NUMBERS EVERY MARKETER SHOULD KNOW

TOM ROACH, MANAGING PARTNER, PERFORMANCE, BBH LONDON

ZERO to 1
The greatest number of consumers of
any brand are very light buyers, and
they contribute significantly to sales
volume, so for most brands the
biggest opportunity for growth comes
from taking people from buying it zero
times to buying it once in a typical
purchase cycle.

Source: Byron Sharp, ‘How Brands Grow’

16%
As little as 16% of all advertising is both remembered and correctly
attributed, meaning that 84% of advertising spend could be wasted.
In a study by the Ehrenberg-Bass Institute of a sample of 143 TV ads,
avg. ad recall was found to be around 40%, and avg. branded recall
was 40% of that.

Source: Ehrenberg-Bass Institute study, quoted in Byron Sharp’s ‘How Brands Grow’.
1 message

If you want people to remember your

key message, you’re best delivering 1
message not 2+. Analysis of the Link
database shows that the more
messages you try and communicate, the
less likelihood there is of any single
message being communicated.

Source: Kantar Millward Brown

2x
Emotional campaigns are almost 2x as
likely to achieve top-box profit
performance as rational campaigns, and
over 2x as efficient at driving market
share growth per 10 pts of excess SOV.

Source: Binet & Field, The IPA 'The Long and the Short of It'
4x
Campaigns designed to drive fame are
around 4x as efficient at driving market
share growth per extra 10 pts of SOV
according to an analysis of the IPA
Databank.

Source: Binet & Field, The IPA 'The Long and the Short of It'
2nd
Quality of creative execution is, after
market and brand size, the 2nd most
important driver of advertising
profitability, on average multiplying
profitability by a factor of 12 according to
Data2Decisions.

Source: Paul Dyson, Admap, Sept 2014, 'The Top 10 Drivers of Advertising Profitability'
16x
Highly creatively-awarded campaigns can
achieve around 16 times the efficiency of
non-awarded campaigns, meaning they
drive market share growth 16 times more
strongly per point of excess SOV, whilst
less awarded campaigns achieved just
under 10 times the efficiency of
non-awarded campaigns.

Source: Binet & Field, The IPA 'Selling Creativity Short'

60/40
Brands should spend around 60% of their
budget on brand-building activity and
40% on activation for maximum
effectiveness. Too little brand activity and
the brand equity needed to drive sales in
future will not accumulate. Too little
activation and the brand will not be
exploiting the sales potential of brand
equity as it accumulates.

Source: Binet & Field, The IPA 'The Long and the Short of It'
0.5%
Excess share of voice (ESOV = SOV -
SOM) is an important contributor to the
level of growth. On average, a 10 point
difference between SOV and SOM leads
to 0.5% of extra market share growth.
So a brand with a share of 20.5% with
an ESOV of 10 points would grow to
21% market share over a year.

Source: Nielsen 'Budgeting for the upturn: does share of voice matter?'
-15%
On average, uplifts in consideration following a campaign decline at
15% a week, meaning the uplift will have decreased 50% in 5 weeks
and will be back at pre-campaign levels in under 4 months.

Source: Mediacom Business Science modelling, avg across every category

+1%pt
On average a +1%pt movement
in brand consideration will drive an
uplift in total sales of 0.5-1.5%.

Source: Thinkbox, Ebiquity, Gain Theory, 'Profit Ability: The business case for advertising'
£3.24
The average long-term profit ROI from
£1 spent on advertising is £3.24. £1.51 is
delivered in the short-term, with an
average long-term multiplier of 2.1. TV
has the highest short-term profit ROI of
£1.73 on avg. and the highest long-term
multiplier, 2.4.

Source: Thinkbox, Ebiquity & Gain Theory: ‘Profit Ability: the Business Case for Advertising’