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Mythbusting TV Advertising by Augustine Fou


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TV ads are great at awareness. But caveats apply. Advertisers should look for the new 'balance' between traditional advertising channels (which are one-way) and digital marketing channels (which are two-way).

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Mythbusting TV Advertising by Augustine Fou

  1. 1. Mythbusting TV Advertising Dr. Augustine Fou February 2014 -1- Augustine Fou
  2. 2. Case: Jlo/Fiat (2011) “the jlo ad” “Fiat, who?” -2- Fiat’s TV ad generated huge search interest for Jennifer Lopez but had virtually no impact for Fiat’s 500C. Augustine Fou
  3. 3. People Remember Celebrity 2012 Superbowl Ads -3- Augustine Fou
  4. 4. Ace Metrix Study: 56% Consumers say celebrities make little difference 45% of US adults believe that celebrities can make either a large (11%) or some (33%) positive difference to issues they are promoting, but a greater proportion (51%) feel that they make little to no difference, per results from a study by Harris Interactive. Interestingly, respondents were more convinced of celebrities’ potential negative impact: 55% believe that celebrities’ negative publicity can have a somewhat (35%) or very (20%) damaging impact on the issue they’re promoting. Source: Ace Metrix via Marketing Charts Feb 6, 2014 -4- Augustine Fou
  5. 5. Ace Metrix Across all dimensions, little difference celebrities vs non-celebrities A new research paper [download page] from Ace Metrix analyzing the impact of celebrities in TV advertising has found that, well, they have little to none. Based on advertising data gathered from the beginning of January 2012 through October 2013, Ace Metrix found that in the aggregate, TV ads containing celebrities underperformed those without. There was a wide range in performance, however, leading the researchers to conclude that celebrity advertising is a “mixed bags” for the brands using them. The dataset used consisted of more than 12,000 ads, of which more than 1,200 contained a celebrity. That was a significant upgrade in sample size from Ace Metrix’s previous study [download page] on the topic that was published in 2011 (and which came to the same conclusion regarding celebrities’ impact). Source: Ace Metrix via Marketing Charts Feb 6, 2014 -5- Augustine Fou
  6. 6. 2012 AT&T TV Ad… -6- Augustine Fou
  7. 7. … drove sales for Audible Specific titles: Moby Dick, Odyssey spiked up Odyssey -7- Moby Dick Augustine Fou
  8. 8. Case: Kodak Canon and Fuji harvested ROI from Kodak advertising because they had better search optimized websites, reviews on Amazon. -8- Augustine Fou
  9. 9. Funny Ads Spur Recall Source: Lab42 via MarketingCharts Jan 4, 2013 -9- Augustine Fou
  10. 10. Effectiveness of TV Ads Funny TV ads appear to be more likable to consumers, but that does not necessarily make them more persuasive or effective,according to [download page] an Ace Metrix study released in July. Measuring humor against likability, there is a 0.31 correlation, indicating that the more consumers perceive an ad to be funny, the more they find it likeable. There is also a positive correlation with attention (0.30) and watchability (0.15). But, consumers see funny ads as less informative (-0.22 correlation), and are less likely to change (-0.07) or desire (-0.08) brands because of a funny ad. Source: Ace Metrix via MarketingCharts July 2012 - 10 - Augustine Fou
  11. 11. Ads don’t create demand... “Our family drinks 4 quarts of milk each week. No matter how much advertising the Milk Council does, we won‟t buy a 5th quart of milk this week.” “We just bought a minivan; no matter how on-target the TV ads are, we‟re not gonna buy another minivan.” “Just got email from United about fare sales. I love the airline and always fly it, but I‟m not just going to take a trip because there is a small discount on the airfare.” - 11 - Augustine Fou
  12. 12. ... they help harvest demand Modern consumers will do their own research and choose which brand to buy - 12 - Augustine Fou
  13. 13. Some targeting is good Some targeting is better than no targeting; but the law of diminishing returns kicks in when more than a few parameters are used. M - 13 - ? F Augustine Fou
  14. 14. ... but it only goes so far What I surf or search for once may not be what I demand going forward “My husband searched for baby gifts for a friend on my computer/browser. Now Amazon thinks we just had a baby and keeps showing me „recommendations‟ and sending me email.” - Miss Targeted - 14 - Augustine Fou
  15. 15. Branding – only goes so far People search for the products they want to buy, not the brand in most cases - 15 - Augustine Fou
  16. 16. “Brand” is earned reputation In some cases, a brand is synonymous with the product people want to buy “In some rare cases, the brand name is more searched than the product itself. These products have earned their reputation over time, not by „branding‟ (or telling) people they are the best. They ARE the best and are consistently so.” - Augustine Fou - 16 - Augustine Fou
  17. 17. Dr. Augustine Fou – Digital Consigliere “I advise clients on optimizing advertising across all channels. Traditional advertising is great at generating awareness for the sake of harvesting demand; digital is great for „direct response‟ actions of consumers.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 ClickZ Articles: Slideshares: LinkedIn: - 17 - @acfou Augustine Fou
  18. 18. Related Articles Digital Ad Fraud Briefing By: Augustine Fou December 2013 ROI Case For Solving Ad Fraud By: Augustine Fou, February 2014 Ad Fraud Fighting Techniques By: Augustine Fou October 2013 An Ecosystem of Digital Ad Fraud By: Augustine Fou, October 2013 Digital Ad Spending – Branding vs Direct Response By: Augustine Fou, January 2014 The Magnitude of Digital Ad Fraud By: Augustine Fou, November 2013 Branding Dollars Shift from TV to Digital Video By: Augustine Fou, December 2013 - 18 - Why Digital Kicks Traditional in Cost Effectiveness By: Augustine Fou, March, 2012 Augustine Fou