Momentum: Session 00 Introduction materials
- 3. Momentum is a planning framework developed to help marketers, media and advertising leaders make better decisions and deliver improved commercial outcomes.
- 4. Momentum is a planning framework developed to help marketers, media and advertising leaders make better decisions and deliver improved commercial outcomes. Focused on solving problems Helps support decisions and build a case for endorsement Rooted in helping businesses sell more things
- 5. Session 0: The rundown • Why Momentum: A scene set • The media and advertising landscape (in brief) • What is Momentum • The key principles of Momentum • A rundown of the next 3 sessions and what is in it for you
- 6. Why Momentum: A scene set.
- 7. My name is Ben. • Worked in marketing, media and advertising fields since 2003 • Worked within teams at consultancies, agencies, media companies, as well as advising to numerous businesses privately. • My experience is focused in leadership roles across commercial development, strategy and digital • Wrote a book in 2020 (Everything You Wanted to Know About Media and Advertising) and have been building out Momentum since then
- 8. Momentum was created as problem solving skills can be applied everywhere in media and advertising. • Consumer behaviour and consumption habits keep changing and evolving. Advertising is a large investment for companies, and serves an important purpose in sustaining customer demand and generating customer growth. • Great media and advertising is defined by the clarity of the decisions made throughout the process. If we get it right, it can be a material driver of new commercial value. • Everyone involved in marketing, media and advertising can be strategic in their thinking, and the goal of Momentum is to give professionals the chance to skill up and grow their confidence in this area. • There are thousands of decisions made in marketing, media and advertising, at an increasingly accelerated pace. If we can improve our ability to make the best decisions on behalf of our clients and stakeholders, we will all benefit.
- 9. Momentum is open source by design and available to everyone. • There is no one right answer when it comes to using media and advertising to grow brands. The business challenges of our clients differ, customers tastes and habits differ, and there are countless combinations of messaging and distribution we can use • Our role is to build credible, robust and effective answers to the problems we are faced with. • Whilst the end answer can differ, the process in which we use to get to the answer needs to be structured, robust and credible and be focused on the customer and the end commercial outcome we seek. • Momentum can be used as an end-to-end process, or it can be used selectively to help progress an idea where needed. It’s a tool for the user and can be adapted and changed where needed to help build the best answer.
- 10. What’s in it for you? • Momentum is a free program and all materials are available to use, edit and keep • There are 4 guided overview sessions (including this one) covering the core elements of the Momentum framework and demonstrating a practical application • All the materials used in the example are available for free download and use. • The goal is to build your confidence in problem solving and provide you with tools and tips that you can apply to your day-to- day role
- 11. The media and advertising landscape (in brief)
- 14. Almost every advertiser in the world relies heavily on the same two platforms.
- 15. There is a huge disparity between the growth rate of these platforms and the growth rate of the businesses that rely on them.
- 16. The growth challenge facing Australian advertisers (and the rest of the world).
- 17. From 2020-2023, the majority of profit growth in Australia has been via operational efficiency and not customer growth. +3% Sales revenue +11% Profit Before Tax +6% ASX 200 index Annual growth rate 2020-2023 Source: ABS Australian National Accounts: National Income, Expenditure and Product, ASX200 index
- 18. ● For the years 2020-2023, 27 of Australia’s largest ASX listed advertisers were analysed as it related to advertising spend, sales revenue, profit and share price gains. ● Over this 3 year period, these businesses accounted for $3.4 billion of advertising over, $120 billion in profit before tax and $905 billion in revenue Source: Nielsen AQX, Bloomberg, ASX Company reporting
- 19. For the 3 year period to June 2023, these businesses saw average annual increases of: 9% on advertising spend 6% on total revenue 4% on total share price Source: Nielsen AQX, Bloomberg, ASX Company reporting 27 leading advertiser businesses growth rate
- 20. Marketing and advertising has made contributions to revenue growth for some of Australia’s leading ASX businesses, but the effect is inconsistent. Source: Nielsen AQX,Bloomberg, ASX Company reporting Underperformed the market Overperformed the market At market performance
- 21. When it comes to profit, marketing and advertising investment contributes some of the time for some of the ASX companies, but is inconsistent. Source: Nielsen AQX,Bloomberg, ASX Company reporting Overperformed the market Underperformed the market
- 22. On share price growth, marketing and advertising investment has had no material relationship in the past 3 years. Source: Nielsen AQX,Bloomberg, ASX Company reporting Overperformed the market Underperformed the market
- 23. What is contributing to this tepid level of effectiveness?
- 24. The rigid application of reasonably loose ‘concepts’ positioned as hard and fast ‘rules’ is definitely not helping. Concepts • Effective Share of Voice (concept that seeks to link share of advertising spend to category growth and share of market) • ‘Long and short’ (publication around short and long term advertising benefits) • ‘60/40’ (attempts to provide guidance around how much of a budget should go to ‘brand’ or ‘performance’ channels) Default positions • Automated ads (advertiser opens a line of credit and the platform has full autonomy over placement) • Default channels with increasing share of budget (paid search)
- 25. In relation to business growth, there are a lot of factors beyond the control of marketing. • Profitable growth is really challenging • The surrounding economic and social climate is a big factor • There are a large amount of variables marketing has no control over • Andrew Ehrenberg championed the notion of advertising as a ‘weak force’ that took a very pragmatic view of what advertising is capable of.
- 26. However, some things are generally true in most cases. • A brand can only grow via share gains or category growth • It is hard for a prospective customer to buy a brand they don’t know exists • The intersection of expression and distribution provides a rich platform to contribute to these two areas. • There is no one single way to use advertising and media to grow a brand • Advertising and media investment by businesses is a significant sum of money that they need to generate a return on
- 27. We can control how we decide to solve problems. And these decisions can create positive Momentum as we convert an idea into action.
- 28. Momentum is an approach to advertising and media strategy that focuses on generating time efficient and commercially effective high-quality output.
- 29. Momentum was built using the same principles that Momentum uses. • Situation: Advertising investment is a large investment for companies and serves an important purpose in relation to sustaining customer demand and generating new customer growth. • Complication: Advertising and media delivery is more complex than it has ever been before, resulting in increasing disconnects between the desired outcomes of advertising investment and the actual outcomes • Question: How can you create advertising and media planning that adapts at speed to customer opportunities that can be delivered in a coherent and connected manner across all stakeholders and contributors. • SCQA is a great way to frame any problem, and is a key part of Momentum planning
- 31. Momentum is a three-step process to unlock the best marketing thinking, with a focus on advertising and media. Consumers move quickly, trends move quickly, opportunities present themselves in limited windows. Companies need to move quickly. Speed and focus are essential and momentum planning delivers this. Advertising and media action that is disconnected from strategy creates ineffective communications and a high level of waste. At the same time advertising needs to be created and distributed using multiple capabilities, channels and companies. Momentum planning provides tools and structure to alleviate this. Marketing investment needs to have a positive impact on customers and results, as well as ensuring this positive impact is recognised and understood amongst key stakeholders in order to further elevate marketing within the enterprise.
- 32. After just 3 sessions you will be to put Momentum into practice. • The next 3 sessions will run through 3 areas with a theory component, and a practical example for each area using a fictional company facing a very common challenge. • Session 1 is around Acceleration & Coherence. Cracking the problem and creating a simple and coherent narrative case to achieve endorsement and approval and guide the following stages. • Session 2 is about Translation, how to translate this thinking to internal and external stakeholders so there is clarity and alignment on what needs to be delivered. • And session 3 is focused on Distribution - delivery and improvement.
- 33. Momentum is enabled through 6 important ways of working. ● Be fungible: Knowledge work must be organised around projects, not same-set activities ● Question assumptions: use first principles to break traditional logic and limitations ● Open your thinking: Ask what would need to be true, not what is currently true ● Serve the answer: Always focus on choices and decisions, not issues or insights ● Test the problem: Your experience and expertise enables hypothesis driven thinking ● Be confident in making decisions: Strategy is the process of methodically selecting goals and risks, not avoiding them
- 34. “If you can define the problem differently than everybody else in the industry, you can generate alternatives that others aren’t thinking about.” Roger L. Martin
- 35. Session 0: Ends