Marketing effectiveness requires striking the right balance between close targeting and mass reach, and between short and long-term strategies, according to Warc, the global marketing intelligence service, in its trend report Toolkit 2017 in association with Deloitte Digital.

Head of content at Warc, David Tiltman says, “The decision by Procter & Gamble last year to cut back on targeted advertising on Facebook has led to an ‘intellectual battle’ with media owners – both traditional and digital – engaged in a race to prove how effective their channels are in driving business outcomes, and how best to combine channels.”

“The big-picture issue is close targeting (particularly via digital channels) versus mass reach – and a number of FMCG brands have concluded that a renewed focus on reach will drive sales growth. With budgets under ongoing pressure, more studies along these lines can be expected in 2017,” continued Tiltman.

Key insights identified in Warc’s Toolkit 2017 on ‘Effectiveness in the Digital Age’ that will impact marketers are:

– Major FMCG advertisers are pulling back from granular targeting

– Short-termism weakens links between creativity and effectiveness

– Digital platforms are making TV more effective

– Digital has a ‘reach ceiling’ and is most effective supporting TV

– Mainstream channels are fighting back in the effectiveness ‘arms race’

– Social sites are starting to focus on business outcomes