In Fons' latest book “Advertising: dead or alive”, he wrote about the (new) role of brands, marketing and advertising in a changing environment. Based on the newest research results, Fons will now talk about the real value of worth of mouth. He will give you the formula of success to develop the most creative campaigns. And he'll reveal to you why people really like brands on Facebook.

1. BBDO CONNECT
OCTOBER 25, 2013

2. RECAP
FIVE MAJOR
CHALLENGES
1.
2.
3.
4.
5.
The digital revolution
The disloyal customer
The brand bubble
The rise of private labels
The growing irritation about advertising

3. RECAP
‘ADVERTISING IS DEAD.
LONG LIVE ADVERTISING.’
1.
2.
3.
4.
5.
Focus on the ‘light buyer’
Penetration above Loyalty
The two-step-flow of communication
Time for an ISP
Creative is King

4. AGENDA
1. Creativity in Advertising
2. Word of Mouth
3. Social media: Friend or Foe?

5. CREATIVITY IN
ADVERTISING

6. WHEN IT WORKS
AND WHEN IT DOESN’T
Tested on 437 TV advertising campaigns for 90 FMCG in
Germany from January 2005 to October 2010
REINARTZ (Werner), SAFFERT (Peter). Creativity in advertising: when it works and when it doesn’t,
Harvard Business Review, June 2003, p. 107-112.

7. FIVE DIMENSIONS
OF ADVERTISING
CREATIVITY
1. Originality
2. Flexibility
3. Elaboration
4. Synthesis
5. Artistic value

8. WHEN USED IN COMBINATION, CREATIVITY HAS
WIDELY VARYING EFFECTS

9. MOST EFFECTIVE COMBINATIONS

10. ORIGINALITY + ARTISTIC VALUE
Dove

11. ORIGINALITY + ELABORATION
Mercedes-Benz

12. A EURO INVESTED IN A
HIGHLY CREATIVE AD, HAS NEARLY
DOUBLE THE
SALES IMPACT
OF A EURO SPENT ON A
NON-CREATIVE CAMPAIGN

13. CREATIVE ADVERTISING
DOUBLES
THE SALES
DECREASES
THE AIRTIME
BUDGET

14. IS MORE CREATIVITY ALWAYS BETTER?
When categories are associated
with highly creative ads, adding
more creativity do not always
give a big boost
With categories associated with
low creativity, more creativity is
in some cases a good idea

15. UNORTHODOX
APPROACHES
LESS REQUIRED
WHEN PRODUCTS
ARE FUNCTIONAL
AND
ORIENTED
TOWARD
CLEAR
CONSUMER GOALS

16. OUT-OF-THEORDINARY
APPROACH
WHEN
PRODUCTS
ARE
EASILY
UNDERSTOOD,
SIMILAR AN TIED TO
PERSONAL
PREFERENCES

17. WORD OF
MOUTH

18. TWO-STEP-FLOW OF ADVERTISING
Brand
DIRECT
Effect
Effect
INDIRECT
Advertising
Opinion makers
WOM
Consumers
Source: adaptation of Lazarsfeld and Katz, 1955
Advertising

19. INFLUENCE OF
ADVERTISING ON WOM
Used studies: of POETIC half a million data for 36 brands across three marketing
categories – retail, finance, and drink - and data from: Keller Fay, YouGov’s
Brandindex, Social media monitor Brandwatch, and data directly from brands
MORTENSEN (Neil). Tv’s influence on word of mouth,Thinkbox, September 2013 (ONLINE) (www.warc.com)

20. ADVERTISING INVESTMENTS
ARE RESPONSIBLE FOR
72% OF ADDITONAL
WOM
ON- AND OFFLINE
(90 % OF WOM IS REAL LIFE)

22. THANKS TO TV-COMMERCIALS
On- & offline WOM lasts longer
 47% more visitors on websites
 Ensures 52% of the positive impact on reputation

23. THE IMPACT
OF WOM
Data from a sample of 1035 consumers in 4 product/service categories,
gathered in various shopping centers in northern spain
VAZQUEZ-CASIELLES (Rodolfo), SUAREZ-ALVAREZ (Leticia), DEL RIO-LANZA (Anna-Belen). The word of mouth
dynamic: how positive (and negative) WOM drives puchase probability: an analysis of interpersonal and
non-interpersonal factors, Journal of advertising research, jg. 53, nr. 1, March 2013, p. 43-60.

24. THE IMPACT OF WOM
Positive (negative) WOM has a positive (negative) impact
on the shift in the receiver’s purchase probability
 Positive WOM is 14% more influential than negative WOM

25. THE IMPACT OF POSITIVE AND NEGATIVE
WOM ON BRAND PURCHASE-PROBABILITY
• The greater the sender ‘strength of expression’, the greater the impact
• The more intense the receiver’s active search (‘high involvement’), the
greater the impact
•
The greater the loyalty with the brand, the weaker the impact

26. KEY DRIVERS FOR WORD OF MOUTH
•
Senders are perceived as knowledgeable
• The ties between sender and receiver are stronger
(not significant for negative WOM)
•
The receiver experience is low and perceived risk is high

29. WOM & ADVERTISING ARE TWO
IMPORTANT COMMUNICATIONS
CHANNELS THAT INTERRELATE AND
COMPLEMENT EACH OTHER

30. SOCIAL MEDIA

31. THE PERILS OF COCREATION
According to an experiment led by Rajneesh Suri of Drexel University
VERHOEF (Peter C.), BECKERS (Sander F.M.), VAN DOORN (Jenny). Understand the persils of co-creation,
Harvard business review, September 2013, p. 28.

32. LAYS - VOTE

34. #laysbe
#bbdoconnect

35. ETHIAS - BUURTFIKSERS

36. BUT : HALF
OF CO-CREATION
FAILS

37. EXAMPLE:
MCDONALD’S
McDonald’s set up a Twitter
campaign to promote positive WOM
 It became a platform for consumers
looking to bash the chain

38. THREE AREAS OF CONCERN
•
•
Strong brand reputations might be put at risk
•
Quantity, quality and variety decreases as the frequency of engagement
High demand uncertainty: in highly volatile markets
increases
It can be viable:
Monitor and intervene where necessary

39. FRIEND OR FOE?
1.1 million consumer responses gathered in the US between 2002 – 2012, the data
cover 73 store categories and more than 1500 individual brands
SCHULTZ (Don E.). Social media: friend or foe?, in Admap, May 2013 (ONLINE) (www.warc.com)

40. IT IS NOT THE MASSMARKETING TOOL
AS HOPED FOR

41. TRIAL & TEST BEST APPROACH
• 11% gives advice (average increase through years)
• 30 - 35% has no brand preference
• Since 2008 the influence of Internet has raised, and the influence of traditional
media declined

42. SOCIAL MEDIA RED FLAGS
• Is it a powerful mass media form or just another niche media?
• Is it building preference and loyalty, or is it commoditizing the brand?
• Is the decline in consumer use of mass media, taking away the social value
brands have created in the past?

43. CONCLUSIONS

44. •
Creativity in advertising can double sales
Look at the product and combine different dimensions of creativity.
Originality + artistic value or + elaboration are the most effective ads
•
Paid Media drive Earned Media
Advertising investments are responsible for 72% of additional on- &
offline WOM
•
Social media work best with ‘heavy buyers’
Trial & test: do not overestimate

46. QUESTIONS?

47. Starbucks : 5 hours of ‘pledging’
VALUES TVC
STARBUCKS - PLEDGE