1© System1 Group PLC
Should you be
Advertising
right now?
2© System1 Group PLC
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
3© System1 Group PLC
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
4© System1 Group PLC
What we can learn | A progressive strategy of efficiency & investment in Marketing
Source: Harvard Business Review Roaring out of Recession March 2010
5© System1 Group PLC
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 ..
6© System1 Group PLC
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
7© System1 Group PLC
Test Your Ad | And this hasn’t changed at all during the Crisis
8© System1 Group PLC
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
9© System1 Group PLC
So Orlando what
might be causing
the change we
are seeing?
10© System1 Group PLC
11© System1 Group PLC
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.
13© System1 Group PLC
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
14© System1 Group PLC
5 features connecting even better in the crisis
15© System1 Group PLC
5 features connecting even better in the crisis
Character Fluent
Devices
16© System1 Group PLC
Character Fluent
Devices
Scenario Fluent
Devices
5 features connecting even better in the crisis
17© System1 Group PLC
Character Fluent
Devices
Scenario Fluent
Devices
Ads celebrating
‘betweenness’
5 features connecting even better in the crisis
18© System1 Group PLC
Scenario Fluent
Devices
Ads set in or
referencing the past
5 features connecting even better in the crisis
Character Fluent
Devices
Ads celebrating
‘betweenness’
19© System1 Group PLC
Scenario Fluent
Devices
Ads with connection to
local place and community
Ads set in or
referencing the past
5 features connecting even better in the crisis
Character Fluent
Devices
Ads celebrating
‘betweenness’
20© System1 Group PLC
5 features connecting less well in the crisis
21© System1 Group PLC
5 features connecting less well in the crisis
The direct hard sell
22© System1 Group PLC
The direct hard sell
Ads focused on things
5 features connecting less well in the crisis
23© System1 Group PLC
The direct hard sell
Ads focused on things
Ads pandering to self-image
5 features connecting less well in the crisis
24© System1 Group PLC
The direct hard sell
Ads focused on things
Ads pandering to self-image
Ads reliant on words or
rhythm
5 features connecting less well in the crisis
25© System1 Group PLC
The direct hard sell
Ads focused on things
Ads pandering to self-image
Ads reliant on words or
rhythm
Ads that are aggressive,
competitive or performance
focused
5 features connecting less well in the crisis
26© System1 Group PLC
The direct hard sell
Ads focused on things
Ads pandering to self-image
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
27© System1 Group PLC
Who is doing the
most effective
COVID Advertising?
28© System1 Group PLC
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.
30© System1 Group PLC
system1group.com/coronavirus
Contact Us
Jon Evans
Chief Marketing Officer
Orlando Wood
Chief Innovation Officer
system1group.com
Karen Wolfe
Chief Commercial Officer