Showing posts with label getting the best out your agency. Show all posts
Showing posts with label getting the best out your agency. Show all posts

Thursday, September 12, 2019

Just How Risky is Creative Advertising?

The short answer?

Much less risky than boring advertising.


I wrote this some time back and I thought I would republish. Worth bearing all this in mind as we go into execution season.

Do you know how marketing messages we are exposed to every day?


Figures vary but it's safely between several hundred and several thousand. A figure of between 3000 and 5000 marketing communication messages every 24 hours is often mentioned. Read the links in this article here to give you an idea of the studies done in this area, some which clarify that number, some that dispute it.

Of course when you talk about messaging in the thousands, you are including every single message - from your Facebook stream, the branding on the motorbike in front of you, messaging in shopfront windows and on shopping bags, packaging and so on. In reality, we obviously don't "see" all those messages, as Shari Worthington notes in this piece. She notes:
"Our senses are bombarded with over 11 million bits of data every SECOND. The average person’s working memory can handle 40-50 bits, max. That means we ignore 10,999,950 bits of data every second we are awake."- See more at: http://blog.telesian.com/how-many-advertisements-do-we-see-each-day/#sthash.zNRsE2iJ.dpuf

Whatever the amount is, studies conducted by Harvard University's Graduate School of Business way back in 1964 concluded that of all the messages we see, only 76 penetrate our subconscious. (Bauer, Greyser

Further studies emphasised that from the 76 messages of which a person might be aware, only 12 made any kind of impression (Adams, Common Sense in Advertising, 1965). 

And of those, how many are remembered the next day? Figures range between none, 1, 1.7 and mostly, at most 2. (*All references to this research taken from notes in the excellent book: Case for Creativity by James Hurman).

Bear in mind, these studies quaintly only measured 4 - 5 media types: magazines (remember them?), newspapers, radio and TV. Only in later studies did they include outdoor.

Fast forward to the proliferation of media around us, and taking into account Shari's estimate that we only really see between 300 and 700 marketing messages per day, let's settle on a number of around 500? Assuming the number of 76  of which people are even vaguely aware still stands (and why wouldn't it?) that's 15%. If only 12 of those 76 make any impact, we get 15% and a miserly 2% of the total. And recall the next day? Of those that made an impact we are likely to remember 16% the next day, when we're shopping for something. And if we take the percentage of those recalled the next day of the total number of messages of which we were aware? 0.4%. 

Point being - if a tree falls in a forest if probably makes a sound but no-one cares. Ditto with 98% of advertising.


Some valuable insights on whether a tree makes a sound: image from http://musingsfromhigherdowngateandelsewhere.blogspot.com/2014/10/if-tree-falls-in-forest.html

So. Good. That's all clear. We want to be making ads, creating marketing messages, that work. Awareness on its own really isn't much use. What we're trying to do with commercial messaging is create a behaviour change - change how someone thinks or feels or what they do. So vague awareness is only marginally useful. We need to make an impact.


But how? 

Buy more media? Prof Byron Sharp reckons that by extending your penetration, you will grow your share as growth depends largely on mental and physical availability. Not everyone can afford that.

Be more creative? Yip.

Isn't that risky?

Turns out it's the opposite of risky. Mediocre is the risky option.

My elaborate maths above should have already told you that. By being boring you simply won't make any impact and your marketing investment has become that poor tree in the forest that no-one hears.

And how about this?

Here are some astounding some facts, summarised in The Case for Creativity, reported in a 2010 study, commissioned by the IPA (Institute of Practitioners of Advertising) and Thinkbox in the UK. The research was conducted by acclaimed researcher Peter Field and entitled "The Link Between Creativity and Effectiveness".
  • Only about 0,001% of advertising wins a creative award, yet among highly effective campaigns (in this case winners of an IPA Effectiveness award), 18% are awarded. This means that there's on "over-index of 128,500" of how likely creative campaigns are to be effective.
  • In an analysis of "Excess Share of Voice" (ESOV, which correlates a brand's share of advertising with its share of market, Peter Field found that the "Return On Investment (ROI) for a highly creative campaign is on average 11 times higher". ie... "you need to spend 11 times more on media for an uncreative production" to achieve the same result.
  • And, here's the kicker: Creatively awarded campaigns are more certain to achieve a higher rate of effectiveness by a "degree of confidence of 99.9%" as opposed to to non-awarded campaigns'  degree of confidence of 87%.
www.slideshare.net/jameshurman/the-case-for-creativity
"What this implies is that less creative campaigns are not only less efficient, but also less predictable than creatively-awarded ones - something of a departure from the perceived notion that a more creative approach is a less certain one"
James Hurman

There are plenty more fascinating analyses in the book or on the Slideshare presentation (link above) if you need more convincing. James Hurman actually concludes that he looked for but couldn't find any research to prove that there isn't a link between creative advertising and effectiveness. He kindly updated his slides and added in even more justification. See here. Honestly, if you're still not getting great work, or aiming for it, you're doing it wrong.

Heavens alive, even Millward-Brown reported in 2011 in an article titled Creative Effectiveness that they observed an overlap  between creative advertising and effective advertising. They concluded, having re-tested Peter Field's research, and added to it with some of their own, that persuasiveness was over-rated and emotional connection is far more effective.

"A study of IPA effectiveness, Effie and Cannes Lions awards winners reveals that ads don't need to persuade to be effective but they do usually engage emotionally."
Dominic Twose, Polly Wyn Jones, Millward-Brown, 2011

Two interesting cases in point

That Volvo ad with Jean Claude van Damme: "Epic Split".




The industry was divided about it. They're talking only to truck buyers, so why should 90million YouTube views matter? Here's what Volvo said.

In a survey they commissioned amongst 2,200 commercial truck drivers, nearly half who had seen the campaign said they are more likely to choose Volvo the next time they buy a truck. A third of all respondents had alraedy contacted a dealer or visited the website for more information. There was also a very positive improvement in the perception of Volvo Trucks as "an innovative and modern truck brand".

Oh, and they achieved their annual sales target in the first Quarter after "Epic Split" ran.

Not bad, huh?

Remember Dove's Real Beauty Sketches ad, with the forensic artist?



"Since they launched the campaign, Dove has seen an increase of almost 2 billion in sales, and has received a multitude of awards, including 19 at the Cannes Lion Film Festival alone.
Princeton Partners

It won lots of awards, got  65 million views on YouTube. Did it work?
"A jury of six men and two women awarded “Sketches” the Grand Effie, based on it driving $24 million in incremental sales and garnering $52 million worth of media exposure, all on a budget of just $925,000."
 June 5 2014, Adweek 

Great - that's sorted then.

Let's make creative ads!

Only problem is it's quite hard. Remember that only 0.01% of all ads actually wins an award! 

David Droga, Founder and Creative Chairman of Droga5,  explained why it's so hard going great work, in this interview when his agency was named AdAge's Creative Innovator of 2015: 
"Breaking through the clutter is just part of the Droga5 M.O. Solid strategy supports all of the agency's work -- something Mr. Droga said that for him, has not necessarily always been the case. "There's no question in my younger days, I'd think you could just blink and creative would solve everything. But now it has to be creative on strategy. What's hard is trying to be responsibly creative, versus just creative."

Probably my favourite work of theirs is this one for a cereal, Mondelez HoneyMaid. Watch it and think of the cereal ads you've seen lately.


Summary?

It's tough. And sometimes we try too hard. Sometimes we're too picky about getting every word in the body copy right, when the ad isn't any good.

"Most advertising isn’t good. Let alone great. Consciously or unconsciously it  assumes its role to bludgeon the consumer into submission.  It tries to argue the consumer into purchase.   It tries – with varying degrees of heavy-handedness – to reason the hapless audience into some kind of Damascene-like conversion. It has no interest in speaking to what interests the consumer. Its starting point is itself, rather than the passions, concerns and inclinations of its audience. It is, I suspect, born a prisoner of marketing superstition."


It requires the right skills, on the marketer side and an on the agency side. It requires the right relationship between agency and client. It requires courage. Fundamentally it requires an unwavering belief that creative advertising is effective.

It's worth it.

The latest work from Peter Field and Les Binet for the IPA is even more justification, although they're worried that our obsession with short term activity is endangering effectiveness in general.

A final word from Creative Circle's first Marketing Champion of Creativity, Geoff Whyte, now CEO of Nandos Southern Africa:


Off you go then. No-ones waiting for you, unless you give them something worth waiting for.
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Adtherapy works with Marketers and Agencies to help them work together better so that they create better work. Contact Gillian Rightford on gillian@adtherapy.co.za, +(27)(0)832659099 or visit our website www.adtherapy.co.za if you want to know more.

Thursday, March 1, 2018

Trend spotting in the Adbiz, 2018: It's not on top, it's inside.

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Every year I am asked to write something for BizCommunity on a trend I foresee, you know, in my crystal ball.

Image courtesy of Jannoon028 at FreeDigitalPhotos.net

Most years it's a variation on a theme. More data, more insight, customised communication, the power of mobile...This year - it's something completely new.
Here's my 10 cents worth.
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If I close my eyes and picture the world of marketing in 2018, two words come to mind.

They are Watershed Moment: “a critical turning point; a moment in time where everything changes; a point in time when nothing after will ever be the same.”[1]
But doesn’t everyone say that every year?

Yes, there are changes, and things have changed, so what would make 2018 a watershed moment, a critical turning point? Is it not simply a case of the more things change, the more they stay the same?

No. Because the truth is that almost everything has changed in the world of marketing communication.

The only thing that hasn't (enough) is how agencies and marketers work together.

And that’s where I believe the watershed is happening.

We all know that marketers are chasing increasingly tough numbers, and they are searching for innovation, efficiencies and integration to help deliver their goals. 
Unlocking the full benefits of technology is challenging (and full of opportunities) for marketing teams. Same for data. But a major blockage to increasing efficiencies and integration is how they work with agencies and how agencies work.

Marketers have always needed agencies to create the link between the business and the people who need to put their hands in their pockets. They needed agencies to unlock insights to create ideas to change behaviour. They needed agencies to decide where to place the messaging, to buy the space, and to implement the sometimes hundreds of elements across numerous channels. 

They still need a central concept (a big idea) which can be simply communicated based on insights and barriers and whatever will drive consumer behaviour. But more and more of the pieces of the puzzle could be done, and might make more sense to be done, in-house.

To quote industry commentator and guru, James Cannon-Boyce, in his article on curing your adsanity“There is the famous old adage about the CEO who said that they knew half their money was being wasted in marketing — they just didn’t know which half. That was from over a century ago — these days, the answer is that it’s not half that’s being wasted — it’s close to all of it. More and more, I feel that I am in the same meeting — it’s a bit like Groundhog Day if the Bill Murray character was a frazzled over-whelmed marketing executive and not a weatherman.”

Marketers already have their own insights departments (although sometimes generating  more information than insight). They have their own relationships with specialized production houses, or in-house production capabilities. They already have or are building their own social media and community management teams due to its always-on, strategic and tonality requirements.

There’s a growing sense that whoever owns the data has the power. 
As the CMO of Booking.com said recently, "We have way more data than the agency has. I’d make a very strong case that anything that generates data, you need to own as a business. You cannot have anyone else be the expert."[3]

This seems especially true for brands born on the internet, as they have no “advertising legacy” and have direct relationships with their customers.

Take a look at the credits for the creative team listed by Adweek, in this latest campaign by Spotify




They look different because they are all in house. [4]

Yes, but that’s there, in the USA. How will this affect brands in SA, with historical relationships with agencies? Simply, there has to be change, on both sides.

The structure within corporates isn’t yet optimal either. They, as well as their agencies, will need to restructure to unlock the siloes, open the flows of insight and information, to reduce wastage and duplication (and cost).

The challenge to agencies is that as the outside bits are being eaten away, what happens to their business model? As John Mandel from Mediacom says, "They are still set up for fighting the last war. They haven’t really set themselves up for the future war. Instead they are trying to eek out gains from a model than needs to change, while always trying to upsell clients on services."[5]

I’m not proclaiming the death of agencies yet as there are a few stumbling blocks in the in-house agency vision. Marketers have not yet figured out how to properly integrate all the sources of insight - obviously digital (big, or rich data)  but also from places like the sales/customer channel. The creative piece remains essential and ever more vital. Unless you hire in this talent, it’s going to have to remain outside. Hiring issues, like BEE and to creative culture remain a concern. 

Here’s where a new agency model like Oliver can play its part. They build agencies inside companies. One of their White Papers quotes research that the shows the number of brands bringing digital in-house increasing at a staggering rate, and that by 2020, “54% of brands think they’ll bring previously outsourced functions back in-house to match the need for more agile marketing efforts”.[6]

Will agencies still play a role in the idea development – using insights to create powerful brand stories and platforms? I think they should. There is now an even more pressing need for cut through creative. But agencies have to be reimagined and reinvented if they intend to survive. And the reimagining of the business model is the most important aspect.