The Inconvenient Truths of
Effectiveness
Exploiting the potential of the
evolving media landscape

Previous research and this
http://www.ipa.co.uk/Document/Media-in-Focus-PDF#
• How is the changing
media landscape
altering the rules of
effectiveness?
• 500 digital era cases,
120 in 2014/16

3 important truths
1. Effectiveness requires media and strategies that
work over the short and long-terms:
– The 60:40 effectiveness rule
2. Emotional campaigns and media drive long-term
effectiveness
3. Mass marketing still rules effectiveness:
scalability is essential for growth

1. Short and long-term
effectiveness are different
You need strategies for both

Salesupliftoverbase
Time
Source: Binet & Field 2013
The deception of short-termism
Sales activation
Short term sales uplifts
Brand building
Long term sales growth
Short term effects dominate ~6 months

Short-termism has been rising
0%
5%
10%
15%
20%
25%
30%
2006 2008 2010 2012 2014 2016
%casesshort-term
10 years ending
Source: IPA Databank, 1998-2016 cases

Activation effects have been achieved
at the expense of brand
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2006 2008 2010 2012 2014 2016
%casesreportingverylarge
effects
10 years ending
Activation
effects
Brand
awareness
growth
Source: IPA Databank, 1998-2016 cases

Effectiveness has fallen
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2006 2008 2010 2012 2014 2016
Numberofverylargebusiness
effects
10 years ending
Source: IPA Databank, 1998-2016 cases

Short-term campaign’s sales effects

Specsavers: a long-term TV campaign
Source: Specsavers IPA case study 2014

Specsavers: a long-term TV campaign

Specsavers: a long-term TV campaign

Balancing brand and activation for
best success
62
38
Very large share growth cases
Channel share for
brand-building
objectives
Channel share for
activation
objectives
64
36
Most efficient cases
58
42
Strongest brand-building cases
64
36
Very large profit growth cases
Source: IPA Databank, 2016 cases

61%
39%
Advertising spend split, 2000
Share of display
Share of direct
response
Source: Enders Analysis estimates based on AA/WARC
51%49%
Advertising spend split, 2016
Activation levels have exceeded optimum
Advertising effectiveness-marketing and long-term
business benefits [ May 2017]

Brand-building is just as important for
online brands
60 57
40 43
0
10
20
30
40
50
60
70
80
90
100
Offline Online
Optimumbudgetsplit%
Brand Activation
Source: IPA Databank, 1998-2016 for-profit cases

Tech firms are turning to traditional media
UK adspend – 12 month rolling (Nielsen)

The power of TV in an online
category: Directline

Directline

Directline growth
Source: Directline IPA case study 2016

2. Emotional campaigns and media
drive long-term growth

Emotional campaigns build stronger brands
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
Rational Emotional
Numberofbrandeffects
Communications model
Source: IPA Databank

Emotions and Fame remain most efficient
0.2
1.0
1.3
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
Rational Emotional Fame
SOVefficiency
Source: IPA Databank, 2004-16 cases

Magazines
DRTV
Radio
Nat newspapers
Regional
newspapers
TV
Inserts
OOH
Sponsorship
Cinema
PRDM
SMS
Promos
Social
media
Online video
Online non-video
Email
Paid search
25%
35%
45%
55%
65%
75%
85%
1.1 1.3 1.5 1.7 1.9 2.1 2.3
%reportingverylargeactivationeffects
Average number of very large brand effects reported
Emotive audio-visual media build brands
Source: IPA Databank 2008 - 2016
Rational information
media
Emotive audio-visual
media

Aldi UK – emotional priming

Aldi UK – emotional priming

Emotional priming – Aldi UK
Source: Aldi IPA case study 2012

Aldi UK share growth
Source: Aldi IPA case study 2012

3. Mass marketing and media are
essential to long-term growth

Targeting vs. Reach
0%
10%
20%
30%
40%
50%
60%
Verylargeactivationeffects
Targeting
Tight targeting drives short-term
activation
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
Annualmkt.sharegrowth
Targeting
Broad reach drives long-term
growth
Source: IPA Databank, 2008-16 cases

Targeting vs. Reach
0%
10%
20%
30%
40%
50%
60%
70%
80%
Did use Did not use
Verylargeactivationeffects
Use of Big Data for real-time
marketing
Real-time tight targeting drives
short-term activation
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
Did use Did not use
Annualmarketsharegrowth
Use of Big Data for real-time
marketing
Broad early targeting drives long-
term growth
Source: IPA Databank, 2014-16 cases

“We targeted too much, and we
went too narrow…The bigger your
brand, the more you need broad
reach and less targeted media.”
Marc Pritchard, CMO P&G
Wall Street Journal, Aug. 17, 2016

Messaging
Shopping/
transacting
Online video
Broadcast TV
Other online
Newsbrands
Search
Reaching UK adults in 2016
0
10
20
30
40
50
60
70
80
90
100
0.0 1.0 2.0 3.0 4.0 5.0 6.0
WeeklyReach(%Adults)
Average Hours Per Day (Across All Adults)
OOH
Radio
Email
Social networking
Texting
Internet for work
Cinema
Subscriber VoD
Reaching UK adults in 2017
Source: IPA Touchpoints

How people spend their time online
Social/messaging 39%
Email 33%
Search 7%
Video 4%
Shopping/transacting
3%
Other 14%
Source: IPA Touchpoints, Wave 6 (April 2016)

Mark Ritson
“It’s called ‘social media’ for a reason: most
Australians use it to connect with people not
companies.”
Mark Ritson, Financial Review 10/4/13

TV is best for market share growth
1.1%
1.8%
2.1%
2.6%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
No TV TV sponsorship DRTV Brand TV
Avg.marketsharepoints
gainedperannum
Source: IPA Databank, 2014-16 cases

And digital makes mass media more effective
27%
22%
13% 14%
40%
27%
22%
27%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
TV Press Radio Outdoor
%increaseinavg.no.VL
businesseffectsfromadding
Web 1.0 (1998 - 2006) Web 2.0 (2008* - 2016)
Source: IPA Databank
*Outdoor = 2012 - 2016

Online video makes TV more effective
2.6%
3.1%
1.1%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
TV only Both Online video only
Avg.marketshare
gainperannum
Source: IPA Databank, 2014-16 cases

TV consistently outperforms online video
across 2017 research studies
2.4 x
2.6 x
2.4 x
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Share growth - IPA Short-term sales - Karen
Nelson-Field
Long-term ROI -
Ebiquity/Gain Theory
TVperformancevs.Onlinevideo
Sources: IPA Databank ‘Media in Focus’ , Professor Karen Nelson-Field PhD ‘Media Attributes that (really) Matter’ ,
Ebiquity ROI campaign database & Gain Theory ‘Profit Ability: the business case for advertising’

SOV is getting more important
6%
12%
0%
2%
4%
6%
8%
10%
12%
14%
1998-2006 2008-2016
%growthexplainedbyshareof
voicealone
Source: IPA Databank

Conclusions
• Short-termism damages effectiveness: we need to ensure balance
between long & short term objectives. Remember the 60:40 rule.
• TV reigns supreme for long-term effectiveness
• The most powerful long-term media are able to stir emotions and
build fame for brands.
• Campaign reach and scalability are vital to long-term brand success.
• Narrow-targeting is seductive in the short term but underperforms
in the long term.
• Share of voice is getting more important not less.
Thank you

The Inconvenient Truths of
Effectiveness