it into a brand idea that has grown and developed, and now permeates business strategy around the bank (WARC, 2012).

Conclusion

Strategic planning has been under assault for years and good strategy is more important than ever. The starting point should be thinking differently about what it means to develop great strategy: less time running the planning process and more time engaging broader groups inside the company going beyond templates and mirroring the dynamism of the external environment. Technology, algorithms and machines learning systems (and AI such as Google DeepMind) are the greatest challenge of the strategist becoming more an engineer role. All businesses have to adapt to this digital revolution where most of them are looking for specific skillset such as Statistical Analysis, Data Mining, Web Architecture and Integration Software (Business Insider, 2016). Strategists will be involved in reallocating corporate resources, building strategic capabilities at key places in the organization, identifying business-development opportunities

Thanks for reading. This second essay is my response to the IPA advance exam this year. Please leave a comment and share!