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Direct response agency

60/40 The New Golden Rule for Your Marketing Strategy

The Institute of Practitioners in Advertising has revealed the results of a long-standing research that shows why advertisers should be spending 60% of their advertising budget on long-term brand-building and the other 40% on short-term direct response marketing if they want to get the best ROI possible. [Related topics: Direct response agency]

Understandably, since long-term strategy and softer metrics such as brand loyalty are harder to measure and the likelihood of having an immediate effect on the next quarter’s financial results is rather low, many advertisers prefer to invest the big buck on direct response initiatives, stepping away from emotive brand storytelling.

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However, for startups, small business and newer companies trying to make it into the highly competitive markets of today, good storytelling can make or break it. During “upfront” season, media companies pitch to brands and agencies regarding their plans for the year aiming to secure better annual trading deals with new and existing clients for winning market share.

For example, YouTube has invited more than 800 industry folks to Tate Modern in order to clean its reputation after the terrible “brand safety” scandal last year. And it seems like all the media owners are trying to get across the same message: Our channels are the best way to help you build your brand and make it famous.

Traditional broadcasters, publishers and outdoor media companies, have been trying to persuade advertisers about the refreshed value of brand-building in this era of online automation and technology at scale in which some marketers seem to have forgotten the importance of the media context. If the quality and nature of the advertising environment aren’t appropriate for your specific audiences, it doesn’t matter how digitally micro-targeted and cheap your strategy is, you won’t reach the right audience.

While short-term response marketing that can drive a sale or a click is all the rage, and advertisers keep making big investments on Google, Facebook and Amazon to get measurable, short-term returns, the more time we spend on our smartphones, the more invasive these personalized and targeted ads feel.