Marketing Effectiveness in the Digital Era Audience Measurement/AxS_2019/MainStage...#ARFAxS...
Transcript of Marketing Effectiveness in the Digital Era Audience Measurement/AxS_2019/MainStage...#ARFAxS...
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#ARFAxS
Marketing Effectiveness in the Digital Era
Les Binet
Head of Effectiveness
In association with
LES BINET ADAM & EVE DDBPETER FIELD PETER FIELD CONSULTING
NEW LEARNINGS FROM THE IPA DATABANK
MARKETING EFFECTIVENESS IN THE DIGITAL ERA
IN F CUS
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Our research
In association with
LES BINET ADAM & EVE DDBPETER 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?
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#ARFAxS
The fundamental principle:brand vs activation
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Sale
s upl
ift o
ver b
ase
TimeSource: Binet & Field 2013
Brand vs ActivationSales activation
Immediate sales responseHigh efficiency & ROI
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Sale
s upl
ift o
ver b
ase
Time
Brand vs ActivationSales activation
Immediate sales responseHigh efficiency & ROI
Brand buildingLong term growth in base sales
Reduced price sensitivity
Activation effects dominatein short term (~6 months)
But brand is main driver of long term growth & profit
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Maximising effectiveness
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“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
Ann
ual m
kt. s
hare
gro
wth
Loyalty strategies alwaysunder-perform (except
for short-term activation)
Base: 2008-16 IPA cases
Penetration is alwaysthe main driver
of growth
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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
Ann
ual m
kt. s
hare
gro
wth
Loyalty strategies alwaysunder-perform (except
for short-term activation)
Base: 2008-16 IPA cases
Penetration is alwaysthe main driver
of growth
Reach explains 91% of variations in
media effectiveness
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Maximise mental availability
Awareness Salience Fame
Passively accept brand Actively seek brand Influence & advocacy
Increasing returns
Fame increases efficiency x 4 and maximises profit
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Messages vs emotions
0%5%
10%15%20%25%30%35%40%45%
Rational Combined Emotional0%
10%20%30%40%50%60%70%80%
Rational Combined Emotional
Brand effectsActivation effects
Source: Binet & Field 2013
Emotional brand building works best, even for “rational” & highly researched purchases
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Invest in share of voice
0%
2%
4%
6%
8%
10%
12%
0% 2% 4% 6% 8% 10% 12%
Shar
e of
voi
ce
Share of market
SOV > SOM: brands tend to grow
SOV < SOM: brands tend to shrink
No evidence that the rule is changing
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Balance the budget
0"
0.5"
1"
1.5"
2"
0" 10" 20" 30" 40" 50" 60" 70" 80" 90" 100"
Num
ber'o
f'business'e
ffects'rep
orted'
%'Budget'allocated'to'brand'building'
Source: IPA Databank, 1998-2016 for-profit cases
60:40 sweet spot
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Budgeting for a digital world
6272 74 74 74
3828 26 26 26
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
All brands High innovation High onlineresearch
Online selling Subscriptionselling
Brr
and/
activ
atio
n op
timum
Source: IPA Databank, 1998-2016 for-profit cases
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Media implications
Sales activation
Tight targeting
Responsive
Informative
Brand building
Broad reach
Memorable
Emotional
Online & offline, video formats work best
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Best practise in action
John Lewis case study
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John Lewis: online views
0
10
20
30
40
50
60
70
2012 2013 2014 2015 2016
Mill
ions
of v
iew
s
Online organicOnline paid
Source: Manning Gottlieb
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John Lewis: total views
0100200300400500600700800900
1,000
2012 2013 2014 2015 2016
Mill
ions
of v
iew
s
Supplier TVAge UK TVBrand TVOnline organicOnline paid
Source: Manning Gottlieb
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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
% in
crea
se in
avg
. no.
VL
busin
ess e
ffect
s fro
m a
ddin
g
Web 1.0 (1998 - 2006) Web 2.0 (2008* - 2016)Source: IPA Databank*Outdoor = 2012 - 2016
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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