No results for your search, please try with something else. These glaring examples forced us to reflect on the lessons for growth marketers when it comes to Performance Marketing. Regulation & Uber, Airbnb & Nest Today’s disruptive innovators may believe they belong outside traditional regulation. They don’t, and we’ll be better off for it, writes Prof. Kevin Werbach. Why Uber is Using Surprising Psychological Experiments to Motivate its Drivers Wharton professors Peter Cappelli and Iwan Barankay examine the behavioral economics used by the ride-hailing giant and other companies.
For any particular person you only need to show them so many ads to maintain awareness. P&G, Unilever, Cocacola, etc have never, not once in history, had a gung-ho C level exec who said “Screw it, I’m going to find out if our advertising works”. And then either found it works and kept spending, or found out it doesn’t work and saved literally billions of dollars. Also, all those marketing execs buying all the ads would be out of a job too, so they aren’t speak up either. The only people who could run the experiments hinge their entire career and industry on the results.
I can remember one of the first clients I worked with trying to back me into a corner as to how this could possibly work for her business. Essentially, she wanted me to re-sell her the idea of paid search marketing… It was our second call… I wasn’t about to go into a sales pitch (the result would be a lot of um’s, uh’s, wells – I’m not a sales person). A lot of the time, growth is wrongly attributed to marketing spending which leads to an incorrect marketing ROI, as we clearly saw in the Uber fraud detection case. This is because organizations work in silos and there is no way to collate all the activities and events happening in different parts of the organization. For example – an ad campaign can increase traffic on the website – but result in decreased sales – due to poor site performance driven by high traffic.
For many performance marketers, the idea of how deeply their budgets are being affected by online ad fraud is still a mystery and for those aware, finding the evidence or what to do when they have it presents another set of challenges. Back in early 2020, Kevin Frisch, the former head of performance marketing and CRM at Uber, told the tale of how ad fraud ate at least $100 million of Uber’s $150 million online ad budget. As a result, Uber Eats was able to reach 10% more people than they would have without a unified approach. By passing on unnecessary impressions, Uber also limited budget waste. In fact, they saved and reinvested the equivalent of 150% of their platform fees. Search Ads 360 Get real-time data and unified insights for your search campaigns.
Also it’s a bit strange for a well-respected Uber guy to go to Intuit – it’s not a common career path. In short, smart people have already thought about these issues, and there isn’t any inherent pro-advertising bias in industry, rather the opposite. Or you can do the equivalent of an excess mortality study but for client acquisition or product sales.
The ride-hailing platform offers ‘Sponsored Listings’ across Uber Eats to get brands ahead of the competition and capture the attention of the consumers. The company introduced ‘Uber Journey Ads’, an entertaining method for businesses to engage customers. Corona is using its iconic bottle to create a simple, new ritual that encourages hydrating while drinking at a local pub. When consumers return an empty Corona bottle to their server, they get it back filled with water, along with their next beer. After a successful test in Colombia, the #ReWater campaign is set to launch in select markets worldwide this year.
Uber’s mistake isn’t that advertising didn’t work, but rather that they didn’t vet their vendors or even bother doing any checking and optimization of their own. This doesn’t show that truth be told piano sheet music advertising doesn’t work per se, it shows that eBay didn’t hire a competent ad buyer. Whether or not you can prove the efficacy of advertising as a whole, this is not a valid approach.