35% 37%
30%
25%
26%
20%
21% 20%
15%
10%
5%
0%
Price sensitivity Share growth Share defence Sales growth
Campaign objective
Effectiveness success
80%
20% 70%
22% 73% 88%
Incidence
60%
15%
50%
rate
10% 40%
12% 30%
5% 20%
5% 10% 24%
0% 0%
Increase Increase Increase both Increase Increase Increase both
loyalty penetration loyalty penetration
Campaign objective Campaign objective
Loyalty is hard to change
90%
80%
82%
Incidence (% of cases)
70%
60%
50%
40%
30%
20%
10%
2%
0%
6%
Loyalty only Penetration only Both
Which measures increased?
The loyalty myth
• Talking to existing customers is less rewarding because:
– There are usually fewer of them than non-customers
– They are more influenced by product experience than by
communications
• As a result, loyalty campaigns tend to be less effective
than penetration campaigns.
• This seems to be true for all sectors – even subscription
services.
• Decades of research by Ehrenberg et al on a wide
variety of markets yielded exactly the same findings.
• Increasing loyalty is like turning lead into gold.
Intermediate % campaigns
objective
Awareness 61%
Image 55%
Direct 46%
Differentiation 43%
Fame 33%
Quality 33%
Commitment 31%
Trust 22%
Campaigns that aim for awareness or direct response fare better. The
target metric is easier to shift, which makes them seem accountable.
Intermediate % campaigns Success rate Effectiveness
objective versus in business
objective terms
Awareness 61% 45% 67%
Image 55% 27% 68%
Direct 46% 46% 67%
Differentiation 43% 35% 70%
Fame 33% 37% 78%
Quality 33% 28% 73%
Commitment 31% 26% 70%
The most effective campaigns are those that aim to make the brand famous,
rather than merely increase awareness.
Campaign strategy
Types of campaign strategy
• Campaigns that work by reinforcing existing consumer
behaviour (including many loyalty campaigns) are much
the least effective.
• Effective campaigns aim to change behaviour. Some try
to do this in a primarily rational way, some use emotions,
and some use both.
• Rational campaigns are the most common, but…
Emotional strategies are more
profitable
35%
V large profit gains (% reporting)
30%
31%
25% 26%
20%
15%
16%
10%
5%
0%
Emotional Combined Rational
Campaign strategy
70%
78% 75%
60% 67%
Emotional
50% 55% campaigns
40%
Rational
30% campaigns
20%
10%
0%
Emotional category Rational category
Predominant nature of decision making in category
The power of emotion
• Emotional campaigns work particularly well for premium
brands, where the purchase decision tends to be more
emotional.
• In fact, emotional campaigns are twice as good at
reducing price sensitivity as rational ones. This may be
one reason why they are so profitable.
• Emotional campaigns are also particularly effective:
– for smaller brands (less likely to have product/price advantages)
– in more mature markets (fewer functional differences)
– when market conditions are buoyant (price is less of an issue)
• In fact, there is only when area where rational
approaches work better…
Rational strategies yield bigger
direct responses
40%
V large direct effects (% reporting)
35%
35%
30%
31%
25% 28%
20%
15%
10%
5%
0%
Emotional Combined Rational
Campaign strategy
The most powerful strategy?
80%
Effectiveness success rate
70%
72%
68% 68%
60%
59%
50%
40%
30%
20%
10%
0%
Fame Emotional Combined emotional Any rational
involvement & rational
Communications strategy
The power of Fame
Fame campaigns achieve broader business success
60%
58%
% achieving very large effect
50%
48%
40% Fame
39% campaigns
30% 33%
27% Other
20% 22% campaigns
10%
11%
8% 8%
4%
0%
Profit Price sensitivity Sales Loyalty Penetration
Business metric
Fame campaigns
• The most effective of all are those that work by getting
the brand talked about and making it famous.
• Such campaigns outperform others on almost every
metric:
– especially price sensitivity and profit.
• This finding supports the idea that “word of mouth” or
“buzz” metrics might be good predictors of effectiveness
– A more proactive version of the Net Promoter Score
– DDB research suggests that factoring in measures of “influence”
may make such metrics even more useful.
Media
Key findings
• ATL and BTL do seem to enhance one another.
Campaigns with both seem to be more effective and
more efficient than those with just one or the other.
• TV ads seems to be more effective and efficient than
print ads.
• Yet other research suggests print gets more rational
attention than TV.
• Further support for the importance of emotional
engagement rather than rational attention?
• Contrary to current wisdom, data suggests that TV is
becoming more effective, not less.
Evaluation
The balanced scorecard
• The most commonly used leading indicators are brand
awareness, brand image and direct responses.
• Yet none is sufficient or necessary for effectiveness.
• Brand consideration does seem to be a better predictor.
• Better still, use a wide range of metrics, rather than any
single measure – the “balanced scorecard” approach.
• If you need a single performance measure, make it a
‘metric of metrics’
The more metrics that move,
the more effective the campaign
100%
90%
Effectiveness success rate
80% 88%
70% 75%
60% 68%
50%
40% 46%
30%
20%
10%
0%
0 1 2 3+
Number of very large leading indicators
The number of metrics that move is a better predictor than any single metric.
Measuring advertising impact
• The data shows that “liking” of an ad is a significantly
better predictor of business effects than either
“communication” or “persuasion” measures.
• This is consistent with the superior effectiveness of
emotional communications over rational ones.
• “Standout” measures such as ad awareness turn out to
be the worst predictors of all.
• This raises questions about pre-testing methods that
work by trying to predict standout…
Does pre-testing (for standout)
reduce effectiveness?
80%
70%
Effectiveness success rate
60% 71%
50%
40%
44%
30%
20%
10%
0%
Quantitatively pre-tested Not quantitatively pre-tested
Research measures in use
Effectiveness vs Accountability
• Campaigns with broad effects are more effective.
• But those with narrow effects often seem more accountable - the
effect is easier to measure and easier to relate to the campaign.
• Thus there is often a tension between accountability and
effectiveness:
– Campaigns that aim for brand awareness or direct responses tend to
shift the target measure but little else – accountable, but ineffective.
– Campaigns that aim for brand fame have broader effects, and better
business results.
– Rational campaigns have narrow effects and are easier to track – e.g.
through communication and persuasion scores.
– Emotional campaigns have broader effects, making them harder to
track, but more effective.
Summary
Common practice Best practice
• Focus on single objectives • Aim for broad, multiple effects
• Generate volume • Shift the demand curve
• Focus on existing customers • Talk to whole market
• Increase brand awareness • Generate brand fame
• Rational communication • Emotional communication
• Shift to direct response • Emotionally rich media lead
• Evaluate against single KPIs • Use a balanced scorecard
• Accountability • Effectiveness
Full data available via warc.com
Thank you
Les Binet
European Director
DDB MATRIX
Over the years, Les has worked for a wide range of clients, including Unilever, Heinz,
Nestlé, Volkswagen, J ohnson & J ohnson, Kraft, Sony, AXA, and Anheuser Busch.
He has also played an important part in establishing DDB’s reputation for
effectiveness, having won more IPA Advertising Effectiveness Awards than anyone
else in the history of the competition.
Since 2001, he has served on the IPA’s Value of Advertising Committee, helping to
promote effectiveness and evaluation in the wider marketing community. In 2004 he
was elected an Honoary Fellow of the IPA, in recognition of his services to the
advertising industry, and in 2005 he was Convenor of J udges for the IPA Awards.
In 2007, Les Binet and Peter Field published “Marketing in the era of accountability”,
a major study of the factors that influence marketing effectiveness. This research is
based on the IPA dataBANK, a database of effectiveness case histories, which Les
and Peter helped to design and build for the IPA.