MATT-ROBINSON.UK

Following Boris Johnson’s coronavirus briefing yesterday evening,  the UK’s accelerated roadmap out of lockdown continues to move forward at pace and optimism continues to rise steadfastly. In the service sector, confidence hit a 14-month high in April and last week FEDMA and Marketing Week both buoyed this news with statements on the future of the marketing industry. But just how bright is the future, and how can adopting a data-driven approach ensure any degree of confidence is justified? 

The pandemic has unequivocally caused disruption to the marketing industry, and as Russell Parsons, editor-in-chief of Marketing Week and the Festival of Marketing highlights, “resulted in a retreat to short-term thinking”. But figures released yesterday by the BDO clearly show confidence is mounting as lockdown measures continue to ease. 

The increase of 1.53 points to 99.85, on its latest services optimism index, was boosted by a 1.36-point increase to 99.86 for the service sector, no doubt triggered bythe easing of restrictions on outdoor hospitality and non-essential retail being introduced as planned. This positivity is , as Parsons adds, to “look to the future for themselves and their business,” with greater certainty and assurances. However, for the marketing industry, the path back to pre-lockdown levels continues to prove challenging. 

The IPA (Institute of Practitioners in Advertising) Bellwether report published last month, revealed a further decline in UK budgets in the opening quarter of 2021 across all seven categories, with events perhaps unsurprisingly the hardest hit. Although, more optimistically, the decline in marketing spend did soften for a third consecutive quarter. So, whilst on the surface, the figures might appear grim, with +17.4% of firms expecting their total marketing budgets to increase over the next 12 months, coupled with the decline in spend stabilising, there’s still a lot to be positively pragmatic about. 

When you consider this in tandem with the latest Business Barometer from Lloyds Bank Commercial Banking, which reported business confidence across London jumping to its highest level since January 2020 this April, green shots are clearly visible. It’s hardly surprising then, that marketing experts such as Emma Morris, Head of Investment and Managing Partner at Starcom, are claiming the “recovery process is actually astonishing”.  With Jenny Kirby Managing Director at Group M adding the “promising signs” in the Bellwether report are as Karin Seymour, Client Strategy Director, News UK, put it, “encouraging to see”. 

But what of the future?  Is any success actually assured? As Claire Burgess, Director of Paid Media, Incubeta explains “as restrictions ease, continued investment in digital innovation and a data-driven, multi-channel attribution strategy will be crucial to grab[bing] customers’ attention. And as  Philip Duffield, VP of UK, The Trade Desk adds, it’s only “by utilising smart, data-driven advertising with measurable ROI (return on investment) [that] marketers [can] seize the opportunity to get back on the front foot.” 

That commitment is clearly being felt across Europe too. FEDMA unveiled its new identity and purpose last week, with a renewed focus on data-driven marketing. The Brussels-based body, which represents the interests of the data and marketing industry across Europe transitioned from the Federation of European Direct and Interactive Marketing to the Federation of European Data and Marketing. A subtle change that brings data to the forefront, in a far more prominent way than it was previously. And a move which comes just over five years on from the approval of the General Data Protection Regulation (GDPR), which saw increased scrutiny introduced to the industry around the handling and processing of data in order to protect consumers. A story I am proud to have marshalled to City AM in my years serving as a PR consultant.  

FEDMA claims its new name and identity reflects its renewed focus to balance privacy and innovation to build customer trust and sustainable long-term value across the European data and marketing industry. But for me, it symbolises an acknowledgment of a trend that has been accelerating for some time. By its very nature, marketing is and needs to be data-driven to succeed. From a core understanding of the physical and emotional drivers which motivate and incentivise customers, to the fabric and make-up of the markets within which businesses operate.  These trends and external factors shape and impact the success of any strategy. Without data, it’s impossible to create compelling campaigns that resonate with audiences and deliver commercial and reputational returns.  

FEDMA’s repositioning and pivoting here, signifies its commitment to upholding fairness and standards across every aspect of what data-driven marketing has now become. In doing so, it’s not only cemented its relevance and importance for many years to come, but put the focus firmly on the need to ensure excellence beyond compliance and data protection. To focus on devising, creating, and implementing “data-driven creative”, and ensuring, as Lucy Hinton, Head of Client Operations at Flashtalking says, it is “front of mind, to provide the relevant ads that digital-savvy consumers have come to expect.” 

This forward-thinking approach and focus on innovation is clearly the way forward for the marketing industry to continue to build itself back up in a post-lockdown world. The team at the Festival of Marketing clearly share a similar view. As FEDMA was unveiling its new identity in Brussels, Parsons was making waves in the UK with the launch of ‘Fast Forward’. The digital-only event, taking place from 7th to 10th June, is intended to provide brands with a much-needed perspective on what the future holds for marketers, their teams, and the brands they work for.  

This future-looking approach and positive outlook are precisely what the marketing industry needs. As certainties about the way we live our lives become clearer, so too should our commitment to excellence and the way we approach marketing. Whilst it may be considered a luxury for many businesses, especially during periods of slowdown, its effectiveness and impact are heavily documented. With confidence rising, and normality returning, the forecast is looking pretty bright as we head into summer.