In an era where marketers race to capture clicks and ride fleeting trends, Mark Ritson offers a radically simple proposition: a return to back-to-basics thinking. Known for questioning industry clichés, Ritson’s recent talk at the 2024 Cannes Lions, titled ‘Creativity is Not Enough,’ underscored his belief in the foundational principles of marketing. A former academic at prestigious institutions such as the London Business School and MIT Sloan, Ritson is also the founder of the Mini MBA in Marketing. This program is designed to address what he identifies as a ‘crisis’ in marketing education.
In an exclusive discussion, Ritson sheds light on marketing’s basic stubborn truths, expressing concern over the industry’s ‘obsession’ with personalisation and the superficial allure of AI-generated advertisements. He emphasizes the importance of media effectiveness and the misconceptions surrounding ROI. Marketers often focus on short-term returns, he argues, but this could lead to less overall profitability. While immediate bottom-funnel tools are easy to measure, high-impact marketing efforts require time to show results.
Ritson highlights companies like P&G, which have moved away from micro-targeting, as resetting industry standards. This shift, according to Ritson, is applicable across diverse markets, including India. He references Les Binet and Peter Field’s concept of the ‘long and short of it,’ emphasizing the need to drive sales while also investing in the market’s long-term development. The ’95-5′ rule is a critical insight from the past decade: on average, only 5% of customers are actively in-market. Therefore, spending heavily on performance marketing could mean wasting at least half of the budget.
Ritson advises a strategic allocation of resources: half of the budget should target the active 5% with product-led promotions, while the other half should focus on broad, mass marketing. This approach builds brand awareness, ensuring that when consumers are ready to purchase, the brand is top of mind. He argues that personalisation is overhyped, calling it a significant marketing misconception. Instead, Ritson advocates for ‘sophisticated mass marketing’ to build brand recognition.
Startups, according to Ritson, should also consider broad reach strategies. For those with limited budgets, targeting a smaller mass market or an underserved sub-category can be effective. He cites Chobani’s focus on Greek yoghurt as a successful example of this strategy. Ritson also challenges the frequent turnover of advertising campaigns, suggesting that a successful ad can remain effective for years. Companies should invest in strong creative and allocate more budget to media rather than constantly changing their campaigns.
Ritson shares his insights into the evolving role of AI in marketing. While the current focus is on AI-driven advertising, he finds the potential of synthetic data and AI-driven strategy more intriguing. AI’s ability to conduct market research without traditional methods and develop strategic plans could significantly transform marketing practices.
Discussing the future of advertising agencies in light of AI advancements and industry consolidations, Ritson observes that the traditional agency model is under pressure to adapt. With brands increasingly capable of handling marketing internally, agencies must evolve to remain relevant.
Addressing the perceived crisis in marketing education, Ritson criticizes the overly academic focus that neglects practical marketing skills. He emphasizes the need for education that covers diagnosis, research, strategy, and tactical execution, beyond just advertising. Ritson also comments on the potential of marketing talent in India, advocating for greater representation of women in senior marketing roles.
Note: This article is inspired by content from https://brandequity.economictimes.indiatimes.com/news/marketing/forget-personalisation-go-after-everyone-mark-ritson/120950733. It has been rephrased for originality. Images are credited to the original source.