Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and...
Transcript of Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and...
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2%0%
2%
4%
6%
8%
10%
12%
4% 6% 8% 10% 12% 14%
Historically share of voice has driven share of market
SOV > SOM:Brands tend to grow
SOV < SOM:Brands tend to shrink
Share of Voice
Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 07)
Share of Market
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0
2
4
6
8
10
12
0 20 40 60 80 100%
The 60:40 split delivers maximum e�ectiveness
Activation share of budget
Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 38)
Number of very large
e�ects
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0.6
1.7
Business e�ects
Existing customers
For campaignstargeting:
New customers
Whole market
Total e�ects
1.82.4
5.4
6.7
The broader the reach, the broader the e�ectsAverage number of very large e�ects reported
Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 18)
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Annualised ESOVEFFICIENCY
Target whole market
Total new customers
Target existingcustomers
The broader the reach, the greater the e�ciency
0.20.3
2.6
Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 21)
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Loyalty only Penetration only Both0%
Penetration is the main driver of very large business e�ects
5%
10%
15%
20%
25%
7%
22%
7%
% cases
Very large e�ect observed on:
Source: Les Binet and Peter Field, Eff Week 2016, ‘Marketing in the Digital Age’, IPA
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Long-term prospects
Immediate prospects
Broad but slower e�ects, big paybacks
Narrower but earlier e�ects, smaller paybacks
Existing customers
Short term
Long term
Sales Activation
Brand Building
Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22)
A long-term outward focus brings broader and bigger e�ects
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Brand-building and sales activation work over di�erent timescales
Sales activation / Short-term sales uplifts
Time
Brand-building / Long-term sales growth
Sales uplift over base
Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 02)
Short term e�ects dominate - 6 months
Sales activationShort-term sales uplifts
Brand buildingLong-term sales growth
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1.125%
35%
45%
55%
65%
75%
85%
1.3 1.5 1.7 1.9 2.1 2.3
The trade-o� between brand and activation e�ects across channels
% Reporting very large activation
e�ects
Average number of very large brand e�ects reported
Inserts
SMS
OnlineNon-video
DM TV DOH
Cinema
Online videoRadio
MagazinesPR
SponsorshipPromos
DRTV
Paid search
Social media
Regional newspapersEmail
National newspapers
Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 27)
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The di�erences between brand building and sales activation
Brand Building Sales Activation
Creates mental brand equity Exploits mental brand equity
In�uences future sales Generates sales now
Broad reach Tightly targeted
Long term Short term
Emotional priming Persuasive messagesNumber of very large
business e�ects
Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 01)
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% reporting very large improvements in each metric
55%
47%
35%
21%
32%
Sales Market share
Pricesensitivity
Loyalty Penetration
Fame
For campaignsthat are:
Other
Pro�t
29%
14%9%
34%28%
8%3%
% cases short term
Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 60)
Fame-driving campaigns out-perform others on all business metrics
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Creatively awarded campaigns are 11 times as e�cientat driving Share of Market growth
-40
-20
0
40
60%
%ESOV
SOM Growth
Creatively-awardedNot creatively-awarded
0 0 0 20 40 60 80 100
20
Source: Les Binet and Peter Field, The Link Between Creativity and Effectiveness, Thinkbox/IPA, (Figure 06)
Comparison of the e�ciency of creatively-awarded and non-awarded campaigns
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0.50
0.00
1.00
1.50
2.00
2.50
3.00
3.50
SOVEFFICIENCY
Not creatively awarded
Less Creativelyawarded (1-3)
Highly creativelyawarded (4+)
Very highly creatively awarded campaignsare the most e�cient of all (1996-2014)
Source: Les Binet and Peter Field, Selling Creativity Short, IPA, (Figure 44)
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0%
5%
10%
15%
25%
35%
45%
40%
30%
20%
% increase in ang. no. VL
business e�ects from
adding TV
2008-20161998-20061980-1996
TV has become more e�ective, 1980-2016
12%
27%
40%
Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 36)
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Short-termism boosts ROMI but not profit growth
0%
100%
200%
300%
500%
600%
400%
0%
5%
10%
15%
25%
30%
20%
Ave ROMI Very large pro�tgrowth
Long-termShort-term
Very large pro�t growth Ave. ROMI
Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 62)
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13%
27%
1-2 yearsCampaign duration
Rational
For campaignstargeting:
Combined
Emotional
3+ years
21% 23% 23%
43%
The longer the time frame the more emotions drive profit
% reporting very large profit growth
% reportingvery largepro�tgrowth
EmotionalCombinedRational
Communications model
Emotional campaigns are more profitable
16%
25%
29%
% reporting very large e�ects on business metrics
46%
55%
28%
Sales Market share
Pricesensitivity
Loyalty New Customers
Rational
For campaignsthat are:
Emotional
31%
5%11%
27% 27%
2%5%
Emotional campaigns yield stronger long-term business e�ects
Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figures 44, 53, 54)
Emotional campaigns are more e�ective on almost all business metrics especially long-term
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20060%
5%
10%
15%
25%
20%
30%
2008 2010 2012 2014 2016
Short-termism has been rising
% cases short term
10 years ending
20060.0
0.2
0.4
0.6
1.0
0.8
1.2
2008 2010 2012 2014 2016
Even long-term cases have lost e�ciency
SOV e�ciency (cases > 6m)
10 years ending
20061.2
1.3
1.4
1.5
1.7
1.6
1.9
1.8
2.0
2008 2010 2012 2014 2016
Campaign e�ectiveness has fallen
Number of very large
business e�ects
10 years ending
20060%
2%
4%
6%
10%
8%
14%
12%
16%
2008 2010 2012
ESOV long cases
2014 2016
Budgets (ESOV) have been falling across the board
10 years ending
ESOV all
Some emerging and destructive trends in e�ectiveness
Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figures 47, 51, 65, 68)