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> Measuring Advertising Performance 2010: IPA summaries
Measuring Advertising Performance 2010: IPA summaries
O2 - it only works if it all works: how troubled BT Cellnet was transformed into thriving O2
Andrew Cox, Alex Harris, Sophie Maunder, Louise Cook and Joanna Bamford, Institute of Practitioners in Advertising, Grand Prix, IPA Effectiveness Awards 2004
This case is the story of a corporate transformation. In just two years O2’s troubled predecessor, BT Cellnet, has been transformed into a vibrant brand and thriving business. Where it once trailed the market its share price has outperformed Vodafone, Orange and BT. It is a compelling example of the power of brand and how re-engineering a flagging one can transform every facet of a business - not simply its metrics, but the morale of its staff, the esteem of its public, its ability to sustain competitive advantage and its potential to deliver future earnings. It describes how 02’s tightly integrated approach allowed it to build an attractive, long-term brand whilst at the same time delivering short-term revenue growth. Over 80 per cent of O2’s marketing funds have supported sales-driving initiatives. Yet because these campaigns have been executed with a strong brand at their core, they have been unusually effective at winning long-term sales too. It has benefited enormously from the efficiencies of complete visual integration across all communication channels - from broadcast to retail level - and the paper quantifies the value of this. O2’s investment in communications will pay for itself more than 60 times over, generating at least £4,799m incremental margin over the long term.
Sainsbury’s – How an idea helped make Sainsbury’s great again
Tom Roach, Craig Mawdsley and Jane Dorsett, Institute of Practitioners in Advertising, Best Integration & Gold, IPA Effectiveness Awards 2008
The "Try something new today" campaign for Sainsbury's had two primary goals: delivering an additional £2.5 billion in revenue, and helping Sainsbury's achieve a sales-led profit recovery after a period of slowing growth. Research showed that supermarket shoppers were largely "sleep-shopping" - that is, in a rut when it came to the products they bought. Most wanted simple ideas to inspire them to try something different, and "Try something new today" aimed to combine this idea with Sainsbury's aim of earning a little extra spend (around £1.14) from its customers every time they shopped. The campaign also sought to demonstrate to the company's staff what was required to achieve the financial aim of earning one more item in every basket. The "Big Idea" behind the campaign helped produce £137.5 million in profit over two years, entirely separately from the sales effect of the advertising. The company's Chief Executive, Justin King, has also credited the campaign with inspiring Sainsbury's entire business, as well as making a forceful impact among consumers.
The Home Office - Crime doesn’t pay - but advertising to stop it does: how communications empowered the nation to protect themselves from vehicle crime
Emily James and Louise Cook, Institute of Practitioners in Advertising, Best Media & Gold, IPA Effectiveness Awards, 2006
This 2000-2005 Home Office campaign encouraged people to behave in ways that would help to reduce vehicle crime. By presenting the criminal as someone to outwit rather than be afraid of, the campaign aimed to reduce the fear of crime, and reinstate people's sense of control in challenging it. During the campaign, vehicle crime fell by 37%, and econometric analysis estimates a 1:28 payback on investment. TV was used, supported by outdoor and radio, print, online and ambient. High levels of ad recall, recognition and message comprehension are demonstrated, as is a change in overall attitudes, for example, towards the acceptance of personal responsibility for defeating crime. These effects are evidenced by comparing matched areas with more versus less advertising. The contribution of various media formats is also estimated.
Home Office – Cutting the cost of crime
Alice Huntley (principal), Sharon Sawers and Emma Roberts (contributing), Institute of Practitioners in Advertising, Best New Learning/Dedication to Effectiveness/Media & Gold, IPA Effectiveness Awards 2008
Acquisitive crime such as burglary and robbery cost Britain some £9.5 billion a year. Ethnographic research provided the inspiration for a strategy that reflected the way offenders really see their victims: as so careless they deserve to be robbed. By dramatising this carelessness in a humorous but forceful manner, the "Don't advertise your stuff to thieves" campaign found a way to empower and equip the target audience: potential victims, to take effective preventative measures. It was also the first time that a single campaign idea has been used to tackle multiple crime types. Between 2003 and 2007, Britain experienced a 19% reduction in acquisitive crime, a total of 698,000 fewer crimes. Conservative estimates from econometric analysis also suggest that the campaign ROI was at least 14:1, resulting in a saving to the taxpayer of around £1.3 billion.
The Number 118 118 - They came, they saw, they conquered
Cameron Saunders and Yusuf Chuku, Institute of Practitioners in Advertising, Gold, IPA Effectiveness Awards, 2004
This paper shows how advertising created a phenomenon in the dull world of directory enquiries, propelling an unknown brand to market leader within a matter of months. It was a brave decision to advertise several months ahead of switch-off but one that paid off, since by then the 118 118 runners had already clocked up 17 million calls. Another key tactic was spending £2m of the advertising budget on buying the 118 118 number sequence. Post switch-off 118 118 dominated the deregulated market whilst charging people a premium for it. At the time of this paper’s submission 118 118 had 44% of the directory enquiries market. Next with 34% was BT, which has the luxury of a 47-year relationship with the British public. This highly original communication idea was transformed into a cult-like phenomenon by equally inventive media thinking. The brand’s iconic 70s runners and their catchphrase ‘Got Your Number’ has slipped into the public consciousness. So prolific was this campaign that the majority of all articles written about deregulation were accompanied by imagery provided by 118 118. By focusing on the period when consumers still had a choice of calling 192 or the new 118 number, this paper provides a straightforward advertising effect: £11.5m communications spend delivered £45m in revenue.
Dove – Dove’s Big Ideal: from real curves to growth curves
Nicolette Robinson, Haruna McWilliams, Felix Bullinger, Clay Schouest and Simeon Duckworth, Institute of Practitioners in Advertising, Silver, IPA Effectiveness Awards 2008
Mainstream brands can find it difficult to move beyond the conventions of their category while retaining a strong connection with consumers. Research conducted by Unilever's Dove beauty brand showed that the norms of its category often had a highly negative impact on a women's self-esteem, projecting an image they believed to be unattainable. As such, Dove wanted to engage and connect with consumers in a completely different way. By making "more women feel more beautiful everyday", it hoped to produce a communications campaign that would be positively embraced by its target audience. A broad marketing mix of TV spots, promotions and online were used to promote this new "Big Ideal". Among the commercial results was an increase in market share of 33% and, in the US alone, the generation of some $38 million worth of revenue, delivering an estimated ROI of 3:1. Globally, it is estimated that the communications campaign made a profit contribution of $394 million, which equates to 32% of Dove's estimated brand value, as per Millward Brown's BrandZ brand rankings.
Felix - Continuity saved the cat
Georgia Challis, Barry Lustig, Julia Wood, Les Binet and Sarah Carter, Institute of Practitioners in Advertising, Best Read & Silver, IPA Effectiveness Awards, 2006
This paper describes the long-running campaign for Felix cat food. By 'tapping into people's real relationships with their cats', and sticking to it, Felix came from nowhere in 1988 to rival Whiskas for brand leadership by 1999. Then, Whiskas launched a new variant, a single-serve foil pouch, and began to regain share. Felix, under threat in 2000-01, had to develop its own pouch, and began to show classic signs of a brand in trouble, cutting adspend to boost promotions. This failed, but by May 2002, the Felix pouch was ready for launch. New advertising was proposed, but tested badly. It became clear that the old campaign theme was not a weakness, but a strength, and could make the new pouch 'accessible' to the mainstream market. The main launch medium was TV, with ambient and outdoor support, and other new products followed. The brand grew and overtook Whiskas in the single-serve sector, and, by 2005, Felix was again challenging Whiskas for leadership. The contribution of advertising is proved by sales/spend correlation, a regional comparison between high and low spend areas, and econometric analysis, which shows payback of £1.38 per £1 spent. Factors discounted include the market, distribution, variants in store, the new products, price, promotions and competitor activity. In sum, consistency led to better ad recall, image, penetration and loyalty, price elasticity reduction, distribution gains, and greater efficiency of adspend. As such, this story challenges conventional beliefs about wear out and the need for change in long-running campaigns.
Direct Line - How a Red Phone grew a super product into a superbrand
Nigel Robinson, Mortimer Whittaker O'Sullivan and Dom Boyd, Institute of Practitioners in Advertising, Silver, IPA Effectiveness Awards, 2004
In 1995, Direct Line decided to reposition itself from an ‘economy’ to ‘service’ insurance brand. Maintaining, its signature Red Telephone, and catchy jingle, Direct Line used an ever-evolving series of campaigns to communicate warm and relatable messages. From 1990 to 2002, Direct Line and its Red Telephone grew into a FTSE 100 company with high brand awareness (97%), strong customer loyalty, and profits exceeding £1bn.
Volkswagen Golf - 30 years in the making
Tristram Harrison, Daniel Hauck, Luke Bozeat, Les Binet and Sarah Carter, Institute of Practitioners in Advertising, Best Dedication to Effectiveness & Gold, IPA Effectiveness Awards, 2006
This paper summarises three periods of advertising for Volkswagen Golf: 1974-94, 1995-2001, and 2002-2005. It features classic TV, print and poster and, more recently, internet campaigns, supported by other media such as direct mail and trade magazines. Including the launch of Golf V in 2004, and Golf GTI in 2005, it demonstrates the contribution of communications to rising market share, consumer loyalty and a price premium (in contrast to other marques), and also details the success of interactive TV, effects on awareness, image and consideration. In the UK, sales move in line with communications, an effect that is proved by comparing the UK with other European countries where Golf share has fallen. Factors discounted include product quality and perceptions, pricing, distribution, and dealer incentives. Perceived residual value greatly exceeds real residual value, and there is a payback estimate of £2.5 extra profit for every £1 spent on communications.
Peperami: The Consequences of Unleashing the Beast
Justin Kent, Institute of Practitioners in Advertising, IPA Effectiveness Awards, 1994
Grand Prix, Tesco - How 'Every Little helps' was a big help to Tesco
Ashleye Sharpe and Joanna Bamford, Institute of Practitioners in Advertising, IPA Effectiveness Awards, 2000
Describes Tesco's advertising from 1990 to 1999, a period when Tesco's turnover increased from £8 bn to £17.4 bn and its share rose from 9.1% to 15.4%, overtaking Sainsbury to become market leader in 1995. In 1990, the store still had a `pile it high and sell it cheap' unappealing image. First task was to persuade shoppers who did not shop at Tesco that it was a) credible and b) emotionally OK to shop there. First TV campaign, with Dudley Moore, concentrated on product quality, featuring a series of individual products. High awareness achieved and significant improvement in quality image (accompanied by in-store changes). New executions in 1993: 'Every Little Helps'. Improved image, attraction of non-Tesco shoppers, leading to increased turnover. 1995 to date: the `Dotty' campaign (with Prunella Scales), in 25 executions so far, has consolidated Tesco leadership in line with the 'Every Little Helps' philosophy. The campaign focuses on various aspects of service: quality, range, service, value for money, Clubcard etc. TV strategy is described. Research shows penetration growth and image strengthening, resulting from the campaign (discussed in detail). Research from several sources, both qualitative and quantitative, quoted, including BJM, TGI, DRSM etc. As well as customers, campaign has had good effects on staff morale, attracting quality marketers to join Tesco, and has directly affected the share price (evidence shown). Contribution (significant) to profit and ROI quantified by econometric modelling. This paper won the 2000 Grand Prix award.
Chip Pan Fire Prevention 1976-84
Chris Cowpe, Institute of Practitioners in Advertising, IPA Effectiveness Awards, 1984
Home Office / COI campaign to reduce accidents from chip pan fires, 1976-84. The thinking behind the advertising strategy is discussed: how focusing on what to do if a fire occurs is also a way of alerting people to the need for prevention (getting them to believe that it could happen to them). Television the sole medium, appearing on a regional basis each year. Evaluation mainly from the Fire Statistics, plus 2 quantitative surveys (1976, 1983). There were year-on-year declines in reported chip pan fires in each area advertised compared to control areas; the effects were stronger in non-overlap TV areas. Cost-efficiency of the campaign improved over time. There was high awareness of the advertising, and evidence that it increased knowledge of the correct fire containment procedure (RSL). It is argued that both 'containment' and 'prevention' were relevant in reducing the incidence of fires. Second prize winner.
How the Chimps have Kept PG Tips Brand Leaders Through 35 Years of Intense Competition
Clive Cooper, Louise Cook and Nigel Jones, Institute of Practitioners in Advertising, IPA Effectiveness Awards, 1990
First prize and Grand Prix winner in its year; also the first continuous study in the new section 'Longer and Broader Effects'. Describes how, since the relaunch of PG Tips in 1955, consistent advertising using the `chimps' theme has kept the brand dominant through 35 years. Two elements were crucial to the success of the advertising: consistency (both in creative style and media presence), and continual renewal to ensure the executions continue to be relevant as society changes. The paper describes and charts PG Tips performance over the whole period against the background of the tea market as a whole. The brand's philosophy is described fully: the `value added' to the brand by the advertising on the basis of a very simple functional proposition about taste; the ability to maintain a price premium. Describes how the brand's strength enabled it to be resilient against the launch of teabags by Tetley in 1963, in the face of own label (whose share has grown considerably since the early 1970s), and in spite of short-term reductions in media support from time to time. Other potential causal factors (price, product, promotions, distribution, packaging, repeat purchase) are examined in turn and dismissed as possible causes of the long term added value of the brand. How the advertising works is identified and discussed (Millward Brown attitude and awareness measures have been continuously used). The financial benefits over time are quantified and summarised. Appendix briefly describes a `cross-sectional' model in which PG Tips is compared with Tetley in market share responses to various factors, top test hypotheses about the response to advertising.
Dettol - A Case History
Angus Thomas, Andrew Roberts, Gerard Smith and Mia Ospovat, Institute of Practitioners in Advertising, IPA Effectiveness Awards, 1980
The 1978 campaign for Dettol. This mature and well-established brand had suffered a sharp decline in sales 1975-7, compounded by the fact that the ITCA stopped allowing advertising the use of Dettol in the bath (a significant personal use, but involving unprovable claims). New campaign based on disinfectant usage, but sensitive to consumer perceptions of the brand (largely built on personal and antiseptic use). TV and press both used, at same spend but lower effective weight (because of cost inflation). Sales of Dettol increased substantially in 1978, maintained in 1979. Research showed improvements in attitude and changes in Dettol use and purchase frequency (pre-post U&A surveys by PAS). Disinfectant images increased, while antiseptic images remained steady. Econometric model based on 5 years of Nielsen data (described in detail) enabled calculation of elasticities for advertising, price, disposable income (a cause of the sharp sales decline) and temperature. Price elasticity was found to be very low, but advertising elasticity very high. It was therefore decided to maintain price increases in line with inflation, since consumers were not price sensitive (even though the brand was thought expensive compared to disinfectant brands). The econometric analysis cannot prove advertising effect in 1978, for reasons explained, but coupled with the image data is strong circumstantial evidence.
Cadbury's Fudge - How Advertising has Built a Brand
Peter Carter, Institute of Practitioners in Advertising, IPA Effectiveness Awards, 1984
The role of repositioning and advertising in the revitalisation of Cadbury's Fudge since the mid-1970s. There had been no focused advertising for the brand before 1976. Explains the background, opportunity and rationale for a new campaign to reposition brand as just right for children. The paper describes three successive creative solutions in TV commercials which ran (national campaigns): (I) 1976-8, (II) 1981-2, (III) 1983, and how each new creative solution developed the theme afresh (on the basis of qualitative research findings). Econometric modelling over the period is described: there proved to be high advertising elasticity for this market (measured by adstock), but relatively low price elasticity. Thus, although price does interact with advertising, price does not greatly affect brand share change. Advertising awareness remained low (Millward Brown), but moved in line with adstock; however, the ad (Campaign II) was relatively high on `enjoyability'. Growth was dramatic, compared with the market, since advertising started in 1976: advertising is the only major variable (price, distribution and total market growth can be discounted as serious explainers). Appendix describes the modelling procedure used.
The Launch of Tjaereborg Rejser
Damian O'Malley, Institute of Practitioners in Advertising, IPA Effectiveness Awards, 1980
British launch of the Danish package holiday tour operator. Marketing background is described: one in which demand was shrinking, competition severe, success doubtful. Small budget: television (London and Southern, January 1978) plus press insertions to end February. Key proposition: selling high-quality holidays at prices significantly below other tour operators, by selling direct to the consumer: a new sector in the market. Evaluation: awareness, brochure requests increased; many callers asked only for the Tjaereborg brochure; postal survey of brochure requesters showed that low price was a key factor; the brochure itself was rated highly. Conversion ratio of requesters to bookers was 10 to 1 in the advertised areas against 20 to 1 in the non-advertised areas (true even if areas not close to Gatwick are removed): evidence that the advertising had a large effect of final booking. Direct sell via advertising is compared with an estimate of what would have happened if the same number of holidays had been sold in the conventional way (requests from agents); direct sell is shown to be far more cost-effective, apart from the fact that sales were 16% above the target.
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