Long and short_of_it_presentation_final
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The document outlines 10 key principles for marketing success based on an analysis of 996 campaigns across 700 brands and 83 categories. The principles emphasize balancing short-term sales effects with long-term brand building to drive both efficiency and growth. Specifically, they recommend supporting both volume and price; integrating rational and emotional messaging; balancing share of voice between brand and activation channels; and measuring both short and long-term metrics like sales, share of voice, and price elasticity.
Long and short_of_it_presentation_final
- 1. The long and the short of it: 10 key principles of success Les Binet & Peter Field
- 2. Our new research • What are the ingredients of effectiveness? – over the short term? – over the long term? • Method: meta-analysis of IPA effectiveness Databank – 996 campaigns – 700 brands – 83 categories • Compare effects of strategies over short & long term.
- 3. What’s the problem? • No long term effects without short term. • But short and long term effects are different • Short term effects are vital for efficiency. • But long term effects drive growth and profit. • You need both. • But how do you balance them?
- 4. 1) Support volume and price 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Neither sales/share only price only both % Reporting very large profit gains Very large improvements reported in…
- 5. But price effects take time 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 3 months 6 months 1 year 2 years 3 years % Reporting very large pricing effects Campaigns periods up to
- 6. 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 1-2 years 3+ years Annualised ESOV Efficiency Direct campaigns Brand campaigns 2) Build sales and saleability
- 7. Price effects depend on brand-building 1% 3% 5% 8% 11% 0% 2% 4% 6% 8% 10% 12% 0 1 2 3 4+ % Reporting very large price sensitivity reduction Number of very large brand effects recorded
- 8. The need for ‘brand response’ 21% 27% 17% -10% 0% 10% 20% 30% 40% 50% 60% Pure brand Brand Response Pure Response % reporting each type of effect (very large) Campaign objectives Direct sales Share Profit
- 9. 3) Talk to all your prospects Long term prospects Immediate prospects Customer base Short term Long term Broad but slower effects, big paybacks Narrower but earlier effects, smaller paybacks Sales activation Brand building
- 10. Broad reach for effectiveness & efficiency 2.2 5.6 6.7 0.2 0.3 2.6 0 0.5 1 1.5 2 2.5 3 0 1 2 3 4 5 6 7 8 Target existing customers Target new customers Target whole market Annualised ESOV efficiency Total number of very large effects Total number of very large effects Annualised ESOV efficiency
- 11. Broad reach for price & profit 0% 8% 4% 27% 5% 30% 0% 5% 10% 15% 20% 25% 30% 35% Price sensitivity Profit % cases reporting very large effects Target existing customers Target non-customers Target whole market
- 12. 4) Balance head & heart Short term behavioural responses Long term brand preferences System 2 System 1 Emotional brand associations Rational product & pricing messages
- 13. 1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115 121 127 133 139 145 151 157 163 169 175 181 187 193 199 205 211 217 223 229 235 241 247 253 259 265 271 277 283 289 295 301 307 313 319 325 331 337 343 349 355 361 Sales uplift over base Time Rational messaging Big direct effect, but decays quickly. Emotional priming Smaller effect on sales. Decays slowly. Effect of a single exposure
- 14. Sales uplift over base Time Rational messaging Short term sales uplifts, but Brand perceptions unchanged. No long term increase in sales or reduction in price sensitivity. Emotional priming Brand grows stronger, leading to long term volume increase Effect of a multiple exposures
- 15. Emotions drive long term price elasticity 0% 5% 7% 0% 1% 2% 3% 4% 5% 6% 7% 8% Rational Combined Emotional Very large reduction in price elasticity (3+ years)
- 16. Emotional effects build over years 13% 30% 43% 10% 20% 23% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 1 year 2 years 3+ years Very large profit effects Emotional campaigns Rational campaigns
- 17. Emotional priming at work: John Lewis http://www.youtube.com/watch?v=pSLOnR1s74o
- 18. 5) Aim for fame 1.4 0.3 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 Fame campaigns Other campaigns Annualised ESOV efficiency Fame quadruples efficiency
- 19. Fame accelerates success 1.0 2.0 2.3 1.1 1.5 2.1 0.0 0.5 1.0 1.5 2.0 2.5 1 year 2 years 3+ years Very large business effects Fame campaigns All emotional campaigns
- 20. Fame has the biggest effect on price 8% 3% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% Fame campaigns Other campaigns Very large reduction in price sensitivity
- 21. 6) Creativity increases efficiency 2.8 0.3 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Creatively awarded Other campaigns Annualised ESOV efficiency
- 22. Creativity has a powerful effect on price 7% 3% 0% 1% 2% 3% 4% 5% 6% 7% 8% Creatively awarded Other campaigns Very large reduction in price sensitivity
- 23. 7) Share of voice matters more than ever 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 Equilibrium: SOV = SOM
- 24. SOV is becoming more important 0.3 0.6 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 1980-2002 2004-2010 Annualised ESOV efficiency
- 25. 8) Integrate brand and activation Brand channels only Brand + Activation Activation channels only Brand effects 1.2 1.6 0.5 Business effects 1.3 1.5 0.7 ESOV efficiency 0.3 0.6 - Integration can double efficiency
- 26. TV is vital for long term profit -20% 0% 20% 40% 60% 80% 100% 120% 140% TV Other brand Activation Average uplift in profit effects Channels added 3+ year campaigns only
- 27. Online: horses for courses Some online channels are better for brand building, others for activation Channel: Websites Interactive Social/viral Mobile/Apps Search Increase in number of brand effects: 17% 15% -2% -5% -6%
- 28. 5% 7% 11% 17% 1% 3% 5% 7% 17% 27% 0% 5% 10% 15% 20% 25% 30% 35% 40% Online - classified Press - classified Direct marketing Online - search Cinema Radio (inc. branded content) Outdoor & Transport Online - display Press - display TV (inc. sponsorship) % UK media expenditure, 2011 Brand channels: 61% Activation channels: 39% 9) Balance brand and activation SOV
- 29. 0 1 2 3 4 5 6 7 8 9 10 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Number of very large effects Activation share of budget Optimum: ~40% The 60:40 rule
- 30. VW: balancing brand and activation http://www.youtube.com/watch?v=oeKuFs0KxO8
- 31. VW: balancing brand and activation http://www.youtube.com/watch?feature=player_embedded&v=tx_Awd6-_Do
- 32. 10) Measure short and long-term effects 0% 5% 10% 15% 20% 25% 30% 35% Rational Combined Emotional Very large profits 0% 10% 20% 30% 40% 50% Rational Combined Emotional Very large direct effects Short term metrics alone can be misleading
- 33. Big data = big danger? 24% 34% 27% 38% 0% 5% 10% 15% 20% 25% 30% 35% 40% Creatively awarded Not creatively awarded Fame campaigns Rational campaigns % Reporting very large direct effects
- 34. Pre-testing vs. tracking 10% -7% -10% -7% 9% 31% -10% -5% 0% 5% 10% 15% 20% 25% 30% ≤ 6 months 1 year 2+ years Very large sales effects Pretested minus non-pretested tracked minus non-tracked
- 35. Key long term metrics: SOV & price elasticity Share of voice minus market share Level of trade promotion Price elasticity Year 1 Price elasticity Year 2 Price elasticity Year 3 Brand A +9.3% Brand B +2.9% Brand C -2.0% Source: DDB Matrix
- 36. Key long term metrics: SOV & price elasticity Share of voice minus market share Level of trade promotion Price elasticity Year 1 Price elasticity Year 2 Price elasticity Year 3 Brand A +9.3% Low Brand B +2.9% Low Brand C -2.0% High Source: DDB Matrix
- 37. Key long term metrics: SOV & price elasticity Share of voice minus market share Level of trade promotion Price elasticity Year 1 Price elasticity Year 2 Price elasticity Year 3 Brand A +9.3% Low -2.4 Brand B +2.9% Low -1.9 Brand C -2.0% High -1.3 Source: DDB Matrix
- 38. Key long term metrics: SOV & price elasticity Share of voice minus market share Level of trade promotion Price elasticity Year 1 Price elasticity Year 2 Price elasticity Year 3 Brand A +9.3% Low -2.4 -1.7 Brand B +2.9% Low -1.9 -1.5 Brand C -2.0% High -1.3 -1.6 Source: DDB Matrix
- 39. Key long term metrics: SOV & price elasticity Share of voice minus market share Level of trade promotion Price elasticity Year 1 Price elasticity Year 2 Price elasticity Year 3 Brand A +9.3% Low -2.4 -1.7 -0.7 Brand B +2.9% Low -1.9 -1.5 -1.4 Brand C -2.0% High -1.3 -1.6 -2.0 Source: DDB Matrix
- 40. The balanced scorecard Long term business performance Price elasticity Econometrics Brand equity Implicit, emotional responses Creativity & fame metrics Short term sales On & offline response Explicit communication Persuasion scores Short term Long term
- 41. 10 Key principles for success 1. Support volume and price 2. Build sales and saleability 3. Talk to all your prospects 4. Balance head and heart 5. Aim for fame 6. Creativity increases efficiency 7. Share of voice matters more than ever 8. Integrate brand and activation 9. Balance brand and activation SOV 10. Measure short and long-term effects