Tear Down This Wall!
At yesterday’s IAB Annual Leadership Meeting in Phoenix, Chairman/CEO Randall Rothenberg doubled down (again) on the direct brand economy and how it’s flipping marketing models and gutting sacred cows of publisher strategy. There was a ton of great information and examples, but there was one subtle point (Play #5 in the IAB’s new DTC Playbook: “How to Build a 21st Century Brand, Part Two”) that really grabbed my attention:
For Disruptors, branding must perform – and vice versa.
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This really spoke to me. For all of the 35 years that I’ve been in media and 25 I’ve spent in digital, we’ve labored under the artificial and counterproductive divide between brand and performance advertising. To performance advertisers (we were told), media was just so much raw material to be processed in getting to the number. And brand advertisers (we were told) only cared about reach and audience and shooting beautiful commercials and visuals.
Now (we are told) the wall is coming down. And disruptor/DTC brands are the ones holding the sledgehammer. The myth that your solution must be either brand– or performance-focused has finally been exposed. The answer to branding or performance is now – simply – yes.
In the same IAB Playbook (Play #3) we learn that Storytelling gets more acquisitions more cheaply. Return on Ad Spend (ROAS) actually gets better in high quality, story-focused environments like podcasts. It’s become clear that hybrid approaches – blending authentic storytelling, high engagement environments, and real performance – are the hottest vehicles on the lot.
But like William Gibson famously wrote, The future is already here. It’s just unevenly distributed.
We can still screw this up. We can retreat to the brain-dead, self-defeating apology tour of attribution and discounting. We can focus on the wrong metrics. We can choose to serve the status quo of the advertising business instead of embracing directly the complex, nuanced needs of a new generation of marketers.
If we only do what we’ve always done, we’ll only ever have what we’ve already got. There’s a new beginning taking shape. The wall that’s always stood between brand and performance has been breached.
As media sellers, I suggest we confidently walk through it.