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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
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
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)
Annualised
ESOV
EFFICIENCY
Target whole
market
Total new
customers
Target existing
customers
The broader the reach, the greater the efficiency
0.2
0.3
2.6
Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 21)
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
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
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
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)
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)
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
% 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
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
0.50
0.00
1.00
1.50
2.00
2.50
3.00
3.50
SOV
EFFICIENCY
Not creatively
awarded
Less Creatively
awarded (1-3)
Highly creatively
awarded (4+)
Very highly creatively awarded campaigns
are the most efficient of all (1996-2014)
Source: Les Binet and Peter Field, Selling Creativity Short, IPA, (Figure 44)
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)
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)
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)

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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)
  • 4. Annualised ESOV EFFICIENCY Target whole market Total new customers Target existing customers The broader the reach, the greater the efficiency 0.2 0.3 2.6 Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 21)
  • 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
  • 13. 0.50 0.00 1.00 1.50 2.00 2.50 3.00 3.50 SOV EFFICIENCY Not creatively awarded Less Creatively awarded (1-3) Highly creatively awarded (4+) Very highly creatively awarded campaigns are the most efficient of all (1996-2014) Source: Les Binet and Peter Field, Selling Creativity Short, IPA, (Figure 44)
  • 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)