Balancing short-term sales growth with long-term brand success Why Big Data can mean Big Danger

Analysis of 996 IPA cases over 30 years. Covers 700 brands in 83 categories. Identifies the ingredients for effectiveness, over the short and long term. “Effectiveness” measured in hard business terms.

A few of the brands in the sample

To be updated this month: Analysis of 714 campaigns over 3 years Examines the drivers of success over the very short to mid term Effectiveness measured in hard business terms

1. Dangerous times for brands

Two ways marketing can affect sales Sales activation Targeted, rational Decays quickly Brand building Broad reach, emotional Decays slowly

Brand building drives long-term growth Long term sales growth Sales activation Short term sales uplifts Short term effects dominate ~6 months Source: Binet & Field 2013

Different time-frames favour different strategies

Chasing volume is not enough

But price effects are long term

Brand building is key to lower price sensitivity

2. The danger is growing

New media are mostly activation-focussed

The best brand building channels are unfashionable

Also the biggest price effect channel

3. Avoiding danger

Brand + activation wins over all time-frames

Balance is important to effectiveness The 60:40 rule Brand:Activation

Key drivers for brand building Emotion Fame Reach

Key drivers for brand building Emotion Fame Reach

Broad reach means bigger profits

Choose media with broad reach Source: IPA Touchpoints 2014

Broad reach in Brazil… Source: Ibope Target Group Index

Key drivers for brand building Emotion Fame Reach

Emotional campaigns build stronger brands

Emotional campaigns work harder

Emotions are more profitable

But emotions only win after 6 months

Key drivers for brand building Emotion Fame Reach

What is “Fame”? Achieving fame means more than just increasing brand awareness. It means: Getting a brand and its marketing talked about - WOM/buzz Getting the campaign Shared Turning consumers into brand advocates, and thus… Giving the brand a sense of stature and authority beyond its actual size

Fame builds stronger brands

Fame drives efficiency and pricing

TV boosts fame

TV massively boosts efficiency

And TV is becoming more efficient

Big Data = Big Danger

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Obrigado www.ipa.co.uk/content/the-long-and-the-short-of-it