The long and the short of it 10 rules for effective advertising Les Binet Head of Effectiveness adam&eve DDB

Our previous research “A formidable piece of scholarship and obligatory reading for any serious marketer” – Simon Marquis, The Guardian

“A really compelling analysis that every marketing and ad executive should read” – Roderick White, Editor, Admap

“Great to read some balanced good sense for a change” – Tess Alps, Thinkbox

Our new research • What are the ingredients of effectiveness? – over the short term? – over the long term? • Method: meta-analysis of IPA Databank of effectiveness cases: – 996 campaigns – 700 brands – 83 categories • Compare effects of strategies over short & long term.

10 key principles • • • • • • • • • •

Support volume and price. Build sales and saleability. Talk to all your prospects. Balance head and heart. Creativity increases efficiency... …but share of voice still matters. Aim for fame. Integrate brand and activation channels Balance brand and activation SOV. Measure the right things.

% Reporting very large profit gains

1) Support volume and price 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Big payback comes from long term increases in volume and price

Volume effects can be immediate (activation) or slow build (brand)

Neither

Price effects more profitable, but take longer (brand)

sales/share only price only Very large improvements reported in…

both

2) Build sales and saleability Annualised ESOV Efficiency

0.8

Direct campaigns

Brand campaigns

0.7 0.6 0.5

0.4 0.3

0.2 0.1

0.0 Source: Binet & Field 2013

1-2 years

3+ years

3) Talk to all your prospects Long term

Broad effects, big paybacks

Brand building

Long term prospects Immediate prospects

Short term Source: Binet & Field 2013

Customer base Narrower effects, smaller paybacks

Sales activation

Talk to everyone in the market 7

3 Total number of very large effects

Annualised ESOV efficiency

2.5

6

2

5 4

1.5

3

1

2 0.5

1 0

0 Target existing customers

Target new customers

Target whole market

Annualised ESOV efficiency

Total number of very large effects

8

4) Balance head & heart Short term behavioural responses

Long term brand preferences

System 2

Rational product & pricing messages

System 1

Emotional brand associations Source: Binet & Field 2013

Sales uplift over base

Effect of a single exposure Rational messaging Big direct effect, but decays quickly.

Emotional priming Smaller effect on all metrics.

Time Source: Binet & Field 2013

Effect of a multiple exposures

Sales uplift over base

Rational messaging Short term sales uplifts, but Brand perceptions unchanged. No long term increase in sales

Emotional priming Brand grows stronger, leading to long term volume increase and reduced price sensitivity

Source: Binet & Field 2013

Time

5) Creativity increases efficiency… Annualised ESOV efficiency

3.0 2.5 2.0 1.5 1.0 0.5 0.0

Creatively awarded

Not creatively awarded

6) …but scale still matters 12%

Equilibrium: SOV = SOM

Share of voice

10% SOV > SOM: brands tend to grow

8% 6% 4%

SOV < SOM: brands tend to shrink

2% 0% 0%

2%

4%

6% Share of market

8%

10%

12%

7) Aim for fame 1.6

Annualised ESOV efficiency

1.4 1.2 1.0 0.8 0.6 0.4

0.2 0.0

Fame campaigns

Other campaigns

8) Integrate brand and activation Brand channels only

Brand + Activation

Activation channels only

Brand effects

1.2

1.6

0.5

Business effects

1.3

1.5

0.7

ESOV efficiency

0.3

0.6

-

Integration can double efficiency

Brand & activation channels Brand

Broad reach Emotive

Activation

Targeted close to point of purchase Information rich Responsive

9) Balance brand and activation SOV TV (inc. sponsorship)

27%

Press - display

17%

Online - display

Brand channels: 61%

7%

Outdoor & Transport

5%

Radio (inc. branded content)

3%

Cinema

1%

Online - search

17%

Direct marketing

11%

Press - classified

7%

Online - classified

5% 0%

5%

Activation channels: 39%

10% 15% 20% 25% 30% % UK media expenditure, 2011

35%

40%

The 60:40 rule 10 Number of very large effects

9 8 7 Optimum: ~40%

6 5 4 3 2 1 0 0%

10%

20%

30% 40% 50% 60% Activation share of budget

70%

80%

90%

100%

The media landscape is changing… 100% 90%

Television

80% Outdoor & transport Radio

Cinema

60%

Press - display

50%

Online - display

40% Direct marketing

30% 20%

Online - search

10%

Online - classified 2011

2010

2009

2008

2007

2006

2005

2003

2002

2001

0%

2004

Press - classified 2000

% Spend

70%

Source: Binet & Field 2013

…but the 60:40 rule has not changed. 100% 90% 80% Brand building channels

60% 50% 40% 30% 20%

Sales activation channels

10%

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

0% 2000

% Spend

70%

Source: Binet & Field 2013

10) Measure the right things 50%

Very large direct effects

40%

35%

Very large profits

30% 25%

30%

20%

20%

15% 10%

10%

5% 0% Rational

Combined Emotional

0% Rational

Combined Emotional

Warning: short term metrics can be misleading!

The long and the short of it balancing the short and long term effects of marketing

www.ipa.co.uk/page/business-thought-leadership

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