PowerPoint Presentation

Advertising effectiveness: the long and the short of itLes BinetHead of Effectivenessadam&eveDDB

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Analysis of 996 cases from IPA databank.Over 700 brands in 83 different categories.Compares actual business outcomes over the short and long term.

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So what have we found?

Source: Binet & Field 2013Two ways marketing worksSales activationShort term sales uplifts

Brand buildingLong term sales growth

Short term effects dominate ~6 months

Two routes to profitSource: Binet & Field 2013

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Brand building lowers price sensitivity

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Brand + Activation = Max Profit

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Penetration versus LoyaltyNo. of business effectsSource: Binet & Field 2013

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Think broadNo. of business effectsSource: Binet & Field 2013

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Short or long term, mental availability is crucialAwarenessSalienceFame

Fame increases efficiency even further

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Rational messages deliver short term responsesSource: Binet & Field 2013

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But emotion is the main profit driverSource: Binet & Field 2013

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Emotional powerWordsImagesVideoVideo + music

The creative is the most important factorSource: Binet & Field 2013

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Budget is almost as important as creativeSOV > SOM: brands tend to growSOV < SOM: brands tend to shrinkSource: Binet & Field 2013

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Budget allocation matters tooSource: Binet & Field 2013

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Sales activationDifferent goals require different mediaBrand building

The media landscape in 2015Source: USA Touchpoints 2014.2 (Mar 2014 Feb 2015)

Brand-building media

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Activation media

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Online media make TV work harderSource: Binet & Field 2013

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Best practise in action: John Lewis

Big budget, high share of voice60% brand, led by TV40% activation, with online playing a key roleAward-winning creative workHighly emotional advertising, with music central to successMassive reach via heavy TV exposureFully integrated across many touchpoints to amplify effectMost famous advertising in UK last five yearsEvaluated by econometrics, not pre-testingEvery 1 spent generates 8 extra profit

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John Lewis: a balanced campaign

www.ipa.co.uk/content/the-long-and-the-short-of-it