MIAMI — Advertisers now have an arsenal of tools with which to make and buy ads, and a plethora of platforms with which to measure them.
But one outcome that is sorely lacking, according to the man who speaks for big-brand marketers? Advanced ad tools are not driving actual business growth.
In this video interview with Beet.TV, ANA CEO Bob Liodice says innovation and enhanced creative possibilities are great. But, he asks: “How are they really translating into improved business building models?
“This is fundamentally important because, if you look at last year’s Fortune 500, 42% of those companies listed had declining revenues, 53% are declining after tax profits. So, we’re kind of failing as an industry.
“We can’t keep beating our chest saying, ‘We’ve got all these new tools, all of this information – and yet we’re declining‘. Where is it getting us? It’s not getting us into the place we need to be.”
Liodice’s comments are a useful macro assessment, and a scathing critique of the broad value of many of the key developments in digital advertising.
What is the cause? Liodice laments a “fractionated” industry in which, after years of tub-thumping, there still is no common, consistent system of governance for measurement.
He suggests marketers are swimming in data but, lacking a consensus basis on which to understand its implications, end up resorting to “homegrown” measurement systems, which frequently don’t provide key indicators like attribution, cross-platform analytics or plug in to existing practices that can support decision-making.
“What do we end up with?,” Liodice asks. “We end up with a very, very low-growth mentality, because we’re making decisions on the fly.
“We need to know how they’re translating into business growth. That’s the next phase of what we’re really trying to get at.”
This video is part of a series titled The Road to the Digital Content NewFronts. It is a preview of topics to be explored at IAB’s NewFronts, which begin on April 30. This series is presented by Meredith Corporation. For more videos from the series, please visit this page.
