Les Binet: Optimising marketing investment in inflationary times

Econometrics has fallen out of fashion, but the godfather of marketing effectiveness, Les Binet, group head of effectiveness at adam&eveDDB, argues that it is the tool that will guide brands through these difficult times - here's how. 

Why it matters

Research and measurement can do more for marketing than justifying spend; Les Binet argues that econometrics can provide strategists and marketers with diagnostic tools to plan around maximising profits not revenue – but it all begins with price, and the marketing levers that allow you to protect it. 

Takeaways

Binet’s key points are repeated here verbatim: 

• Reduce risk through econometrics, not attribution
• Understand growth prospects and price pressures in your sector
• First optimise your prices and promotions (use brand advertising to support prices and margins)
• Use the force multiplier of creativity

Then optimise your advertising budgets

1. Don’t slash your budgets but tweak them by geography, portfolio, channels, media
2. Maximise net profit, not ROI
3. Exploit media bargains
4. Maintain or increase share of voice if possible
5. Don’t go too short term.  

Key quote 

“Above all, do all that mathematical stuff and harness the irrational emotional power of creativity.”

Read more in Les Binet: Optimising marketing investment in inflationary times.