Worldwide Partners Presentation 5 09

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This was a presentation made to the group of international advertising agencies meeting in Edinburgh Scotland in May 2009.

This was a presentation made to the group of international advertising agencies meeting in Edinburgh Scotland in May 2009.

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  • 1. What’s Next for Agencies ? Greg Stuart Co-author: What Sticks
  • 2. Legacy of The Stuart’s in Scotland `
  • 3. Stuart’s Had a Good Run Here...
    • King/Queen’s Name From Until
    • Robert II of Scotland February 1371 April 1390
    • Robert III of Scotland April 1390 April 1406
    • James I of Scotland April 1406 February 1437
    • James II of Scotland February 1437 August 1460
    • James III of Scotland August 1460 June 1488
    • James IV of Scotland June 1488 September 1513
    • James V of Scotland September 1513 December 1542
    • Mary I (Queen of Scots) December 1542 July 1567
  • 4. …Until Mary, Queen of Scots
    • Married first husband, King of France - 1558
    • He died in less than a year
    • Married her first cousin, Lord Darnly - 1565
    • He died in an explosion
    • Then married Earl of Bothwell - 1567
    • Believed to be Darnly’s murderer
    • Upraising – Mary is Imprisoned - 1567
    • Abdicates throne to 1 year old son
    • Flees to England w/ support of Queen Elizabeth I (1 st Cousin) - 1568
    • Attempts to inherit throne
    • Trial for attempts (3 times) to assassinate Elizabeth - 1587
    • Beheaded
    • Greg Stuart moves to New York City to enter Advertising - 1983
  • 5. What If We Were Wrong? Worldwide Partners, Inc. Summit Edinburgh, Scotland May 2009 Greg Stuart Co-author: What Sticks
  • 6. Advertising’s Inconvenient Truth Greg Stuart Co-author: What Sticks Insights from Research against US$1Billion in Advertising Spending What If We Were Wrong?
  • 7. What Did We Find?
    • Over 37% of Ad Spending is Wasted (1)
    What makes you think yours isn’t? (1) Equal to $112 Billion of the $295 Billion in U.S. Advertising Spending
  • 8. If Advertising had a Slogan…
    • Ads Work Wonders
    • Half the Money is Wasted
    Courtesy of Erwin Ephron
  • 9. $1US Billion Ad Spending Researched 1.1 million consumers surveyed
  • 10. And, We Don’t Seem to Own Responsibility for a Burden of Proof
    • Donny Deutsch speaking to 500 Marketers…
    • “ We did a wonderful spot…on the Superbowl… for Mitsubishi Gallant...that stops at the end and [says] go to “seewhathappens.com.”
    • We got about 600,000 clicks.
    • Was that great or that not great?
    • We told the client it was great so it was great.”
    • [nervous laughter]
    Deutsch is the 14 largest agency in the US
  • 11. So, What Else do We Know 36% 31% 83% Media Motivations Messaging
  • 12. The Truth Is…Marketing is Hard
    • Suppose you have 5 options:
    • 5 Brand Positionings
    • 5 Customer Segmentations
    • 5 Ad Creative Approaches
    • 5 Magazine Schedules/Plans
    • 5 Online Plans
    3,125 combinations 10 to 10 th = 1 billion combinations
  • 13.  
  • 14. So What is a Marketer to Do? One Solution for Making Sure Your Advertising Sticks!
  • 15. The First Step - Admit There is a Problem
    • Real knowledge is to know the extent of one's ignorance.
    • Confucius
  • 16. What Sticks’ Three Steps
    • Universal Agreement to Goals
    • Have a Back Up Plan (Plan B)
  • 17. Are You Prepared if You Are Wrong? Used with permission Cartoonbank.com
  • 18. What Sticks’ Three Steps
    • Universal Agreement to Goals
    • Have a Back Up Plan (Plan B)
    • Know the Value of each Dollar
  • 19.
    • Motivations
    36% Missed it
  • 20. Who’s Headquarters is This?
  • 21. ING
    • Fresh Thinking
  • 22. Today’s Ads for ING Simplifies a Complicated Financial World
  • 23.
    • Messaging
    31% Missed it
  • 24. Creative Matters Source: IAB Cross Media Study B A
  • 25. Creative Makes a BIG Difference Better creative can make the difference between success and absolute failure Ad A Source: IAB Cross Media Study
  • 26. What Made the Difference? Persistent Branding! Source: IAB Cross Media Study B A
  • 27. How Poor are We at Online Creative?
    • For five studies, creative testing was done prior to the research launch:
      • Only 1 brand’s ads required no adjustment
      • 2 brands found 1/2 the ads were not effective
        • Diluting the effectiveness of the campaign
      • 2 brands discarded ALL ads & started all over
        • Both developed ads that scored much better
    Who were the 5 Advertisers? P&G J&J Kraft Nestle Target
  • 28. What Do You See?
  • 29.
    • Media
    83% Missed it
  • 30. 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
  • 31. Sometimes Spending Less is More 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%
  • 32. Beware of the Diminishing Returns % of Brand Impact Awareness, Image or Purchase Intent 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Frequency Diminishing returns 1 2 3 4 5
  • 33. 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!
  • 34. Media Optimizations Matters for Retail Too Payback ROI: Profit Payback Per Dollar Spent on Advertising Cost to Generate an Equivalent Sale (indexed) Overall, Online was the most cost effective & efficient in driving sales
  • 35. The Impact on Sales
    • Online advertising accounted for 2% of the advertising budget and yielded 9% of in store sales
    Sales Caused by Online 9%
  • 36. The 4 th M
    • Maximiz ation!
  • 37. Maximization is Applying Classic Innovation Theory To Marketing
    • 70-20-10
    • 70% of budget to what you know works
    • 20% to innovating off of what you know works
    • 10% to brand new ideas
  • 38. “ Most Important Launch In History Of Ford” - Bill Ford F150 Truck is #1 selling vehicle in U.S.
  • 39. The F-150 Online Ads
  • 40. Trying Something Brand New: Home Page Takeover Ad Ran One Day on Each Portal - Roadblock Roadblock 43% One Day Reach
  • 41. 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)
  • 42. The Value of Small Changes Ford Media Mix * Traditional Media Plan * Approx. $200 Million Budget Online Online Result was another $750,000,000 in U.S. Truck sales Total of +$1,350,000,000 in U.S. Truck Sales (at retail vs. Base Plan)
  • 43. Ford Possibly Put It Best
    • It isn't the incompetent who destroy an organization. It is those who have achieved something and want to rest upon their achievements who are forever clogging things up.
    • Charles Sorenson
    • Ford Motor Car
  • 44. Together, We Can Change Dilbert
    • Accountability is not measurement, Accountability is doing something about it
  • 45. What If We Were . Wrong? Right? Media Motivations Messaging 36% 31% 83%
  • 46. Greg Stuart [email_address] Thank You +1.631.702.0682
  • 47. Increasing Online Advertising Impact +1,000% by End of Today Bonus
  • 48. Stop Buying International Impressions for Domestic Campaigns
    • If, International users comprise about 15% to 30% of a site’s audience
    • Removing International increases effectiveness by 18% to 43%
  • 49. Respect Diminishing Returns It’s a Law of Physics in Media % of Brand Impact Awareness, Image or Purchase Intent 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Frequency Diminishing returns 1 2 3 4 5
  • 50. Heaviest Online Quintile Captures Half the Ad Impressions Percent of Total Impressions Light Users All other quintiles Heavy Users Avg Freq: 1.0 2.1 3.2 5.5 25.0
  • 51. One Solution: Website Frequency Caps Can Really Help Frequency of 3 Per Week per Site Dramatically Increases Reach & Thus Performance Light Users All other quintiles Heavy Users Increased reach by 72% +50% to 70% in Ad Effectiveness
  • 52. Many Things can Affect Effectiveness (e.g., Time of Day) +10% to 15% in Ad Effective-ness Average If Marketer had focused impressions on the 6hours around lunch time, impact would have been significantly better % Purchase Intent Lunch
  • 53. Results: Size Matters 1 Aggregated results for three brands tested 2 The average of four brand measures tested The 336x280 resulted in an average +54% increase in brand impact vs. 468 x 60 2 +20% to 54% in Ad Effective-ness IAB, DoubleClick Ad Effectiveness Research 2001 Banner Small Rectangle Small Skyscraper Large Rectangle
  • 54. Make Sure EVERYTHING Works! Same Media Budget  310% Increase Source: InsightExpress
  • 55. Creative Possibilities Priceless!
  • 56. Improving Ad Effectiveness Insights from the What Sticks Research
    • Low High
    • Cut out International impressions 18% to 43%
    • Manage Frequency 50% to 70%
    • Capitalize on Time of Day/DoW 10% to 15%
    • Ad Size matters 20% to 54%
    • Get rid of ads that don’t work 5% to 300%
    • Page Placement really matters 6% to 350%
    • Creative is “mission critical” 0% to 400%
    • Total Gain Possible: 0% 3210%
    +0% to INFINITY in Ad Effectiveness
  • 57. Greg Stuart [email_address] Thank You {Again} +1.631.702.0682
  • 58. Making Your Media Stick
    • Media is an investment–what is your ROI?
    • Must know what is the value of a Dollar
      • Without knowing, you can’t Optimize
        • Average gain was 35%
  • 59. Make Sure Your Motivations Stick
    • Know why consumers buy your brand
    • Ensure it is a valuable customer segment
    • Wring all ambiguity from your definition of success
    • What if your Motivation isn’t right?
    • When would you know it?
      • Is there Universal Agreement?
  • 60. Make Sure Your Messaging Sticks
    • Creative testing is cheap – Just do it!
      • Because not testing is REALLY expensive!
      • Split cell testing is best (experimental design)
    • What if you are Wrong? When would you know it?
    By the way… 47% Missed either Motivations or Messaging
  • 61.
    • Mary I (popularly known in the English-speaking world as Mary, Queen of Scots and, in France , as Marie Stuart) (8 December 1542 – 8 February 1587) was Queen of Scots from 14 December 1542 to 24 July 1567.
    • She was the only surviving legitimate child of King James V . She was six days old when her father died and made her Queen of Scots . Her mother, Mary of Guise , assumed regency and her daughter was crowned nine months later.
    • In 1558, she married Francis, Dauphin of France , who ascended the French throne as Francis II in 1559. However, Mary was not Queen of France for long; she was widowed on 5 December 1560.
    • After her husband's death, Mary returned to Scotland, arriving in Leith on 19 August 1561. Four years later, Mary remarried, choosing her first cousin, Henry Stuart, Lord Darnley , as her second husband. Their union turned unhappy and in February 1567, Darnley was found dead in the garden at Kirk o'Field, after a huge explosion had taken place in the house.
    • She soon married James Hepburn, 4th Earl of Bothwell , who was generally believed to be Darnley's murderer. Following an uprising against the couple, Mary was imprisoned in Loch Leven Castle on 15 June and forced to abdicate the throne in favour of her one-year-old son, James VI. After an unsuccessful attempt to regain the throne, Mary fled to England seeking protection from her father's first cousin, Queen Elizabeth I , whose kingdom she hoped to inherit. Elizabeth, however, ordered her arrest, because of the threat presented by Mary, who was considered the rightful ruler of England by many English Catholics.
    • After a long period of custody in England, she was tried and executed for treason following her alleged involvement in three plots to assassinate Elizabeth and place herself on the English throne .
  • 62.
    • "Remember Gentlemen the Theatre of history is wider than the Realm of England."
    • she replied that she forgave them, for "you are about to end my troubles!"
    • Be happy while you're living, for you're a long time dead. Scottish Proverb
    • Confessed faults are half mended. Scottish Proverb
    • Fools look to tomorrow. Wise men use tonight. Scottish Proverb
    • Luck never gives; it only lends. Scottish Proverb
  • 63.
    • “ The difficulty of literature is not to write, but to write what you mean”
    • Robert Louis Stevenson quotes
    • “ The hardest thing in life is to know which bridge to cross and which to burn”
    • David Russell quotes
    • “ Oh what a tangled web we weave, When first we practice to deceive”
    • Sir Walter Scott
    • “ To be kind to all, to like many and love a few, to be needed and wanted by those we love, is certainly the nearest we can come to happiness.”
    • Mary Stuart
    • “ People who are unable to motivate themselves must be content with mediocrity, no matter how impressive their other talents.”
    • Andrew Carnegie
    • “ Tell a man he is brave, and you help him to become so”
    • Thomas Carlyle
    • “ Go as far as you can see; when you get there you'll be able to see farther”
    • Thomas Carlyle
    • If the Scotch knew enough to go in when it rained, they would never get any outdoor exercise.
    • - Simeon Ford
  • 64.
    • [9:09:25 AM] Greg Stuart: Here's another one on the next
    • To marry is to halve your rights and double your duties.
    • Scottish Proverb
    • [9:09:56 AM] David Weseley: hah!
    • [9:10:56 AM] David Weseley: beggars cannae be choosers
    • [9:11:30 AM] David Weseley: i am looking for ones apropos to you
    • [9:11:44 AM] David Weseley: Better keep the devil at the door than have to turn him out of the house
    • [9:12:03 AM] David Weseley: this one is great: Enough is as good as a feast
    • [9:13:13 AM] David Weseley: Mair by guid luck than guid guidance
    • [9:13:49 AM] Greg Stuart: I don't get the last one
    • [9:14:03 AM] David Weseley: More by good luck than by guidance, or planning
    • [9:14:08 AM] David Weseley: Our business in this world is not to succeed, but to continue to fail in good spirits
    • [9:14:20 AM] David Weseley: Penny wise and pound foolish
    • [9:14:29 AM] David Weseley: The cure may be worse than the disease
    • [9:14:31 AM] Greg Stuart: Who did the our business one?
    • [9:14:33 AM] Greg Stuart: Loave that
    • [9:15:00 AM] David Weseley: and perfect for your book: When one door sticks, another one opens
    • [9:15:11 AM] David Weseley: I don't know, now I am reading a list on the net
    • [9:15:18 AM] David Weseley: http://www.rampantscotland.com/features/scottish_proverbs.htm
    • [9:15:19 AM] Greg Stuart: send me the link
    • [9:15:54 AM] David Weseley: this is another classic:
    • [9:15:56 AM] David Weseley: Ye canna make a silk purse of a sow's lug (a pig's ear).
    • [9:16:30 AM] Greg Stuart: Love that one too