Grappling with the New Chaotic Marketing Norm
In the whirlwind of recent years, one indisputable lesson emerges: chaos can be daunting, yet it is entirely manageable. This sentiment resonates deeply among brand marketers, advertising agency executives, and industry analysts as they navigate the unpredictable economic landscape shaped by shifting tariffs and dramatic market fluctuations.
Learning from Lessons of the Past
“I’m expecting chaos,” states Jeremy Whitt, Executive Media Director at Hanson Dodge. He emphasizes the need for marketers to carry the lessons learned from the onset of the COVID-19 pandemic into today’s marketing strategies:
“One thing I want to make sure that we don’t have too short of a memory of what happened back on March 15, 2020.”
When the pandemic struck, many marketers found themselves unprepared for the extent of cutbacks required. Whitt advocates for establishing solid provisions within contracts that allow flexibility, enabling a seamless transition from brand-building efforts to performance marketing when necessary, and vice versa.
The COVID-19 Parallel
Whitt’s perspective is echoed by several industry peers. Carrie Tropeano, Chief Media Officer at Mekanism, highlights a crucial evolution:
“COVID primed us for this environment.”
She notes that the drastic forecasting and re-forecasting that emerged during the pandemic has become a routine approach to planning in today’s dynamic market.
Katya Constantine, CEO of Digishopgirl Media, mirrors this sentiment, stating that while the disruption of the pandemic offers a useful analogy, our current circumstances differ significantly. During COVID-19, the government offered stimulus support to buoy the economy—something that lacks in the present scenario.
Navigating Tariff Turbulence
Amid this landscape, the stock market has experienced its own roller coaster ride, moving in response to the ongoing tariff tensions. For instance, a recent uptick in stocks followed the announcement exempting smartphones, chips, and computers from potential new tariffs. However, the durability of this boost remains uncertain.
Marketers and agency executives are adapting to the current climate that necessitates doing business in limbo—managing and adjusting strategies amidst unpredictable price and advertising shifts, often without a clear resolution in sight. Just last week, marketers were bracing for the impact of President Trump’s tariffs, intending to cut ad budgets in response to growing costs. Meanwhile, Trump announced a 90-day pause on tariffs, not significantly shifting the landscape as marketers continue to forecast and re-evaluate strategies.
Whitt captures the essence of this mindset:
“The feeling is that unless there’s a steady turnaround in the next 90 days, they’re planning for the chaos to still be there 90 days from now.”
Embracing Innovation in Marketing
As marketers embrace the chaos, they are increasingly looking to agencies to help them push the boundaries of their tactical capabilities. Tropeano observes a rising trend of inquiries on how to leverage media mix modeling and attribution solutions to optimize overall marketing efforts rather than only focusing on media channels.
At Mekanism, they utilize a “good, better, best” scenario planning framework to navigate these turbulent waters. For example, they prepare baseline plans to ensure some media exposure persists, even if the market conditions worsen.
Looking Ahead: Challenges and Opportunities
However, the focus isn’t solely on client strategies; agency leaders are simultaneously questioning what the chaotic tariff environment means for their businesses both in the short and long term. Danielle Wiley, founder of Sway Group, actively seeks to identify businesses less impacted by tariffs, striving to alleviate the fears surrounding potential fallout.
Whitt sums it up succinctly:
“There’s a lot of worry right now, but no one is in panic mode. We’re all waiting for that shoe to drop.”
Insights and Innovations from Industry Leaders
3 Questions with Jessica Serrano, CMO at Dig
As a rapidly expanding New York City-centric restaurant chain, Dig is recalibrating its marketing strategy. Here’s how:
What new tactics is Dig implementing to enhance its marketing strategy?
“We’re experimenting with tactics like streaming audio and Connected TV (CTV), which we’ve observed great success with. Hyperlocal influencer marketing is another exciting avenue, where local foodies share our offerings with their loyal audiences, making our brand resonate more.”
Why pivot to CTV and streaming? What role do they play in your media mix?
“Audio serves as a brand investment, helping us connect with our audience on a deeper level. While we lean on performance-driven strategies, I believe it’s vital to allocate resources to brand storytelling, even if it’s not the most cost-effective method.”
How does uncertainty alter the role of a CMO?
“The CMO’s role has morphed into one closely intertwined with business growth. Today, it’s essential to link brand building directly to business outcomes while understanding P&L dynamics to gauge the efficacy of our marketing efforts.”
Marketing Metrics: By the Numbers
As brands traverse the terrain shaped by cultural conflicts, brand safety becomes paramount in determining advertising expenditures. New research from Pinterest and MAGNA, a global media intelligence firm, underscores the significance of positivity in content. Key findings include:
- Consumers are 20% more emotionally engaged with positive content.
- Users spend 15% longer interacting with ads in positive environments, marked by heightened engagement.
- Media mix modeling simulations indicate that employing positivity in media strategies can lead to an increase of up to 24% in sales.
Quote of the Week
“When I see job descriptions asking for 15 to 20 years of experience in retail media, I think: what do you mean? It’s unreasonable to expect 20 years of experience in a field that barely exists.”
— Larisa Dumitru, Head of Commerce for Europe at GroupM
Conclusion: What Lies Ahead
As marketers continue to grapple with the chaotic landscape of modern advertising, adaptability and innovation will remain at the forefront. Engaging deeply with lessons from the pandemic, utilizing modern tools, and balancing brand and performance strategies will be crucial for thriving amidst uncertainty. The journey is challenging, but with the right frameworks in place, success is within reach.
In these turbulent times, it’s essential for marketers to remain agile and open to adjustment—ensuring they can surf the waves of change rather than being swept away by them.
