Reaching consumers across the economic cycle:

Which creative ad tactics resonate most? JAMES RUSSO and JOE STAGAMAN

The world has changed

1980s

TODAY

think differently. it’s time to

The $450 trillion opportunity

$64,000 for every person on the planet.

consumer confidence changes the game.

Consumer Confidence Movers and Shakers

Confidence Correlating With Sales unit sales vs year ago

India France Taiwan

Consumer Confidence

Unit Sales Chg

2010-Q1 127 17%

2010-Q2 129 18%

2010-Q3 129 15%

2010-Q4 131 16%

2011-Q1 131 11%

2011-Q2 126 11%

2011-Q3 121 9%

2011-Q4 122 9%

2012-Q1 123 10%

Consumer Confidence

Unit Sales Chg

2010-Q1 68 1%

2010-Q2 63 1%

2010-Q3 67 1%

2010-Q4 65 1%

2011-Q1 61 1%

2011-Q2 69 0%

2011-Q3 56 1%

2011-Q4 55 1%

2012-Q1 50 1%

Consumer Confidence

Unit Sales Chg

2010-Q1 85 1%

2010-Q2 84 3%

2010-Q3 88 3%

2010-Q4 86 2%

2011-Q1 91 3%

2011-Q2 89 3%

2011-Q3 87 1%

2011-Q4 71 1%

2012-Q1 84 2%

Which region had the highest increase in total ad

spend from 2010 to 2011?

A) North American

B) Latin America

C) Middle East and Africa

D) Asia Pacific

Which region had the highest increase in total ad

spend from 2010 to 2011?

A) North American

B) Latin America

C) Middle East and Africa

D) Asia Pacific

Poll Question

+11.6% +11.6%

Latin America

Latin America

+11.6%

Latin America

+11.5% +11.5%

Asia Pacific

Asia Pacific

+11.5%

Asia Pacific

+11.3% +11.3%

ME & Africa ME & Africa

+11.3%

ME & Africa

-0.4% -0.4%

West Europe West

Europe

-0.4%

West Europe

+1.8% +1.8%

North America

North America

+1.8%

North America

Shift in Ad spending 2010-2011

Key Take Aways

Ad spend is in sync with

economic trends

Economic state and

confidence levels affect spend

global yet local

Global consumer concerns

ECONOMY JOBS WORK/LIFE BALANCE

HEALTH FOOD PRICES

Local concerns

USA SPAIN BRAZIL RUSSIA

INDIA FRANCE MEXICO

Key Take Aways

Know your audience and

speak to them accordingly

Consider universal themes

that resonate

diverse demanding connected

Poll Question

What is the most frequently used animal in

advertisements?

A) Cat

B) Fish

C) Dog

D) Bird

What is the most frequently used animal in

advertisements?

A) Cat

B) Fish

C) Dog

D) Bird

ANIMAL LANDMARK BACKGROUND JOB

SPORT ROLE FLOWER TOPIC

Most Used Images To Reach Global Consumers

The $488 billion question…

did the economy affect how we

respond to creative?

$450 trillion

Uncertain is the new normal

Key Take Aways

Ads must resonate with the

audience by taking into

account local market and

circumstances

Advertisements need more

than just visuals

Consumer ad response isn’t always as it seems

REACH RESONANCE REACTION

PRICE/PROMO NARRATIVE VALUE SENTIMENTAL PRODUCT HUMOR

net likeability 2006 - 2011

Which type of ad resonated least with consumers

during the recession?

A) Price/Promotion

B) Humor

C) Sentimental

D) Narrative

Which type of ad resonated least with consumers

during the recession?

A) Price/Promotion

B) Humor

C) Sentimental

D) Narrative

Poll Question

PRICE/PROMO

VALUE

SENTIMENTAL

PRODUCT

HUMOR

What we found

NARRATIVE

147

88

71

88

133

107

73

107

133

107

60

88

Pre Post During

Four key insights into consumers

Pre Post During Pre Post During Pre Post During

Composition of ads

2011 New Consumer Economy

Key Take Aways

Surprisingly, even in tough

economic times, price/

promotion and product do not

resonate well with audiences

Humor, sentimental, value,

and narratives resonate

consistently with audiences

Speak to your audience

The importance of local understanding humor

lighthearted, cute sophisticated / dry / satirical

puns parodies

sarcastic / weird / mean-spirited immature / cheesy / juvenile

the top performers

Index:

280

PRE-RECESSION RECESSION POST-RECESSION

Index:

300 Index:

312

… so what?

Hispanic Index:

367

JULY 2010 OCT 2011

sales

+41%

… so what?

Key Take Aways

The 3Rs—Reach, Resonance,

Reaction—are key to

successful ad campaigns

Resonance leads to results

and has high correlation

with sales

Make a connection

More similar than different

Key Take Aways

Advertisers need to make a

connection to solicit a

response

The brain universally reacts

across cultures

Overarching Themes

Advertisers must know

universal and local tactics to

resonate with their audience

Advertisers must not only

reach consumers, but also

must resonate with them

Advertisers must connect

with their consumer need

states to solicit a response

Resonance leads to

reaction/purchase

Reaching consumers across the economic cycle:

Which creative ad tactics resonate most? JAMES RUSSO and JOE STAGAMAN