2024 is just around the corner and with high-inflation still looming and budget cuts being made, you need to be allocating budget in the right places to set your business up for success.
December’s report looks into the latest research around growth marketing and where budget is best spent, helping you create an informed marketing strategy for 2024 and a compelling business case for budget to senior leaders.
This month’s report explores:
- The billion dollar opportunity cost of low quality creative
- Why cross-cultural marketing is more than just language
- New evidence showing stronger brands can charge more
1. Waste not, want not: the billion dollar opportunity cost of low quality creative
CreativeX released a report that showed 52% of media budgets are deployed on low and medium-quality creatives. This means less than half of media spend goes behind ads that are high-quality.
In financial terms, this means that between the years 2020 and 2021, media investment behind creative that isn’t deemed high quality totalled more than $700m across the ads analysed. Extrapolating this across all digital ad spend in 2023, the industry’s economic loss equates to over $200B. Brands should try to incorporate the following creative best practices into the content they deploy on social, display, and online video channels: branding, optimal length, aspect ratio, and sound optimisation, which we look into in more detail in the report.
2. More than words: why cross-cultural marketing is more than just language
When considering a cross-cultural campaign, thinking that the only difference worth considering is around translations is an easy trap to fall into – but it’s simply not enough to just translate the website or ad copy and hope for the best.
For cross-cultural marketing, it’s essential to communicate with consumers in a way that recognises the differences in their cultures and adapts the marketing mix accordingly. Our report includes advice from Organic, Paid and Creative to guide our clients on how to be more effective across multiple markets.
3. New evidence: why stronger brands can charge more
As marketers, we like to make decisions based on numbers and now the latest data is here to confirm a long-held belief: that investing in advertising helps protect sales when businesses raise prices.
The latest data from Magic Numbers and the IPA shows that the more brands invest in advertising, the lower their price sensitivity is – so when they need to put prices up, they don’t lose customers in the same way as the brands that don’t invest in advertising. And, perhaps crucially, businesses that outspend competitors over time find that customers’ tolerance to their price increases improves.
Our December marketing report delves into each of these trends in more detail with actionable takeaways, as well as all the latest platform updates to help you get ahead in the new year.
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