Advertising works presentation[1]
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Advertising Works - Presentation by Daniel Murphy
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- 3. Part 1 = Essays on Effectiveness The Client View 25 Years of Advertising Work The Value of Ad Agencies A True Story Back to our roots
- 4. Part 2 = Guide to Profitable Communication Investment - Launching into an Established Market : - Krona -Winalot Prime - Revitalising Your Brand : - John Smith ’ s Bitter -TSB Schooleavers -O2 - Defying Commoditisation in your Market : - Milkman Returns -Dulux Natural Whites - Adding Value to your Brand through Communication : - PG Tips -BMW - Using Advertising to Orientate you Organisation : - Tesco -Barnardo ’ s - Influencing the Size of your Market : - BT -HEA Drugs Education
- 5. PART 1
- 6. The Client View Market Leaders can ’ t afford to become complacent… remember IBM? Stay in touch with consumers and have a deep understanding of them… Lynx on top of things “ you could be the guy who gets the girl ”
- 7. 25 Years of Advertising Works Beliefs in the power of advertising have tended to oscillate wildly… “ Advertising earns it ’ s keep when without it, or with less of it, the firm would be worse off. Without evidence of this connection, the defenders of the advertising budget come unarmed to the budget meeting. ” Simon Broadbent (1982) “ A finance director might conclude that if advertising effects are so thoroughly swamped by other activities as to be ‘ immeasurable ’ , they can only be a small effect at best. ” Tim Broadbent (2000)
- 8. Value of Advertising Agencies Used to be low risk / high reward Now high risk / low reward… 1610: King Kames I “ clients would not be charged more than pleased then ” 1855: The Times had 2,575 … ads in 16 pages need for Ambient 1865: George Rowell - $7,500 $13,000… $18 p/w = 4 month holidays 1879: Strategy in Pitch- Results were not for sale 1892: First agency copywriter hired 1985: Saatchi & Saatchi ended full service by separating Zenith
- 9. A True Story Paul Feldwick, DDB London “ The campaign was allowed to emerge as it eventually did because everyone involved was prepared to trust one another and to work together as a team. Anyone who had used their power to assert control over the process would quite likely have killed it. ”
- 10. Barclaycard – Jungle http://www.youtube.com/watch?v=vsHMGYNhHtI Barclaycard – Binoculars http://www.youtube.com/watch?v=UvQBly324i0&feature=related Barclaycard – Pen http://www.youtube.com/watch?v=UvQBly324i0&feature=related
- 11. Back to our Roots Media Strategy increasingly essential. The Right Idea is only one ingredient. Media Fragmentation Must find meaningful ways to engage with the target 2004: O2 & London Congestion Charge- neither reliant on breakthrough creativity 2002: Barnado ’ s 2000: Tesco 1998: HEA anti-drugs 2004: 118 118 – pairs of the “ running blokes ” in loads of cities (ambient). Free vests Halloween ’ 03.
- 13. PART 2
- 14. Launching into Established Markets Krona 1980 How advertising helped make Krona a brand leader Winalot 1988 The March of Winalot Prime
- 16. http://www.youtube.com/watch?v=RJUxnW2qGM0&feature=related - ad in Spanish
- 18. Revitalising your Brand John Smith ’ s Bitter 1982 Big John - image TSB 1986 School Leaver ’ s Campaign – image +substance O 2 2004 It only works if it all works – complete re-invention
- 22. Defying Commoditisation in your Market Milkman 1992 The Milkman Relaunch ICI Dulux 1984 Natural Whites
- 23. Defying Commoditisation in your Market Consumer Indifference… Only about € ’ s? Damned if you do, Damned if you don ’ t Need to understand root cause of indifference Motors and Mobiles > bacon and butter WE cause commoditisation CRN
- 24. Defying Commoditisation in your Market Tyres… Cat Food… Toilet Paper… Butter… Glue… The Thrill of Speed Mischief Emotional Comfort Sophistication Dependability ESP ’ s
- 25. Defying Commoditisation in your Market Tyres… Cat Food… Toilet Paper… Butter… Glue… Stock Cube… The Thrill of Speed Mischief Emotional Comfort Sophistication Dependability ????????????? ESP ’ s
- 26. Defying Commoditisation in your Market Tyres… Cat Food… Toilet Paper… Butter… Glue… Stock Cube… The Thrill of Speed Mischief Emotional Comfort Sophistication Dependability Centre of Family Life ESP ’ s
- 27. Defying Commoditisation in your Market Tyres… Cat Food… Toilet Paper… Butter… Glue… Stock Cube… ????????.... The Thrill of Speed Mischief Emotional Comfort Sophistication Dependability Centre of Family Life Intimate Pleasure ESP ’ s
- 28. Defying Commoditisation in your Market Tyres… Cat Food… Toilet Paper… Butter… Glue… Stock Cube… Ice Cream!! (obviously) The Thrill of Speed Mischief Emotional Comfort Sophistication Dependability Centre of Family Life Intimate Pleasure ESP ’ s
- 29. Defying Commoditisation in your Market Tyres… Cat Food… Toilet Paper… Butter… Glue… Stock Cube… Ice Cream!! (obviously) The Thrill of Speed Mischief Emotional Comfort Sophistication Dependability Centre of Family Life Intimate Pleasure ESP ’ s
- 30. Defying Commoditisation in your Market Bird in the hand… easier and more efficient to hold on to current customers with values and treats than it is to gain new ones Andrex have very loyal customers- emotional comfort embodied in this little guy
- 31. Defying Commoditisation in your Market Dissuading customers from cancelling your milk subscription = you ’ re too late Get them sooner than that. Remind them why they love having you while they still have you!! Highly creative design, Stopped the decline Increased volume among existing customers ROI 4:1
- 33. Adding Value to your Brand through communication PG Tips 1990 The Chimps- 35 years as brand leader BMW 1994 15 Years consistent advertising = 3x Sales without loss of prestige
- 34. Adding Value to your Brand through communication Establish a a unique & ownable creative theme that was feasible enough to accommodate the desired “ new news ’” Be the same but different
- 35. Adding Value to your Brand through communication
- 36. Adding Value to your Brand through communication
- 37. Using Advertising to Orientate your Organisation Tesco 2000 Every Little Helps Barnado ’ s 2002 Giving Barnardo ’ s back its future!
- 38. Using Advertising to Orientate your Organisation Staff, Suppliers, Partners same direction “ Staff love seeing themselves in action ”
- 39. Using Advertising to Orientate your Organisation Pile ‘ em high and sell it cheap ” Gourmet food??? Not in tesco?? 1990- £8bn 1999- £17bn and No.1 ahead of Sainsburys. Has allowed Tesco expand into sectors where credibility is key Also affected: Staff Marketing Community City Analysts directly affected tesco ’ s share price
- 40. Giving Children Back their Future Cooler than another “ save the whale ” campaign???
- 41. Influencing the Size of your Market BT 1996 HEA Drugs Education 1998 How advertising turned the tide
- 42. Influencing the Size of your Market Sex and the City - Changing Rooms - Jamie Oliver
- 43. Influencing the Size of your Market Sex and the City - Changing Rooms - Jamie Oliver Sex Toys DIY Home Cooking
- 44. Influencing the Size of your Market Sex and the City - Changing Rooms - Jamie Oliver Sex Toys DIY Home Cooking How to Design Communications to create a rosy future for categories, not just brands Create or leverage popular culture Who ’ s responsible?
- 45. Influencing the Size of your Market Everyone worries about their share of the pie... … But no one worries about how much pie there is in the first place!
- 46. Influencing the Size of your Market “ Media ” is too narrow…. Use the drivers of our culture Word of mouth (this was before people talked about Earned media) The target is EVERYONE CONTENT vs. communication…. Entertainment news celebrity
- 47. Influencing the Size of your Market http://www.youtube.com/watch?v=FIuDEjON_zw ALREADY MARKET LEADERS!! Till OFTEL came along… Only way out??? GROW THE PIE!!
- 48. Influencing the Size of your Market http://www.youtube.com/watch?v=FIuDEjON_zw
- 49. Influencing the Size of your Market Could anything else have caused the massive market growth? Other BT Activity? Competitors? Weather?
- 50. Influencing the Size of your Market HEA % of entire world trade?? Social cost £4bn – market value £13bn Young people not victims of pushers Youth culture full of enticing tales about drugs THE POWER OF THE TRUTH
- 51. Influencing the Size of your Market Other factors?? Activities like clubbing & smoking? Market Forces like drug prices and availability? Interest in drugs, going by prior trends? Plateauing/declining? Teachers Drug Educators Counsellors at NDH
Editor's Notes
- Race horse analogy. Product investment- innovation, R&D or marketing and comms. 2004 IPA Effectiveness Award winner Lynx- a comprehensive understanding of young men. It didn ’ t only sell them the functional benefits- it established the idea that they too could be the guy to get the girl and they elaborated upon this in a truly effective way. Always try to strike a deep chord. Complacency and over reliance on PRESENTATION over SUBSTANCE is one of the easiest ways to bring a brand to its knees.
- 1990 – Payment by results 1992 – Levis proved “ Multi-Market advertising ” could be done 1994 – Benefits of integration first mentioned. Three major turning points, 1990- Understanding of longer & broader effects, 1998- // // manifold efffects (staff/share price etc), 2002- // // integration (in collaboration not competition with other disciplines. Investment pays back over time Investment may pay back even if sales don ’ t rise Most potent returns achieveed when MARKETING MIX!! “ when ideas stretch beyond silos ” “ once, media… buying the right space to show off the creative ’ s wares; now creatives… fill the space that media has planned & bought. ” Consistency – Presence & Consistent Presentation ADVERTISERS – NOT JUST IDEA GENERATORS….. BRAND GUARDIANS!! More media than ever before- consistent presentation is non-negotiable.
- 1610: King Kames I “ clients would not be charged more than pleased then ” ….. They lasted 1 year 1855: The Times had 2,575 ads in 16 pages need for Ambient……… Sandwich men/dogs/elephants, matchboxes, horses, DM at dinner time (telegrams!)… even Projections! (remember Gail Porter) 1865: George Rowell - $7,500 $13,000… $18 p/w = 4 month holidays…… once took a 7 year holiday 1879: Strategy in Pitch- Results were not for sale…. But came free with the account 1892: First Agency Copywriter…. 1985: Saatchi & Saatchi ended full service by separating Zenith…. But now you have to charge for strategic and creative which previously came for free. Problem. Advertising (media buying!) USED TO MAKE marketing CHEAPER!! We are now consultants that provide solutions.
- Brief description of the story. Happened around 1991. Previous campaing getting tired – same personality = Alan Whicker. Initial idea wont the pitch- helicopter view, people racing to rooftops, “ confetti ” falling in the streets- in someones coffee, no product benefits. Very expensive and didn ’ t test well. Drawing board – scaled down version. Even worse. Empty beach to show holiday insurance. Doom and gloom- one of the most disliked he ’ d ever seen. Desperate final presentation – something to do with Rowan Atkinson. Agent Latham. Loosely scripted.
- Watch an ad… choose one! All about 1 minute long
- 118 118 – Made the campaign feel like COMMON PROPERTY. It was taken to heart much more than competitors with similar spend.
- Keith ’ s gaf last Saturday night.
- Explore the context and identify the opportunites Say it with Feeling 3) In established markets/dead ends, advertising can be the “ silver bullet ” 4) Trial and Error…. Learn by doing.
- The market - PRICE was the biggest factor Opportunity – Price Gap butter and butter substitute (Stork was available and cheap but not very good) Background – Did well as “ Fairy ” in Australia (NSW) Obstacle – Margarine Regulations and Stork had burned many possible advertising options -TV only -Lorry Driver Awareness Trial Repeat Purchase Product Positioning Reneé Cutforth – “ Telling not Selling ” . Tone Style and person were all important. Got around laws against comparisons with margarine.
- Long March 60 ” TV commercial. Change the way consumers think about dog food 2) Substantiate claims with benefits. -audiences preferred seeing dogs, not dog food!!!!!!! - communicated superior meatiness They identified advertising as the area where there was opportunity to outperform the competition (Pedrigee)
- Root & Branch modern consumers… surgace re-invention is not enough. Except in the most image-led of categories (fashion etc) Food for thought here: What are the key decision drivers? -image? -salience? -value? -service? -performance? -taste? If it ’ s image/salience…. Then go with Brand image If it ’ s substance… then you cannot just work on brand image alone If the brand is broken…. GET YOURSELF A NEW BRAND (O2)
- Not forgetting it ’ s roots… the fight against Tetley. This was in Yorkshire only- and the rest of that market declined (it was a recession) So we know it worked. The brand “ lacked Character ” … so they literally gave it the character they needed. IMAGE – lads in the pub. Beer drinking and choice of drink are entirely social things.
- TSB School Leavers It is nigh on impossible to effect real change in a service company with image alone. FREE BANKING MUSIC DISCOUNTS (it is also important for other brands with high risk purchases- cars etc) New Incentive Package But needed ads to tell people & project “ approachable ” & “ sympathetic image ”
- O2 – formerly BT Cell NET ROI 62:1 !!!!!!!! £4,799m i.e. £4.8bn 16-34 ’ s “ text generation ” …. “ be an enabler ” … “ TOTAL INTEGRATION ” -the target was more “ visually literate ” than “ conceptuall literate ” . A FRESH, MODERN look and feel was used EVERYWHERE. This was the key to fast-track awareness and image. “ the bubble iconography ” Corporate transformation Metrics of the business, the staff, esteen of its public, ability to sustain competitve advantage, potential for future earnings “ integration across all channels ” -Market had plateaued. -Competition was intensifying -BT lacked everything (images/presence/direction/cohseion/morale) TWO principles drove O2 ’ s approach Custom Built for it ’ s times Full integration- essential to build rapid awareness, bulk of investment behind revenue driving products and tariffs BUT IT STILL NEEDED A STRONG BRAND THE IDEA = THE BRAND IDEA & ATTITUDE INFORMS AND SHAPES EVERYTHING @ the heart of it all = customers (not products) Exists to provide more ways to work/play/commute. The brand-produtc-communications contiuum. Advertising and sponsorship ( big SOV) erased BT Cellnet. Big Brother was majorly succesful. As was Arsenal. Had they been more “ typical ” they would have had to have spent TWICE as much to achieve the same effect. MB said actual SOV was 14%... But the effective cost was 33%
- The Damaging bu
- The Damaging business phenomenon of consumer indifference “ Telling isn ’ t Selling ” recent psychology… the relatively weak role of “ reasons why ” they are merely back-up to the feelings that actually motivate us.
- Emotional Selling Points
- Andrex – labrador puppy 1 st place to look for ESP ’ s existing customers 2 nd place to look as far upstream as possible 3 rd place to look look at all 5P ’ s of the marketing mix Product, Price, Promotion, Placement, Performance
- The Milkman Relaunch Losing out to supermarkets
- Dulux The
- PG Tips- TV Led, mass targeted, with limited integration BMW – Print, targeted, heavily integrated “ look and feel ” approach. Like relationships with peolple – CONSISTENCY CANNOT BE UNDERESTIMATED The more you know people – the more confident you are in their character. HOWEVER, remaining EXACTLY the same would be boring….
- PG Tips – Built an affinity through association & re-inforcement – based on EXTRINSIC VALUES BMW – based on product “ truths ” INTRINSIC in the brand. DESPITE CREATIVE FOCUS ON THE CAR- IT WAS ULTIMATELY ABOUT THE CONSUMER
- Creative at the Zoo. No.4 in 1956 No.1 in 1958
- BMW – 15 years consistency has trebled their sales with no loss of prestige
- Mission statement should just be a plaque on the wall in reception. Tesco: they see how they should be acting and that they do matter to customers. Barnardo ’ s: They saw the perils of not doing their job properly. Halifax also had the “ Howard ” campaign Staff NEED to like the ads. (do some STAFF FOCUS GROUPS) Make staff feel engaged/important as a preview audience. Also good for recruitment. Influence the influencers: business partners/suppliers, the Citym regulators, policy makers
- Another example – the IPA awards themselves! Sort of…
- Another example – the IPA awards themselves! What have all these got in common?
- Another example – the IPA awards themselves! Shows are some of the most important catalysts for the success of these industries.
- Another example – the IPA awards themselves! Markets are brands too!!! Markets- who ’ s responsible?? Used to be market leaders but they don ’ t dominate like they used to.
- Another example – the IPA awards themselves! Markets are brands too!!! Markets- who ’ s responsible?? Used to be market leaders but they don ’ t dominate like they used to.
- Another example – the IPA awards themselves! Think cultural seasonality not sales seasonality Have 2 years off communications development at any one time. Your are – ENGINEER OF CULTURAL CHANGE… not just a builder of brands. ANYONE REMEMBER WHAT BY DID?
- Another example – the IPA awards themselves! BT – They were already the biggest. OFTEL ruling = enforced revenue decline. Only way out GROW THE MARKET!
- Another example – the IPA awards themselves! ROI 6:1 Gate-keeper From “ a cost ” that is to be minimised to “ an investment in quality of life ” Encourage use of products likely to stimulate calls e.g. 2 nd home phone and answering maching Step up R&D to create new services (e.g. call return – 1471) Use advertising to stimulate calls TWO opportunities Promote the value of female style phone communications -compare it ’ s benefits to male functional usage -legitimise womens behaviour. Free then but softening the gatekeeper (and ammo for defense) –encourage men to reappraise Reduce Price perceptions. -prices down -perceptions up -had advertised offers and tariffs -so address the vast overestimes (400%!!!!!)
- Another example – the IPA awards themselves! Talk about the evidence against these potential other factors.
- Another example – the IPA awards themselves! 11-15 ’ s : Teen mags 16-25 ’ s: Dance radio Creative – like a biology book.
- Another example – the IPA awards themselves! Talk about the evidence against these potential other factors.