numberseverymarketershouldknow-171204141620
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NUMBERS EVERY MARKETER SHOULD KNOW<br />
TOM ROACH, MANAGING PARTNER, PERFORMANCE, BBH LONDON
ZERO to 1<br />
The greatest number of consumers of<br />
any brand are very light buyers, and<br />
they contribute significantly to sales<br />
volume, so for most brands the<br />
biggest opportunity for growth comes<br />
from taking people from buying it zero<br />
times to buying it once in a typical<br />
purchase cycle.<br />
Source: Byron Sharp, ‘How Brands Grow’
16%<br />
As little as 16% of all advertising is both remembered and correctly<br />
attributed, meaning that 84% of advertising spend could be wasted.<br />
In a study by the Ehrenberg-Bass Institute of a sample of 143 TV ads,<br />
avg. ad recall was found to be around 40%, and avg. branded recall<br />
was 40% of that.<br />
Source: Ehrenberg-Bass Institute study, quoted in Byron Sharp’s ‘How Brands Grow’.
1 message<br />
If you want people to remember your<br />
key message, you’re best delivering 1<br />
message not 2+. Analysis of the Link<br />
database shows that the more<br />
messages you try and communicate, the<br />
less likelihood there is of any single<br />
message being communicated.<br />
Source: Kantar Millward Brown
2x<br />
Emotional campaigns are almost 2x as<br />
likely to achieve top-box profit<br />
performance as rational campaigns, and<br />
over 2x as efficient at driving market<br />
share growth per 10 pts of excess SOV.<br />
Source: Binet & Field, The IPA 'The Long and the Short of It'
4x<br />
Campaigns designed to drive fame are<br />
around 4x as efficient at driving market<br />
share growth per extra 10 pts of SOV<br />
according to an analysis of the IPA<br />
Databank.<br />
Source: Binet & Field, The IPA 'The Long and the Short of It'
2nd<br />
Quality of creative execution is, after<br />
market and brand size, the 2nd most<br />
important driver of advertising<br />
profitability, on average multiplying<br />
profitability by a factor of 12 according to<br />
Data2Decisions.<br />
Source: Paul Dyson, Admap, Sept 2014, 'The Top 10 Drivers of Advertising Profitability'
16x<br />
Highly creatively-awarded campaigns can<br />
achieve around 16 times the efficiency of<br />
non-awarded campaigns, meaning they<br />
drive market share growth 16 times more<br />
strongly per point of excess SOV, whilst<br />
less awarded campaigns achieved just<br />
under 10 times the efficiency of<br />
non-awarded campaigns.<br />
Source: Binet & Field, The IPA 'Selling Creativity Short'
60/40<br />
Brands should spend around 60% of their<br />
budget on brand-building activity and<br />
40% on activation for maximum<br />
effectiveness. Too little brand activity and<br />
the brand equity needed to drive sales in<br />
future will not accumulate. Too little<br />
activation and the brand will not be<br />
exploiting the sales potential of brand<br />
equity as it accumulates.<br />
Source: Binet & Field, The IPA 'The Long and the Short of It'
0.5%<br />
Excess share of voice (ESOV = SOV -<br />
SOM) is an important contributor to the<br />
level of growth. On average, a 10 point<br />
difference between SOV and SOM leads<br />
to 0.5% of extra market share growth.<br />
So a brand with a share of 20.5% with<br />
an ESOV of 10 points would grow to<br />
21% market share over a year.<br />
Source: Nielsen 'Budgeting for the upturn: does share of voice matter?'
-15%<br />
On average, uplifts in consideration following a campaign decline at<br />
15% a week, meaning the uplift will have decreased 50% in 5 weeks<br />
and will be back at pre-campaign levels in under 4 months.<br />
Source: Mediacom Business Science modelling, avg across every category
+1%pt<br />
On average a +1%pt movement<br />
in brand consideration will drive an<br />
uplift in total sales of 0.5-1.5%.<br />
Source: Thinkbox, Ebiquity, Gain Theory, 'Profit Ability: The business case for advertising'
£3.24<br />
The average long-term profit ROI from<br />
£1 spent on advertising is £3.24. £1.51 is<br />
delivered in the short-term, with an<br />
average long-term multiplier of 2.1. TV<br />
has the highest short-term profit ROI of<br />
£1.73 on avg. and the highest long-term<br />
multiplier, 2.4.<br />
Source: Thinkbox, Ebiquity & Gain Theory: ‘Profit Ability: the Business Case for Advertising’