On any given Sunday, those individuals tasked with critical decision making for billion-dollar NFL franchises make decisions based largely on instinct and historical behaviors. Is your business doing the same?
The average NFL franchise is worth $1.17 billion dollars, according to Forbes magazine. At least one-quarter of all NFL head coaches are paid $6 million annually.
Yet, on any given Sunday, those individuals tasked with critical decision making for these billion-dollar companies make decisions based largely on instinct and historical behaviors. Often, those decisions are not only wrong in their rational basis, but they are absolved by fans and media types who don't understand the mathematical implications.
Take Andy Reid, for example. Reid is the head coach of the Kansas City Chiefs and will make $7.5 million this year; his team currently sits at 9-1 after suffering their first loss this past weekend. Clearly, Reid is doing something right with the Chiefs, but on Sunday he exhibited the kind of decision making that permeates business (and not just football's business).
In the fourth quarter, with his Chiefs trailing the powerful Denver Broncos and Peyton Manning by fourteen points, Reid faced the decision of the game. His team had a fourth down and seven yards to go. They were inside Denver territory and needed to score twice, without the Broncos scoring again to have a shot at a victory. Reid chose to punt and play defense.
The win probability for the Chiefs following that punt went to 0.2 percent. Translation: GAME OVER
Two plays earlier, the Chiefs were sitting with a 3 percent chance of winning, which means the odds were stacked against them, but they still had the proverbial shot. After the punt, the Broncos moved down the field and kicked a field goal to make it a three possession game. The Chiefs would eventually score a touchdown to make it a ten point game, but even after that score, their odds of winning were still worse than when they chose to punt.
Reid made the "by the book" move and it sealed his team's fate. It's possible a series of fluke or unexpected plays could have happened and the Chiefs might have won, but that's not what win probability and analytical decision making relies on. It is based on using data to make inform decisions.
If a man making $7.5 million in charge of the day-to-day decisions for a billion dollar franchise can be so poorly informed, what can it say about your own business?
It's safe to say there is no one making day-to-day media decisions making upper-seven figures. The individuals making media partner selections, negotiating rates and optimizing campaigns have as much data as Andy Reid did on Sunday night for their own choices. Yet, are they doing it any better? Andy Reid did what football people do. He punted.
Do the people you employ, both directly and through agencies (or even on the media partner side) do the same? Or do they evaluate risk, assess opportunity and make the tough calls based on informed statistical analysis?
All business is big to those involved in it and as such, the decisions made at any given time have ongoing implications. How you make decisions, the data used versus the reliance on gut and "the way it's always been done," may be the difference between winning and losing.
On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!
Chris Copeland is chief executive officer of GroupM Next, the forward-looking media innovation unit of GroupM. Chris is responsible for curating and communicating insight-focused media solutions across established and emerging platforms. Leveraging his multi-year experience with emerging media companies, Chris is tasked with stewarding GroupM Next in partnership with agency leadership from GroupM's four media marketing and marketing service agencies (Maxus, MEC, MediaCom, and Mindshare). The focus is participating with those companies leading changes that most impact consumer media consumption, brand favorability, and purchase behavior.
Guiding the Predictive Insights, Technology, Research, and Communications teams at GroupM Next, Chris is responsible for overseeing the amplification of insights into opportunities that directly benefit the business of GroupM agencies and their clients. GroupM is the world's largest media investment management group and the media holding arm of WPP. Together, GroupM agencies represent almost $30 billion in overall North American billings (RECMA).
Chris helped guide the development of GroupM Next, which was established to deliver the best thinking and new insights from within the GroupM community. The unit also focuses on technology innovation connecting all media channels, but especially, online, social, mobile, and addressable.
Chris was selected to lead GroupM Next after nine years of leading the search marketing practice within GroupM. Among his accomplishments are the development and integration of the global search marketing offering for GroupM agencies, GroupM Search, which managed $1.3 billion in search billings globally and grew to more than 1,000 search marketing strategists serving 40 countries. In 2009, Chris created the research division of GroupM Search and developed research studies that deepened the understanding of consumer behavior across search and social media for leading brands and garnered global traction - most notably: The Influenced: Social Media, Search, and the Interplay of Consideration and Consumption; The Virtuous Circle: The Role of Social Media in the Purchase Pathway;and From Intent to In-Store: Search's Role in the New Retail Shopper Profile.
Chris entered the digital industry in 1996 when he joined search marketing agency WGI (later acquired by Tempus Group). He has been with the WPP and GroupM family of companies since 2000 when, recognizing search as an emerging media channel with incredible potential for brands, WPP acquired Tempus Group and CIA, and ultimately rebranded the search marketing agency as Outrider. As senior partner and managing director of Outrider, Chris delivered on GroupM's vision for the channel, leading the organization to 500 percent growth with global presence over five years, and establishing award-winning search marketing strategies that have become industry-wide best practices. In 2002, Chris successfully implemented the integration of search into the cross-channel media planning process at MEC, creating the first search marketing practice to sit within a media communications and planning company. In 2007, he guided the business expansion of search marketing practices into all GroupM agencies. In 2009, Chris was named CEO of GroupM Search, where he was responsible for driving global search strategy for the organization, while fostering the innovative application of search as an integrated channel. In his role, Chris also provided digital strategy counsel for clients, including AT&T, Dell, Audi, Volkswagen, and more.
Chris is an active member on advisory boards at the 4A's, Google, Yahoo, MSN, and I-COM. He is a frequent speaker in global forums discussing the digital marketplace and how the space is evolving, and serves as a regular resource to national and industry press. Chris contributes editorial commentary regularly to Advertising Age, ClickZ, MediaPost, and MediaBizBloggers.com. In fall 2013, Chris was honored as an inductee into the ClickZ Digital Hall of Fame.
Hong Kong, May 5-6, 2015
Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
May 6, 2015
12:00pm ET/9:00am PT