advertising: how the charity sector shapes...

Advertising: How the charity sector shapes up

Will Goodhand

2

Incontrovertible evidence has led research to up its game…

www.system1adratings.com [email protected]

http://www.system1adratings.com/

mailto:[email protected]

3

1 decision-making system holds massive pre-eminence

Fast Intuitive

Unconscious Metaphoric

Slow Analytical Conscious

Propositional

System 2 System 1




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





Ideal long/short term balance varies between sectors…


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?





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





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


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





What about charities?...


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.

13

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….




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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)




15

UK investment in the long-term today (not good!)

60

50

40

30

20

10

0




Proportion of TV Media Spend

42% 39% 15% 3% 1% Proportion of Media Spend





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And charities?...

17

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)


83% 8% 7% 2% 0%



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








US Charity/NFP advertising is more successfully emotional



19

UK investment in the long-term today

60

50

40

30

20

10

0








But there are some very strong UK performers – including a 5 star ad from Battersea Dogs & Cats Home




So how can we move up our star rating?...

22

Emotional Storytelling

23 https://www.youtube.com/watch?v=yIutgtzwhAc

https://www.youtube.com/watch?v=yIutgtzwhAc

https://www.youtube.com/watch?v=yIutgtzwhAc


The most effective emotional journeys

Extremely Effective Very Effective


As just seen in the Heineken Walk-In Fridge ad



25 www.system1adratings.com [email protected]



26

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.

29

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 (%)

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)


(44)

No FluentDevice

Campaigns(256)


(44)

No FluentDevice

Campaigns(256)


(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




32

Character Fluent Device performance

60

50

40

30

20

10

0


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


= +12 % points of SOV




33

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




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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




35

Fluent Device Online

36

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”

38

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”

39

Advertising works better online with a Fluent Device

6974

No Wilbur (52) Wilbur Fluent Device (86)

2835


2.6

3.2


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

40

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:

43

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

[email protected]



advertising: how the charity sector shapes...

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