This research - tv♥ by tvn media · Source: Specsavers IPA case study 2014 . Balancing brand and activation for best success 62 38 Very large share growth cases Channel share for

This research

http://www.ipa.co.uk/Document/Media-in-Focus-PDF#

• How is the changing media landscape altering the rules of effectiveness?

• 500 digital era cases, 120 in 2014/16

http://www.ipa.co.uk/Document/Media-in-Focus-PDF









3 important truths

1. Effectiveness requires media and strategies that work over the short and long-terms: – The 60:40 effectiveness rule

2. Emotional campaigns and media drive long-term effectiveness

3. Mass marketing still rules effectiveness: scalability is essential for growth

1. Short and long-term effectiveness are different

You need to balance the two tasks

Sale

s u

plif

t o

ver

bas

e

Time Source: Binet & Field 2013

The deception of short-termism

Sales activation Short term sales uplifts

Brand building Long term sales growth

Short term effects dominate ~6 months

Short-term campaign’s sales effects

16

these factors have been isolated, meaning we can control for the price,

promotions, distribution, other media, competitor activity and seasonality to

make sure we can produce an unbiased measure of the social campaign showed

in Figure 14. By taking this volume uplift, applying an average price sold to get

revenue and then a margin, we get to a profit uplift. This can then be offset

against cost of the campaign to get to an ROI.

Figure 13: Total sales volume of Mattessons Fr idge Raiders May 2010-April 2013 showing all the

variables that had an effect on sales, Br ightBlue Consult ing, 2013

Figure 14: I solated sales volume of Mat tessons Fr idge Raiders against the MMM3000 campaign dur ing

the campaign period and after, Br ightBlue Consult ing, 2013

Specsavers: a long-term TV campaign

Source: Specsavers IPA case study 2014

Balancing brand and activation for best success

62

38

Very large share growth cases Channel share forbrand-buildingobjectives

Channel share foractivationobjectives

64

36

Most efficient cases

58 42

Strongest brand-building cases

64

36

Very large profit growth cases

Source: IPA Databank, 2016 cases

Short-termism has been rising

0%

5%

10%

15%

20%

25%

30%

2006 2008 2010 2012 2014 2016

% c

ase

s sh

ort

-te

rm

10 years ending Source: IPA Databank, 1998-2016 cases

61%

39%

Advertising spend split, 2000

Share of display

Share of directresponse

Source: Enders Analysis estimates based on AA/WARC

51% 49%

Advertising spend split, 2016

Activation levels have exceeded optimum

Advertising effectiveness-marketing and long-term business benefits [ May 2017]

Activation effects have been achieved at the expense of brand

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2006 2008 2010 2012 2014 2016

% c

ase

s re

po

rtin

g ve

ry la

rge

e

ffe

cts

10 years ending

Activationeffects

Brandawarenessgrowth

Source: IPA Databank, 1998-2016 cases

Effectiveness has fallen

1,0

1,1

1,2

1,3

1,4

1,5

1,6

1,7

1,8

1,9

2,0

2006 2008 2010 2012 2014 2016

Nu

mb

er

of

very

larg

e b

usi

ne

ss

effe

cts

10 years ending Source: IPA Databank, 1998-2016 cases

2. Emotional campaigns and media drive long-term growth

Rational & emotional campaigns work differently

0%

5%

10%

15%

20%

25%

30%

35%

40%

Rational Emotional0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

Rational Emotional

Number of brand effects Activation effects

Emotional campaigns are most efficient

0,2

1,0

0,0

0,2

0,4

0,6

0,8

1,0

1,2

Rational Emotional

SOV

eff

icie

ncy


Magazines

DRTV

Radio

Nat newspapers

Regional newspapers

TV

Inserts

OOH

Sponsorship

Cinema

PRDM

SMS

Promos

Social media

Online video

Online non-video

EmailPaid search

25%

35%

45%

55%

65%

75%

85%

1.1 1.3 1.5 1.7 1.9 2.1 2.3

% r

ep

ort

ing

very

larg

e a

ctiv

atio

n e

ffe

cts

Average number of very large brand effects reported

Emotive audio-visual media build brands

Source: IPA Databank 2008 - 2016

Rational information media

Emotive audio-visual media

Tech firms are turning to traditional media

UK adspend – 12 month rolling (Nielsen)

Emotional priming – Aldi UK

Aldi UK share growth

Figure 2 0 : Aldi Va lue M ark et Sha re Grow t h 2 0 1 1 vs. 2 0 1 0

Figures for the last quarter of the year show the campaign to still be gathering momentum with Aldi outperforming all other supermarkets.

Figure 2 1 : Aldi Va lue Sha re Grow t h vs Com pet it ors

Further we have evidence that the pattern of sales was responsive to the advertising, also explained in more detail in the econometrics section.

3. Mass marketing and media are essential to long-term growth

Targeting vs. Reach

0%

10%

20%

30%

40%

50%

60%

Ve

ry l

arg

e a

cti

va

tio

n e

ffe

cts

Targeting

Tight targeting drives short-term activation

0,0%

0,2%

0,4%

0,6%

0,8%

1,0%

1,2%

1,4%

1,6%

1,8%

2,0%

An

nu

al

mk

t. s

ha

re g

row

th

Targeting

Broad reach drives long-term growth


Targeting vs. Reach

0%

10%

20%

30%

40%

50%

60%

70%

80%

Did use Did not useVe

ry l

arg

e a

cti

va

tio

n e

ffe

cts

Use of Big Data for real-time marketing

Real-time tight targeting drives short-term activation

0,0%

0,2%

0,4%

0,6%

0,8%

1,0%

1,2%

1,4%

1,6%

Did use Did not use

An

nu

al m

arke

t sh

are

gro

wth

Use of Big Data for real-time marketing

Broad early targeting drives long-term growth


“We targeted too much, and we went too narrow…The bigger your brand, the more you need broad reach and less targeted media.”

Marc Pritchard, CMO P&G

Wall Street Journal, Aug. 17, 2016

Mark Ritson

“It’s called ‘social media’ for a reason: most Australians use it to connect with people not companies.”

Mark Ritson, Financial Review 10/4/13

John Lewis market share

22%

23%

24%

25%

26%

27%

28%

29%

30%

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Shar

e o

f d

ep

artm

en

t st

ore

sal

es

'Man on the Moon' 'Monty

the Penguin'

'Bear &

Hare' 'The Journey'

'The Long Wait'

Source: John Lewis IPA case study 2016

Scalability of TV vs. Online video: John Lewis

Media effectiveness and efficiency

XmasTV

viewsOnline Views

Total views

John Lewis spend

Cost per view

2012 403m 3m 406m £3.9m 1.0 pence

2013 426m 12m 437m £4.6m 1.1 pence

2014 371m 29m 400m £3.9m 1.0 pence

2015 1,175m 35m 1,210m £4.1m 0.3 pence

Total 2,375m 79m 2,453m £16.5m 0.7 pence

All adult views for Christmas video advertising.Sources: BARB, YouTube, Facebook, Twitter, Manning Gottlieb OMD

TV views include supplier funded ads.

TV is best for market share growth

1,1%

1,8% 2,1%

2,6%

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

No TV TV sponsorship DRTV Brand TV

Avg

. mar

ket

shar

e p

oin

ts

gain

ed

pe

r an

nu

m


TV has become more effective

27%

40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1998-2006 2008-2016

% in

cre

ase

in a

vg. n

o. V

L b

usi

ne

ss e

ffe

cts

fro

m a

dd

ing

Source: IPA Databank

Online video makes TV more effective

2,6%

3,1%

1,1%

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

TV only Both Online video only

Avg

. mar

ket

shar

e

gain

pe

r an

nu

m


TV consistently outperforms online video across 2017 research studies

2.4 x 2.6 x

2.4 x

0,0

0,5

1,0

1,5

2,0

2,5

3,0

Share growth - IPA Short-term sales - KarenNelson-Field

Long-term ROI -Ebiquity/Gain Theory

TV p

erf

orm

ance

vs.

On

line

vid

eo

Sources: IPA Databank ‘Media in Focus’ , Professor Karen Nelson-Field PhD ‘Media Attributes that (really) Matter’ , Ebiquity ROI campaign database & Gain Theory ‘Profit Ability: the business case for advertising’

Conclusions • Short-termism damages effectiveness: we need to ensure balance

between long & short term objectives. Remember the 60:40 rule.

• TV reigns supreme for long-term effectiveness and can be a powerful short-term activation medium.

• The unique power of TV derives from its ability to stir emotions and build fame for brands.

• The broad reach and scalability of TV is important to long-term brand success.

• Narrow-targeting is seductive in the short term but underperforms in the long term.

• TV is getting more effective, not less. Thank you

The Truth about Effectiveness: TV still works best

Documents

This research - tv♥ by tvn media · Source: Specsavers IPA case study 2014 . Balancing brand and activation for best success 62 38 Very large share growth cases Channel share for