The long and short of advertising effectiveness
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Advertising Effectiveness: the Long and the Short of it
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The long and short of advertising effectiveness
- 1. Advertising effectiveness: the long and the short of it Les Binet Head of Effectiveness adam&eveDDB
- 2. • Analysis of 996 cases from IPA databank. • Over 700 brands in 83 different categories. • Compares actual business outcomes over the short and long term.
- 3. So what have we found?
- 4. Salesupliftoverbase Time Source: Binet & Field 2013 Two ways marketing works Sales activation Short term sales uplifts Brand building Long term sales growth Short term effects dominate ~6 months
- 5. Two routes to profit 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Neither Increased sales or market share Reduced price sensitivity Both Profiteffect Business effectsSource: Binet & Field 2013
- 6. Brand building lowers price sensitivity 0% 2% 4% 6% 8% 10% 12% 0 1 2 3 4+ Priceeffect Number of brand metrics improved
- 7. Brand + Activation = Max Profit 0% 5% 10% 15% 20% 25% 30% Brand buiding Both Sales activation Profiteffect Campaign objectives
- 8. Penetration versus Loyalty 0 1 2 3 4 5 6 Target existing customers Target new customers 0.0 0.1 0.1 0.2 0.2 0.3 0.3 0.4 Target existing customers Target new customers ESOV efficiencyNo. of business effects Source: Binet & Field 2013
- 9. Think broad 0 1 2 3 4 5 6 7 8 Target existing customers Target new customers Target whole market 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Target existing customers Target new customers Target whole market ESOV efficiencyNo. of business effects Source: Binet & Field 2013
- 10. Short or long term, mental availability is crucial Awareness Salience Fame
- 11. Fame increases efficiency even further 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 Fame campaigns Other campaigns AnnualisedESOVefficiency
- 12. Rational messages deliver short term responses 0% 5% 10% 15% 20% 25% 30% 35% 40% Rational messaging Combined approach Emotional priming Verylargedirecteffect Source: Binet & Field 2013
- 13. But emotion is the main profit driver 0% 5% 10% 15% 20% 25% 30% 35% Rational messaging Combined approach Emotional priming Verylargeprofiteffects Source: Binet & Field 2013
- 15. The creative is the most important factor 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Creatively awarded Not creatively awarded Budgetefficiencymetric Source: Binet & Field 2013
- 16. Budget is almost as important as creative 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 Source: Binet & Field 2013
- 17. 0 1 2 3 4 5 6 7 8 9 10 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Numberofverylargeeffects Activation share of budget Optimum: 60:40 split Budget allocation matters too Source: Binet & Field 2013
- 18. Sales activation Targeting Path to purchase Information Different goals require different media Brand building Broad reach Talk valueEmotion
- 19. Out of home Cinema Live/Timeshifted TV Digital Movies Digital TV Digital Short Video Satellite/Terrestrial Radio Online Audio/Radio Print Mags Digital Magazines Print Newspapers Digital Newspapers Social Media Gaming Search Any Web Any App 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 0.5 1 1.5 2 2.5 3 3.5 4 WeeklyReach Average Hours per Day (Weekly Users) The media landscape in 2015 Source: USA Touchpoints 2014.2 (Mar 2014 – Feb 2015)
- 20. Brand-building media -20% -10% 0% 10% 20% 30% 40% 50% 60% Online display Search DM Social Press Radio Cinema Outdoor Mobile TV Online video Brand effects uplift of adding channels
- 21. Activation media -30% -20% -10% 0% 10% 20% 30% 40% Cinema TV Press Outdoor Mobile Online display Online video DM Search Social Radio Activation effects uplift of adding channels
- 22. Online media make TV work harder 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1980-2002 2004-2010 AnnualisedESOVefficiency TV casesSource: Binet & Field 2013
- 23. Best practise in action: John Lewis
- 25. John Lewis: a balanced campaign 60% 40% Budget split Brand Activation 22% 23% 24% 25% 26% 27% 28% 29% 30% FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Shareofdepartmentstoresales Market share New emotional advertising