FINDING HUMANITYIN NUMBERS

http://www.youtube.com/watch?v=29JewlGsYx

Finding humanity in numbers

http://www.youtube.com/watch?v=29JewlGsYxs

1. Why numbers matter to clients – the human story

2. Speaking ‘conversational- level’ numbers

3. Seeing the human story in the numbers

Inspiring creative solutions to business problems

“We value most highly what we can measure”John Banham, ex Director General CBI

To speak intelligently about how and why advertising works uses A completely different conceptual language from the language of business investment. The difficulty the advertising industry still faces is that advertising creative decisions form the battleground where the concepts and language games of capitalism, return on investment, payback, balance sheet, meet the language of human communication, motivationand emotional influence

Gary Duckworth 2002

“Never mind the share price lookat my lovely mood board”

1. Why numbers matter to clients – the human story

2. Speaking ‘conversational- level’ numbers

3. Seeing the human story in the numbers

‘Conversation- level’ Numbers

1. Business context

2. Share etc…

3. Profitability

Not quite as good toas it’s always been

VW ‘Surprisingly Ordinary Prices’Spending on advertising to reduce costs elsewhere

90 % of companies’ profits come from 20% of their brands

Source: Prophet

Which brand is most profitable?

? ??

Responding to a doubledigit decline in sales

Comms budget

Gross margin

Payback =

Calculating payback

 

£1m

40%

£2.5 million =

brand

Promotional/tactical

6

4

12

6

Short term  ROI Long term ROI

Source D2D

Revenue ROI Non food retail

Calculating the value of communications

What drives advertising payback?

* Impact is defined as the potential multiplier on profit

Position Factor Impact*

1 Market size 162 Creative proposition 103 Budget and allocation 24 Seasonal costs 1.6

5= Laydown 1.15= Media multiplier 1.17 Brand lifestage 1.08

8= Quality viewing 1.058= Task 1.0510 Audience 1.04

P Dyson & K Weaver: Advertising’s Greatest Hits. Admap, February 2006

1. Why numbers matter to clients – the human story

2. Speaking ‘conversational- level’ numbers

3. Seeing the human story in the numbers

Audi Channel

How thinking human helped Audi cut costs

Population sizeof Audi buyers

Population sizeof prestige carbuyers

http://channel.audi.co.uk/

Milkman

How understanding human behaviour helpedsave the milkman (for a bit)

Milkman only Drifting Cancelling9% 6%

Milk buying in 1990

“Turning human understanding into business and social advantage”

Rory Sutherland

Behavioural economics – the start of a common language? 

16%

26%

31%

0%

5%

10%

15%

20%

25%

30%

35%

Emotional Combined Rational

Campaign strategy

V la

rge

prof

it ga

ins

(% re

porti

ng)

Emotional ads outperform rational ones 

Emotional impact better predicts business effect than traditional pretest measures

Month Yr32

2.67

1.67

2.00

2.33

1.78

2.56

2.00

2.33

1.78

2.56

1

2

3

Best 9Ads

Bottom 9Ads

Best 9Ads

Bottom 9Ads

Best 9Ads

Bottom 9Ads

Best 9Ads

Bottom 9Ads

Best 9Ads

Bottom 9Ads

Emotion‐into‐Action

Persuasion Established Industry Cut‐through 

Measure Equivalent

Specific Key MessageOn Message

Base: 18 ads for which business effectiveness data is available from the IPA

Brand Linkage

Summary: Finding Humanity in Numbers

1. Why numbers matter to clients – the human story

2. Speaking ‘conversational- level’ numbers

3. Seeing the human story in the numbers