Econometrics is the new Cookies

Plus, 📊 Shifting Trends in Social Media Usage

July 08, 2024


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ECONOMETRICS REPLACE COOKIES

📉 Marketers Turn to Econometrics as Cookies Disappear
Insights from Econsultancy

As third-party cookies face an uncertain future, marketers are increasingly looking to econometrics to measure campaign effectiveness, according to Marketing Week’s annual ‘The Language of Effectiveness’ report, supported by Kantar.

In Short:

  • Econometrics, or media mix modeling (MMM), is a statistical method used to assess the impact of various marketing activities by accounting for all influencing factors. It helps marketers understand the sales impact of different channels, like TV ad spend, once all variables are considered.

  • Interest in econometrics has surged significantly. In 2023, 18.8% of marketers reported not using or considering econometrics. This number dropped to just 6% in 2024. Meanwhile, those considering but not yet using econometrics increased from 27.4% in 2023 to 44.7% in 2024. The proportion of marketers using econometrics rose from 40.9% to 45.9%.

  • Despite this interest, less than half of marketers are using econometrics due to its high cost, making it viable mainly for brands with substantial budgets. In 2024, 31.6% of businesses cut their overall marketing budgets, up from 21.6% in 2023, which may explain the hesitancy to fully adopt this approach.

  • Jessica Myers, Chief Customer Officer at The Very Group, emphasized the importance of alternative attribution models based on first-party data as third-party cookies phase out. She pointed out that combining various models, including econometrics, provides a comprehensive understanding of campaign effectiveness.

As the phase-out of third-party cookies approaches, marketers need reliable methods like econometrics to measure campaign effectiveness. This shift underscores the need for comprehensive and integrated approaches to marketing attribution in a rapidly evolving digital landscape.

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SOCIAL MEDIA USAGE

📊 Changes in Social Media Preferences
Insights from Search Engine Journal

What’s Up? A recent Consumer Pulse survey by Sprout Social reveals notable changes in social media usage, significantly affecting brands.

The Breakdown:

Instagram has surpassed Facebook as the top social media platform, with 65% of respondents using Instagram compared to 64% on Facebook. This survey involved 1,009 US and 1,050 UK consumers who follow at least five brands on social media, providing a useful yet somewhat skewed perspective.

45% of consumers have taken a “social media detox” in the last six months, with 51% planning to do so in the next six months, suggesting a growing need for breaks from social media for mental health reasons.

  • Content Preferences: Consumers are most entertained by “edutainment” (65.5%), memes (40%), serialized content (38%), one-off video skits (38%), and interactive content like polls and stickers (34%). High production value remains essential for engagement.

  • AI-Generated Content: A majority of consumers believe AI-generated content should be disclosed, with 33% thinking brands should be responsible and 29% believing social networks should handle it. Additionally, 46% are less likely to buy from brands using AI-generated content, and 83% think AI will further flood their social feeds.

  • Unfollowing Trends: 43% of consumers are likely to unfollow brands with unoriginal content strategies, and 42% will unfollow brands working with misaligned influencers. Posting frequency also affects unfollowing behavior, with younger consumers more likely to unfollow for infrequent posting and older consumers for excessive posting.

These insights can help brands refine their strategies to better connect with their audiences, emphasizing the importance of high-quality, shareable content and transparency about AI-generated posts to boost their social media impact.


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