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2% 0% 2% 4% 6% 8% 10% 12% 4% 6% 8% 10% 12% 14% Historically share of voice has driven share of market SOV > SOM: Brands tend to grow SOV < SOM: Brands tend to shrink Share of Voice Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 07) Share of Market

Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

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Page 1: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

2%0%

2%

4%

6%

8%

10%

12%

4% 6% 8% 10% 12% 14%

Historically share of voice has driven share of market

SOV > SOM:Brands tend to grow

SOV < SOM:Brands tend to shrink

Share of Voice

Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 07)

Share of Market

Page 2: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

0

2

4

6

8

10

12

0 20 40 60 80 100%

The 60:40 split delivers maximum e�ectiveness

Activation share of budget

Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 38)

Number of very large

e�ects

Page 3: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

0.6

1.7

Business e�ects

Existing customers

For campaignstargeting:

New customers

Whole market

Total e�ects

1.82.4

5.4

6.7

The broader the reach, the broader the e�ectsAverage number of very large e�ects reported

Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 18)

Page 4: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

Annualised ESOVEFFICIENCY

Target whole market

Total new customers

Target existingcustomers

The broader the reach, the greater the e�ciency

0.20.3

2.6

Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 21)

Page 5: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

Loyalty only Penetration only Both0%

Penetration is the main driver of very large business e�ects

5%

10%

15%

20%

25%

7%

22%

7%

% cases

Very large e�ect observed on:

Source: Les Binet and Peter Field, Eff Week 2016, ‘Marketing in the Digital Age’, IPA

Page 6: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

Long-term prospects

Immediate prospects

Broad but slower e�ects, big paybacks

Narrower but earlier e�ects, smaller paybacks

Existing customers

Short term

Long term

Sales Activation

Brand Building

Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 22)

A long-term outward focus brings broader and bigger e�ects

Page 7: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

Brand-building and sales activation work over di�erent timescales

Sales activation / Short-term sales uplifts

Time

Brand-building / Long-term sales growth

Sales uplift over base

Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 02)

Short term e�ects dominate - 6 months

Sales activationShort-term sales uplifts

Brand buildingLong-term sales growth

Page 8: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

1.125%

35%

45%

55%

65%

75%

85%

1.3 1.5 1.7 1.9 2.1 2.3

The trade-o� between brand and activation e�ects across channels

% Reporting very large activation

e�ects

Average number of very large brand e�ects reported

Inserts

SMS

OnlineNon-video

DM TV DOH

Cinema

Online videoRadio

MagazinesPR

SponsorshipPromos

DRTV

Paid search

Social media

Regional newspapersEmail

National newspapers

Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 27)

Page 9: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

The di�erences between brand building and sales activation

Brand Building Sales Activation

Creates mental brand equity Exploits mental brand equity

In�uences future sales Generates sales now

Broad reach Tightly targeted

Long term Short term

Emotional priming Persuasive messagesNumber of very large

business e�ects

Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 01)

Page 10: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

% reporting very large improvements in each metric

55%

47%

35%

21%

32%

Sales Market share

Pricesensitivity

Loyalty Penetration

Fame

For campaignsthat are:

Other

Pro�t

29%

14%9%

34%28%

8%3%

% cases short term

Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 60)

Fame-driving campaigns out-perform others on all business metrics

Page 11: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

Creatively awarded campaigns are 11 times as e�cientat driving Share of Market growth

-40

-20

0

40

60%

%ESOV

SOM Growth

Creatively-awardedNot creatively-awarded

0 0 0 20 40 60 80 100

20

Source: Les Binet and Peter Field, The Link Between Creativity and Effectiveness, Thinkbox/IPA, (Figure 06)

Comparison of the e�ciency of creatively-awarded and non-awarded campaigns

Page 12: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

0.50

0.00

1.00

1.50

2.00

2.50

3.00

3.50

SOVEFFICIENCY

Not creatively awarded

Less Creativelyawarded (1-3)

Highly creativelyawarded (4+)

Very highly creatively awarded campaignsare the most e�cient of all (1996-2014)

Source: Les Binet and Peter Field, Selling Creativity Short, IPA, (Figure 44)

Page 13: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

0%

5%

10%

15%

25%

35%

45%

40%

30%

20%

% increase in ang. no. VL

business e�ects from

adding TV

2008-20161998-20061980-1996

TV has become more e�ective, 1980-2016

12%

27%

40%

Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 36)

Page 14: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

Short-termism boosts ROMI but not profit growth

0%

100%

200%

300%

500%

600%

400%

0%

5%

10%

15%

25%

30%

20%

Ave ROMI Very large pro�tgrowth

Long-termShort-term

Very large pro�t growth Ave. ROMI

Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 62)

Page 15: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

13%

27%

1-2 yearsCampaign duration

Rational

For campaignstargeting:

Combined

Emotional

3+ years

21% 23% 23%

43%

The longer the time frame the more emotions drive profit

% reporting very large profit growth

% reportingvery largepro�tgrowth

EmotionalCombinedRational

Communications model

Emotional campaigns are more profitable

16%

25%

29%

% reporting very large e�ects on business metrics

46%

55%

28%

Sales Market share

Pricesensitivity

Loyalty New Customers

Rational

For campaignsthat are:

Emotional

31%

5%11%

27% 27%

2%5%

Emotional campaigns yield stronger long-term business e�ects

Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figures 44, 53, 54)

Emotional campaigns are more e�ective on almost all business metrics especially long-term

Page 16: Historically share of voice has driven share of market · 2019-03-12 · 0.6 1.7 Business e˜ects Existing customers For campaigns targeting: New customers Whole market Total e˜ects

20060%

5%

10%

15%

25%

20%

30%

2008 2010 2012 2014 2016

Short-termism has been rising

% cases short term

10 years ending

20060.0

0.2

0.4

0.6

1.0

0.8

1.2

2008 2010 2012 2014 2016

Even long-term cases have lost e�ciency

SOV e�ciency (cases > 6m)

10 years ending

20061.2

1.3

1.4

1.5

1.7

1.6

1.9

1.8

2.0

2008 2010 2012 2014 2016

Campaign e�ectiveness has fallen

Number of very large

business e�ects

10 years ending

20060%

2%

4%

6%

10%

8%

14%

12%

16%

2008 2010 2012

ESOV long cases

2014 2016

Budgets (ESOV) have been falling across the board

10 years ending

ESOV all

Some emerging and destructive trends in e�ectiveness

Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figures 47, 51, 65, 68)