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Published byLucas Long Modified over 6 years ago
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Balancing short-term sales growth with long-term brand success
Why Big Data can mean Big Danger
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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.
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A few of the brands in the sample
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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
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1. Dangerous times for brands
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Two ways marketing can affect sales
Sales activation Targeted, rational Decays quickly Brand building Broad reach, emotional Decays slowly
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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
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Different time-frames favour different strategies
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Chasing volume is not enough
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But price effects are long term
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Brand building is key to lower price sensitivity
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2. The danger is growing
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New media are mostly activation-focussed
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The best brand building channels are unfashionable
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Also the biggest price effect channel
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3. Avoiding danger
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Brand + activation wins over all time-frames
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Balance is important to effectiveness
The 60:40 rule Brand:Activation
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Key drivers for brand building
Emotion Fame Reach
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Key drivers for brand building
Emotion Fame Reach
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Broad reach means bigger profits
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Choose media with broad reach
Source: IPA Touchpoints 2014
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Broad reach in Brazil… Source: Ibope Target Group Index
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Key drivers for brand building
Emotion Fame Reach
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Emotional campaigns build stronger brands
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Emotional campaigns work harder
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Emotions are more profitable
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But emotions only win after 6 months
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Key drivers for brand building
Emotion Fame Reach
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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
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Fame builds stronger brands
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Fame drives efficiency and pricing
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TV boosts fame
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TV massively boosts efficiency
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And TV is becoming more efficient
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Big Data = Big Danger
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Evian global
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Evian global INSERT EVIAN ‘BABY ME’ TV SPOT HERE
PLEASE SET TO PLAY FULL SCREEN AUTOMATICALLY
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Obrigado
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