How Does Marketing’s Long-Term Decay Rates Impact Strategy?

Updated on July 18, 2024
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A dollar today is always worth more than a dollar tomorrow.  This statement is not just true as it pertains to everyday spending, but to marketing investments as well.

What are long-term decay rates?

Marketing’s long-term decay rates refers to the gradual decline in the effectiveness or impact of a marketing campaign or strategy over an extended period. Marketing effectiveness can experience diminishing returns over time due to factors such as increased competition, changes in consumer preferences, and new technologies — just to name a few. These types of changes might lead to a situation where a brand’s marketing plan or campaign that was initially successful gradually becomes less effective over time.

To address potential long-term decay in marketing effectiveness, marketers often employ strategies such as:

Monitoring performance: By regularly tracking the marketing performance and analyzing data, marketers can identify trends that could indicate diminishing returns.

Adapting: Adjusting marketing strategies and tactics to stay aligned with changing market dynamics such as consumer behaviors, competitive landscapes and other external factors like supply chain issues.

Innovating: Introducing new elements including updated messaging or creative approaches to keep the marketing content engaging and relevant to the target audience.

Multi-channel approach: To maintain visibility, diversifying marketing efforts across various channels to reach customers through different touchpoints.

For a majority of brands, Keen would recommend a continuous marketing strategy.  In a recent Keen study that compared ROI on linear TV, we found that an “always on” strategy saw an ROI of $2.89 compared to a 4-week flight schedule which saw an ROI of $2.67 or a 2-week flight schedule which saw an ROI of $2.64. 

Additionally, digital shelf spend tends to require continuous spend, not being in a consistent placement can dramatically impact sale opportunities due to the volume of traffic on online marketplaces.  The long-term impact of marketing allows brands to build equity and create more value with consistent activity.

Show the long-term effectiveness of marketing

It is important for marketers to be fluid and create a plan that is adaptive to changes and have a tool that can show the long term and marketing decay effects of their decisions and when they reach the point of diminishing returns on their marketing investments.

With Keen, marketing, finance, sales and agency partners now can share one clear view of the marketing plan, anticipated revenues, long term profitability and a clear understanding of long term decay rates for all marketing activity.  Keen’s scenario planning feature creates transparency on progress week-to-week as the plan unfolds and can adapt to changes in the market as conditions shift to stay on track—or even exceed expectations. The result of this is increased cross functional collaboration, coordination, and confidence.

Keen to learn how we can help make marketing decisions to best support your company’s goals?  Take a tour of the Keen Platform today.

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