Podcast Summary: "Why Marketing Effectiveness Feels Impossible with Simon Peel"

Released on July 15, 2025, "The Marketing Architects" podcast delves deep into the intricacies of marketing effectiveness with Simon Peel, Managing Partner at The Other Lot. In this episode, Peel shares his profound insights and experiences from leading global media strategies at Adidas and beyond, offering a research-first perspective on building sustainable revenue through effective marketing practices.

1. Introduction to Simon Peel

00:00 – 01:00

The episode kicks off with Alena Jasper introducing Simon Peel, highlighting his impressive trajectory from VP and Global Head of Media at Adidas to his current role at The Other Lot, a media consultancy that champions innovative approaches to media. Peel is recognized as a vocal advocate for marketing effectiveness, emphasizing long-term brand building over short-term performance metrics.

2. Adidas’ Overinvestment in Digital Marketing

01:37 – 08:55

Alena Jasper opens the discussion by referencing a 2019 Marketing Week article authored by Peel, titled "Adidas: We Over Invested in Digital Advertising." Peel recounts how Adidas, under his leadership, realized that excessive focus on digital and performance marketing—particularly channels like paid search—was not yielding the desired ROI. Instead, econometric modeling revealed that brand activity accounted for a staggering 65% of sales across all channels. This revelation prompted a strategic pivot towards long-term brand building and a more balanced media mix.

“We discovered that brand activity was actually driving 65% of sales across all channels.” – Simon Peel [04:03]

Peel elaborates on the internal resistance faced, particularly from a CEO deeply invested in digital strategies due to their apparent profitability and impact on share prices. The shift towards brand building was not just a strategic necessity but also a battle against entrenched digital-centric mindsets within the company.

3. Challenges in Shifting Marketing Focus

08:55 – 13:16

The conversation delves into the difficulties of convincing stakeholders to prioritize effectiveness over efficiency. Peel explains that vested interests within organizations often hinder the adoption of more effective marketing strategies. He emphasizes the importance of incrementality tests and randomized control trials in demonstrating the true impact of various marketing channels.

“We were trying to convince these teams that actually if you want to drive profitability, that's not the right way to do it.” – Simon Peel [04:45]

Peel shares how Adidas conducted extensive testing, which consistently showed that retargeting efforts lacked incrementality, thereby eroding brand value instead of enhancing it. This realization was pivotal in advocating for a more balanced approach that includes significant investment in brand-building activities.

4. Adoption of Marketing Theories in the US vs. Europe

13:16 – 15:09

Peel discusses the varying adoption rates of marketing effectiveness theories between the US and Europe. While Europe had embraced these concepts a decade earlier, the US market remained reluctant to change due to its deep-rooted belief in precision advertising and personalization at scale.

“The US was much more reluctant because of this fashion that was happening at the time, arguably still happening...” – Simon Peel [13:32]

However, Peel notes a gradual shift in the US as more marketers recognize the limitations of traditional attribution models and the value of long-term brand investment, signaling a potential tipping point in marketing effectiveness paradigms.

5. Measuring Marketing Effectiveness

22:52 – 25:24

A significant portion of the discussion focuses on measurement frameworks essential for demonstrating marketing effectiveness. Peel outlines a tripartite approach:

1. Econometric Modeling: Utilizes multivariable regression to analyze the impact of various marketing activities.
2. Randomized Control Tests: Employs holdout groups to measure incremental uplift from specific marketing efforts.
3. Attribution Modeling: Assesses the performance of different marketing channels and creative strategies.

“The key components of how to measure the effectiveness of advertising ... econometrics, randomized control tests and attribution modeling.” – Simon Peel [25:02]

Peel asserts that combining these methodologies provides a comprehensive understanding of both short-term and long-term marketing impacts, enabling more informed strategic decisions.

6. The Role of AI in Marketing: A Contrarian Perspective

30:13 – 33:32

Peel shifts the conversation towards the burgeoning role of Artificial Intelligence (AI) in marketing. He expresses concerns over the opacity in media buying, where middlemen and lack of transparency lead to inflated costs and poor inventory quality. According to Peel, AI, while transformative, risks perpetuating inefficiencies unless marketers are vigilant about understanding underlying processes and maintaining transparency.

“AI is brilliant. It's really playful, it's fun, it's scary... but we are going to be encumbered by media industry opacity.” – Simon Peel [30:20]

He warns that without proper oversight, AI could exacerbate existing issues in the advertising ecosystem, leading to diminished effectiveness and increased costs for advertisers.

7. Introducing The Other Lot Media Consultancy

28:56 – 35:24

Peel introduces The Other Lot, outlining its mission to help advertisers, agencies, and publishers navigate the complex media landscape. The consultancy aims to provide transparency and competitive advantage by adhering to principles of effective marketing and mitigating the negative impacts of opaque media practices.

“If you want to go on a different journey, if you want to get more money, if you want to grow your brand, then maybe think about a different type of consultancy and come and talk to us.” – Simon Peel [30:56]

The Other Lot positions itself as a counterforce to traditional media consultancies, advocating for data-driven strategies and robust measurement frameworks to ensure marketing investments yield meaningful returns.

8. Light Buyers vs. Brand Loyalty

25:55 – 28:39

Peel challenges the conventional wisdom surrounding brand loyalty, presenting data that contradicts the notion of a loyal consumer base. At Adidas and Halion, his teams found that light buyers—those who purchase infrequently—constituted 70-80% of both buyers and revenue. This insight underscores the importance of targeting and engaging light buyers to drive growth, rather than solely focusing on nurturing existing loyal customers.

“70 to 80% of purchase also came from light buyers. People that bought product for the first time that year.” – Simon Peel [28:39]

This revelation aligns with the principles advocated by the Byron Sharp and the Ehrenberg-Bass Institute, emphasizing the significance of broad reach and acquisition over retention in most market contexts.

9. Personal Anecdotes and Final Thoughts

35:24 – 38:35

The episode concludes on a lighter note with personal anecdotes. Peel passionately defends his love for lime pickle, humorously highlighting the often-overlooked pleasures in life. This segment adds a personal touch, showcasing Peel's relatable and approachable personality.

“I would be prepared to go into bat for it and I fight for it at home.” – Simon Peel [35:40]

Alena Jasper shares her own affinity for unconventional food pairings, further humanizing the conversation and providing a memorable close to a deep dive into marketing effectiveness.

10. Connecting with Simon Peel and The Other Lot

38:22 – 38:35

In the final moments, Peel directs listeners to The Other Lot’s website and LinkedIn page for more information, encouraging those interested in transforming their marketing strategies to reach out.

“You can find us on LinkedIn as well. We just started on there, but yeah, the website is probably the best place to find us.” – Simon Peel [38:22]

Key Takeaways:

• Prioritize Effectiveness Over Efficiency: Long-term brand building often yields more sustainable revenue compared to aggressive short-term performance marketing.

• Robust Measurement Frameworks: Utilize econometric modeling, randomized control tests, and attribution modeling to comprehensively assess marketing effectiveness.

• Embrace Transparency in Media Buying: Be wary of opaque practices in media purchasing, especially with the integration of AI, to ensure investment efficacy.

• Focus on Light Buyers: Targeting and engaging infrequent buyers can drive significant growth, challenging the traditional focus on brand loyalty.

• Adapt and Evolve: The US market is gradually shifting towards more effective marketing paradigms, aligning with practices long embraced in Europe and Australia.

This episode serves as a compelling guide for marketers seeking to navigate the complexities of modern marketing, advocating for research-backed strategies and a balanced approach to both short-term gains and long-term brand health.