Marketing consultant Peter Field talks about maximising campaign efficiency in advertising using key learnings from the treasure trove of knowledge that is the IPA Effectiveness Databank. This presentation was shown at the IPA's Performance Adaptathon in London on 8th July 2014. Find out more at http://www.ipa.co.uk/effectiveness and join in the conversation on Twitter using #IPAEff.
2. • Analysis of 996 IPA cases
over 30 years.
• Covers 700 brands in 83
categories.
• Identifies the ingredients
for effectiveness, over the
short and long term.
• “Effectiveness” measured in
hard business terms.
3. “Long-term results cannot be achieved by
piling short-term results on short-term
results.”
Peter Drucker, 1993
4. This presentation
• 5 drivers of efficiency
• 5 implications for performance measurement
5. What do we mean by efficiency?
0%
2%
4%
6%
8%
10%
12%
0% 2% 4% 6% 8% 10% 12%
Shareofvoice
Share of market
SOV > SOM: brands tend to grow
SOV < SOM: brands tend to shrink
Equilibrium: SOV = SOM
6. 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-20% 0% 20% 40% 60% 80% 100%
AnnualMarketShareGain
ESOV (SOV minus SOM)
What do we mean by efficiency?
Share growth α 0.04 x ESOV
Above average
Below average
Growth
Investment
18. Volume is not enough
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Neither Sales/share only Price only Both
Profiteffect
Improvements reported in…
19. Volume is not enough
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Neither Sales/share only Price only Both
ESOVEfficiency
Improvements reported in…
Insufficient data
20. But price effects are long term
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
3 months 6 months 1 year 2 years 3 years
Pricingeffect
Campaigns periods up to
21. Brand building is key to lower price sensitivity
0%
2%
4%
6%
8%
10%
12%
0 1 2 3 4+
Priceeffect
Number of brand metrics improved
31. Pre-testing has promoted short-term effects
-15%
-10%
-5%
0%
5%
10%
15%
≤ 6 months 1 year 2+ years
Uplifttocampaignsaleseffects
pretestedminusnon-pretested
Campaign duration
32. Balancing the metrics
1. Beware of quarterly sales measures or shorter-term
activation sales as a sole measure of success: balance short
term sales responses with long-term metrics:
– Year-on-year sales uplifts – econometrics will help
apportion these to the campaign
– Annualised efficiency – ESOV is not a short-term metric
– Price elasticity - econometrics will be needed
33. Balancing the metrics
2. Beware persuasion scores as a sole measure of success:
balance these with emotional responses and emotional
brand equity shifts: these relate to long-term effects
3. Measure buzz and advocacy
4. Encourage creativity – reward major achievements
5. Aim for a balanced scorecard of a wide range of short and
long-term metrics – the more metrics, the more reliable the
indication.