Kraft Heinz Asia CMO: Consider Business Goals Before Investing in New Measures | To analyse


While many industry players tout the benefits of attention-based metrics, brands shouldn’t obsess over the ‘shiny and new’ and instead focus on how each metric meets their business goals, believes. Kraft Heinz Asia Marketing Director.

Speaking to Asia-Pacific Campaignis inaugural Performance Marketing Manual Thursday, December 2, Dhiren Amin advised brands to carefully consider the new measures.

“Attention is a measure of visibility, and the measure of it is not new,” he said. “For example, on YouTube, you will measure how long people actually watch your content and the corresponding drop rates. On websites, you will measure the bounce rate. We need to be able to distinguish between metrics. which are really new and useful compared to those which are old wine in a new bottle. “

Amin believes it is essential for brands to associate “input metrics”, such as click-through rates, view rates, and conversions, with “output metrics,” which are business metrics such as sales. , market share or penetration and profitability. It is for this reason that Amin does not subscribe to the idea that there is one metric that is superior to the others.

“Measurements need to be looked at from the perspective of the job you need to do,” Amin said. “If your job is to gain market share and therefore you need to increase awareness, you are more likely to measure reach metrics. However, if you’re an established brand and your job is to drive consumption growth by increasing usage, you’re going to look at a metric like engagement. “

The sentiment of the marketing director was shared by Nathalie Pellegrini, performance director of Mindshare, who said that certain metrics work differently depending on the vertical or business goal of the brand.

Pellegrini explained how return on ad spend (ROAS) has become “more important with every performance campaign” over the past few years, but like Amin, she urged brands to look at the metric with ” a small pinch of salt “.

“We recently tested and learned whether it’s better to go with a conversion rate metric or ROAS, which would actually work for your business, rather than just using the industry standard, which is ROAS,” Pellegrini said.

Likewise, Amin said that “the ROAS obsession is bogus” when each of the dozens of metrics offered to advertisers serves a different purpose depending on your category and geography.

While both experts agreed that metrics should be evaluated equally, Amin pointed out that both metrics and impressions have their limits.

“I don’t think you can take a holistic approach to say that a measure doesn’t work, but I think in my opinion we should be more obsessed with winning media than paying media, especially in this area. which concerns awareness, ”he said. “For example, impressions allow us to measure the value of our paid media, but it’s not a fair representation of actual reach. Impressions only measure how many people we serve, not how many people actually are. influenced, whether they see it or interact with it. “

The pandemic factor

The requirement for brands to change the parameters of success to meet their business goals was more visible during the extreme fluctuations of the pandemic.

Pellegrini said that while Covid has caused an increase in short-term performance metrics, the balance between performance and brand is restored in 2021.

“As everyone turned to e-commerce [during the pandemic]What we have noticed is that with a lot of our clients we have started looking at the short term rather than the long term gains, especially in 2020, “she said.” So, looking at conversion rates, ROAS, CTR. But now what we are seeing is the re-emergence of the brand and the performance because things are stabilizing, especially in opening markets like Hong Kong. Now we’re looking at long-term sustainability, things like brand love. And new measures follow. “

The degree to which Kraft Heinz changed course during the pandemic depended on the stability of each market and its dependence on retail brick and mortar, Amin said.

“If your category relies heavily on brick and mortar retail versus another category where originally your business was much more focused on online sales, your decision making will be different. Now suppose that we’re talking about a consumer good business that has a fairly significant brick and mortar presence. The challenge was that in the short term these businesses were going to have to push e-commerce forward to be able to ensure that our sales were protected. , metrics would change. One would be more reliant on social and digital spending with more conversion-oriented metrics in mind. “

In China, where Amin is based, the impact of the pandemic has been relatively shorter than in the rest of the world. Nonetheless, Kraft Heinz witnessed a “huge increase” in live streaming and KOL live streaming when the pandemic hit, which have “totally different performance metrics” to consider.

Test and learn

While metrics of success are less proven in fast-growing channels like KOL’s live streaming, Amin believes marketers should make an effort to invest part of their campaign budget in new and experimental things. , “knowing that you will fail”.

“For example, if you’re in Indonesia and want to geo-target retail stores connected to a mobile location-based approach, it’s so new that it’s very difficult to predict whether it will work or no. But you have to try it. if you need to generate direct sales, ”he said.

In addition, Pellegrini pointed out, new channels and platforms are shaping their advertising offering around advertiser and agency feedback, which gives more impetus for testing.

“Don’t be afraid to test these new channels or technologies,” she said. “If you don’t test I don’t think you will be able to grow. You have to make sure if you fail find out why.”

The impact of privacy

Beyond the pandemic, this year advertisers have had to understand how changes in online privacy are impacting their ability to measure and target advertising. Apple’s IDFA change earlier this year, which requires users to sign up to be tracked across all apps, has had serious impacts on the measurement and targeting solutions that tech platforms like Facebook and Break to offer. Then there’s the continued depreciation of third-party cookies, which advertisers use to track user behavior on websites.

Pellegrini said brands should prepare for a “drop in performance” as cookies disappear, but cautioned against blaming cookies rather than investing in the full funnel.

“Once this [the deprecation of third-party cookies] happens you will see a drop in performance as the systems are going to have to relearn so you will have to adapt your marketing activities for that, “she said.” When that happened earlier this year, we wanted to blame iOS 14, but you need to make sure there are other caveats, you can’t blame a channel. Understand why this is happening, is it because of my campaign, the product I sell, the mix of channels I use? Read this first before blaming iOS 14. “

She added: “If there is [a dip], be sure to ruthlessly optimize throughout the next month. Also, you need to start looking to rebuild these audiences, as those audiences have potentially disappeared. So maybe move more budget to the consideration stage so that you can build those audiences that have potentially been lost to improve performance. “

Amin of Kraft Heinz said brands should work with technology platforms to ensure changes in privacy “don’t become a barrier to measuring our investments.”

The most sustainable way forward is for brands to start relying on their own data stacks, Amin says, but he admitted that this is “extremely long term and costly.”

“As you move into your own data stacks, the less you rely on other people’s data, the more secure we are in our measurements and investments,” he said.


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