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BAM Congress 2017: Peter Field - Exploiting the full effectiveness potential of the evolving media landscape

The digital revolution has been going on for over twenty years, and has brought many benefits to marketers. But all is not well in marketing.
Peter Field will present findings from a new IPA Effectiveness Databank study, which examines what has changed in marketing effectiveness and what has not and concludes that many have been misled. In particular marketing remains primarily a numbers game: the main way brands grow in the long term is still by increasing penetration through brand building. This is best achieved using broad reach media, not through tight digital targeting.
Unfortunately, the explosion of short-termism in marketing since the global financial crisis has resulted in declining effectiveness. Peter Field will argue that we need to strike a better balance between short and long-term advertising if we want to exploit the full effectiveness potential of the evolving media landscape.

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BAM Congress 2017: Peter Field - Exploiting the full effectiveness potential of the evolving media landscape

  1. 1. The Inconvenient Truths of Effectiveness Exploiting the potential of the evolving media landscape
  2. 2. Previous research and this http://www.ipa.co.uk/Document/Media-in-Focus-PDF# • How is the changing media landscape altering the rules of effectiveness? • 500 digital era cases, 120 in 2014/16
  3. 3. 3 important truths 1. Effectiveness requires media and strategies that work over the short and long-terms: – The 60:40 effectiveness rule 2. Emotional campaigns and media drive long-term effectiveness 3. Mass marketing still rules effectiveness: scalability is essential for growth
  4. 4. 1. Short and long-term effectiveness are different You need strategies for both
  5. 5. Salesupliftoverbase Time Source: Binet & Field 2013 The deception of short-termism Sales activation Short term sales uplifts Brand building Long term sales growth Short term effects dominate ~6 months
  6. 6. Short-termism has been rising 0% 5% 10% 15% 20% 25% 30% 2006 2008 2010 2012 2014 2016 %casesshort-term 10 years ending Source: IPA Databank, 1998-2016 cases
  7. 7. Activation effects have been achieved at the expense of brand 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2006 2008 2010 2012 2014 2016 %casesreportingverylarge effects 10 years ending Activation effects Brand awareness growth Source: IPA Databank, 1998-2016 cases
  8. 8. Effectiveness has fallen 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2006 2008 2010 2012 2014 2016 Numberofverylargebusiness effects 10 years ending Source: IPA Databank, 1998-2016 cases
  9. 9. Short-term campaign’s sales effects
  10. 10. Specsavers: a long-term TV campaign Source: Specsavers IPA case study 2014
  11. 11. Specsavers: a long-term TV campaign
  12. 12. Specsavers: a long-term TV campaign
  13. 13. Balancing brand and activation for best success 62 38 Very large share growth cases Channel share for brand-building objectives Channel share for activation objectives 64 36 Most efficient cases 58 42 Strongest brand-building cases 64 36 Very large profit growth cases Source: IPA Databank, 2016 cases
  14. 14. 61% 39% Advertising spend split, 2000 Share of display Share of direct response Source: Enders Analysis estimates based on AA/WARC 51%49% Advertising spend split, 2016 Activation levels have exceeded optimum Advertising effectiveness-marketing and long-term business benefits [ May 2017]
  15. 15. Brand-building is just as important for online brands 60 57 40 43 0 10 20 30 40 50 60 70 80 90 100 Offline Online Optimumbudgetsplit% Brand Activation Source: IPA Databank, 1998-2016 for-profit cases
  16. 16. Tech firms are turning to traditional media UK adspend – 12 month rolling (Nielsen)
  17. 17. The power of TV in an online category: Directline
  18. 18. Directline
  19. 19. Directline growth Source: Directline IPA case study 2016
  20. 20. 2. Emotional campaigns and media drive long-term growth
  21. 21. Emotional campaigns build stronger brands 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Rational Emotional Numberofbrandeffects Communications model Source: IPA Databank
  22. 22. Emotions and Fame remain most efficient 0.2 1.0 1.3 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 Rational Emotional Fame SOVefficiency Source: IPA Databank, 2004-16 cases
  23. 23. Magazines DRTV Radio Nat newspapers Regional newspapers TV Inserts OOH Sponsorship Cinema PRDM SMS Promos Social media Online video Online non-video Email Paid search 25% 35% 45% 55% 65% 75% 85% 1.1 1.3 1.5 1.7 1.9 2.1 2.3 %reportingverylargeactivationeffects Average number of very large brand effects reported Emotive audio-visual media build brands Source: IPA Databank 2008 - 2016 Rational information media Emotive audio-visual media
  24. 24. Aldi UK – emotional priming
  25. 25. Aldi UK – emotional priming
  26. 26. Emotional priming – Aldi UK Source: Aldi IPA case study 2012
  27. 27. Aldi UK share growth Source: Aldi IPA case study 2012
  28. 28. 3. Mass marketing and media are essential to long-term growth
  29. 29. Targeting vs. Reach 0% 10% 20% 30% 40% 50% 60% Verylargeactivationeffects Targeting Tight targeting drives short-term activation 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% Annualmkt.sharegrowth Targeting Broad reach drives long-term growth Source: IPA Databank, 2008-16 cases
  30. 30. Targeting vs. Reach 0% 10% 20% 30% 40% 50% 60% 70% 80% Did use Did not use Verylargeactivationeffects Use of Big Data for real-time marketing Real-time tight targeting drives short-term activation 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% Did use Did not use Annualmarketsharegrowth Use of Big Data for real-time marketing Broad early targeting drives long- term growth Source: IPA Databank, 2014-16 cases
  31. 31. “We targeted too much, and we went too narrow…The bigger your brand, the more you need broad reach and less targeted media.” Marc Pritchard, CMO P&G Wall Street Journal, Aug. 17, 2016
  32. 32. Messaging Shopping/ transacting Online video Broadcast TV Other online Newsbrands Search Reaching UK adults in 2016 0 10 20 30 40 50 60 70 80 90 100 0.0 1.0 2.0 3.0 4.0 5.0 6.0 WeeklyReach(%Adults) Average Hours Per Day (Across All Adults) OOH Radio Email Social networking Texting Internet for work Cinema Subscriber VoD Reaching UK adults in 2017 Source: IPA Touchpoints
  33. 33. How people spend their time online Social/messaging 39% Email 33% Search 7% Video 4% Shopping/transacting 3% Other 14% Source: IPA Touchpoints, Wave 6 (April 2016)
  34. 34. Mark Ritson “It’s called ‘social media’ for a reason: most Australians use it to connect with people not companies.” Mark Ritson, Financial Review 10/4/13
  35. 35. TV is best for market share growth 1.1% 1.8% 2.1% 2.6% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% No TV TV sponsorship DRTV Brand TV Avg.marketsharepoints gainedperannum Source: IPA Databank, 2014-16 cases
  36. 36. And digital makes mass media more effective 27% 22% 13% 14% 40% 27% 22% 27% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% TV Press Radio Outdoor %increaseinavg.no.VL businesseffectsfromadding Web 1.0 (1998 - 2006) Web 2.0 (2008* - 2016) Source: IPA Databank *Outdoor = 2012 - 2016
  37. 37. Online video makes TV more effective 2.6% 3.1% 1.1% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% TV only Both Online video only Avg.marketshare gainperannum Source: IPA Databank, 2014-16 cases
  38. 38. TV consistently outperforms online video across 2017 research studies 2.4 x 2.6 x 2.4 x 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Share growth - IPA Short-term sales - Karen Nelson-Field Long-term ROI - Ebiquity/Gain Theory TVperformancevs.Onlinevideo Sources: IPA Databank ‘Media in Focus’ , Professor Karen Nelson-Field PhD ‘Media Attributes that (really) Matter’ , Ebiquity ROI campaign database & Gain Theory ‘Profit Ability: the business case for advertising’
  39. 39. SOV is getting more important 6% 12% 0% 2% 4% 6% 8% 10% 12% 14% 1998-2006 2008-2016 %growthexplainedbyshareof voicealone Source: IPA Databank
  40. 40. Conclusions • Short-termism damages effectiveness: we need to ensure balance between long & short term objectives. Remember the 60:40 rule. • TV reigns supreme for long-term effectiveness • The most powerful long-term media are able to stir emotions and build fame for brands. • Campaign reach and scalability are vital to long-term brand success. • Narrow-targeting is seductive in the short term but underperforms in the long term. • Share of voice is getting more important not less. Thank you
  41. 41. The Inconvenient Truths of Effectiveness

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