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The one thing fitness models know that many growing companies don't

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Many marketers have neglected the importance of long-term advertising due to the rise of hyper-targeted marketing and tech-driven tactics. This presentation provides ample evidence that long-term advertising pays off tremendously, especially for market share growth.

The obvious but often-overlooked takeaway is: We need a balance of short and long-term marketing.

Look for me on Linkedin or at arthurkoh.com

References:

Slides 27-29: Binet, L., & Field, P. (2013). The long and the short of it: Balancing short and long-term marketing strategies. Institute of Practitioners in Advertising.
Slides 32-33: Kantar. (2019). Mastering Momentum. Retrieved from http://www.millwardbrown.com/BrandGuidance/mastering-momentum/
Slides 36-37: Sharp, B. (2016). How brands grow. Oxford University Press.
Slide 45: Moore, G. A., & McKenna, R. (1999). Crossing the chasm.
Slide 48: Byzalov, D., & Shachar, R. (2004). The risk reduction role of advertising. Quantitative Marketing and Economics, 2(4), 283-320.
Slide 55: Keller, E., & Fay, B. (2009). The role of advertising in word of mouth (p. 156). Journal of Advertising Research, 49(2), 154-158.
Slide 59: Blank, S. (2013). The four steps to the epiphany. K & S Ranch.

Head icon by Naveen from the Noun Project
six pack icon by leo-graph.com from the Noun Project
Cover image from http://www.welovefitness.eu/item.php?id=2303
Author's pic by AIC.

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The one thing fitness models know that many growing companies don't

  1. 1. THE ONE THING FITNESS MODELS REMEMBER THAT MANY GROWING COMPANIES DON’T
  2. 2. Adayortwobeforeaphotoshoot,fitnessmodels wouldstopdrinkingwatertoenhancetheir muscledefinition.
  3. 3. Someevenspeedupthedehydrationprocessby drinkingonlyalcohol.
  4. 4. Isthatallittakestogetabsthatcastdeep shadowsandenvy?
  5. 5. Obviouslynot,becauseweknowregulargym sessionsarerequiredtoo.
  6. 6. Yetinmarketing,manycompanieshavebeen focusingonshort-termefficiency...
  7. 7. ...whileneglectingthelong-term.
  8. 8. Let’stalkaboutlong-termobjective advertising—theregulargymsessionsthatmake dehydrationwork.
  9. 9. Effectivelong-termadvertising: 1) ReachesexistingANDpotentialcustomers 2) Implantsandreinforcesyourproductand relevantassociations(i.e.brand)intheirminds
  10. 10. Long-termadvertisingisNOTforconversion rightthereandthen.
  11. 11. Engagingconsumerswhoarecloserto conversionisajobforshort-termmarketing.
  12. 12. Thesearegreattoolsforconsumers: 1) Whoalreadyhaveyourproductnameand relevantassociations(i.e.brand)intheir considerationsets 2) Orarealreadylookingforasolution.
  13. 13. Butlong-termadvertisingisrequiredfor consumers: 1) Toevenconsideryourbrandinthefirstplace 2) Whodon’tneedyoursolutionyet(we’lltalk aboutwhythisissoimportantlater)
  14. 14. Withoutlong-termadvertising,short-term marketingROIswilldecreasesimplybecause there’slessinputforthemtoconvert.
  15. 15. Consumerchoicereliesonconsiderationsets, whicharebuiltfromlong-termexposuretoWOM, advertising,PR,content,andothersources. BrandA Brand B Brand C
  16. 16. Ifthey’reshoppingforalaptop,theymay considerDell,Apple,HP,etc.
  17. 17. Ifyou’resellinglaptops,youneedtobeinthat considerationset. Your Brand
  18. 18. Implantingyourbrand=Gettinginto considerationsets Your Brand
  19. 19. Reinforcingyourbrand=Increasingor maintainingyourprominenceinconsideration sets Your Brand
  20. 20. Thisiswhylong-termadvertisingisalsocalled brand-buildingadvertising.
  21. 21. Butbecausetheyworkinthelongtermandare oftenimplicit,they’rehardertomeasure. Andarehencecriticisedassoft,fuzzy,and ineffective.
  22. 22. It’sraretolooksignificantlybetteronedayafter agymsession.Whydowekeepgoingthen?
  23. 23. Becauseweknowitpaysoff.Theevidenceisright thereinthegym.
  24. 24. Whenitcomestolong-termmarketing,the evidenceofsuccessisn’talwayssodirectand clear.
  25. 25. Sowecopyblindly,fallforsolutionism,andjump ontobandwagons. THE ONLY MARKETING TOOL YOU’LL EVER NEED FOR THE REST OF YOUR LIFE!
  26. 26. Ittookawhile,butwenowhavesolidevidenceof long-termadvertising’seffectiveness.
  27. 27. Here’sastudyof 966adcampaignsfrom 700+brandsover 80+productcategories.
  28. 28. Campaignswithlong-termobjectives(theblack barsbelow)weremorelikelytoresultin significantmarketsharegrowth,especiallywhen measuredover3+years. % ofcampaigns reportingverylarge market share growth 1-2years (Campaign duration) 3+years 14% 22% 45% 14%
  29. 29. Long-termadvertisingmaylooksoftandfuzzy, butit’smuchmoreeffectiveforgrowth. % ofcampaigns reportingverylarge market share growth 1-2years (Campaign duration) 3+years 14% 22% 45% 14%
  30. 30. Tobemoreprecise,certainkindsoflong-term advertisingismoreeffectiveforgrowth. I’lltalkmoreaboutitinanupcomingpresentation “Thenot-so-invisibleGorilla”.
  31. 31. Andno,linkingupseveralshort-termcampaigns doesn’tachievethesamemarketsharegrowthas along-termcampaign.
  32. 32. Let’slookatanotherstudy: 3,907brands 58categories 3years
  33. 33. Amongthe146best-performingbrands,the majorityoftheirgrowthcamefromexposure (i.e.long-termadvertising). Exposure ActivationExperience +27% growth+7% +12%
  34. 34. Long-termadvertisingissocrucialtomarket sharegrowthbecause: Growth=Acquisition–Defection Togrow,youneedtogainmorenewcustomers thanloseexistingones.
  35. 35. Soundsbasic,butthere’sanimportantwrinklein thisequation. MostofyourcustomersWILLswitchbrands. BecausemostconsumersareNOTloyal.
  36. 36. It’sworthrepeating: MostconsumersareNOTloyal. Thisisoneofthekeyfindings fromByronSharp,whohas emergedasoneofthemost importantmarketing scholarsofthedecade.
  37. 37. Let’slookatApple,everyone’sfavouritecase studyofsupposedbrandloyalty. In2011,Applelaptops’repeat-purchaseratewas around24-36%.Forcomparison,themarket leaderDellachieved50-67%.
  38. 38. Consumershaveconsiderationsets;theyhavethe powerofchoice. Youcannotrelyonexistingcustomerstostay withyou. YouWILLleakcustomers. Thisiswhyreachingnewcustomersisvital.
  39. 39. Thisismassadvertising’sjob. Yes,itcanseemexpensive. Yes,youhavetodealwiththeoccasionalbullshit artistfromagencies.
  40. 40. Butmassadvertisinghelpsyougetintoandgain prominenceinpotentialcustomers’ considerationsets. Your Brand
  41. 41. Inmanycases,it’snecessaryjusttodefendyour territoryinconsiderationsets. Your Brand
  42. 42. Ifthere’sonecomfortingpieceofnews,mass advertisingisn’tthatdifficult,evenwithinthe attentioneconomy. (Moreaboutitinmyupcomingpresentation “Thenot-so-invisibleGorilla”).
  43. 43. Consumerscertainlyhavemore accesstomoreinformation. Butthey’restilllimitedbytheircognitive bandwidth;theystillrelyonmentalshortcuts. 3.5/5
  44. 44. Especiallywhenthey’repartofthemainstream market,wheretherealmoneyandgrowthis.
  45. 45. Mainstreamconsumers aren’tasknowledgeableor enthusiasticastheearlier marketsegments. Theyneedassurance.
  46. 46. Themainstreammarketforanyproduct,political movement,orevenreligiousconversionis risk-averse.
  47. 47. Anadforanewlaptopcanneverbemore convincingthanseeingyourfriendsusingone, butitcertainlyaddstotheassurance.
  48. 48. Massadvertisingassuresbyactingasacostly signalofqualityandcommitment.
  49. 49. Theconsumers’logicbeing:companieswouldn’t spendallthatmoneyandbesopublicifthey’re notabletodeliver.
  50. 50. Massadvertisingalsocreatescommon knowledge. Knowingthatotherpeoplealsoknowabouta newlaptop,forexample,reducesamainstream consumer’srisk-aversion.
  51. 51. Onasidenote,commonknowledgeisalso importantifconsumersuseyourbrandtosignal somethingaboutthemselves.
  52. 52. Forexample,aTesladriverwantstobeseenas modern,eco-friendly,well-to-dobutnot extravagant. Butbecause(most)Tesladriversdon’tclaimso themselves,it’sTesla’sresponsibilityasabrand tohelpthempubliclycommunicatethesetraits.
  53. 53. Common knowledgeis alsowhy luxurybrands mass advertise. What’sthe pointof wearing something luxuriousif nobodyelse knowsitis?
  54. 54. Adsthemselvesarealsoinvolvedinword-of- mouthspread.
  55. 55. 36,402Americanswereeachgivenadiaryto keeptrackoftheirconversationsoverayear. 26%ofconversationsabouttechnological productswereinfluencedbypaidmediaads; 24%intheautomobilecategory; 21%intravelservices; 15%inhealthandhealthcare.
  56. 56. Idon’trunanadvertisingagency. I’mundernoillusionorprofessionalobligationto insistonlong-termmassadvertisingastheonly toolavailableforgrowth,becauseit’snot. Butit’stheeasiestandmostreliableone.
  57. 57. Atthesametime,therearesituationswhen long-termmassadvertisingisn’ttherighttool forthejob.
  58. 58. 1) Whenyourproductisn’treadyforthe mainstreammarket. Here’stheobligatoryDavidOgilvyquote, “Greatmarketingonlymakesabadproduct failfaster.”
  59. 59. 2) AsSteveBlankpointedoutinTheFourSteps totheEpiphany,astartup(ora new productline)shouldonlystartmass marketingwhenthey knowthere’saviable marketfortheproduct.
  60. 60. 3) Massadvertisingisn’tneededyetwhen you’restillworkingwiththeenthusiast/ innovator segment.
  61. 61. 4) Inthebestcasescenario,yourbusinessmay alreadyhaveaviralitymechanismbuiltinand acquisitionratesdon’tseemtobeslowing downatall.
  62. 62. Tosummarisethispresentation... Youneedamixofshortandlong-term. Long-termmassadvertising’smainobjective:To implantandreinforceyourbrandinexistingand newcustomers’considerationsets.
  63. 63. Youneedtoreachnewcustomersbecause consumersarelessloyalthanconventional marketingwisdomexpects. Massadvertisingalsohelpsreassuretherisk- aversemainstreamcustomers.
  64. 64. ThispresentationwascreatedbyArthurKoh.I’mamass behaviourconsultant. Ilikeworkingwithchallengerbrandsbecauseit’srarelygreat whenthebiggestguygetstoobig. YoucanfindmeonLinkedin.com/in/arthurkohorarthurkoh.com

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