Should you be Advertising right now? · Characters with agency (voice, movement, flow, expression) Words obtrude during the ad Flatness Voiceover Abstracted product, feature, ingredient

1© System1 Group PLC

Should you be

Advertising

right now?


Brand Response | Brands have cut hard and cut fast. But should they?

Source: WFA Survey on Brands’ response to Covid-19 Crisis, March 25-30 2020; Base: 32 multinational companies.

80% have deferred campaigns

60% have cut marketing budgets

50% are working on new campaigns

80% have already declared their response


Recessions | This too will end and we will come out. But in what state?

Grey bars represent recessions

10

5

0.1

1

1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s

44 months193.3%34.1%

77 months143.7%14.9%

30 months75.6%25.3%

61 months108.4%15.5%

61 months183.9%22.8%

167 months815.3% total return17.2% annualized

155 months845.2%19.0%

153 months816.5%19.0%

34 months‒83.4%

6 months‒21.8%

19 months‒29.3%

6 months‒22.3%

21 months‒42.6%

3 months‒29.6%

25 months‒44.7%

16 months‒50.9%

181 months935.8%16.8%

Source: Business Insider 2020


What we can learn | A progressive strategy of efficiency & investment in Marketing

Source: Harvard Business Review Roaring out of Recession March 2010


Brand Growth | Share of Voice combined with Creative effectiveness

Quantity of Advertising (TV

ESOV)

ACTUAL GROWTH

PR

ED

ICT

ED

GR

OW

TH

Quantity and Quality of Advertising (TV

ESOV x Star Rating)

ACTUAL GROWTH

PR

ED

ICT

ED

GR

OW

TH

Source: System1 UK Cereals Validation: 12 Brands (55 ads represented), £24m+ TV spend, £700m annual category value

Correlation: 0.25 Correlation: 0.83

1. Gaining ESOV is a lot more cost effective now .. 2. Creative effectiveness is still achievable ..


Emotion | How emotional Advertising leads to long term effectiveness

20

8

8

8

8

1.70

10

30

8

Intensity Score measured

on a scale from 0 to +3

--

-

----

--

-

++

+

None Modest Good ExceptionalStrong

0% 0.5% 1% 2% 3%

Star Rating

Share gains

Projected share gains assume Excess Share of Voice (ESOV) of 10%,and average quality of competitor advertising


Test Your Ad | And this hasn’t changed at all during the Crisis


Original Star Rating Score when first aired in (January-February, 2020)

1

2

3

4

5

1 2 3 4 5

Re-test Star

Rating Score

(March 21-22,

2020)

US+UK Correlation Original Score

Average Retest Score

Average No. ad pairs

Star Rating (Long-term Growth Score) 0.89 2.3 2.2 100

Spike Index (Short-term Growth Score) 0.93 1.1 1.1 100

Fluency (Brand Recognition) 0.95 0.6 0.6 100

Re-testing 100 | Ad’s tested before & after impact of CV delivered the same result


So Orlando what

might be causing

the change we

are seeing?



Narrow

Goal-orientated

Abstraction (parts)

Categorises

Explicit

Cause and effect

Repeatability

Literal, factual

Self-absorbed and dogmatic

Language, signs and symbols

Rhythm

Broad

Vigilant

Context (whole)

Empathises

Implicit

Connections and relationships

Novelty

Metaphorical

Self-aware and questioning

Time, space and depth

Music

Left Right

Source: The Master and His Emissary, Iain McGilchrist

12© System1 Group PLCCorrelations between presence of features and effectiveness (Star ratings, on the vertical axis) and between prevalence of features and year (less/more common, on the

horizontal axis).

Becoming More

Common

Becoming Less

Common

More effective

Less effective

Set in the past (costumes &

sets)

Distinctive accentsReference to other cultural works

Music with discernible melody

A clear sense of place

One scene unfolding with progression

Implicit and unspoken communication (e.g. knowing

glances)

Play on words or subversion of

language

Dialogue

Characters with agency (voice, movement, flow,

expression)

Words obtrude during the ad

Flatness

Voiceover

Abstracted product, feature, ingredient

Highly rhythmic

soundtrack

Audio repetition (metered prose, sound

effects)

Adjectives used as nouns (e.g. the 'possible')

Monologue (e.g. testimonial)

Abstracted body part (e.g. hands, eyes, mouth, face)

Freeze-frame

effect

Left Brain | Right Brain

The most effective features are disappearing, the least effective are becoming more common.


Narrow

Goal-orientated

Abstraction (parts)

Categorises

Explicit

Cause and effect

Repeatability

Literal, factual

Self-absorbed and dogmatic

Language, signs and symbols

Rhythm

Broad

Vigilant

Context (whole)

Empathises

Implicit

Connections and relationships

Novelty

Metaphorical

Self-aware and questioning

Time, space and depth

Music

Left Right

Source: The Master and His Emissary, Iain McGilchrist


5 features connecting even better in the crisis



Character Fluent

Devices


Character Fluent

Devices

Scenario Fluent

Devices



Character Fluent

Devices

Scenario Fluent

Devices

Ads celebrating

‘betweenness’



Scenario Fluent

Devices

Ads set in or

referencing the past


Character Fluent

Devices

Ads celebrating

‘betweenness’


Scenario Fluent

Devices

Ads with connection to

local place and community

Ads set in or

referencing the past


Character Fluent

Devices

Ads celebrating

‘betweenness’


5 features connecting less well in the crisis



The direct hard sell



Ads focused on things





Ads pandering to self-image






Ads reliant on words or

rhythm






Ads reliant on words or

rhythm

Ads that are aggressive,

competitive or performance

focused






Ads reliant on words

or rhythm

Ads that are aggressive,

competitive or performance

focused

Character Fluent Devices

Scenario Fluent Devices

Ads with connection to local

place and community

Ads celebrating

‘betweenness’

Ads set in or referencing

the past

What’s notconnecting What is connecting


Who is doing the

most effective

COVID Advertising?


Test Your Ad | We have set up a new COVID-19 Ad category

Summary | Some practical tips & ways we can help

1. Continue to invest in media ‘if’ you are able to for long-term gain

2. You don’t need big production budgets to make creative work.

3. Get the message right and focus on human connection & community

4. Use your fluent devices (characters and scenarios) to improve effectiveness

5. Tap into you back catalogue of Ads and check performance on TYA.

6. Test, or re-test, your creative for confidence. Its fast and cost effective.


system1group.com/coronavirus

Contact Us

Jon Evans

Chief Marketing Officer

Orlando Wood

Chief Innovation Officer

system1group.com

Karen Wolfe

Chief Commercial Officer

[email protected] [email protected] [email protected]

Documents

Should you be Advertising right now? · Characters with agency (voice, movement, flow, expression) Words obtrude during the ad Flatness Voiceover Abstracted product, feature, ingredient