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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

Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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Page 1: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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

Page 2: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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

Page 3: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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)

Page 4: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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)

Page 5: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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

Page 6: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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

Page 7: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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

Page 8: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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)

Page 9: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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)

Page 10: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

% 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

Page 11: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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

Page 12: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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)

Page 13: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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)

Page 14: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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)

Page 15: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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

Page 16: Historically share of voice has driven share of market€¦ · Brand Building Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22) ... 2008 2010 2012

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)