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Rethinking Advertising Development – Is it Time to Shift the Paradigm? Inspiration for Action REFLECTIONS Peter Haslett, Ipsos ASI December, 2011 Page 2 Rethinking Advertising Development One recognizes that, when they set out to develop a new advertising campaign, most advertisers do not plan to air communications that are mediocre, or at best average. Yet year in and year out, mediocre advertising is aired. Why isn’t all advertising great? You have probably heard the “reasons”: there is no time, no alternative ideas, too little money, or too much equity in the existing campaign (even when it is starting to falter in-market). These reasons suggest to us a need to take a hard look at the development process to understand what might be missing. We would argue it is consumer input. More intriguing reasons, from a researcher’s perspective, include that pre-testing really can’t gauge the impact of the ad being tested, or that pre-testing is no longer relevant given the fragmented and increasingly more digitalized world around us. The opportunity cost of great creative is equal to (if not more than) the cost of the whole media budget Great advertising is possible, even with today’s increased complexity. The old adage remains true – great creative is the underpinning of a successful campaign. It accounts for more than 75% of a campaign’s success, making it more important than the media buy. Proven Recall Brand A (Strong Creative, Less Support) 70% 60% 49% 50% 40% 30% 25% 20% Proven Recall Brand B (Weak Creative, High Level of Support) 10% 0% Owing to the role of online social networks, great creative ideas can additionally drive strong viral activity because great creative is one of the drives of word-of-mouth (WoM). And, WoM can often outperform paid media within the touchpoint mix. Brand*Graph 360 Summary Audit Source: Average results from 20+ observations (when present), across multiple industries + studies Average Recall % 60% Average (excluding product touchpoints) Word of Mouth Performance Packaging 50% Price 40% POS 30% Promo Radio Posters Cinema Sponsorship In-Store On-Line Website FSI Magazine 20% 10% 0% Television 0 2 4 6 Word of Mouth 8 10 Share of Impact % Average (excluding product touchpoints) 12 14 16 What might you be missing out on? You might be missing out on creating great advertising. Are you sure that you are creating great ads for your brand? We think the objective behind developing great advertising should be to develop the best advertising possible to build one’s brand, not to simply pass a pre-test; because, brand Ipsos ASI – The Advertising Research Specialists building efforts should ultimately lead to improved sales, brand equity or brand closeness. In our experience there are three mainstays to achieve great advertising. More importantly, these three do not need to add time to the development schedule (in fact they often reduce cycle times) nor do they need to add to the overall cost. • Plan Holistically • Seek consumer input at an earlier stage to optimize what you Create • Rethink your action standards when Qualifying copy • Creative and media together • Grounded in strategic platforms Create • Many early stage ideas or creative Plan • A few near finished creative ideas Monitor • In-market evaluation Qualify Are you planning holistically? The benefit of a Tight Creative Brief The foundation of a holistic plan is the creative brief. But for that creative brief to be successful, it needs to be tightly focused – confident almost. This provides the agency the freedom to create and not be hampered by “what ifs.” It must also have complete buy-in from all key stakeholders, not just the agency, to be successful. Without buy-in, the process will be mired in the debate of alternatives. The brief needs to be informed by strong foundational research, together with a holistic understanding of your in-market insights, especially to effectively define: • What you are trying to accomplish for the brand in the context of the competitive set; • What the consumers’ emotional needs are that are associated with your brand; • What is the clear, compelling, undeniable and leverageable consumer insight. “I have learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” — MAYA ANGELOU Are you thinking Big? The brief should outline a strong strategy or “Big Idea” – the backbone for a holistic campaign. To be strong it needs to tap into essential human motivations to which everyone can relate, not just a select few. And, it also needs to have a natural role or connection for the brand, without which you do not have a Big Idea. The agreed to Big Idea should serve as the roadmap for all creative, regardless of medium. It should also further serve to align teams and focus efforts by ensuring shared accountability. Can you ask more from your media? The continual merging and blending of media means that consumers are empowered to determine where and when to access the content they want. Within this environment, television advertising is not declining in importance, but Page 3 Rethinking Advertising Development it will continue to evolve while other media increase in relevance. Advertisers may be more likely to succeed if they plan their creative content and media plans together as one exercise. Knowing beforehand which mediums work best for your category, brand and message, makes this process seamless. Foundational Research & Brand Strategy Opportunity to explore, fail and try again without risk Final Execution You can test early stage stimuli with consumers 33 6 Touch Points were captured in our survey Touch Points account for (more or less)... 60+ % of the driving impact for each KPI Combine insight of where to focus with an understanding of media synergies and the style, tone and level of message detail required to maximise efficiency of each contact with your consumer. Some useful tips: • A customer’s purchasing behavior and potential loyalty can easily be bought with discounts – it is not enough to simply focus communications on loyal purchasers as there are so few of them. • With this in mind, there is a difference between attitudes and behavior – advertisers should focus on building the emotional desire for a brand. • Segmentation limits mass appeal of your product. Most of the biggest brands do not segment – but rather target all consumers with the same emotional desire. This allows consumers to choose the brand for their own personal reasons. Contrary to popular belief consumers, are able to react and respond to Big Ideas, creative strategies, and early stage advertising and provide meaningful input. The only challenge consumers face is clarity of the stimulus at hand. And typically that lack of clarity does not come from the level of finish, but the lack of appropriate articulation. But knowing that and understanding why consumers may be confused, can provide brand teams and agencies with the roadmap to comprehension. Learn what does and does not work for consumers with regards to your brand Take the opportunity to learn at various stages. It is about knowing your consumer intimately – fully understanding their needs and emotional desires for your brand. It is also about knowing what articulation of an insight caries more emotional triggers, and then knowing how to visually express that. Or what brand connection caries more credibility and meaning, so that the story is complete. There are no regrets when you learn from failure The outcome could be creative that really pays-off: agencies can break free of the one or two safe ideas and create without the risk of failure. Iterate without risk, by exploring and refining ideas and executional elements before making the expensive investment of full-up production. It is far easier to make adjustments to concepts, storyboards and animatics versus re-cuts and re-edits of already finalized communications. We recommend that the process act like a funnel – start with as many good ideas as possible, and winnow down to a few great ideas. Early stage research means you can identify the best ideas quickly, and weed out the ideas that fall short. Maximize Ad Quality • Touchpoints are not substitutes for each other; they cannot serve the same objective, with the same Reach, and to the same target. Focus the message on the strengths of the medium. Are you seeking consumer input at the earliest stages to optimize what you Create? “Advertising people who ignore research are as dangerous as generals who ignore decodes of enemy signals.” — DAVID OGILVY. Early consumer input makes our clients more effi cient. It saves time and money by providing a breadth and depth of insight that can fill in any knowledge gaps that may occur between foundational research and final ad development. Ipsos ASI – The Advertising Research Specialists Screen and identify the best communication ideas and optimize those ideas based on consumer feedback before investing in full-up production, minimizing cost of failure and maximizing advertising quality. 160 Quality: Average Copy Effect Index (CEI)* 140 120 123 100 80 138 93 60 40 20 0 (n=2116) (n=152) (n=62) Non Screened Screened in Early Stage test Screened & Scored Average or Strong in Early Stage test *CEI was developed by Ipsos ASI to provide clients with a relative indicator of advertising efectiveness: the higher the CEI, the greater the potential for an ad to create a sales response in response to ad spending (other things being equal). Average CEI = 100; Above Average CEI = 130+ Page 4 Rethinking Advertising Development Gain Greater Efficiency Earlier feedback in the development process eliminates weaker ideas before significant production dollars have been invested and translates to more effective ads on air. Higher success rates mean less time and money wasted on re-work. 100 90 80 70 60 50 40 30 20 10 0 Efficiency: Airable Copy Rates 84% 76% 52% (n=2116) (n=152) (n=62) Non Screened Screened in Early Stage test Screened & Scored Average or Strong in Early Stage test Qualitative input is still a must. Important for the development of consumer insights or need states, it can play as important a role in creative development. You can deconstruct and reconstruct stimulus more readily, getting to the heart of what is and isn’t working, and what you may have missed. You can also easily tap into the emotional associations consumers have with your brand. But qualitative alone is only directional; combined with quantitative data, qualitative research can help propel ideas forward efficiently. Same Brands, Same Ad Agencies, Same Research Company, Different Process Once convinced of the value of early stage research some of our clients have chosen to test focus on Big Ideas, some on creative strategies, while others have focused on executional strategies or storyboards and animatics. Regardless of what they chose to test, a few commonalities: • All agency partners, both above and below the line, were a part of the process ensuring fully integrated communications. • While more pieces of early stage stimulus were developed than in the past, only the best one or two ideas proceeded to finished production, saving on production costs. • Having learned from the early stage research, there were no “what ifs” about what to do when investing in final production – no re-cuts or re-edits. A few useful tips for early stage: • Tone and personality are easily conveyed in a strategic concept – both to the benefit and disservice of an idea. Don’t suppose to know what consumers are thinking or feeling. But do surprise them with great insight and understanding. Remember, every single word and phrase counts. • Using images in strategic concepts does not help to better explain an idea to consumers. Images can distract from your underlying message. And while consumers may like the image and relate to what is shown, they may not notice that they do not connect to your idea. • You can get meaningful consumer response to static key visuals or PowerPoint slides with a recorded script as an early stage ad idea. Just make sure that you do not overnarrate and therefore over-promise on what the final communications can deliver. • Screen various creative devices and hooks: if there are a variety of different ways to demonstrate the same thing and you are not sure which one will have the most impact, test them with consumers. You may find the least expensive device could have the most impact. • Given the expense of celebrity endorsements, get consumer input before you sign on the dotted line. What about Action Standards? “Don’t bunt. Aim out of the ball park. Aim for the company of immortals.” — DAVID OGILVY If your action standards for airing an ad are that your ad must fall within an average range on pre-test results, then the ads you air will most typically be average. At the end of the day, what is the opportunity cost to the brand of putting mediocre advertising on air? So, are you missing out? Consider your creative development process: is it designed to deliver excellent creative, or could it potentially evolve? And might it be time to rethink the goal of creative development? “Never stop testing, and your advertising will never stop improving.” — DAVID OGILVY Our experience is that by investing in the process means less time spent on deciding what to proceed with. And those ideas that were produced were far more likely to be Great Creative right away. Case Study CEI* Results After Early Stage Idea Testing Clients Average CEI in Category Personal Care (Region 1) 176 242 92 Personal Care (Region 2) 245 299 107 Home Care (Region 1) 167 135 93 *CEI was developed by Ipsos ASI to provide clients with a relative indicator of advertising efectiveness: the higher the CEI, the greater the potential for an ad to create a sales response in response to ad spending (other things being equal). Average CEI = 100; Above Average CEI = 130+ Ipsos ASI – The Advertising Research Specialists 1 1 - 1 2 - 1 8 About Ipsos ASI Ipsos ASI offers marketers state-of-the-art advertising research built on more than 40 years of experience using measures predictive of in-market performance. We offer a full-range of solutions across all media – at any stage in the creative process – from equity assessment to strategic development, advertising testing, and tracking. Our research is backed by a dedicated team of advertising research specialists whose mission is to deliver the answers that will add value to your business anywhere in the world. About Ipsos Ipsos ASI is a member of the Ipsos Group, a leading global survey-based research company. Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. With offices in 66 countries, the Paris-based company was founded in 1975. For general information, contact us via email at: [email protected] For regional information on North America: [email protected] For regional information on Latin America: [email protected] For regional information on Europe: [email protected] For regional information on Asia-Pacific: [email protected]