Book: What Sticks Presentation

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This is my standard presentation for talking about the findings from the book What Sticks, identified as the number one book you should have read in 2006 by Advertising Age as presented by Greg Stuart, former CEO of the IAB. See www.gregstuart.com

Published in: Education

Book: What Sticks Presentation

  1. What If We Were Wrong? Insights from Research against US$1Billion in Advertising Spending Greg Stuart Former CEO, Interactive Advertising Bureau Co-author: What Sticks
  2. Marketing’s Inconvenient Truth Insights from Research against US$1Billion in Advertising Spending Greg Stuart Former CEO, Interactive Advertising Bureau Co-author: What Sticks
  3. If Advertising had a Slogan… <ul><li>Ads Work Wonders </li></ul><ul><li>Half the Money is Wasted </li></ul>Courtesy of Erwin Ephron
  4. $1 Billion Ad Spending Researched 1.1 million consumers surveyed
  5. What Do We Know? <ul><li>Over US $112 Billion of U.S. Ad Spending is wasted (1) </li></ul>What makes you think yours isn’t? (1) Of the $295 Billion in U.S. Advertising Spending
  6. Are You Prepared if You Are Wrong?
  7. So, What Else do We Know 36% 31% 83% Media Motivations Messaging
  8. And, We Don’t Seem to Own Responsibility for a Burden of Proof <ul><li>Donny Deutsch speaking to 500 Marketers… </li></ul><ul><li>“ We did a wonderful spot…on the Superbowl… for Mitsubishi Gallant...that stops at the end and [says] go to “seewhathappens.com.” </li></ul><ul><li>We got about 600,000 clicks. </li></ul><ul><li>Was that great or that not great? </li></ul><ul><li>We told the client it was great so it was great.” </li></ul><ul><li>[nervous laughter] </li></ul>Deutsch is the 14 largest agency in the US
  9. The Truth Is…Marketing is Hard <ul><li>Suppose you have 5 options: </li></ul><ul><li>5 Brand Positionings </li></ul><ul><li>5 Customer Segmentations </li></ul><ul><li>5 Ad Creative Approaches </li></ul><ul><li>5 Magazine Schedules/Plans </li></ul><ul><li>5 Online Plans </li></ul>3,125 combinations 10 to 10 th = 1 billion combinations
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  11. And Future Will Be More Confusing 50% of HH’s 30M-‘08 12% 130M 50M HH’s Radio TV Print Outdoor
  12. So What is a Marketer to Do? One Solution for Making Sure Your Advertising Sticks!
  13. The First Step - Admit There is a Problem <ul><li>Real knowledge is to know the extent of one's ignorance. </li></ul><ul><li>Confucius </li></ul>
  14. What Sticks’ Three Steps <ul><li>Universal Agreement to Goals </li></ul><ul><li>Have a Back Up Plan (Plan B) </li></ul><ul><li>Know the Value of @ Dollar </li></ul>
  15. <ul><li>Motivations </li></ul>36% Missed it
  16. Who’s Headquarters is This?
  17. ING <ul><li>Fresh Thinking </li></ul>
  18. Today’s Ads for ING Simplifies a Complicated Financial World
  19. We Know Online Moves Sales Control n= 468 Branded n=469 Coupon n= 465 Purchase Intent: The next time you buy dry gelatin mix that comes in a box, what is the probability that you will buy Jell-O gelatin mix ? (Top 2 box- 11 point Juster Scale) All significant values are at a 95% confidence level Online advertising increases purchase intent by 7 points Offline Offline + Online Purchase Intent Lift: + 7%
  20. Jell-O Online Ad Examples
  21. Make Sure Your Motivations Stick <ul><li>Know why consumers buy your brand </li></ul><ul><li>Ensure it is a valuable customer segment </li></ul><ul><li>Wring all ambiguity from your definition of success </li></ul><ul><li>What if your Motivation isn’t right? </li></ul><ul><li>When would you know it? </li></ul><ul><ul><li>Is there Universal Agreement? </li></ul></ul>
  22. <ul><li>Messaging </li></ul>31% Missed it
  23. How do Consumers See Your Ads?
  24. How Bad is Online Creative? <ul><li>For 5 recent studies, creative testing was done prior to the research launch: </li></ul><ul><ul><li>Only 1 brand’s ads required no adjustment </li></ul></ul><ul><ul><li>2 brands found 1/2 the ads were not effective </li></ul></ul><ul><ul><ul><li>Diluting the effectiveness of the campaign </li></ul></ul></ul><ul><ul><li>2 brands discarded ALL ads & started all over </li></ul></ul><ul><ul><ul><li>Both developed ads that scored much better </li></ul></ul></ul>Who were the 5 Advertisers? P&G J&J Kraft Nestle Target
  25. Nothing Else Matters if Creative is Wrong Source: IAB Cross Media Study B A
  26. Creative Makes a BIG Difference Better creative can make the difference between success and absolute failure Ad A Source: IAB Cross Media Study
  27. What Made the Difference? Persistent Branding! Source: IAB Cross Media Study B A
  28. What Do You See?
  29. Make Sure Your Messaging Sticks <ul><li>Creative testing is cheap – Just do it! </li></ul><ul><ul><li>Because not testing is REALLY expensive! </li></ul></ul><ul><ul><li>Split cell testing is best (experimental design) </li></ul></ul><ul><li>What if you are Wrong? When would you know it? </li></ul>By the way… 47% Missed either Motivations or Messaging
  30. <ul><li>Media </li></ul>83% Missed it
  31. Media Timing Influences Success Average If Marketer had focused impressions on the 6 hours around lunch time, impact would have been significantly better Time of Day Lunch
  32. Media Mix Influences Success TV Use Online Use Heavier Heavier Lighter Lighter Heavy Online Heavy TV Heavy TV Light Online Light TV Light Online Heavy Online Light TV 26% 38% 15% 21% Media Usage among 18-49 year old target 34.3 Million!
  33. Too Much Media Influences Success Introducing New Menu Item: Grilled Chicken Flatbread Sandwich Ad Frequency (or Budget) % Aided Awareness 20% of Broadcast Budget Reinvested 13.6% in Online Point of Diminished Returns 5pt Gain! Cut 6.4% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 0.0%
  34. Making Your Media Stick <ul><li>Media is an investment–what is your ROI? </li></ul><ul><li>Must know what is the value of a Dollar </li></ul><ul><ul><li>Without knowing, you can’t Optimize </li></ul></ul><ul><ul><ul><li>Average gain was 35% </li></ul></ul></ul>
  35. The 4 th M <ul><li>Maximiz ation! </li></ul>
  36. Maximization is Applying Classic Innovation Theory To Marketing <ul><li>70-20-10 </li></ul><ul><li>70% of budget to what you know works </li></ul><ul><li>20% to innovating off of what you know works </li></ul><ul><li>10% to brand new ideas </li></ul>
  37. “ Most Important Launch In History Of Ford” - Bill Ford F150 Truck is #1 selling vehicle in U.S.
  38. The F-150 Online Ads
  39. Trying Something Brand New: Home Page Takeover Ad Ran One Day on Each Portal - Roadblock Roadblock 43% One Day Reach
  40. Cost Effectiveness of Each Medium Cost to Increase Purchase Consideration Interpretation: If it cost Roadblock $1 (indexed at 100) to increase purchase consideration, then it cost $1.35 for Online, $4.56 for magazine and $11.04 to TV to achieve the same increase. $1.35 $1.00 $4.56 $11.04 Sample Cost 100 Roadblock 456 Magazine 1104 TV 135 Online Relative Cost Index Brand Metric: Purchase Consideration (top 2 box)
  41. The Value of Small Changes Ford Media Mix * Traditional Media * Approx. $200 Million Budget Result in another $750,000,000 in U.S. Truck sales Sold Another +$1,350,000,000 in U.S. Trucks (at retail vs Base Plan)
  42. Peter Drucker says… <ul><li>Today knowledge has power. It controls access to opportunity and advancement. </li></ul><ul><li>Peter Drucker </li></ul><ul><li>(Father of Modern Management) </li></ul>
  43. Together, We Can Change Dilbert <ul><li>Accountability is not measurement, Accountability is doing something about it </li></ul>
  44. What If We Were . Wrong? Right? Media Motivations Messaging 36% 31% 83%
  45. Greg Stuart +1.631.702.0682 [email_address] Thank You
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