© 2008 Ipsos ASI – All rights reserved. Contains Ipsos' Confidential and Proprietary information and shall not be disclosed or reproduced without the prior.

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Presentation transcript:

© 2008 Ipsos ASI – All rights reserved. Contains Ipsos' Confidential and Proprietary information and shall not be disclosed or reproduced without the prior written consent of Ipsos. Ipsos ASI Celebrities in advertising Abstract of learnings presentation Contacts : Jennifer Hubber, President Ipsos ASI Western Europe Benoit Tranzer, Marketing Director Ipsos ASI Europe Chloé Desrosiers, Comm & Mktg Executive Ipsos ASI Europe

2 © 2008 Ipsos ASI – All rights reserved. The challenge of using Celebrities in TV Advertising n Use of celebrities in TV campaigns can be a controversial strategy. – High cost, high profile. – Intended to win consumers attention, interest, and favorable attitudes toward the message, product, or brand. n Despite notable exceptions, research has historically not offered much support for this practice. – David Ogilvy reported years ago that Testimonials by celebrities… are below average in their ability to change brand preference. Viewers guess that the celebrity has been bought, and they are right. Viewers have a way of remembering the celebrity but forgetting the product. – (Ogilvy on Advertising, 1983.) – Studies published in the 1970s-80s by ASI and other practitioners concur. n More recent analysis of Ipsos ASI test data shows similar results: – Celebrity ads may win viewers Attention, and sometimes Recall; – But Persuasion results are less favorable – below average, for Celebrity ads as a group – and Celebrity ads can suffer from reduced Brand Linkage.

3 © 2008 Ipsos ASI – All rights reserved. Learnings from our database : celebrities are not a ticket to success! Celebrities often create high visibility but also run the risk of low brand linkage and/or persuasion. This is because the choice of the character does not always match the brand and message

4 © 2008 Ipsos ASI – All rights reserved. X Persuasion (change in behaviour) Brand Equity Building (change in attitude) Measures that Matter for advertising effectiveness REACH X RESPONSE EFFECTIVE ADVERTISING = = Short Term Sales Brand Equity Reach (branded memory) = Visibility (get noticed) X Brand Linkage (be associated)

5 © 2008 Ipsos ASI – All rights reserved. CEI = Copy Effect Index REACH X RESPONSE EFFECTIVE ADVERTISING Reach IndexPersuasion Index x Copy Effect Index (CEI) = n CEI indicates the potential contribution of the ad to sales effects. n Weighted combination of Reach and Persuasion. – Weighted because of modelled relationship to Sales Effect, but nearly same impact. – Persuasion and Reach, together, give us the best overall assessment of the ads potential short-term business impact. Proved by a long history of validation studies.

6 © 2008 Ipsos ASI – All rights reserved. Overall Effectiveness of Celebrity Ads: CEI US Europe ALL CELEBRITIES US, Europe: Ipsos ASI Database Next*TV. All results indexed to local norms COPY EFFECT INDEX All ads = 100 Overall, ads with celebrities achieve a copy effect index below average. How to read the charts….

7 © 2008 Ipsos ASI – All rights reserved. Effectiveness of Celebrity Ads = REACH VISIBILITY BRAND LINKAGE PERSUASION x ALL CELEBRITIES COPY EFFECT INDEX US Europe US, Europe: Ipsos ASI Database Next*TV. All results indexed to local norms

8 © 2008 Ipsos ASI – All rights reserved. Credibility and Relevance May Be Limiting Factors for Celebrity Ads As a group, Celebrity ads have slightly lower ratings for perceived Differentiation, Relevance, and especially Believability of the ad message. – These results suggest that celebrities may be most effective when they have some expert authority, or when there is a logical connection with the message or story in the ad. *Data from Next*TV Europe.

9 © 2008 Ipsos ASI – All rights reserved. Celebrities in TV Commercials: Summary n On the whole, experience is not encouraging for use of celebrities. – Stars add Attention value, but may upstage the product. – Persuasion scores tend to be lower. – Brand Linkage may also be weak, limiting overall branded Recall. n Ads perform better when the celebrity is clearly identified. – Reduces the distraction of guessing games. n Credibility and relevance can be an issue. … suggesting that celebrities may be most useful if they have some direct relevance or expert authority. – Also note that this analysis does not consider how well the celebrity is known, how well liked, or how related to the brand or message. n The best practice may be to test the proposed ads before committing to the celebrity / campaign.