Omer Shai: Time return on investment is key for marketing success | 20VC

Key takeaways

• Time return on investment is crucial for growth leaders, focusing on maximizing efficiency in marketing efforts.
• Granular oversight is essential in managing large marketing budgets effectively.
• Balancing brand and acquisition marketing leads to more successful strategies.
• Super Bowl advertising offers massive reach and cultural impact, making it a valuable investment.
• Measuring the impact of Super Bowl ads requires strategic planning and understanding of user behavior.
• Marketing should be viewed as an investment with a focus on user engagement as a return.
• Securing a Super Bowl ad spot involves additional financial commitments to the network.
• A balance between performance marketing and brand marketing is vital for resource allocation.
• Lifetime value is considered a flawed metric in today’s fast-paced market environment.
• Time to return on investment is a more relevant metric than lifetime value for evaluating marketing success.
• Marketing strategies need to adapt to rapidly changing markets and consumer behaviors.
• Understanding the cultural significance of major events can enhance marketing effectiveness.

Guest intro

Omer Shai serves as Chief Marketing Officer at Wix, leading a team of over 400 people responsible for the company’s global online and offline marketing activity. Under his leadership, Wix has achieved approximately 3 million new users every month and executed hundreds of worldwide campaigns, including 5 Super Bowl commercials. He pioneered Time Return On Investment (TROI) as the key metric to replace LTV, enabling aggressive budget scaling for growth.

The importance of time return on investment

• Time return on investment is prioritized by growth leaders to enhance marketing efficiency.

• Time return on investment is the most important metric for growth leaders today

  — Omer Shai

• This metric guides strategic decisions in marketing to optimize time and resources.
• It reflects a shift towards more immediate and measurable outcomes in marketing strategies.
• Understanding this metric can lead to more effective marketing campaigns.
• It emphasizes the need for quick adaptability in marketing efforts.
• The focus on time efficiency aligns with the fast-paced nature of digital marketing.
• This approach can lead to significant improvements in marketing ROI.

Managing large marketing budgets

• Granular oversight is crucial in managing substantial marketing budgets effectively.

• Managing a marketing budget requires granular oversight

  — Omer Shai

• Detailed management ensures optimal allocation of resources in marketing campaigns.
• It allows for precise tracking of marketing expenditures and outcomes.
• This approach helps in identifying areas for cost-saving and efficiency.
• Granular management supports better decision-making in marketing investments.
• It aligns with the need for accountability and transparency in budget management.
• Effective budget management can lead to more successful marketing outcomes.

Balancing brand and acquisition marketing

• A strategic balance between brand and acquisition marketing is essential for success.

• Brand marketing and acquisition marketing should be balanced for effective strategy

  — Omer Shai

• Integrating both strategies enhances overall marketing effectiveness.
• This balance ensures that brand-building efforts support acquisition goals.
• It allows for a comprehensive approach to reaching and engaging target audiences.
• A balanced strategy can lead to more sustainable growth in user acquisition.
• Understanding this balance is crucial for optimizing marketing investments.
• It reflects a holistic approach to marketing that considers long-term brand value.

The value of Super Bowl advertising

• Super Bowl advertising offers unparalleled reach and cultural impact.

• Super Bowl advertising is a valuable investment due to its massive reach and cultural impact

  — Omer Shai

• The event generates significant conversation and brand visibility.
• It provides a unique platform for brands to engage with a wide audience.
• The cultural significance of the Super Bowl enhances the impact of advertising.
• Strategic planning is required to maximize the benefits of Super Bowl ads.
• This includes pre-event marketing activities to boost engagement.
• Understanding the value of Super Bowl advertising can lead to more effective campaigns.

Measuring the impact of Super Bowl ads

• Measuring the impact of Super Bowl ads requires a strategic approach.

• The Super Bowl can create significant spikes in user acquisition, but measuring its impact requires a strategic approach

  — Omer Shai

• It’s important to consider both immediate and long-term effects of the ads.
• Pre-event marketing activities can enhance the overall impact.
• A comprehensive measurement strategy can provide valuable insights.
• Understanding user behavior around the event is crucial for measurement.
• This approach allows for more accurate evaluation of marketing success.
• Effective measurement can inform future marketing strategies.

Marketing as an investment

• Marketing should be viewed as an investment rather than a spend.

• Marketing should be viewed as an investment rather than a spend, focusing on the return in terms of user engagement

  — Omer Shai

• The focus should be on measurable outcomes and user engagement.
• This perspective aligns with the need for accountability in marketing.
• Viewing marketing as an investment supports strategic decision-making.
• It emphasizes the importance of ROI in marketing efforts.
• This approach can lead to more effective allocation of marketing resources.
• Understanding marketing as an investment can enhance overall business success.

Financial dynamics of Super Bowl advertising

• Investing in a Super Bowl commercial involves additional financial commitments.

• Investing in a Super Bowl commercial requires a commitment to additional spending on the network

  — Omer Shai

• Understanding these dynamics is crucial for strategic planning.
• The financial strategy behind securing ad spots is complex.
• It involves co-spending commitments with the network.
• This understanding can inform better decision-making in advertising investments.
• The financial dynamics reflect the high stakes of Super Bowl advertising.
• Effective planning can maximize the return on these investments.

Balancing performance and brand marketing

• A balance between performance marketing and brand marketing is essential.

• There should be a balance between performance marketing and brand marketing

  — Omer Shai

• This balance ensures that both short-term and long-term goals are met.
• It supports a comprehensive approach to marketing strategy.
• Understanding this balance can lead to more effective resource allocation.
• It reflects a strategic viewpoint on optimizing marketing efforts.
• A balanced approach can enhance overall marketing effectiveness.
• This strategy aligns with the need for sustainable growth in marketing.

Critique of lifetime value as a metric

• The concept of lifetime value is considered flawed in today’s market.

• The concept of lifetime value (LTV) is flawed and not practical in today’s fast-paced technology landscape

  — Omer Shai

• It fails to account for the dynamic nature of consumer behavior.
• The metric is seen as outdated and not reflective of current market realities.
• Understanding this critique can lead to more relevant measures of success.
• It highlights the need for more adaptable metrics in marketing.
• This perspective aligns with the fast-paced nature of digital markets.
• A shift away from LTV can enhance marketing strategy effectiveness.

Time to return on investment as a metric

• Time to return on investment is a more relevant metric than lifetime value.

• Instead of using lifetime value, I focus on time to return on investment (TRI) as a more relevant metric

  — Omer Shai

• This metric provides a clearer measure of marketing success.
• It aligns with the need for immediate and measurable outcomes.
• Understanding TRI can lead to more effective marketing strategies.
• It reflects a strategic shift towards more relevant measures of success.
• This approach can enhance adaptability in marketing efforts.
• TRI supports a focus on efficiency and effectiveness in marketing.