In fact, price-based activation often increases price sensitivity…  It is very hard to reduce price sensitivity by rational persuasion. This report drew on analysis of the results of fusing the Gunn Report database of creatively-awarded campaigns with the IPA Effectiveness Databank to examine the link between creativity and effectiveness. However, Thinkbox and the IPA did just that in this study which brought together findings from The Gunn Report and the IPA Effectiveness Databank. The Bass Diffusion Model  [i.e. the more major creative awards a campaign wins) the greater the level of effectiveness. using emotional brand advertising with the occasional major innovation.”, “This is a trap that many firms fall into. The difference in terms of return on investment is likely to be much greater than this. Sorry, your blog cannot share posts by email.

– Articles of Interest, Marketers need to take a more nuanced and thoughtful approach to the COVID-19 crisis – Articles of Interest, The Wrong and the Real of the Long and the Short – Articles of Interest, Emotional advertising tends to produce much bigger effects in the long term – Articles of Interest, Ritson: Share of Search queries is a simple and elegant alternative to Share of Voice – Articles of Interest, The Best We Could Do: An Illustrated Memoir, Eat Your Greens: Fact-Based Thinking to Improve Your Brand’s Health, An interview with Kitty Wooley, co-author of Unfettered: Mission-Aligned Boundary Spanning, Unfettered: Mission-Aligned Boundary Spanning, An interview with D.B. Annualised ESOV EFFICIENCY Target whole market Total new customers Target existing customers The broader the reach, the greater the e˚ciency 0.2 0.3 2.6 Source: Les Binet and Peter Field,The Long and the Short of It, IPA, (Figure 21) ESOV Efficiency for subscription brands is approx double vs. series brands. In fact, advertising doesn’t need to contain rational messages at all. The non-creative group generated around 0.5 points of share growth per ten points of ESOV (slightly low by the standards of the IPA databank), but the creative group generated an astonishing 5.7 points of share growth per point of ESOV.
First published in 2010, and updated in 2011, the analysis covers 435 campaigns over a sixteen year period between 1994 and 2010. Sorry, your blog cannot share posts by email. TV constitutes the largest element of Gunn Report scores used in this analysis (77%), followed by press and online. The fusion of the two databases therefore, allowed us to compare levels of creativity with levels of effectiveness to an extent that has not previously been possible. For equivalent levels of investment, creatively-awarded campaigns achieve broader levels of success across greater numbers of business metrics beyond share growth. This is a new finding.”, “The ability to activate short-term sales is vital to ESOV Efficiency, so in sectors where this is especially difficult we have to work harder at it.

Learn how your comment data is processed. Topics include market penetration, brand-building vs. sales activation, emotional vs. rational consideration, share of voice, pricing, and innovation. But ESOV Efficiency (how fast the brand grows per unit of investment above equilibrium SOV) can change, based on brand’s sector and many other variables: It is perfectly possible to launch a brand without much advertising support, and grow organically. ESOV Efficiency is high for launches, so launching a premium version tends to be a quicker and less advertising-intensive way to recruit upmarket buyers. Once you understand the dynamics, you should’t be surprised that the ESOV law is still valid during a recession like the one that almost certainly will be generated by the impact of the COVID-19 virus pandemic. There is a very strong link between creativity and effectiveness when ESOV levels are taken into account. Or, alternatively, innovative brands are less reliant on advertising, and can get away with lower budgets if they wish.”, “We have reported at length the rise of short-termism amongst the campaigns submitted to the IPA Effectiveness Awards competition. Retailers will give the new products shelf space, but often at the expense of existing SKUs. Disclosure: As an Amazon Associate I earn from qualifying purchases.

They are focused on a particular behavioral response that may involve an intermediate response action, such as clicking a web link. They have little effect on long-term growth and pricing power, so their impact on profitability is modest at best, but they can produce powerful short-term sales spikes.”, “Brand and activation work in synergy, each enhancing the other. In that case, growth is proportional to ‘extra’ share of voice (ESOV), defined as SOV minus SOM… Brands that set their ESOV above the equilibrium level will tend to grow; brands that set their ESOV below it will tend to shrink.” The authors use the term ESOV at least six times prior to defining it on page 69. In August, adults watched an average of 2 hours, 13 minutes of commercial linear TV each day, Stephen Mulhern had us ‘Rolling In It’ on Saturday nights & an iconic soap brand returned to screens after 20 years, Freeview launches its contextual campaign ‘The Other Way’, Profit Ability: the business case for advertising, TV advertising’s ultimate nickable charts, As Seen on TV: supercharging your small business, A Matter of Time: the importance of time-length in TV advertising, The Age of Television: the needs that drive us, ‘Profit Ability’: download the full report. Eat Your Greens: Fact-Based Thinking to Improve Your Brand’s Health – The Key Point, The Great Brand Malaise? The much greater ‘buzz’ effects of creatively-awarded campaigns (buzz has also been shown elsewhere to be strongly linked with effectiveness). What happens when you take away people’s favourite brands? This cannot be achieved through short-term activation. This site uses Akismet to reduce spam. The analysis examined both effectiveness (a campaign’s ability to drive business effects such as share, sales, profit and loyalty) and the efficiency (share growth per point of Extra Share of Voice) of creatively awarded and non-awarded campaigns. If your category is one of these you should consider increasing activation allocation above our norms.”, “The fact that new brands can get away with low (or even zero) share of voice makes good sense. The main way brands grow is always by expanding their customer base, regardless of whether the category is new or old, fast or slow-growing. ESOV Efficiency for online brands is more than double vs. offline brands. The findings revealed a direct correlation between strong advertising creativity and business success, and that high levels of creativity make advertising campaigns some 12 times more efficient at increasing a brand’s market share. So it is not surprising that innovation-led campaigns tend to be more short term. This priming effect also improves pricing power and so, over time, has a strong impact on profitability.”, “Sales activation dominates short-term sales uplifts and involves behavioral prompts that nudge consumers to want to buy now; promotional messages, seasonal or other occasion-related prompts and minor new product news are the main messages used. When ESOV levels are taken into account there is a very strong link between creativity and effectiveness. But also, as we have argued, at some point the brand will cease to be an interesting new contender for which brand building is relatively easy. Core products usually have a bigger sales base and higher margins, both of which boost the ROI from advertising. But innovation has particularly strong activation effects. The much greater ‘buzz’ effects of creatively-awarded campaigns appears to be why they are becoming more effective: in the multichannel world creativity is becoming more closely associated with buzz leaving non-awarded campaigns struggling, (buzz is strongly linked to effectiveness). The data reports the nature and circumstances of each campaign and its effects in comparable format and allows us to rate campaigns on a number of effectiveness dimensions. Creatively-awarded campaigns appear to achieve their greater effectiveness levels with much greater certainty than the non-awarded campaigns: they are more reliable investments. Here the evidence is unequivocal. However, there are additional costs involved, and there is always the risk of cannibalisation. These work over different time scales.”, “Brand building dominates long-term growth and involves the creation of memory structures that prime consumers to want to choose the brand. This gets results faster. Here is summary of the findings from Peter’s expanded study.

Brands that are addicted to minor NPD can end up hopelessly fragmented, leaving potential customers baffled and confused.

Although there have been signs that attitudes have begun to move in favour of creative awards in recent years, by no means all advertisers believe that they hold any commercial value. Brand communications create enduring memory structures that increase the base level of demand and reduce price sensitivity… Sales activation triggers these memories and converts them efficiently to immediate sales.
The analysis demonstrated a very strong link between creativity and effectiveness: The 2010 report described above analysed 257 campaigns over a ten year period (1998-2008). Taken from Thinkbox’s new 2020 study, ‘Signalling Success’ this chart looks at the strength of ‘fitness’ and ‘social’ signals across different media channels. ESOV Efficiency is much higher when there is, Emotional advertising that influences our feelings towards brands is slightly more efficient in. Although the two groups of campaigns being compared were matched in most respects, in one important respect they were not: the non-awarded campaigns received much greater relative levels of media support. And when activation is less responsive, you need to spend more your budget on activation.”, “In not-for-profit sectors… relatively high consideration levels and relatively strong emotional decision-making… make brand effects relatively easy to achieve. The proportion of creatively-awarded campaigns achieving top box 'fame' (i.e buzz scores) scores has risen dramatically over time from 28% pre-2004 to 70% subsequently. The analysis examined both effectiveness (a campaign’s ability to drive business effects such as share, sales, profit and loyalty) and the efficiency (share growth per point of Extra Share of Voice) of creatively awarded and non-awarded campaigns.