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Advertising for the Long Term

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Here we tackle advertising: what is the purpose of advertising? What are the different ways to advertise and which are most effective? Regardless of size or market share, all brands must advertise to achieve both short- and long-term growth. Inspired by Byron Sharp and the Ehrenberg-Bass Institute, this presentation unlocks the truth behind effective advertising and how it can help brands grow beyond belief.

Published in: Marketing
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Advertising for the Long Term

  1. 1. AdvertisingfortheLongTerm
  2. 2. Effectiveadvertisingcanhelp brandsgrowbeyondbelief.
  3. 3. Weusedhardscienceto unlockthetruthbehind effectiveadvertising. Check out our blog post here.
  4. 4. Regardlessofsizeormarket share,allbrandsmustadvertise toachievebothshort-and
 long-termgrowth.
  5. 5. Herewe’llbetacklingits purposeandthedifferent waystoadvertise.
  6. 6. Let’sbegin.
  7. 7. WHY ADVERTISE?
  8. 8. Whydobrandsadvertiseinthefirstplace?
  9. 9. Youmaybelieveit’sto
 boostrevenue.
  10. 10. Thetruth Advertising simply 
 prevents the slow decline 
 in sales.It rarely causes 
 a jump in sales.
  11. 11. Advertising’seffectsonsales tendtobespreadoutover time,andareextremely difficulttomeasure.
  12. 12. Assuch,thetruepurpose
 ofadvertisingistohold
 ontoabrand’shugebase
 ofinfrequentbuyers.
  13. 13. “Reachandnudgeyourinfrequent buyersviaadvertising.” — Byron Sharp, How Brands Grow
  14. 14. GROWTH
  15. 15. Howcanbrandsadvertisetoachieveshort-and
 long-termbrandgrowth?
  16. 16. Rational metrics tend to predict short-term success. Short-termgrowth
  17. 17. Emotional metrics tend to predict long-term success. The most important driver of long-term growth is the level of share of voice. Long-termgrowth
  18. 18. Brandsshouldstriveformeaningful, long-termgrowth,ratherthan chasingshort-termmetrics.
  19. 19. “Brandsmustpracticepatience: growingabrandsimplytakestime.” — Byron Sharp, How Brands Grow
  20. 20. EFFECTIVE ADVERTISING
  21. 21. Whatdoeseffectiveadvertisinglooklike?
  22. 22. target continuous advertising over bursts with gaps REACH > FREQUENCY CONTINUOUS > BURSTS Brandadvertisingshoulddotwothings: target buyer reach rather than frequency of exposure
  23. 23. Moreon penetration Brands should try to affect market penetration by targeting a wider audience. So, brands should try 
 to advertise to all category buyers, from non-buyers all the way to heavy buyers. The most effective campaigns talk to the whole category—that is existing and potential customers.
  24. 24. BUYER REACH FREQUENCY>
  25. 25. Moreontiming Brands should advertise in a continuous stream, rather than in bursts. Advertisements are meant to consistently strengthen brand associations, which happens more effectively through well-timed repetition. Long lapses in advertising cause your hard- earned brand links to fade in consumer memory.
  26. 26. CONTINUOUS ADVERTISING BURSTS WITH GAPS >
  27. 27. THE BRAIN
  28. 28. Howareadvertisementsprocessedinthebrain?
  29. 29. Adsworkthroughmemory,
 buildinganelement-to-brand
 linkwithinthebrain.
  30. 30. Advertising through an emotional message, rather than a rational one, is key. This is to say that emotional images are more effective than a page of facts and statistics. Emotioninfluencesandmotivatescustomers
  31. 31. “Brandsshouldstrivefor advertisementsthatrefreshconsumer memoriesthroughemotionand consistentbrandelementusage.” — Byron Sharp, How Brands Grow
  32. 32. PRICE PROMOTIONS
  33. 33. Dopromotionsgrowpenetrationorloyalty?
  34. 34. Pricepromotionsaretime restricted—“buythesejeans
 forhalfoff,thisweekonly!”
 —sotheyshowupwithin
 sales figureseasilyandclearly.
  35. 35. Promotionsdogenerate
 ashort-termsalesspike.
  36. 36. Butsalesreturnbackto previouslevelsassoon
 asthepromotionisover.
  37. 37. TotalSalesIndex Sales Cycle (months) 0 1 2 3 4 5 6 7 8 9 10 11 12 EffectofPricePromotionsonSales Price promotions generate a short-term sales spike Total
  38. 38. There’snoevidencethatthese promotionsgrowpenetration
 orloyalty,asalready-heavy
 buyersarethemostlikelyto
 noticethepromotion,given
 theirstatusasaheavybuyer.
  39. 39. Overtime If brands consistently offer deep discounts, they could erode their reference price and brand image.
  40. 40. “Beyondthebenefitofaquickspikein salesforamanagerortocomplywith retailers,pricepromotionsdon’treally domuchforbrands.” — Byron Sharp, How Brands Grow
  41. 41. THE WRAP-UP
  42. 42. Whathavewelearned? 1.Ad campaigns usually don’t show up in short-term sales metrics If done effectively, they can tremendously help in building a brand over the long-term.
  43. 43. Whathavewelearned? 1.Ad campaigns usually don’t show up in short-term sales metrics If done effectively, they can tremendously help in building a brand over the long-term. 2.Advertisements should be emotional, consistently display your 
 brand elements, and refresh consumer memory Ads that consistently display your brand elements and tap into consumers’ 
 emotions will be far more memorable, and thus brand-building, in the long-term.
  44. 44. Youcanreadthefullstoryonhowto growyourbrandonthePercolateblog: Advertising for the Long Term
  45. 45. Percolate is The System of Record for Marketing. 
 Our technology helps the world's largest and fastest-growing brands at every step of the marketing process. Want to learn more? Contact learn@percolate.com for more information or request a demo today at percolate.com/request-demo Kat Gebert Kat Gebert is on the Product Marketing team at Percolate.

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