One of the more fun lessons I have taught in marketing classes as a guest lecturer is a play on the old philosophical question, “If a tree falls and no one is there to hear it, does it make a sound?”
It is not the answer, but how one arrives at the answer that is intriguing, and what is ultimately important. In Marketing, the answer is simple – who cares? If no one is there, it was simply, wasted media. At E5A, we take this answer a step further and say, if our intended target audience is not there, we still don’t care, it is wasted energy in messaging and wasted dollars in media.
Most funds are seeking the attention of a variety of investors and their advisors. From institutions to mass affluent investors, from hedge funds to ETFs to Mutual to UITs, the right audience, with the right message is what counts. Even with advisors, are we seeking institutional consultants for institutions and Family Offices, Financial Advisors, or wirehouse research analysts?
The question of targeting the right audience is a larger question than what meets the eye. Before founding E5A I consulted with an agency that measured success in terms of “impressions and clicks” or how many people saw and clicked on the ads. This may seem logical to the uninitiated. After all, their media agency selected targeted publications with many annual visitors that match the target audience. To the digitally initiated, we say “Really?” Do you really know who saw your ad in what context and had what reaction? How much spillage (individuals going to advisor and institutional sites, teens surfing financial sites, others not qualified or interested, etc.) and how much waste is there? What is the real measure of ROI and success? How does showing the ad to the wrong audience effect the brand?
Of course, messaging plays just as critical of a role. The right message may be seen by the wrong people, having a negative impact or posting poor performance to the campaign. How many new assets does it take to pay for nuancing the ad by audience? That is the real question.
What is the ROI and brand impact? Generally the nuanced message in the precision audience will far outperform the general message to everybody.
For managers, Funds, and distribution teams, finding the right partner that understands their business, brand, messaging and targeting is the road to stronger growth, higher asset levels, and long-term success.