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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
Marketing’s  Inconvenient Truth Insights from Research against US$1Billion in Advertising Spending Greg Stuart Former CEO, Interactive Advertising Bureau Co-author: What Sticks
If Advertising   had a Slogan… ,[object Object],[object Object],Courtesy of Erwin Ephron
$1 Billion Ad Spending Researched 1.1 million consumers surveyed
What Do We Know? ,[object Object],What makes you think yours isn’t? (1)  Of the $295 Billion in U.S. Advertising Spending
Are You Prepared if You Are Wrong?
So, What Else do We Know 36% 31% 83% Media Motivations Messaging
And, We Don’t Seem to Own Responsibility for a Burden of Proof ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Deutsch is the 14 largest agency in the US
The Truth Is…Marketing is Hard ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],3,125 combinations 10 to 10 th  =  1   billion  combinations
 
And Future Will Be More Confusing 50% of HH’s 30M-‘08 12% 130M 50M HH’s Radio TV Print Outdoor
So What is a Marketer to Do? One Solution for Making Sure Your Advertising  Sticks!
The First Step - Admit There is a Problem ,[object Object],[object Object]
What Sticks’ Three Steps ,[object Object],[object Object],[object Object]
[object Object],36% Missed it
Who’s Headquarters is This?
ING ,[object Object]
Today’s Ads for ING Simplifies a Complicated Financial World
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%
Jell-O Online Ad Examples
Make Sure Your Motivations Stick ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],31% Missed it
How do Consumers See Your Ads?
How Bad is Online Creative? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Who were the 5 Advertisers? P&G  J&J  Kraft  Nestle  Target
Nothing Else Matters if Creative is Wrong Source: IAB Cross Media Study B A
Creative Makes a  BIG  Difference Better creative can make the difference between success and  absolute  failure Ad A Source: IAB Cross Media Study
What Made the Difference?  Persistent Branding! Source: IAB Cross Media Study B A
What Do You See?
Make Sure Your Messaging Sticks ,[object Object],[object Object],[object Object],[object Object],By the way… 47% Missed either Motivations  or  Messaging
[object Object],83% Missed it
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
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!
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%
Making Your Media Stick ,[object Object],[object Object],[object Object],[object Object]
The 4 th  M ,[object Object]
Maximization is Applying Classic Innovation Theory To Marketing ,[object Object],[object Object],[object Object],[object Object]
“ Most Important Launch In History Of Ford”     - Bill Ford F150 Truck is #1 selling vehicle in U.S.
The F-150 Online Ads
Trying Something Brand New: Home Page Takeover Ad  Ran One Day on Each Portal - Roadblock Roadblock 43% One Day Reach
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)
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)
Peter Drucker says… ,[object Object],[object Object],[object Object]
Together, We Can Change Dilbert ,[object Object]
What If We  Were  . Wrong? Right? Media Motivations Messaging 36% 31% 83%
Greg Stuart +1.631.702.0682 [email_address] Thank You
 

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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.
  • 4. $1 Billion Ad Spending Researched 1.1 million consumers surveyed
  • 5.
  • 6. Are You Prepared if You Are Wrong?
  • 7. So, What Else do We Know 36% 31% 83% Media Motivations Messaging
  • 8.
  • 9.
  • 10.  
  • 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.
  • 14.
  • 15.
  • 17.
  • 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.
  • 22.
  • 23. How do Consumers See Your Ads?
  • 24.
  • 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.
  • 30.
  • 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.
  • 35.
  • 36.
  • 37. “ Most Important Launch In History Of Ford” - Bill Ford F150 Truck is #1 selling vehicle in U.S.
  • 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.
  • 43.
  • 44. What If We Were . Wrong? Right? Media Motivations Messaging 36% 31% 83%
  • 45. Greg Stuart +1.631.702.0682 [email_address] Thank You
  • 46.