{"id":31501,"date":"2019-10-20T08:31:48","date_gmt":"2019-10-20T13:31:48","guid":{"rendered":"https:\/\/adpulp.wpengine.com\/?p=31501"},"modified":"2019-10-20T09:49:39","modified_gmt":"2019-10-20T14:49:39","slug":"media-expert-simon-peel-helps-get-adidas-on-the-right-page","status":"publish","type":"post","link":"https:\/\/www.adpulp.com\/media-expert-simon-peel-helps-get-adidas-on-the-right-page\/","title":{"rendered":"Media Expert, Simon Peel, Helps Get Adidas on the Right Page"},"content":{"rendered":"

Why do you continue to go to marketing conferences? Are they worth the cost, the travel hassles, and the time away from the office? For people interested in marketing effectiveness, the answer last week was yes. Marketing Week<\/a>, Campaign<\/a>, and Footwear News<\/a> are all carrying the story of how Adidas overinvested in digital marketing and underinvested in brand marketing, as told by Simon Peel, the athletic brand’s global media director at EffWorks<\/a> in London.<\/p>\n

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Peel said that four years ago the company didn\u2019t have any econometrics, its attribution modeling was based on last-click and it didn\u2019t do any brand tracking. It also focused on efficiency over effectiveness, leading it to look at specific KPIs and how to reduce their cost rather than what was in the best interests of its brands.<\/p>\n

Econometrics?<\/em> Excuse me?<\/p>\n

According to Wikipedia, econometrics is the application of statistical methods to economic data to give empirical content to economic relationships. An introductory economics textbook describes econometrics as allowing economists “to sift through mountains of data to extract simple relationships”<\/p>\n

Performance-Based Marketing Didn’t Perform<\/h2>\n

“One of the other things we saw from the econometric modeling was that our individual business units were not driving their own business unit sales,” Peel told the audience. “So although we believed that football advertising was going to drive football sales, actually it wasn’t; football was driving running sales, running was driving Originals, Originals was driving training.”<\/span><\/p>\n

Adidas, he said, had been spending only\u00a023% of its marketing budgets on brand and\u00a0<\/span>emotionally led advertising, compared with\u00a0<\/span>77% on performance advertising \u2013 even though b<\/span>rand advertising drives the majority of Adidas sales across wholesale, retail and ecommerce.<\/span><\/p>\n

\u201cThe reason for that is short-termism because we are trying to grow sales very quickly,\u201d said Peel. He added: \u201cWe had a problem that we were focusing on the wrong metrics, the short-term because we have a fiduciary responsibility to shareholders.\u201d<\/p>\n

Feel the Boost (of Marketing Communications Alignment)<\/h2>\n