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.

1. The Inconvenient Truths of
Effectiveness
Exploiting the potential of the
evolving media landscape

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 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. 1. Short and long-term
effectiveness are different
You need strategies for both

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. 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. 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. 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. Short-term campaign’s sales effects

10. Specsavers: a long-term TV campaign
Source: Specsavers IPA case study 2014

11. Specsavers: a long-term TV campaign

12. Specsavers: a long-term TV campaign

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. 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. 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. Tech firms are turning to traditional media
UK adspend – 12 month rolling (Nielsen)

17. The power of TV in an online
category: Directline

18. Directline

19. Directline growth
Source: Directline IPA case study 2016

20. 2. Emotional campaigns and media
drive long-term growth

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. 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. 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. Aldi UK – emotional priming

25. Aldi UK – emotional priming

26. Emotional priming – Aldi UK
Source: Aldi IPA case study 2012

27. Aldi UK share growth
Source: Aldi IPA case study 2012

28. 3. Mass marketing and media are
essential to long-term growth

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. 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. “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. 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. 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. 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. 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. 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. 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. 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. 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. 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. The Inconvenient Truths of
Effectiveness