5. What If We Were Wrong? Worldwide Partners, Inc. Summit Edinburgh, Scotland May 2009 Greg Stuart Co-author: What Sticks
6. Advertising’s Inconvenient Truth Greg Stuart Co-author: What Sticks Insights from Research against US$1Billion in Advertising Spending What If We Were Wrong?
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9. $1US Billion Ad Spending Researched 1.1 million consumers surveyed
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11. So, What Else do We Know 36% 31% 83% Media Motivations Messaging
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14. So What is a Marketer to Do? One Solution for Making Sure Your Advertising Sticks!
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17. Are You Prepared if You Are Wrong? Used with permission Cartoonbank.com
30. Media Timing Influences Success Average If Marketer had focused impressions on the 6 hours around lunch time, impact would have been significantly better Time of Day Lunch
31. Sometimes Spending Less is More Introducing New Menu Item: Grilled Chicken Flatbread Sandwich Ad Frequency (or Budget) % Aided Awareness 20% of Broadcast Budget Reinvested 13.6% in Online Point of Diminished Returns 5pt Gain! Cut 6.4% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 0.0%
32. Beware of the Diminishing Returns % of Brand Impact Awareness, Image or Purchase Intent 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Frequency Diminishing returns 1 2 3 4 5
33. Media Mix Influences Success TV Use Online Use Heavier Heavier Lighter Lighter Heavy Online Heavy TV Heavy TV Light Online Light TV Light Online Heavy Online Light TV 26% 38% 15% 21% Media Usage among 18-49 year old target 34.3 Million!
34. Media Optimizations Matters for Retail Too Payback ROI: Profit Payback Per Dollar Spent on Advertising Cost to Generate an Equivalent Sale (indexed) Overall, Online was the most cost effective & efficient in driving sales
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38. “ Most Important Launch In History Of Ford” - Bill Ford F150 Truck is #1 selling vehicle in U.S.
40. Trying Something Brand New: Home Page Takeover Ad Ran One Day on Each Portal - Roadblock Roadblock 43% One Day Reach
41. Cost Effectiveness of Each Medium Cost to Increase Purchase Consideration Interpretation: If it cost Roadblock $1 (indexed at 100) to increase purchase consideration, then it cost $1.35 for Online, $4.56 for magazine and $11.04 to TV to achieve the same increase. $1.35 $1.00 $4.56 $11.04 Sample Cost 100 Roadblock 456 Magazine 1104 TV 135 Online Relative Cost Index Brand Metric: Purchase Consideration (top 2 box)
42. The Value of Small Changes Ford Media Mix * Traditional Media Plan * Approx. $200 Million Budget Online Online Result was another $750,000,000 in U.S. Truck sales Total of +$1,350,000,000 in U.S. Truck Sales (at retail vs. Base Plan)
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45. What If We Were . Wrong? Right? Media Motivations Messaging 36% 31% 83%
49. Respect Diminishing Returns It’s a Law of Physics in Media % of Brand Impact Awareness, Image or Purchase Intent 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Frequency Diminishing returns 1 2 3 4 5
50. Heaviest Online Quintile Captures Half the Ad Impressions Percent of Total Impressions Light Users All other quintiles Heavy Users Avg Freq: 1.0 2.1 3.2 5.5 25.0
51. One Solution: Website Frequency Caps Can Really Help Frequency of 3 Per Week per Site Dramatically Increases Reach & Thus Performance Light Users All other quintiles Heavy Users Increased reach by 72% +50% to 70% in Ad Effectiveness
52. Many Things can Affect Effectiveness (e.g., Time of Day) +10% to 15% in Ad Effective-ness Average If Marketer had focused impressions on the 6hours around lunch time, impact would have been significantly better % Purchase Intent Lunch
53. Results: Size Matters 1 Aggregated results for three brands tested 2 The average of four brand measures tested The 336x280 resulted in an average +54% increase in brand impact vs. 468 x 60 2 +20% to 54% in Ad Effective-ness IAB, DoubleClick Ad Effectiveness Research 2001 Banner Small Rectangle Small Skyscraper Large Rectangle
54. Make Sure EVERYTHING Works! Same Media Budget 310% Increase Source: InsightExpress