advertising: how the charity sector shapes...
TRANSCRIPT
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Advertising: How the charity sector shapes up
Will Goodhand
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2
Incontrovertible evidence has led research to up its game…
www.system1adratings.com [email protected]
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1 decision-making system holds massive pre-eminence
Fast Intuitive
Unconscious Metaphoric
Slow Analytical Conscious
Propositional
System 2 System 1
www.system1adratings.com [email protected]
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5 © System1 Group PLC
43%
23%23%
Rational Combined Emotional
Campaign strategy
% Reporting very large profit gains Campaigns lasting 3+ years
‘The Long and Short of It’, Binet & Field, IPA, 2013
Emotional campaigns are more profitable in the long term
www.system1adratings.com [email protected]
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6 © System1 Group PLC
Ideal long/short term balance varies between sectors…
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7 © System1 Group PLC
Survey built around System 1 emotional response
3. Resulting EiA™ score provides a 1-5 Star prediction of long-term growth
2. Emotions weighted for business effects
20
8
8
8
8
1.70
10
30
8
--
-
-- --
--
-
++
+
None Modest Good Exceptional Strong
0% 0.5% 1% 2% 3%
Long-term ROI growth
Share gains
And to what degree does this ad make you
feel [selected emotion]?
1. Which of these faces best expresses how you feel about this ad?
www.system1adratings.com [email protected]
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8 © System1 Group PLC
John Lewis Christmas | The Campaigns
Man on the Moon (2015)
Bear and the Hare (2013) The Journey (2012)
Monty the Penguin (2014)
£8 profit generated per
£1 spent across
campaign
www.system1adratings.com [email protected]
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9 © System1 Group PLC
System1 share growth predictions for each ad vs actual
0
0.5
1
1.5
2
2.5
3
65 70 75 80 85
0
0.5
1
1.5
2
2.5
3
65 70 75 80 85
% annual point share growth % annual point share growth
Our Modelled Prediction Actual
Emotion-into-Action Emotion-into-Action
Model assumes 10 ESOV points. Actual share of voice not available but ‘roughly equivalent for each ad in campaign’, Les Binet.
Correlation: 0.85
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10 © System1 Group PLC
System1 accurately predict weaker effect of Man on the Moon vs. 5 star Monty the Penguin. Rising baseline of web visits shows short-term pay-off of emotional campaigns
John Lewis Web visits John Lewis Market Share Growth
Source: Advertising Works 23, IPA & WARC
Short-term Effects Long-term Effects
Correlation: 0.85
www.system1adratings.com [email protected]
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11 © System1 Group PLC
What about charities?...
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12 © System1 Group PLC
FFF global database
Correlation between emotion and brand market share
Myth: It’s useful for people to feel negative about charity brands…
FFF UK validation on 15 charity brands
0.53
0.01
Negative Emotion Happiness
There is no correlation between negative emotion towards charity brands and their market shares. For sadness (the most common negative emotion associated with charities) the correlation is marginally negative. Happiness is the most useful emotion for charity brands over the long-term.
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System 1 Ad Ratings: Ongoing Measurement of EVERY TV ad in UK & US 6 sectors 2017-2018
• Automotive
• Financial
• FMCG
• Health & Beauty
• Tech
• Charity/ Not-for-profit
Data sources: System1 Ad Ratings, Ebiquity and Competitrack
22,353 ads airing between July
2017 – June 2018
And continuing to test ads as they air….
www.system1adratings.com [email protected]
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An audit of all UK and US advertising
60
50
40
30
20
10
0
% Of Ad Output Achieving Each Star Rating
52% 33% 12% 2% 1% Proportion of all Ads
54% 30% 12% 3% 1%
All Ads, US, July 2017-June 2018 (19,101 ads)
All Ads, UK, July 2017-June 2018 (3,252 ads)
Star Rating (Emotional SOV Amplifier)
www.system1adratings.com [email protected]
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UK investment in the long-term today (not good!)
60
50
40
30
20
10
0
% Of Ad Output Achieving Each Star Rating
All Ads, UK, July 2017-June 2018 (3,252 ads)
52% 33% 12% 2% 1% Proportion of all Ads
Proportion of TV Media Spend
42% 39% 15% 3% 1% Proportion of Media Spend
Star Rating (Emotional SOV Amplifier)
www.system1adratings.com [email protected]
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And charities?...
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An audit of all UK vs UK Charity/NFP advertising
100
80
60
40
20
0
% Of Ad Output Achieving Each Star Rating (rounded to nearest full number)
52% 33% 12% 2% 1% Proportion of all Ads
83% 8% 7% 2% 0%
Star Rating (Emotional SOV Amplifier)
www.system1adratings.com [email protected]
All Ads, UK, July 2017-June 2018
Charity/NFP, UK, July 2017-June 2018
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UK investment in the long-term today
60
50
40
30
20
10
0
% Of Ad Output Achieving Each Star Rating
All Ads, UK, July 2017-June 2018 (3,252 ads)
52% 33% 12% 2% 1% Proportion of all Ads
Proportion of TV Media Spend
42% 39% 15% 3% 1% Proportion of Media Spend
Star Rating (Emotional SOV Amplifier)
www.system1adratings.com [email protected]
US Charity/NFP advertising is more successfully emotional
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UK investment in the long-term today
60
50
40
30
20
10
0
% Of Ad Output Achieving Each Star Rating
All Ads, UK, July 2017-June 2018 (3,252 ads)
52% 33% 12% 2% 1% Proportion of all Ads
Proportion of TV Media Spend
42% 39% 15% 3% 1% Proportion of Media Spend
Star Rating (Emotional SOV Amplifier)
www.system1adratings.com [email protected]
But there are some very strong UK performers – including a 5 star ad from Battersea Dogs & Cats Home
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21 © System1 Group PLC
So how can we move up our star rating?...
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Emotional Storytelling
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23 https://www.youtube.com/watch?v=yIutgtzwhAc
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24 © System1 Group PLC
The most effective emotional journeys
Extremely Effective Very Effective
www.system1adratings.com [email protected]
As just seen in the Heineken Walk-In Fridge ad
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25 www.system1adratings.com [email protected]
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Create, or better, use a Fluent Device
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What do these all have in common?
All Automotive, Financial, FMCG, Health & Beauty, Tech and Charity Advertising, July 2017 – June 2018 An audit of all 3,252 UK TV ads, with thanks to Figure8
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Fluent Device Definition:
A fictitious character or characters (humans or creatures) created by the brand and used as the primary vehicle for the drama in more than one ad across a campaign.
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M&Ms Group Talk
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Start 1-2s 3-4s 5-6s 7-8s 9-10s 11-12s 13-14s 15-16s 17-18s 19-20s 21-22s 23-24s 25-26s 27-28s 29-30s
FE
EL
IN
G
FL
UE
NC
Y
Contempt Disgust Anger Fear Sadness Neutral Happiness Surprise
Cumulative Brand Recognition (%)
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31
40.9
29.7
40.9
5.9 6.8
26.2
34.132.0
No FluentDevice
Campaigns(256)
CharacterFluent Device
(44)
No FluentDevice
Campaigns(256)
CharacterFluent Device
(44)
No FluentDevice
Campaigns(256)
CharacterFluent Device
(44)
No FluentDevice
Campaigns(256)
CharacterFluent Device
(44)
Character Fluent Devices generate larger longer and broader effects % of Long-term Campaigns Achieving Very Large Effects on Each
Market Share Gain
Profit Gain
New Customer Gain
Reduction in Price Sensitivity
System1 Group Analysis of all IPA long-term campaigns since 1998
www.system1adratings.com [email protected]
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Character Fluent Device performance
60
50
40
30
20
10
0
% Of Ad Output Achieving Each Star Rating
Character Fluent Device Ads, UK, July 2017-June 2018 (217 ads)
Ads not using character Fluent Device, UK, July 2017-June 2018 (3035 ads)
52% 33% 12% 2% 1% Ads not using character Fluent Devices
40% 25% 28% 6% 0% Character Fluent Device Ads
Star Rating (Emotional SOV Amplifier)
= +12 % points of SOV
www.system1adratings.com [email protected]
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Fluent Devices create memory structures for brand recognition, making investment go further.
£0
£1,000,000
£2,000,000
£3,000,000
£4,000,000
£5,000,000
£6,000,000
£7,000,000
0% 20% 40% 60% 80% 100%
£0
£1,000,000
£2,000,000
£3,000,000
£4,000,000
£5,000,000
£6,000,000
£7,000,000
0% 20% 40% 60% 80% 100%
TV Spend TV Spend
Brand Fluency (% correctly recognising) Brand Fluency (% correctly recognising)
Ads with NO Character Fluent Device N=759
Ads WITH Fluent Device N=51
www.system1adratings.com [email protected]
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Even brands with a Fluent Device aren’t using it much outside TV
63
39 3926 24 21
37
61 6174 76 79
TV YouTube Direct Mail Facebook Facebook Twitter
72 brands 342 ads
16 brands 57 ads
12 brands 71 mail packs
879 ads
% of all ads/mail packs/content/tweets featuring a Fluent Device
% of all ads/mail packs/content/tweets NOT featuring a Fluent Device
Base: All ads for brands advertising on TV with a Fluent Device. With thanks to partners Ebiquity, Picasso Labs, Facebook, Royal Mail, Twitter and YouTube
All content
(1,746 pieces)
55 brands
341 Tweets
8 brands
www.system1adratings.com [email protected]
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Fluent Device Online
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A split-test to determine performance in an on-line context
No Fluent Device With Fluent Device (Wilbur the Penguin)
High attention environment (Newsbrand)
Low attention environment (Non-
Newsbrand)
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Fluent Device commands greater attention
0%
20%
40%
60%
80%
100%
0 1 2 3 4
% o
f p
eop
le s
till
view
ing.
..
Time (s)
Engagement
With Fluent Device No Device
Source: Lumen
4% 0.1”
7% 0.1”
31% 0.3”
[%] Viewed
[”] Ave. Dwell Time (s)
18% 0.1”
18% 0.2”
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Wilbur performs even better in a high-attention newsbrand context
Non-NewsBrand NewsBrand
Source: Lumen
0%
20%
40%
60%
80%
100%
0 1 2 3 4
% of people viewing...
Time (s)
Engagement
Wilbur NewsBrand Wilbur Non-NewsBrand [%] Viewed
[”] Ave. Dwell Time (s)
23% 0.2”
39% 0.4”
4% 0.1”
10% 0.1”
16% 0.1”
19% 0.1”
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Advertising works better online with a Fluent Device
6974
No Wilbur (52) Wilbur Fluent Device (86)
2835
No Wilbur (200) Wilbur Fluent Device (198)
2.6
3.2
No Wilbur (200) Wilbur Fluent Device (198)
0.6” 0.9”
Average Dwell Time (s)
% Viewing % Spontaneous Brand Recall Star Rating
FAME FEELING FLUENCY
(# Effective Reach)
Source: System1 Group Source: Lumen Source: Lumen
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For profit gain, you must entertain.
And it is in artifice, not relevance, that the magic resides.
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In the end, it’s where you start that counts…
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FAME
What do I want my charity to
be famous for?
FEELING
What do I want people to feel
about my charity?
FLUENCY
What devices and assets can I
use for fast recognition?
A much simpler way to BRIEF advertising to achieve long-term emotional impact:
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Focus on emotional storytelling Deploy Fluent Devices – across channels, especially digital Use – don’t lose – your past (think Andrex) In the end, it’s how you start that counts…
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With thanks to… Client Partner: Centrica Project Partners: Facebook, Newsworks, Royal Mail, Twitter, YouTube Research & Analytics Partners: Picasso Labs, Figure8, Lumen Data Partners & Sources: Ebiquity, Competitrack, IRI
www.system1adratings.com