Saturday 24 September 2016

Marketing - why it's payback time for CEOs

Published 10/09/2015 | 02:30

Karen Hand
Karen Hand

Proving the payback value of advertising has always been a hurdle in adland. For years, agencies had to rally against the cries that half of the money spent on advertising came to nought, but which half was it?

  • Go To

The decision by the Institute of Advertising Practitioners in Ireland (IAPI) to take a leaf out of the IPA's book in the UK and adopt the Adfx model was inspired.

A joint report by Television Audience Measurement (TAM) and IAPI may help marketers gain more share of voice in Ireland's boardrooms. 'Value of Advertising in Ireland' comprises two studies examining advertising's role in delivering business results and commercial return.

The research uses IAPI Adfx award-winning case studies over 18 years to show the link between commercial pay back, media investment and creativity.

The first study, A Line in the Sand, was conducted by planner Karen Hand, pictured, and TAM's chief executive Jill McGrath. It examines the commercial evidence for investing in advertising. Marketers and CEOs have different views on how to show commercial payback. The findings point to one common metric by which to live: value market share.

The Adfx winners delivered an average 6pc increase in brand values. It means 0.8pc value share growth each month, compared to non-awarded cases delivering 0.5pc a month. The research also shows a direct link between ad spend and commercial payback.

The research highlights the close ties between brands that invest in media spend and their market share.

Study number two, called I Must Be Talking To My Friends, was written by branding expert John Fanning. It explains what's needed to develop effective ads by referencing case studies.

The findings emerge as brands start to spend again. From January to June this year, KBC Bank, Laya Healthcare, Bórd Gáis Energy and Toyota put generous spend behind their campaigns.

Nissan invested 141pc more in ads compared to last year. Generally, in the last year, ad spend jumped by 12pc. The big spenders are Sky, Diageo, Unilever, UPC and Lidl. The most active car brands are among the top five for market share. Brands which have spent wisely in recent years reaped the benefits, including drinks brands Guinness, Heineken and Bulmers.

Bord Bia has also invested in Quality Mark and scores highly in reputation studies. Aldi and Lidl's media activity saw them win a combined share of 16pc last year, up from 10.6pc in 2011. Creative campaigns are not only more effective, they are also more efficient.

The studies show winning creative campaigns can deliver 10 times higher levels of media efficiency. Despite some CEOs thinking that marketers are stuck in marketing la-la land and that there's a disconnect from business results, the research shows the more creative the campaign, the more commercially hard-working it proves.

* PR agency Notorious PSG has announced several new promotions. MD Graeme Slattery says director and board member Angie Grant has been appointed deputy managing director, while Lisa McDonald and Sarah Wagstaff now have extra responsibilities as agency creative and operations director and consumer and retail trends director respectively.

Senior account manager Harriet Mansergh is now an account director and leads the agency's brands unit.

Niamh Hopkins and Tabitha Bourke-Cooney take on extra roles as heads of media and agency marketing respectively.

Former Bord Gáis Energy Theatre PR executive Serena Joyce has joined the agency as an account manager, while Siobhan Grogan arrived from Invoke to become a senior account handler.

Notorious clients include Aer Lingus, Brita, Newbridge Silverware, Keogh's Crisps, Topaz, Life Style Sports and Unilever food brands such as Knorr and Flora.

* As Queen Elizabeth becomes the longest serving monarch in British history - beating Queen Victoria's record of 23,226 days, 16 hours and 23 minutes - Brand Finance considers the monarchy as an asset or a drain on Britain's economy. 'The Firm' is now said to be worth almost £57bn.

Brand Finance says the House of Windsor will make a net contribution to the British Exchequer of over £1.1bn this year.

Costs such as the Sovereign Grant, security and the upkeep on the palaces are squared against such sources of income as the uplift to British tourism, the price premium commanded by brands with royal warrants (by appointed to HRH), the surplus from the crown estate and 'the Kate effect'.

Queen Elizabeth and Prince Philip are pictured above on a visit to the Guinness Storehouse in Dublin.

* Eircom has launched Meteor Extras to rival Three's 3Plus loyalty programme. Available to prepay and billpay customers, it has strong redemption on cinema offers, dining out and treat days. Customers who have been on the network for 30 days are eligible. Prepay customers need to have topped up by at least €5 in the last month and billpay customers' bills must be in good shape. Rothco created the Meteor Extras TV ads, pictured above.

Michael Cullen is editor of Marketing.ie: cullen@marketing.ie

Indo Business

Read More

Promoted articles

Editors Choice

Also in Business