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First, there are cost efficiencies in new platforms due to lack of competition. Second, to borrow a real estate analogy from Tom Martin, those who move into a neighborhood before it’s popular benefit most from any future popularity.
Of course, a preference toward early adoption can give way to shiny object syndrome. It can distract time and budget away from programs that are already proven.
That’s why a dedicated digital R&D budget is so useful. By sequestering a portion of the overall digital budget for experimentation, the brand and agency are empowered to balance new initiatives with proven programs.
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Here, we have a ‘traditional’ marketer managing the digital function (and perhaps several other functions). He relies on his agency to invest resources in research and pitch new ideas. A dedicated R&D budget lets him safely invest in innovation so opportunities aren’t missed out of fear.
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And finally, we have the resource-strapped manager with aversion to risk. The recession has left him and his peers under pressure to defend programs. Of course, ROI is hard to come by early in the R&D process. A budget protects him from sticking his neck out or going up the flagpole on every project.
By creating a dedicated budget for digital R&D, we can benefit equally from new technologies and proven programs regardless of our personality type. How do you create the freedom to experiment in your organization?
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