Efficiency vs. Effectiveness

You just sat through another analytics meeting where the agency you're working with is telling you that the KPIs that were established are being crushed, and that you, the client, should be comfortable that you're getting the best value for your media spend. Green, yellow and red color coding based on cost per impression. The mathematicians have won. Your agency kicks their feet up on the conference table and pops open a cold one. But on your end, you're not seeing any significant sales increase.

Is this really the best way to analyze a campaign?

Do you get the same emotion from a banner ad that you get from a tv spot? Does a print ad leave the same impression as a marquee downtown billboard? Clearly not. But if you were to use cost per impression as your defining metric, you would select the media vehicles with the lesser impact, because of their perceived financial efficiency.

It's important for agencies, and brands to stop offering Cover Your Ass analytics reports and marketing options. There is a lineage of fear that exists between agencies and the marketing officers that they work with, and subsequently, the marketing officers with their superiors. Impressions and visits to a website don't always translate into sales, and we, as an industry need to stop measuring success solely through those metrics.

The terms ‘efficiency’ and ‘effectiveness’ are often perceived to be closely connected, but in many advertisers' minds, they apparently live on opposite ends of a brand strategy.

The perfect advertising/media campaign combines greater/more passionate results with fewer resources. The need for efficiency exists, due to budget restrictions, but effectiveness is the force behind what will actually grow sales, brand awareness/perception. Both are clearly vital to the success of any brand's success, but which of the two is more important?

To purely choose effectiveness over efficiency is simply too costly for any brand to handle in today’s marketplace. There are only so many brands with an unlimited budget. Instead, Saluk Advertising's position has always been to analyze each brand's unique request, and identify the perfect creative strategy to provide results. For instance, a brand awareness/perception campaign, our metrics are measured through market research studies and social media listening reports. While still not ideal, these will give you a much clearer picture of whether your campaign "worked" or if it missed the mark. If the campaign is a sales-oriented one (inclusive of actual sales, enrollment, leads generated, etc.), while we use impression/traffic metrics to help guide the process, ultimately, our success is based on the results of our clients. This is where our relationship with our clients comes into play. Of course we can provide the actual insights as to which digital options generated sales, if the media choices are broadcast, out of home, print, etc. we need our clients' data to help identify the success/failures of those media choices.

So, when it comes down to answering the question, is it more important for a brand to pursue effectiveness or efficiency? A company with vast resources that is seeking aggressive growth could be better off maximizing its effectiveness. While a company that seeks to maximize its outcome using limited resources could be better off operating in an efficient manner.

In both cases, while the media choices are going to be influenced by budget to maintain efficiency, it is the creative's job to drive the results and the effectiveness.

If you would like to get a free consultation about your brand's effectiveness vs. efficiency strategy, contact our president & founder, Peter Saluk today.

What does an advertising agency do?

So it's now been a quarter since we re-branded as Saluk Advertising, and since we opened our headquarters in Nyack, NY instead of the traditional NYC, or Brooklyn offices. And as we're sitting here, some questions came up.

Why Nyack?

I strongly believe that great work can be done from anywhere. There's some great agencies in cities like Minneapolis, Omaha, Raleigh, and on and on and on. Advertising has become a global market. You no longer need to be in a specific location to do outstanding work that generates results. Plus, have you been here? It's beautiful. We can lunch on the Hudson River, walk through an awesome downtown area, and it's a creative community. (but if you're more comfortable meeting in Manhattan, we do have a satellite office there.)

Why did it take so long for a blog post?

Have you ever tried starting an advertising agency? It's a lot of work guys. Just from a logistics pov, it's taken us a minute to really get settled. I also wanted to really think about what this blog would be. Would it be technical? Would it be about the agency world? Would it be about what we're working on?

Ultimately, this is going to be a very honest voice for me. So that might mean hyping our great work, it might mean me talking about Bayern Munich or Euro 2016, or it might be just some great design work that we're seeing. You'll also get some insight into what goes into building an advertising agency from scratch. Which I would kind of want to read.

What is the role of an advertising agency today?

This was the most interesting question as we were concepting this shop. It's no longer a "Mad Men" world. An advertising agency is an extension of the brand that they're working with. We've done things that are perceived as mundane such as designing brochures and annual reports. And when we get those projects, we genuinely kill it. We bring our top talent to the game and deliver work that turns something that is typically considered boring and technical to a beautifully designed piece that the client is proud of. We've also worked on the "traditional" advertising that everyone is used to; tv, digital, print, out of home, radio...both on the creative an media planning and buying side, delivering every time and creating results for our clients.

But it's the projects beyond those that are sometimes the most interesting for us. Custom branded content that people WANT to consume, instead of being forced to consume. It's experiential marketing options, events, it's brand identity that goes beyond the logo, it's actually helping a company figure out their culture. Because as you've seen in a million internet memes over the past few months, "Culture eats strategy for breakfast."

We love it all. And we hope that you give us a call to show you how we can execute a program for you.

And if not, just keep checking back here to see how we're growing, the struggles that go into building our own brand, and for random sports references.

Much thanks.

-Peter Saluk