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Les Binet, adam&eve DDB : Marketing Effectiveness in The Digital Era

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Les Binet, adam&eve DDB : Marketing Effectiveness in The Digital Era. DMX Dublin 2019.

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Les Binet, adam&eve DDB : Marketing Effectiveness in The Digital Era

  1. 1. MARKETING EFFECTIVENESS IN THE DIGITAL ERA IN F CUS In association with LES BINET ADAM & EVE DDB PETER FIELD PETER FIELD CONSULTING NEW LEARNINGS FROM THE IPA DATABANK MARKETING EFFECTIVENESS IN THE DIGITAL ERA Les Binet adam&eveDDB
  2. 2. Our research In association with LES BINET ADAM & EVE DDB PETER FIELD PETER FIELD CONSULTING NEW LEARNINGS FROM THE IPA DATABANK MARKETING EFFECTIVENESS IN THE DIGITAL ERA IN F CUS What are the ingredients for effective marketing? Are the rules changing? How do the rules vary by context?
  3. 3. The fundamental principle: brand vs activation
  4. 4. Sales uplift over base Time Source: Binet & Field 2013 Brand vs Activation Sales activation Immediate sales response High efficiency & ROI
  5. 5. Sales uplift over base Time Brand vs Activation Sales activation Immediate sales response High efficiency & ROI Brand building Long term growth in base sales Reduced price sensitivity Activation effects dominate in short term (~6 months) But brand is main driver of long term growth & profit
  6. 6. Maximising effectiveness
  7. 7. “Brand loyalty is key to success” 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% Loyalty strategy Acquisition strategy Annualmkt.sharegrowth Loyalty strategies always under-perform (except for short-term activation) Base: 2008-16 IPA cases Penetration is always the main driver of growth
  8. 8. Reach is king 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% Loyalty strategy Acquisition strategy Reach strategy Annualmkt.sharegrowth Loyalty strategies always under-perform (except for short-term activation) Base: 2008-16 IPA cases Penetration is always the main driver of growth Reach explains 91% of variations in media effectiveness
  9. 9. Maximise mental availability Awareness Salience Fame Passively accept brand Actively seek brand Influence & advocacy Increasing returns Fame increases efficiency x 4 and maximises profit
  10. 10. Messages vs emotions 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Rational Combined Emotional 0% 10% 20% 30% 40% 50% 60% 70% 80% Rational Combined Emotional Brand effects Activation effects Source: Binet & Field 2013 Emotional brand building works best, even for “rational” & highly researched purchases
  11. 11. Invest in share of voice 0% 2% 4% 6% 8% 10% 12% 0% 2% 4% 6% 8% 10% 12% Share of voice Share of market SOV > SOM: brands tend to grow SOV < SOM: brands tend to shrink No evidence that the rule is changing
  12. 12. Balance the budget 0" 0.5" 1" 1.5" 2" 0" 10" 20" 30" 40" 50" 60" 70" 80" 90" 100" Number'of'business'effects'reported' %'Budget'allocated'to'brand'building' Source: IPA Databank, 1998-2016 for-profit cases 60:40 sweet spot
  13. 13. Flexing the rules for the digital economy 62 72 74 74 74 38 28 26 26 26 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% All brands High innovation High online research Online selling Subscription selling Brrand/activation optimum Source: IPA Databank, 1998-2016 for-profit cases
  14. 14. 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 Marketers have learned the wrong lesson Advertising effectiveness-marketing and long-term business benefits [May 2017]
  15. 15. Breaking out of the short-term mindset: AA Roadside Assistance •  Brand activity cut in favour of “hard working” activation •  Highly profitable in the short term, but… •  Brand metrics in free fall •  Market share declining •  Complete collapse predicted in five years
  16. 16. AA “Singing Baby” campaign
  17. 17. 42% 42% 40% 40% 39% 39% 42% 2011 2012 2013 2014 2015 2016 2017 YTD Share of membership (%) Year The decline in market share reversed immediately SOURCE: AA 2017 ads Brand metrics improved Branded searches increased Acquisition increased Retention increased Despite less discounting
  18. 18. Media implications Sales activation Tight targeting Responsive Informative Brand building Broad reach Memorable Emotional Online & offline, video formats work best
  19. 19. UK media consumption 2018 Source: IPA Touchpoints 2018 Broadcast TV Out of home Radio Any other audio Email Social media Messaging Newsbrands Magazines Other online Internet for work Shopping/transacting Cinema Search Subscriber VoD Online video 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Weekly reach (all adults) Hours per day (all adults)
  20. 20. John Lewis Christmas ads: online views 0 10 20 30 40 50 60 70 2012 2013 2014 2015 2016 Millions of views Online organic Online paid Source: Manning Gottlieb
  21. 21. John Lewis Christmas ads: total views 0 100 200 300 400 500 600 700 800 900 1,000 2012 2013 2014 2015 2016 Millions of views Supplier TV Age UK TV Brand TV Online organic Online paid Source: Manning Gottlieb
  22. 22. Digital makes everything work harder 27% 22% 13% 14% 40% 27% 22% 27% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% TV Press Radio Outdoor % increase in avg. no. VL business effects from adding Web 1.0 (1998 - 2006) Web 2.0 (2008* - 2016) Source: IPA Databank *Outdoor = 2012 - 2016
  23. 23. “But what about tech firms?” Advertiser Estimated TV adspend UK 2018 Amazon £ 45,185,600 Apple £ 16,468,675 Google £ 12,146,725 Microsoft £ 10,304,475 Ebay £ 8,022,175 Facebook £ 6,118,100 Uber £ 3,998,775 Netflix £ 3,342,375 Source: Thinkbox
  24. 24. Conclusions •  The fundamental rules of marketing have not changed. •  The digital revolution is increasing efficiency, but budgets still matter. Brands need to re-invest in marketing communications. •  The digital revolution is making activation easier, so brand building is becoming more important, not less. Budgets need to be re-balanced. •  Online and offline media work in synergy. Smart marketers use both together in balance. Thank you
  25. 25. Published Jul 2018 www.APG.org.UK Published Oct 2018 www.IPA.co.uk LES.BINET@ADAMANDEVEDDB.COM

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