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Wake up and smell the bacon

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Presentation on theme: "Wake up and smell the bacon"— Presentation transcript:

1 Wake up and smell the bacon
Peter Field effectiveness consultant #shiftnorth

2 The business value to advertisers of newsbrands in the digital era
The IPA Databank Study The business value to advertisers of newsbrands in the digital era 2012 & 2014 case studies

3 Peter Field Peter spent 15 years as a strategic planner in advertising and has been a marketing consultant for the last 18 years. Effectiveness case study analysis underpins much of his work, which includes a number of important marketing and advertising texts: Marketing in the Era of Accountability, The Long & The Short of it, Brand Immortality, The Link Between Creativity and Effectiveness and a chapter of the Sage Handbook of Advertising. He is also a contributor to the Wharton Future of Advertising Project. Peter writes and speaks regularly around the world about marketing effectiveness. He is an honorary Fellow of the UK Institute of Practitioners in Advertising.

4 Why this study is important
The digital advertising machine has promoted some very destructive beliefs and trends: Short-termism Tight targeting is more efficient than broad reach ‘Timely and relevant offers’ trump brand-building Data is more important than creativity Programmatic is better than human judgement

5 Where has it got us?

6 What really drives effectiveness
Short-term Long-term Tight targeting Path to purchase Information & deals Broad reach Talk value & salience Emotion & fame

7 The danger for traditional channels
Online channels are powerful drivers of short-term sales activation But weak at long-term brand-driven growth The reverse is true of traditional channels So a marketing world driven by short-term results and metrics compromises long-term success and plays into the hands of digital channels

8 A uniquely digital future is not ideal
The most effective campaigns balance long-term with short-term effects: Brand building with sales activation Traditional with online

9 The study 3 key questions:
How effective are campaigns that use newsbrands versus those that do not? How effective are campaigns that use multi-platform newsbrands versus those using just one platform? What impact do newsbrands have on the effectiveness of other media? Newsworks wanted the answers to 3 key questions: 1. How effective are campaigns that use newsbrands compared with those that do not? 2. How effective are campaigns that use multi-platform newsbrands compared with those using just one platform? 3. What impact do newsbrands have on the effectiveness of other media?

10 Definitions & sample sizes
Newsbrand print users: more than 8% of budget Newsbrand digital users: more than 0.01% of budget Non-users: didn’t use/light or passing use 76 cases analysed: Newsbrand print users 43 Non-users 33 Newsbrand digital users 44 Non-users 32 Newsbrand print + digital users 32 Non-users of both 44 Total newsbrand users 55 Non-users 21 I looked at the most recent cases in the IPA databank so we could get a clear picture of the impact of newsbrands in the modern media environment, where digital and social platforms are adequately represented as well as the more traditional media. He analysed 2012 and 2014 data separately and then together for more robust bases. (see Methodology charts for a fuller explanation of analysis) There are too few complete non-users of newsbrand media amongst IPA case studies, but fortunately there are a good number of campaigns that made light or passing use of newsbrand media. We have called these “non-users”. All not-for profit cases were excluded. These are compared with ‘users’ who have spent over the following thresholds: 8% of total media budget for print newsbrands 0.01% of total budget for digital newsbrands In total, 76 cases were included, broken down as shown. Analysis focused on business effects – only very large business effects are included.

11 Not a level playing field
Disadvantages for newsbrands users Very low ESOV Short-term cases New/small brands Value/mainstream brands Less likely to be emotional Advantages for newsbrands users More service sector brands Before we get into the results of the analysis, there are a few preliminary notes about the two samples of newsbrand users and non-users. Over the years Peter Field and colleagues have identified and validated key campaign characteristics that are most likely to drive effectiveness. In this analysis, the newsbrand group of cases starts out with a number of disadvantages, particularly for print. The most important is a severe ESOV disadvantage – we know that an excess share of voice when compared with market share is associated with greater campaign effectiveness. Newsbrand users average ESOV is around 1-2%, whereas non-users ESOV is between 8% and 11%, depending on platform. The 2012 and 2014 cases including newsbrands in the IPA database are also more likely to be short-term and for new, small and value brands – again these are generally less effective than longer-term cases and established big, premium brands. They are also less likely to be emotional, a long-term disadvantage. There is one efficiency advantage for newsbrands - there are more cases in the services sector – and fewer in FMCG. Given these characteristics, we are confident that the findings for newspaper brands are robust and substantial.

12 Large brands show the real print boost
Print newsbrands boost effectiveness As previously mentioned, there is an ESOV disadvantage for print newsbrands. One way of levelling the playing field is to look at larger brands only. And we can see that for these larger brands the inclusion of print newsbrands in the media mix increases business effectiveness by as much as 57% (base: strong challengers and leaders = 40 cases)

13 Long-term cases show the real print boost
Similarly, we identified a disadvantage for print newsbrands in that they were more likely to be part of the media mix for short-term cases – which are generally less effective. If we look at long-term cases only (25 cases) - there is a much stronger impact on business effectiveness

14 Multi-platform users are even stronger
But the biggest business effects are when BOTH print and digital newsbrands are used in campaigns – compared with campaigns that used either one or neither, the effect of adding multi-platform newsbrands is to increase business effects by 58%.

15 Multi-platform benefits are widespread
This chart looks at the specific very large business effects of campaigns that include multi-platform newsbrands, compared with cases where newspaper use is zero or very light. Where both print and digital newsbrands are included in campaigns, there is a positive improvement in business effectiveness across all business measures. In particular, the inclusion of newsbrands in the media mix has a large effect on acquiring new customers, generating very high levels of profitability and having a substantial impact on market share.

16 Multi-platform newsbrands boosts TV effectiveness
Our final question was whether newsbrands improved the effectiveness of other media. And the answer is a clear “yes”. Let’s look at TV. Multi-platform newsbrands supercharge TV business effectiveness by 65%. Print is an important component, boosting TV effectiveness by 44%

17 Online properties are not all equal
Note: this chart uses Nielsen data to define power users of other online And there is evidence that not all online properties are equal. There is definitely a multiplier effect from adding online to TV, but the size of the effect depends on which sites are used. When digital newsbrands are included in a campaign, business effectiveness goes up by a pretty impressive 59% compared with TV with no online. When there are no digital newsbrands but only other online display media used alongside TV, the increase is only 16%.

18 Newsbrands boost other media
We also looked at how newsbrands increase the effectiveness of online display and social media. There are effects for both print and digital newsbrands separately – but the largest increase is seen when multi-platform newsbrands are included. Online display is enhanced by 53%. And the affinity between newsbrands and social media is underlined by the size of the multiplier effect – multi-platform newsbrands boost social media by 118%.

19 Conclusions Newsbrands widely enhance effectiveness when included in the media mix Newsbrands work more effectively in multi-media campaigns when both print and digital platforms are included Multi-platform newsbrands boost the business effectiveness of TV, social and online display Newsbrands deliver widespread long-term benefits: • Profit • Market share • Price protection • New users So, in conclusion: Newsbrands widely enhance effectiveness when included in the media mix. Newsbrands work more effectively in multi-media campaigns when both print and digital platforms are included Multi-platform newsbrands boost the business effectiveness of TV, social and online display And finally, sometimes we see that specific business objectives are achieved at the expense of other business results, for example price reductions to drive sales and market share can affect profitability. Multi-platform newsbrands deliver widespread benefits without these downsides - and that matters in the long term: Profit Market share Price protection New users


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