1. Value
   1. Price
      1. Promoted price vs. non-promoted price affect volume differently
   2. Utility
      1. Design
         1. Product
            1. Innovation
            2. Operating in uncontested market space is far more profitable than competing for a share of an existing market.
            3. "New news" generally excites retail partners and makes them more likely to stock
            4. Partnership
            5. Look for opportunities for joint value creation vs. value transfer
            6. Putting unlikely industries together potentially develops new business models
            7. More
            8. In this world of agile product development, genuine differences in products can now be eroded faster than ever.
            9. Product usage dominates advertising influence on beliefs, attitudes, and behaviors.
            10. Advertising is superior to product usage in communicating quality for credence goods; product experience dominates advertising for search and low-experience goods (attributes).
         2. Experience
2. Presence
   1. Physical (retail)
   2. Mental (attention economy)
      1. Advertising
         1. Creativity
            1. Emotion
            2. "How advertisers choose to communicate (framing, characters, situations) is possibly more impactful than what is communicated (news, features or benefits).”
            3. Advertising need not be informative to be effective, nor need be verbal only; emotional and visual elements enhance preference.
            4. Right-brained elements like human interaction, narrative, and a strong sense of time and location are very effective at capturing attention
            5. Advertising today demonstrates less self-awareness, is less self-referential, employs less implicit communication between people, deploys less cultural references, and fewer stories with a beginning, a middle and an end. Conversely, it reveals a greater use of voiceovers, monologue, more focus on things than people, more people as props not characters. The shift is significant, for this is advertising designed for the left-hemisphere.
            6. Originality, intrigue, visual clarity, emotion, direct gaze, and personalization drive visual attention.
            7. Strikingly linear correlation between improved brand standing (awareness, knowledge, liking, preference) and improved price elasticity.
            8. Attitude toward the ad is a significant moderator in the formation of brand attitudes. (V&A)
            9. Ad likability highly correlates with brand preference.
            10. The Systems 1 and 2 construct of Daniel Kahneman help to explain the observed patterns of effect of emotional and rational campaigns. Emotional campaigns work through (automatic) System 1 whereas rational campaigns must attempt to engage the reluctant System 2.
            11. Because System 1 effects operate below the radar, they do not rely solely on conscious, rational response in research. Remember that the emotional effects that matter most in the long term are mainly non-verbal and unconscious.
            12. If you want to predict the effectiveness of an ad – its potential to drive growth – the simplest and best way of doing that is to measure people’s emotional response to it.
            13. Because highly creative campaigns are strongly associated with both emotional responses and fame effects, they are extremely effective and efficient: on average around ten times more efficient than creatively non-awarded campaigns.
            14. Difference
            15. The top 1/3 ads for ‘make the brand seem really different’ in Kantar’s Link database achieve +90% vs the bottom 1/3 on Kantar’s measure of an ad’s likelihood to drive short-term sales.
            16. Campaigns that are emotional, highly creative, and buzz-generating produce considerably more powerful long-term business effects than rational persuasion campaigns
            17. Over a three-year period from 2015-2017 brands that were perceived to be both highly disruptive and different increased in brand value by 28%, whereas brands that were perceived as both low in disruption and differentiation declined by -5%[3].
            18. ‘The Bizarreness Effect’ predicts that incongruent or surprising things are more memorable than expected and common ones as they’re more distinctive.
            19. Study showed that shoppers paid 22% more for brands they find different and meaningful vs those they didn’t, with difference alone accounting for 40% of this on average.
            20. Price advertising increases price sensitivity, whereas nonprice advertising decreases price sensitivity.
            21. Differentiation is about the features of a product or service that set a brand apart in the eyes of the customer, while distinctiveness focuses on making a brand easily identifiable by customers through brand names, logos, jingles, slogans, and house styles.
            22. The central importance of brand differentiation has probably been over-stated historically, and the importance of distinctiveness had been under-stated until recently. But seeing the two as unrelated, alternative strategies rather than potentially complementary ones means we may be missing out on deploying the full power of difference at a crucial time
            23. A brand can differentiate itself by being more of one thing than its competitors. And in combining the right associations with the right execution, ideally powered by the distinctiveness that comes from clear and well applied brand codes, a brand can present itself differently to the market from its competitors.
            24. Earlier in a brand's life cycle, relative perceived difference is more important to growth than "meaningfulness" and "salience"—later in a brand's life cycle, salience and meaning start to matter more.
            25. More
            26. Brand value represents on average 20% of a business's market capitalization, part of the intangible assets that on average represent 84%
            27. On average, a +1% improvement in brand perception drives an uplift in total sales of 0.5-1.5%
            28. Creatively-awarded campaigns generate around 11 times more share growth per 10 points of ESOV than creatively-non-awarded campaigns
      2. Media
         1. Targeting
            1. Whole category targeting
            2. The most effective and efficient campaigns talk to the whole category (existing and potential customers). Broad reach (the widest sensible view of the prospect pool) is better than tight targeting.
            3. For frequently purchased package goods, share returns to advertising diminish fast, typically after the third exposure. After the third exposure, advertisers should focus on reach rather than frequency.
            4. Recruiting new customers is generally much more effective, especially over the long term (reach > frequency)
            5. In mature, frequently purchased packaged goods markets, returns to advertising diminish fast. A small frequency, therefore (one to three reminders per purchase cycle), is sufficient for advertising an established brand.
            6. Loyalty varies closely with the market share of a brand, with bigger brands tending to have more loyal customers
            7. Category Entry Points = The cues that prompt people to think about a category and its brands
            8. Brands with wider, fresher CEP networks have higher acquisition and higher retention (less defection) of customers.
         2. Platform-Fit
            1. Attentive Reach
            2. On average, less than one fourth of “viewable” time translates into actual attention.
            3. You need to keep someone’s attention for 2.5 seconds before you have a chance of influencing memory. Around 85% of digital ads don’t do this.
            4. For creative quality to make the difference we all know it can, it has to be seen on platforms with high elasticity of attention (the range of attention seconds possible under the conditions of that platform or format)
            5. Scrollable formats are less elastic, the range of attention they offer is not as great. Others, with less distracting features, are more elastic and the outer range of attention they offer is greater.
            6. ‘Scrollable media’ attention decay cuts audience reach volumes by up to 70%
            7. Conversely, unscrollable media – video and large screen TVs – showed largely unchanged attention decay after 20 seconds.
            8. The major difference between the legacy of recall and the new standard of attention, she explained, is that “high, sustained, undivided attention is not typical of how humans interact with advertising. “High attention is still very, very valuable. But the biggest uplift in sales performance actually comes from low-attention processing, which is something that … recall can’t measure.”
            9. The average "eyes-on dwell time" varies dramatically be platform
            10. More
            11. Ads that are optimized for the platform can increase the view-through rate by 19%, the click-through rate by 30%, and the conversion rate by 24%.
            12. Brands can now calculate the opportunity cost from low-quality ads – ads that are statistically unlikely to deliver impact because they are unsuitable for the media they are placed in. The CreativeX report outlines the 4 key creative attributes that contribute to digitally unsuitable advertising: Unbranded, poorly framed, unsuitable length, missed messages.
         3. Investment
            1. Excess share of voice
            2. Share of voice - share of market
            3. Average of 0.5% points of market share growth can be expected per 10% points of ESOV
            4. A +10% share of voice increase can deliver reductions in price sensitivity of 5-20%
            5. Peter Field showed new evidence that this relationship is under serious strain. The correlation between ESOV and brand growth has weakened drastically over the last decade, and even more worryingly the level of “bang for your buck” each unit of investment returns has also collapsed.
            6. Time
            7. The longer a campaign runs, the more investment has been put behind it and the more time it has to generate effects (profit, sales, market share, penetration, loyalty and price sensitivity)
            8. On average, 58% of the total commercial impact of marketing comms will be seen after 6 months
            9. Although long-term effects always produce some short-term effects (direct response), the reverse is not true and long-term effects are not simply an accumulation of short-term effects.
            10. Promotional elasticities are up to 20 times higher than advertising elasticities in the short term
            11. Short-term advertising elasticities are small
            12. Advertising elasticities range from 0 to .20 in the short term
            13. As an ad gets better at the long of it (achieving a greater star rating), it also gets better – on average – at delivering the short of it too (a higher spike rating).
            14. Modern research from companies like System 1, Kantar and analytic partners indicates that wear-out rarely occurs for target consumers, challenging the long-held assumption that advertising effectiveness diminishes over time
         4. Objective-Split
            1. Proper Brand-to-Activation Ratio
            2. ~60:40 split between brand-building (emotional, future demand) and activation (rational, current demand); the objective is to achieve equal share of voice within brand and activation
            3. While emotional campaigns are more effective in generating long-term business effects, rational campaigns can still produce powerful short-term sales effects.
            4. The optimal ratio between brand-building and activation activity varies by brand life-stage/size—activation more important in the first year, then brand increasingly more important.
            5. Campaigns that try to focus on both the "long" (brand-building) and the "short" (sales activation) generally produce fewer business effects than a combination of campaigns that are partitioned
            6. Only 5% of B2B buyers are in-market to buy right now, emphasizing the importance of long-term marketing strategies to influence future buyers, not just current buyers
            7. "Funnel-juggling" methods
            8. Disposable income falls in a recession, but brand-building is about securing a share of future spending by building attention. When recessions turn into recoveries, history shows that it’s the brands who don’t “go dark” who recover faster and stronger.
3. Metrics
   1. Long-Term
      1. By a considerable margin the best all-round proxy metric of profit growth is the number of business effects:
         1. Profit
         2. Sales
         3. Market Share
         4. Penetration
         5. Loyalty
         6. Price Sensitivity
   2. Short-Term
      1. Direct response
4. Sources
   1. Les Binet & Peter Field
      1. The Long and Short of It
      2. "Brand building and sales activation"
   2. Martin Weigel
      1. "Brand building in a digital age"
      2. "Fighting The Astro-Turfing Of Culture"
   3. Tom Roach
      1. "The stupidity of sameness"
      2. "The value of brand"
   4. Byron Sharp / Ehrenberg-Bass
      1. How Brands Grow
      2. "What does Byron Sharp’s research really tell us..."
   5. Demetrios Vakratsas & Tim Ambler
   6. Mark Ritson
      1. "Distinctiveness doesn’t need to come at the cost of differentiation"
      2. "Brand building boosts short-term sales"
      3. "Differentiation is not about uniqueness"
   7. Orlando Wood / System 1
      1. Lemon
   8. Jan-Benedict Steenkamp
      1. "Massive new evidence on the price elasticity of brands"
   9. Ebiquity
      1. "Average eyes-on dwell time by medium"
   10. Pete Weinberg & Jon Lombardo
       1. "95:5 is the new 60:40"
   11. Jennifer Romaniuk
       1. "Category entry points in a B2B world"
   12. Paul Jaeckel
5. Profit
   1. Greater Price Elasticity
   2. Greater Market share
6. Concepts
   1. How we make money
      1. What we sell
         1. How we talk about it
            1. Where we talk about it