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Binet_and_Field
1. 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
2. 0
2
4
6
8
10
12
0 20 40 60 80 100%
The 60:40 split delivers maximum effectiveness
Activation share of budget
Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 38)
Number of
very large
effects
3. 0.6
1.7
Business effects
Existing customers
For campaigns
targeting:
New customers
Whole market
Total effects
1.8
2.4
5.4
6.7
The broader the reach, the broader the effects
Average number of very large effects reported
Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 18)
5. Loyalty only Penetration only Both
0%
Penetration is the main driver of very large business effects
5%
10%
15%
20%
25%
7%
22%
7%
% cases
Very large effect observed on:
Source: Les Binet and Peter Field, Eff Week 2016, ‘Marketing in the Digital Age’, IPA
6. Long-term prospects
Immediate prospects
Broad but slower effects, big paybacks
Narrower but earlier effects, 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 effects
7. Brand-building and sales activation work over different 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 effects dominate - 6 months
Sales activation
Short-term sales uplifts
Brand building
Long-term sales growth
8. The differences between brand building and sales activation
Brand Building Sales Activation
Creates mental brand equity Exploits mental brand equity
Influences future sales Generates sales now
Broad reach Tightly targeted
Long term Short term
Emotional priming Persuasive messages
Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 01)
9. 1.1
25%
35%
45%
55%
65%
75%
85%
1.3 1.5 1.7 1.9 2.1 2.3
The trade-off between brand and activation effects across channels
% Reporting
very large
activation
effects
Average number of very large brand effects reported
Inserts
SMS
Online
Non-video
DM TV DOH
Cinema
Online video
Radio
Magazines
PR
Sponsorship
Promos
DRTV
Paid search
Social
media
Regional newspapers
Email
National newspapers
Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 27)
10. 13%
27%
1-2 years
Campaign duration
Rational
For campaigns
targeting:
Combined
Emotional
3+ years
21% 23% 23%
43%
The longer the time rame the more emotions drive profit
% reporting very large profit growth
% reporting
very large
profit
growth
Emotional
Combined
Rational
Communications model
Emotional campaigns are more profitable
16%
25%
29%
% reporting very large effects on business metrics
46%
55%
28%
Sales Market
share
Price
sensitivity
Loyalty New
Customers
Rational
For campaigns
that are:
Emotional
31%
5%
11%
27% 27%
2%
5%
Emotional campaigns yield stronger
long-term business effects
Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figures 44, 53, 54)
Emotional campaigns are more effective on almost all business metrics especially long-term
11. % reporting very large improvements in each metric
55%
47%
35%
21%
32%
Sales Market
share
Price
sensitivity
Loyalty Penetration
Fame
For campaigns
that are:
Other
Profit
29%
14%
9%
34%
28%
8%
3%
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
12. Creatively awarded campaigns are 11 times as effecient
at driving Share of Market growth
-40
-20
0
40
60
%
%
ESOV
SOM Growth
Creatively-awarded
Not 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 efficiency of creatively-awarded and non-awarded campaigns
14. 0%
5%
10%
15%
25%
35%
45%
40%
30%
20%
% increase in
ang. no. VL
business
effects from
adding TV
2008-2016
1998-2006
1980-1996
TV has become more effective, 1980-2016
12%
27%
40%
Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 36)
15. 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
profit
growth
Long-term
Short-term
Very large profit growth Ave. ROMI
Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 62)
16. 2006
0%
5%
10%
15%
25%
20%
30%
2008 2010 2012 2014 2016
Short-termism has been rising
% cases
short term
10 years ending
2006
0.0
0.2
0.4
0.6
1.0
0.8
1.2
2008 2010 2012 2014 2016
Even long-term cases have lost efficiency
SOV efficiency
(cases > 6m)
10 years ending
2006
1.2
1.3
1.4
1.5
1.7
1.6
1.9
1.8
2.0
2008 2010 2012 2014 2016
Campaign effectiveness has fallen
Number of
very large
business effects
10 years ending
2006
0%
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 effectiveness
Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figures 47, 51, 65, 68)