Here we tackle advertising: what is the purpose of advertising? What are the different ways to advertise and which are most effective? Regardless of size or market share, all brands must advertise to achieve both short- and long-term growth. Inspired by Byron Sharp and the Ehrenberg-Bass Institute, this presentation unlocks the truth behind effective advertising and how it can help brands grow beyond belief.

1. AdvertisingfortheLongTerm

2. Effectiveadvertisingcanhelp
brandsgrowbeyondbelief.

3. Weusedhardscienceto
unlockthetruthbehind
effectiveadvertising.
Check out our blog post here.

4. Regardlessofsizeormarket
share,allbrandsmustadvertise
toachievebothshort-and
long-termgrowth.

5. Herewe’llbetacklingits
purposeandthedifferent
waystoadvertise.

6. Let’sbegin.

7. WHY ADVERTISE?

8. Whydobrandsadvertiseinthefirstplace?

9. Youmaybelieveit’sto
boostrevenue.

10. Thetruth
Advertising simply
prevents the slow decline
in sales.It rarely causes
a jump in sales.

11. Advertising’seffectsonsales
tendtobespreadoutover
time,andareextremely
difficulttomeasure.

12. Assuch,thetruepurpose
ofadvertisingistohold
ontoabrand’shugebase
ofinfrequentbuyers.

13. “Reachandnudgeyourinfrequent
buyersviaadvertising.”
— Byron Sharp, How Brands Grow

14. GROWTH

15. Howcanbrandsadvertisetoachieveshort-and
long-termbrandgrowth?

16. Rational metrics tend to predict short-term success.
Short-termgrowth

17. Emotional metrics tend to predict long-term success. The most important driver of long-term
growth is the level of share of voice.
Long-termgrowth

18. Brandsshouldstriveformeaningful,
long-termgrowth,ratherthan
chasingshort-termmetrics.

19. “Brandsmustpracticepatience:
growingabrandsimplytakestime.”
— Byron Sharp, How Brands Grow

20. EFFECTIVE
ADVERTISING

21. Whatdoeseffectiveadvertisinglooklike?

22. target continuous advertising over
bursts with gaps
REACH > FREQUENCY CONTINUOUS > BURSTS
Brandadvertisingshoulddotwothings:
target buyer reach rather than frequency of
exposure

23. Moreon
penetration
Brands should try to affect market
penetration by targeting a wider
audience. So, brands should try
to advertise to all category
buyers, from non-buyers all the
way to heavy buyers. The most
effective campaigns talk to the
whole category—that is existing
and potential customers.

24. BUYER REACH FREQUENCY>

25. Moreontiming
Brands should advertise in a
continuous stream, rather than in
bursts. Advertisements are meant
to consistently strengthen brand
associations, which happens more
effectively through well-timed
repetition. Long lapses in
advertising cause your hard-
earned brand links to fade in
consumer memory.

26. CONTINUOUS
ADVERTISING
BURSTS WITH
GAPS
>

27. THE BRAIN

28. Howareadvertisementsprocessedinthebrain?

29. Adsworkthroughmemory,
buildinganelement-to-brand
linkwithinthebrain.

30. Advertising through an emotional message, rather than a rational one, is key. This is to
say that emotional images are more effective than a page of facts and statistics.
Emotioninfluencesandmotivatescustomers

31. “Brandsshouldstrivefor
advertisementsthatrefreshconsumer
memoriesthroughemotionand
consistentbrandelementusage.”
— Byron Sharp, How Brands Grow

32. PRICE PROMOTIONS

33. Dopromotionsgrowpenetrationorloyalty?

34. Pricepromotionsaretime
restricted—“buythesejeans
forhalfoff,thisweekonly!”
—sotheyshowupwithin
sales figureseasilyandclearly.

35. Promotionsdogenerate
ashort-termsalesspike.

36. Butsalesreturnbackto
previouslevelsassoon
asthepromotionisover.

37. TotalSalesIndex
Sales Cycle (months)
0 1 2 3 4 5 6 7 8 9 10 11 12
EffectofPricePromotionsonSales
Price promotions generate a short-term sales spike
Total

38. There’snoevidencethatthese
promotionsgrowpenetration
orloyalty,asalready-heavy
buyersarethemostlikelyto
noticethepromotion,given
theirstatusasaheavybuyer.

39. Overtime
If brands consistently offer
deep discounts, they could
erode their reference price
and brand image.

40. “Beyondthebenefitofaquickspikein
salesforamanagerortocomplywith
retailers,pricepromotionsdon’treally
domuchforbrands.”
— Byron Sharp, How Brands Grow

41. THE WRAP-UP

42. Whathavewelearned?
1.Ad campaigns usually don’t show up in short-term sales metrics
If done effectively, they can tremendously help in building a brand over the long-term.

43. Whathavewelearned?
1.Ad campaigns usually don’t show up in short-term sales metrics
If done effectively, they can tremendously help in building a brand over the long-term.
2.Advertisements should be emotional, consistently display your
brand elements, and refresh consumer memory
Ads that consistently display your brand elements and tap into consumers’
emotions will be far more memorable, and thus brand-building, in the long-term.

44. Youcanreadthefullstoryonhowto
growyourbrandonthePercolateblog:
Advertising for the Long Term

45. Percolate is The System of Record for Marketing.
Our technology helps the world's largest and fastest-growing
brands at every step of the marketing process.
Want to learn more?
Contact learn@percolate.com for more information
or request a demo today at percolate.com/request-demo
Kat Gebert
Kat Gebert is on the Product Marketing team
at Percolate.