Post on 18-Dec-2014
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FINDING HUMANITYIN NUMBERS
http://www.youtube.com/watch?v=29JewlGsYx
Finding humanity in numbers
http://www.youtube.com/watch?v=29JewlGsYxs
1. Why numbers matter to clients – the human story
2. Speaking ‘conversational- level’ numbers
3. Seeing the human story in the numbers
Inspiring creative solutions to business problems
“We value most highly what we can measure”John Banham, ex Director General CBI
To speak intelligently about how and why advertising works uses A completely different conceptual language from the language of business investment. The difficulty the advertising industry still faces is that advertising creative decisions form the battleground where the concepts and language games of capitalism, return on investment, payback, balance sheet, meet the language of human communication, motivationand emotional influence
Gary Duckworth 2002
“Never mind the share price lookat my lovely mood board”
1. Why numbers matter to clients – the human story
2. Speaking ‘conversational- level’ numbers
3. Seeing the human story in the numbers
‘Conversation- level’ Numbers
1. Business context
2. Share etc…
3. Profitability
Not quite as good toas it’s always been
VW ‘Surprisingly Ordinary Prices’Spending on advertising to reduce costs elsewhere
90 % of companies’ profits come from 20% of their brands
Source: Prophet
Which brand is most profitable?
? ??
Responding to a doubledigit decline in sales
Comms budget
Gross margin
Payback =
Calculating payback
£1m
40%
£2.5 million =
brand
Promotional/tactical
6
4
12
6
Short term ROI Long term ROI
Source D2D
Revenue ROI Non food retail
Calculating the value of communications
What drives advertising payback?
* Impact is defined as the potential multiplier on profit
Position Factor Impact*
1 Market size 162 Creative proposition 103 Budget and allocation 24 Seasonal costs 1.6
5= Laydown 1.15= Media multiplier 1.17 Brand lifestage 1.08
8= Quality viewing 1.058= Task 1.0510 Audience 1.04
P Dyson & K Weaver: Advertising’s Greatest Hits. Admap, February 2006
1. Why numbers matter to clients – the human story
2. Speaking ‘conversational- level’ numbers
3. Seeing the human story in the numbers
Audi Channel
How thinking human helped Audi cut costs
Population sizeof Audi buyers
Population sizeof prestige carbuyers
http://channel.audi.co.uk/
Milkman
How understanding human behaviour helpedsave the milkman (for a bit)
Milkman only Drifting Cancelling9% 6%
Milk buying in 1990
“Turning human understanding into business and social advantage”
Rory Sutherland
Behavioural economics – the start of a common language?
16%
26%
31%
0%
5%
10%
15%
20%
25%
30%
35%
Emotional Combined Rational
Campaign strategy
V la
rge
prof
it ga
ins
(% re
porti
ng)
Emotional ads outperform rational ones
Emotional impact better predicts business effect than traditional pretest measures
Month Yr32
2.67
1.67
2.00
2.33
1.78
2.56
2.00
2.33
1.78
2.56
1
2
3
Best 9Ads
Bottom 9Ads
Best 9Ads
Bottom 9Ads
Best 9Ads
Bottom 9Ads
Best 9Ads
Bottom 9Ads
Best 9Ads
Bottom 9Ads
Emotion‐into‐Action
Persuasion Established Industry Cut‐through
Measure Equivalent
Specific Key MessageOn Message
Base: 18 ads for which business effectiveness data is available from the IPA
Brand Linkage
Summary: Finding Humanity in Numbers
1. Why numbers matter to clients – the human story
2. Speaking ‘conversational- level’ numbers
3. Seeing the human story in the numbers