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Effective Advertising

Michael Molloy, Managing Director – dtb Advertising, presented “Effective Advertising” at the Innovation Centre’s Boardroom Briefing on Thursday 24 June 2010.

The Innovation Centre’s 2010 Boardroom Briefing Marketing Series provides a marketing tool box over six sessions with insights from expert speakers.

A prawn story……..

Faced with international competition from cheaper imported and farmed prawns the Mooloolaba prawn industry was forced to make a move.

Led by Vicki Brown, of Mooloolaba seafood wholesale and retail outlet Browns Slipway, the former Eastern King prawn was rebranded to become the ‘Mooloolaba Prawn’.

This marketing move was driven by a simple and cost effective change in the packaging to promote the ‘Mooloolaba Prawn’.

This initiative has built brand recognition around the superiority of the local Mooloolaba Prawn. It is a reminder that advertising doesn’t need to cost the world to be effective.

Key Points:
_ A great product is sometimes not enough
_ Challenges force us to think and act
_ You don’t always have to spend BIG to advertise

Ask the Audience – a quick top-of-the-mind recall question session to test the brand leaders in a number of categories.

Who owns these products?
  Cola – Audience response: Coke
  Desktop operating software – Audience response: Microsoft
  Baked beans – Audience response: Heinz
  Conveyancing – Audience response: House of Bricks
  Off the shelf pain relievers – Audience response: Panadol
  Biscuits – Audience response: Arnotts
  Internet search engine – Audience response: Google
  Tissues – Audience response: Kleenex
  Chocolate – Audience response: Cadbury
  Solar panels – Audience response: Solarhart

You know every brand, right? Another quick test of world-famous brands, who owns these taglines.

  ‘Oh, what a feeling.’
  ‘Just do it.’
  ‘Think different’
  ‘Work, rest and play.’
  ‘You know what I mean.’
  ‘A glass and a half.’
  ‘Where the bloody hell are you?’
  ‘Life’s good.’
  ‘Good on ya Mum.’
  ‘Don’t leave home without it.’
  ‘We try harder.’
  ‘Finger-lickin good.’
  ‘Let your fingers do the walking.’
  ‘You canna hand a man a grander spanner.’
  ‘Where’s the cheese?’
  ‘The best a man can get.’
  ‘For a hard earned thirst.’
  ‘Zoom. Zoom. Zoom.’
  ‘Snap, crackle and pop.’
  ‘Open happiness.'

When creating a tagline you are creating a shortcut of what you provide in the customer’s mind. In the most effective tagline’s of world-wide brands customer is king – the positioning must take into account the benefits for the customer. The most effective taglines are simple and emotive – not descriptive – to make it memorable for customers and enhance recall.

Over $400billion is spent on advertising worldwide per year, with Australia accounting for $10billion.

‘Each day, on average, people face up to 5,000 advertising messages’ - New York Times, 2007

A snapshot of different mediums for advertising.

Newspaper
Key Points:
  Circulation 527,674 and readership 1,277,000 Source: Roy Morgan Research
  ‘000’s of ads in last Sunday’s edition without counting the classifieds
  Check out some of the placements

TV
Key Points:
  13.2 million Australians watch free to air TV each day
  Free to air TV reaches 99.7% of Australian homes
  68% of Australian homes have 2 or more TV’s
  Consumption ranges on av. between 2.5 hours – 4.0+ hours per day

A show about Advertising
Key Points:
  Attracting over 1.5 million viewers per episode
  Highlights peoples interest in advertising

Radio
Key Points:
  99% of cars in Australia have radios
  60% of shoppers use the car to go shopping
  37% of all the time spent with media prior to shopping is with the radio
  People today spend more time listening to radio than they did in 1956

Direct Mail
Key Points:
  Almost $250 million was spent on direct mail postage in the year to January 2010
  24% of Australians over the age of 14 purchased a product from a direct mail offer in the past 12 months

Social Media
Key Points:
  Australians are the most prolific users of social media
  We spend on av. 6hrs 52 minutes per month on social media sites
  Global average per month is 5.5 hours

The web’s ability to connect, track, measure is highly appealing.

In the Press
Key Points:
  Circulation of 24,000 up to 40,000 on Saturday
  Main focus is on retail versus brand building ads
  Still a major vehicle for delivery of key messages for some

Through Sponsorship
Key Points:
  Adidas $200million World Cup Sponsorship
  World Cup has a cumulative worldwide audience of 26 billion
  More people recognise Nike as an official sponsor than Adidas
  Nike tactics – ‘Write The Future’ ad; uniforms for 9 teams
(including USA) vs. Adidas’s 12; YouTube top banner; David
Beckham is Yahoo’s global ambassador

Even your kid’s schools
Key Points:
  Schoolzine
  MFAC – Ships Company and 1:1 Laptop Program in 2011

‘22% of word-of-mouth conversations are sparked by advertising. Moreover, those 22% are more likely to include brand recommendations than the other 78% of brand-related conversations that weren’t spurred directly by an ad.’ - Keller Fay Group

Does sex really sell?
Key Points:
  The July edition will be the last print of Ralph Magazine which was first published in August 1997
  Circulation dropped from 66,319 to 63,155 in 2009 a fall of 4.7%
  ‘Lad’s’ magazines being eroded by cross-category men’s magazines like Top Gear and Men’s Health

Or something more upmarket?
Key Points:
  Annual circulation of 13.2 million across 12 editions
  Target $80K + income, 76% female, average 40 years+
  Talked about covers
  Exceptional photography
  Brand versus retail ads

You get it, right. It’s everywhere and growing. So should you or shouldn’t you advertise?

Should you advertise……+’s
  You’re a start-up, you need to let people know you exist
  You’ve been around for awhile, but people still don’t know you exist
  Your competition advertises
  Your competition is killing you
  You want to kill your competition
  You think you have a unique product or service
  You want to be the next Apple / IBM / NIKE / Google
  Everyone else seems to advertise
  You need to invest in your business
  Your wife, husband, partner, dog thinks it’s a good idea

Should you advertise……-’s
  You have no idea where to begin
  You can’t afford it
  It’s too expensive
  You see advertising as an expense
  Your competition will outspend you
  You’re not sure if you have a unique product or service
  You’re absolutely sure you don’t have a unique product or service
  Word of mouth works for you
  You’re cousin once got ripped off by an advertising agency
  You’ve never been influenced by an ad in your life
  Your wife, husband, partner, dog thinks it’s a dumb idea

So………..How can you achieve more effective advertising?
Or,
Should or shouldn’t you advertise?

What is advertising?
“Advertising says to people, here’s what we’ve got. Here’s what it will do for you. Here’s how to get it.” – Leo Burnett

“It takes a big idea to attract the attention of consumers and get them to buy your product. Unless your advertising contains a big idea, it will pass like a ship in the night” – David Ogilvy

Advertising is a currency generator. You want people to comment on it, talk about it, pass it on, share it. You want a reaction.

Advertising is or should be…….. The targeted, measurable promotion of your story, your brand, your ‘so what’ aimed at achieving a response from your audience to deliver against your business objectives …….it’s also part of the mix

….your business development mix
business plan RESEARCH marketing
TELEVISION ONLINE print online radio
transit outdoor sponsorship viral
BRAND newsletters word of mouth IDEA
product packaging events social
media STRATEGY web database
telemarketing loyalty programs
VALUE PROPOSITION press endorsement
point of sale public relations PLANNING
magazines product placement
direct mail networking
budget

What’s happening in advertising?
  Ad spend in 2010 is forecast to grow between 6% - 8%:
o TV is estimated to rise 7.1% in 2010 to $3.7billion, with an average growth rate of 5.7% through to 2015 to just under $5billion
o Online which includes search & directories, general display and classifieds, is expected to grow to $2.2billion with an average growth rate of 11% over the next 5 years.
o Online is forecast to be the second largest media by revenue in 2015 on $3.7billion
o Press is expected to rise in 2010 by 2.5% to $3.6billion, but drop by an average of 1.4% in the next five years to $3.3billion
o Radio will rise 2.6% to $960million in 2010 with an average growth rate of 1.5% until 2015
  Overall advertising spend is expected to rise by an average of 3.7% a year until 2015, hitting $14.1billion

What’s happening in advertising?
  Key reasons for advertising growth:
o World Cup, marketing war between government and mining companies, Commonwealth Games,
Federal Election
o New free-to-air and digital TV channels and 3D technology
o Consumer is driving online growth as people go online for entertainment, information and social networking
o Ability to connect and engage with audiences is driving brand and big, small and medium businesses to social media
o Return on investment or the expense associated with reaching audiences is the challenge for particular mediums moving forward

Talk about the demise of traditional advertising is premature………remember, dinosaurs roamed the earth for millions of years.

The $100million show……..
Masterchef
Key Points:
  $100million ‘industry’ on back of ad revenue, product placement and merchandising
  Nearly 2million viewers per show, more later
  30-second spot, of which there are 22, cost $70K each

The web’s ability to connect, track, measure is highly appealing.

Appealing enough for a President
Obama’s approach……….
  Simplicity – ‘Change we can believe in’
  Consistency – ‘Change’
  Relevance – point of difference v. opposition
  Integration – fish where the fish are, through a system that combined old and new media
  Engagement – identify and engage connectors
  Drive Action
  Measure Everything
  Objective – to become President

Obama’s tactics……
  Email – 13 million people on list who received 7,000 variations of more than 1 billion emails
  Donors – 3 million online donors who contributed 6.5 million times
  Social Media – 5 million friends on 15 social sites; 3 million friends on Facebook alone; Twitter at least daily
  Website – 8.5 million monthly visitors to MyBarackObama.com at peak; 2 million profiles with 400,000 blog posts; Newsletter 1 sent per day with donation button each, emotional messages, sent by different staff
  Video – Nearly 2,000 official YouTube videos watched more than 80 million times
  Mobile – 3 million people signed up for text messaging program, each received 5 to 20 messages per month
  Phone Calls – 3 million personal phone calls placed in the last 4 days of the campaign

Obama’s results…..
  Traditional campaign generated $124 million in donations:
o Big Donors; Fundraisers; Celebrities;
TV, Press, Signage; Merchandising; Tours; Obama Girl
  New campaign generated $360 million in donations:
o Small Donors; Internet; Email; Social;
Video; Blogs; SMS
  He won

What to consider when developing your advertising plan

Sure, you need to cover this stuff
  Objectives – why are you doing this? brand building versus sales?
  Competitive Analysis – who are your competitors?
What are their target markets? How do they reach their targets? How do you differentiate yourself from your competition?
  Target Market – who are they? What do they need and want? What do they think and feel? Who is the decision maker?
  Competitive Positioning – What position best differentiates you from your competition? Are you the lowest-priced or highest value? Do you offer the best product selection? What do you offer that no one else does?
  Budget – how much money do you really have to do this?
  Measure – how will you know when and if you’ve achieved your objectives?

But, this stuff’s probably more important..
  What can I say that matters most to my customer?
o The single most compelling thing? Are you qualified to say this? Why should they believe you?
  How can I best say it?
o Emotion versus reason?
  Am I speaking to a felt need?
o Why should they act?
  How long is my time horizon?
o Some ads build traffic, some build relationships, others build your reputation or brand
o Majority of SME’s want their advertising to deliver a sales message and drive traffic to their location
o What’s your financial staying power? Results increase with repetition

But, this stuff’s probably more important..
  What is the urgency of my message?
o You have a time limit to produce immediate results, what is it?
  What is the impact quotient of your ad?
o Quality of competitor? Where do they advertise? Do you want to go against them or other?
  How long is my purchase cycle?
o How soon will customers likely need your product?

Once you’ve selected your message, select media that best supports your message, audience, timeframe and budget

Let’s looks at this in a local context….. Shultz Toomey O’Brien Lawyers
Current Approach:
  Tactical versus Strategic
  Lack of an integrated communications plan
  Lack of TV presence
  Opportunity for more targeted use of all media opportunities which could be aligned to specialist areas of Law
  Opportunities to leverage advertising spend to promote positive messages through PR not being fully utilised
  Direct marketing opportunity
  Opportunity to significantly increase reach without increasing total spend

Let’s looks at this in a local context…..
Big Firm Knowledge – specialist legal advice in most areas of law delivered by large, experienced, credentialed team
Local Strength – combine unrivalled range of legal expertise with a commitment to make a difference to
Key selling points:
our community
Our partners (6) hold decades of experience and are experts in specialised areas of Law
Offer specialist skills at highly competitive rates that city based firms simply cannot match
NO WIN / NO FEE to service Personal Injury cases
First consultation FREE for Family Law matters

Let’s looks at this in a local context…..
Grow competitive advantage through Big Firm Knowledge and Local Strength:
Grow market penetration measured by number of new file openings
Objectives:
Clearly position firm as providing specialist skills at highly competitive rates that city based firms simply cannot match
Achieve most effective communication mediums to best support brand, marketing and sales strategy i.e. press,
TV, radio, signage, Internet and other

Messages to target audiences:
At Schultz Toomey O’Brien we want our clients to trust us to deliver unrivalled specialised law services at the most competitive rates.
Key elements:
Trust – to be credible / believable
Expertise – Accreditation, cover most areas of law
Fee Structure – Competitive vs. CBD, No Win No Fee, FREE
Consultation
True local – a community based firm

Presented by:
Michael Molloy
Dtb Advertising
Innovation Centre Sunshine Coast
90 Sippy Downs Drive
Sippy Downs  QLD  4556

www.dtb.com.au


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