MediaLab

IPA Report: Scale Matters More Than Efficiency

An IPA report by marketing effectiveness expert Les Binet and Will Davis (Chief Data Officer and Co‑Owner, Medialab) argues that the primary driver of marketing effectiveness is budget scale relative to brand size rather than pure ROI efficiency. Based on a survey of 500 senior marketers and analysis of IPA Databank campaigns, the authors find ROI explains about 11% of profit variation while budget explains 89%. The report warns that pushes for efficiency, tight targeting, and narrow media mixes have reduced incremental profit and harmed long‑term growth. It recommends brands set Advertising-to-Sales ratios above category averages, increase Share of Voice above market share, use broader reach and more channels (including linear TV and online video), and avoid underinvestment driven by crude budget‑setting practices.

Domestic Broadcasters' Role Threatened by Big Tech, Says Medialab

In a Buy-Side View interview, Jon Manning, Director of Advanced TV at Medialab, warns that Big Tech-backed video services risk diluting domestic broadcasters' influence on cultural identity. Manning discusses the collision of two video worlds — digital-native online video and traditional BVOD/AVOD — and calls for a common language and universally agreed metrics for CTV and video advertising. He highlights the rise of programmatic and addressable TV, growing deterministic attribution in CTV, and the operational advantages of Medialab’s proprietary platform Apollo. Manning also points to industry responses including collaboration and consolidation (citing potential deals such as Sky/ITV and wider content-market moves) and notes broadcasters increasingly make inventory available via programmatic channels (e.g., DV360) or partner with platforms like YouTube.

Kik CEO Champions Brick-and-Mortar Growth Amidst Competition

In an OMR Podcast interview Kik CEO Patrick Zahn outlined the German discount retailer’s continued emphasis on brick-and-mortar growth, cost-led pricing and low-cost operations to enable very cheap apparel. Under Zahn’s leadership since 2016, Kik’s revenue rose from roughly €2bn to about €3.2bn and its store network expanded to ~4,200 locations with a plan to reach 5,000. Zahn said the company targets selling a complete outfit for €30 and keeps item prices low by avoiding expensive marketing, prime locations and high-cost store fit-outs. He argued physical stores are central to Kik’s economics, criticised platform players (Shein, Temu) for competitive distortions, and highlighted the role of store managers and specific high-turn items for the business.