QN#11 Five untold consequences of being a data-driven marketer
There are some consequences of being data-driven which we don’t realize very often, but happen everywhere. In many cases, companies make a big effort to ensure data is motivating better decisions overall. However, teams end up in a sea of metrics and dashboards, making poor data-driven decisions.
It is very common to associate the abundance and availability of data and metrics with data-driven marketing. This is not true in most cases and the paralysis by analysis example is one of the most popular illustrations. Savvy marketers learn how to make decisions with insights derived from the data. They understand which metrics to look at within the sea of available data when there is a performance issue or an unexpected outcome. But they also tend to focus on few important metrics and look at them with a business lens.
In this context of data abundance, we need people who have a bias towards action. Most of the time, this is for the better. More actions provide more data, giving those hesitant to make decisions more information to eventually make the right choice. However, it is easy to fall into different traps where being data-driven does not lead to better decisions. We all have experienced them, but in most cases don’t know what to do to avoid them, mostly when leadership wants to show they are data-driven. Here it goes:
1.- Focus on what can be measured instead of what is important
Being data-driven often leads to focusing on metrics that are easy to measure rather than those that are truly meaningful. By contrast, those meaningful are harder to obtain (incrementality metrics are a great example of this one).
It is heart breaking to see how marketers use today metrics like impressions or clicks as the goal of their campaigns simply because they are readily available, while ignoring more impactful indicators that require deeper analysis (reach, viewability, qualified visits,…). This focus on what can be measured, rather than what is important, leads to suboptimal decisions by missing crucial information.
We all can think of examples where certain initiatives or strategies are not considered not because there is no expected business impact but because they do not impact on the metric you are asked to optimize. Imaging having to optimize paid social media towards a last click because the source of truth uses a cross channel attribution solution which gives credit based on last click. You are optimizing social media ads in a way that is missing the whole potential it can have in upper parts of the funnel just because it is harder to measure.
2. Illusion of control
When surrounded with data everywhere, you might have the impression that everything can be measured and managed. In reality, marketing is influenced by countless unpredictable variables. Over-relying on simplistic data can create the illusion that you have control over outcomes, which can lead to frustration when the numbers don’t align with expectations.
Instead, assume that reality is complex and through measurement we want to understand it a little bit better each day.
True control in marketing also requires intuition, creativity, and the ability to adapt when faced with unexpected challenges. A balanced approach which includes both data and human judgment with a growing understanding of how marketing works can help navigate these complexities more effectively.
This illusion of control is also abundant when a senior marketer is asked about goals, targets and measurement, when defining plan and the numerous KPIs that will be used to monitor performance. It is not about what you know you can measure
3.- Take credit when metrics go well. Blame external factors when metrics go bad
In most of the cases, success is attributed by implying causal relationships. Authority bias plays a fundamental role in establishing these relationships. However, when metrics decline, the focus shifts to justifying why external factors are responsible such as changes in the market, economic conditions, or product updates, rather than examining potential internal improvements.
This context makes it harder for the team to draw unbiased connections between the data and the actions taken. By avoiding accountability when things go wrong, teams miss out on opportunities to learn and improve. True growth comes from analyzing both successes and failures, understanding what truly drove the results, and making informed decisions based on those insights.
4.- The trap of Constant Optimization
With data available as a stream of water, marketers are often driven to continuously optimize every detail of a campaign. While optimization may seem beneficial, an overemphasis on small, incremental changes can shift attention away from strategic initiatives that truly drive growth.
This constant focus on tweaking minor elements often results in diminishing returns and poorer decisions, as the team loses sight of the bigger picture. Instead of investing time in bold, impactful strategies that could differentiate the brand, marketers can be busy with adjustments that fail to deliver meaningful business impact. Ultimately, this approach reduces the overall effectiveness of marketing efforts by optimizing towards what is easy to measure, usually short term goals.
5.- Data-driven can lead to less creative outcomes
Data can offer valuable insights, but it can also hurts creativity. This is because the data supports repeating successes of the past, rather than trying new ideas. This focus on the numbers can stop people from taking risks, making it hard to create unique marketing strategies that stand out.
Data is a powerful tool and we love it. However, like any tool, it's important to understand its limits and potential downsides. Being aware of these challenges can help you find a more balanced approach, one that allows for creativity, connection, and sustainable marketing strategies.
Marketoonist, as profound and true as always gave us these 7 deadly sins of data-driven marketing:
What to do now?
For marketers, the key is to use data as a support rather than as the sole driver of decision-making. Focus on the metrics that matter, but don't lose sight of the fundamentals of marketing, specially brand building and long term effects. Balance data-driven optimization with strategic, big-picture thinking.
This also means ensuring that marketing teams dedicate time not only to analyze and review insights from data but also to creative processes, moments where ideas are shared freely without the immediate constraints of metrics. For instance, marketing teams should set aside time to define qualitative long term goals and assess as a group if the marketing activities for the period are aligned with these long term goals.
In addition to these team dynamics, when working with agencies or partners, it’s essential to clearly communicate both the data-driven goals and the brand's larger vision. Data should be used to provide direction, but agencies should also be empowered to bring new ideas to the table. Encouraging partners to take calculated risks without fearing failure can lead to more innovative campaigns that truly resonate with audiences. However, giving an agency the ultimate goal of optimizing ROAS measured by a platform is a poor definition of performance and sustainable growth
Having solid marketing foundations and knowledge about how consumers behave are essential to ensure these risks are calculated and directed towards improving business value. Blind test and learn or a pure attitude of “let’s test everything” only leads to unnecessary costs and inevitable failure.
This balanced approach will lead not only to better results from your marketing and sales efforts but also to more meaningful, long-term growth. Think of great brands such as Coca-Cola and Apple. They use data to understand customer behavior but don't shy away from investing in creative branding campaigns that build emotional connections with their audience. They have learned that while data can guide marketing, creativity and strategic risk-taking are what truly differentiate a brand.
Industry updates and upcoming events
Analytic Partners acquires Magic Numbers
Analytics Partners is one of the largest providers of marketing measurement, including MMM. Magic Numbers is a consulting company composed of “Thoughtful business economists who are good with numbers and understand how consumers and markets behave”. It’s amazing to see some M&A activity in the media effectiveness measurement sector. We could be entering a new moment in the market where this happens more often.
Announcement from System1 and Effie Worldwide
System1 has announced (link) a partnership with Effie Worldwide to research the field of creative effectiveness. System1 already has an extensive track record with UK’s IPA and is probably planning to do a similar approach with the 165,000+ global ads from the Effie database. The timeline? The next two years is to share practical advertising insights for sustainable brand growth. Especially for marketers in the US.
MMM Best Practices and Success Stories with ARF
The ARF hosted a session with Google’s MMM experts (link) on September 10th. A summary can be accessed by ARF Members on this link. The core message was on achieving higher levels of actionability in MMMs thanks to more granular data, incorporation of metrics such as reach/frequency, priors… and cooperation between clients and modeling agencies.
Learnings from the analysis that AI did to over 8,000 top ads
As we discussed in QN10, a good creative is the biggest driver of effectiveness. In this recent Google research (link) you can see some insights and best practices. It is to be noted that the research was conducted to explain views/likes, not final business outcomes.
The drivers of out-of-home creatives
System1 has analyzed the drivers of good out-of-home creatives and published results on this column and this downloadable whitepaper.
Latest marketing debate
Do Attention Levels Drive Ad Effectiveness? Byron Sharp Says No
There is an increasing interest in the concept of attention in the marketing and effectiveness world. Proponents say the level of attention and the attention span is critical to have an impact. In this Forbes article, Byron Sharp claims for the opposite, saying that an excessive focus on attention metrics can be misleading for advertisers.
Sharp argues that while attention is important, “more attention does not simply translate into greater effect”. For instance, optimizing solely for longer attention may lead to higher costs and limit overall reach, while ignoring the importance of effective frequency and broad exposure. “Yes, ‘Mere exposures’ can do good, even if they are fleeting exposures, which is the case for most advertising”, enhancing the mental availability of the brand being advertised.
Sharp recommends that advertisers focus on creating memorable campaigns that leverage distinctive brand assets to achieve broad, consistent exposure, even if individual impressions are brief. This perspective aligns well with the idea of balancing data with creative strategy to ensure that marketing efforts drive real, sustained growth.
This can be another example of focusing on what can be measured instead of what is important so it is a good closure for this edition of the newsletter.
… But not everyone would agree! In our next edition QN12 we’ll discuss Felipe Thomaz’ response to Byron Sharp after having ran a research with Kantar and Wavemaker
Chart of the week
Electric bikes are really rising popularity at the expense of traditional mountain bikes!
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