The IPA Databank study 2017 Business effectiveness Analysis
The IPA Databank study 2017 Business effectiveness Analysis of UK IPA effectiveness case studies 2012 -2016
Peter Field Peter spent 15 years as a strategic planner in advertising and has been a marketing consultant for the last 18 years. Effectiveness case study analysis underpins much of his work, which includes a number of important marketing and advertising texts: Marketing in the Era of Accountability, The Long & The Short of it, Brand Immortality, The Link Between Creativity and Effectiveness and a chapter of the Sage Handbook of Advertising. He is also a contributor to the Wharton Future of Advertising Project. Peter writes and speaks regularly around the world about marketing effectiveness. He is an honorary Fellow of the UK Institute of Practitioners in Advertising.
Definitions and sample sizes 108 UK cases analysed (excludes 59 international, 32 not-for-profit and 8 UK cases with incomplete data): Newsbrand print users: more than 8% of budget Newsbrand print users 57 Non-users 51 Newsbrand digital users: more than 0. 01% of budget Non-users: didn’t use/light or passing use Newsbrand digital users 71 Non-users 37 Newsbrand print + digital users 44 Non-users of both 24 Total newsbrand users 84 Non-users 24 Source: IPA Databank UK case studies 2012 -2016 (52% of all cases)
Newsbrands are at a significant disadvantage in proving effectiveness Disadvantage for newsbrands Smaller overall budgets (awards skewed to big budget campaigns) Very low ESOV Short-term cases, especially print New/small brands Value/mainstream brands Less likely to be emotional Advantage for newsbrands More service sector brands Source: IPA Databank UK case studies 2012 -2016 (52% of all cases)
Multi-platform newsbrands are delivering widespread business effects for brands Campaigns using newsbrands are 43% more likely to deliver market share growth Campaigns using newsbrands are more than twice as likely to deliver a reduction in price sensitivity Campaigns using newsbrands are 36% more likely to deliver profit Campaigns using newsbrands are more than twice as likely to deliver an increase in customer loyalty Campaigns using newsbrands are 85% more likely to drive customer acquisition Source: IPA Databank UK case studies 2012 -2016 (52% of all cases)
Multi-platform newsbrands boost the effectiveness of other media Newsbrands make TV 54% more effective Newsbrands make online video 50% more effective Newsbrands make online display 24% more effective Newsbrands make social media twice as effective Source: IPA Databank UK case studies 2012 -2016 (52% of all cases)
There is a significant context effect from using digital newsbrands + Adding online display to TV increases business effectiveness by 17% + + Adding digital newsbrands increases the multiplier effect by 60% Source: IPA Databank UK case studies 2012 -2016 (52% of all cases)
The latest data has seen a huge increase in the use of digital newsbrands without print Single platform newsbrand campaigns print/digital split 2012 -16 Digital newsbrands Print newsbrands 100% 55% 50% 88% 50% 45% 50% 12% 0% 2012 2014 Source: IPA Databank UK case studies 2012 -2016 (52% of all cases) 2016
However, digital newsbrand cases buck the rise of short-termism Short-termism is a significant disadvantage for print users, but advantage for online users 50% Users Non-users % cases short-term* 38% 35% 27% 22% 17% 11% 0% * Less than six months Print newsbrands Digital newsbrands Source: IPA Databank UK case studies 2012 -2016 (52% of all cases) Print + digital newsbrands Average 24%
Print is becoming more effective over time Uplift to number of business effects from adding print % 25% 20% 15% Trend-line 10% 5% 0% 2004 2006 2008 2010 2012 2014 2016 6 years ending Source: IPA Databank UK case studies 2012 -2016 (52% of all cases) compares users of print to non-users, data aggregated over 6 years for robust sample sizes
Print is increasingly effective at delivering new customers Uplift to very large customer acquisition effects from adding print % 80% 60% Trend-line 40% 20% 0% 2004 2006 2008 2010 2012 2014 2016 6 years ending Source: IPA Databank UK case studies 2012 -2016 (52% of all cases) compares users of print to non-users, data aggregated over 6 years for robust sample sizes
Uplift to very large market share effects from adding print % Print is delivering greater market share uplifts over time 100% 80% Trend-line 60% 40% 20% 0% 2004 2006 2008 2010 2012 2014 2016 6 years ending Source: IPA Databank UK case studies 2012 -2016 (52% of all cases) compares users of print to non-users, data aggregated over 6 years for robust sample sizes
Uplift to number of business effects % Two are better than one, there is a significant multiplier effect from using print and digital in combination 60% 49% 40% 20% 14% 0% One newsbrand platform Source: IPA Databank UK case studies 2012 -2016 (52% of all cases) Two newsbrand platforms
Uplift to number of business effects % And the multiplier effect is getting stronger 60% 56% 55% 50% 49% 45% 40% 2012 -2016 2014 -2016 Two newsbrand platforms Source: IPA Databank UK case studies 2012 -2016 (52% of all cases)
Business effects in detail: print newsbrands Print newsbrand users % reporting very large effects 60% Non-users 49% 44% 40% 37% 32% 25% 27% 20% 19% 20% 9% 6% 6% 0% sales market share price sensitivity loyalty Source: IPA Databank UK case studies 2012 -2016 (52% of all cases) customer acquisition profit
Business effects in detail: digital newsbrands 50% Digital newsbrand users 48% Non-users % reporting very large effects 43% 40% 31% 32% 31% 30% 24% 20% 16% 24% 11% 10% 0% 0% sales market share price sensitivity loyalty Source: IPA Databank UK case studies 2012 -2016 (52% of all cases) customer acquisition profit
Business effects in detail by number of newsbrand platforms % reporting very large effects 50% 46% 48% None 1 platform 2 platforms 45% 39% 40% 34% 30% 25% 21% 20% 21% 23% 25% 28% 20% 11% 10% 8% 8% 8% 0% 0% sales market share price sensitivity loyalty customer acquisition profit
Conclusions • The danger of short-termism is that it focuses on immediate sales without protecting the long term health of the brand • A more balanced approach is required for maximum business effectiveness and ongoing brand value • Campaigns using newsbrands are just as likely to deliver sales as campaigns that don’t use newsbrands • But the difference is that adding newsbrands to a campaign means it is significantly more likely to deliver sustainable business benefits such as market share growth, customer acquisition and loyalty, protection of price premium and profit • Newsbrands improve the business effectiveness of a raft of other media, including TV, online display and video and social media • One of the simplest ways to improve the business effectiveness of online digital display is to include digital newsbrands: their quality environment drives profits, not just clicks Source: IPA Databank UK case studies 2012 -2016 (52% of all cases)
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