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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
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?
#ARFAxS
The fundamental principle:brand vs activation
Sale
s upl
ift o
ver b
ase
TimeSource: Binet & Field 2013
Brand vs ActivationSales activation
Immediate sales responseHigh efficiency & ROI
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
#ARFAxS
Maximising effectiveness
“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
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
Maximise mental availability
Awareness Salience Fame
Passively accept brand Actively seek brand Influence & advocacy
Increasing returns
Fame increases efficiency x 4 and maximises profit
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
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
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
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
Media implications
Sales activation
Tight targeting
Responsive
Informative
Brand building
Broad reach
Memorable
Emotional
Online & offline, video formats work best
#ARFAxS
Best practise in action
John Lewis case study
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
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
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
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
