A report coming out today from Analytic Partners, a global marketing technology analytics company, offers intriguing insight for marketers to consider as the economy and ad market rebound. Three stats that caught our eye:
Here's what can happen to a brand when a rival doubles advertising and promotion
In its new report, Analytic Partners found: "If a single similarly sized competitor were to double their advertising and promotion budgets, the average brand would stand to lose 15% of its overall business that year."
"Clearly understanding the impact of external dynamics is important for brands," said Mike Menkes, senior VP of Analytic Partners. "A great example of this is competitive actions, which can severely hinder an organization’s ability to reach goals.
"Brands should leverage analytics to not only understand how marketing impacts business performance, but how to achieve business goals when confronted with outside forces," Menkes said. "If equipped with the knowledge of how to overcome and account for external dynamics, such as a competitor doubling their marketing investment, brands can indeed be successful."
The company’s research shows that half of an ad’s impact comes from halo, "a term that explains the positive impact that advertising for a specific product/model/service has onto other products/models/services within the portfolio or megabrand franchise." Without halo, Analytic Partners says, advertising may not pay out in the short term.
Analytic Partners found that "two-thirds of the opportunities to improve video advertising performance is driven by strong creative quality,” which it defines as “the value of the message content itself and its likelihood to resonate and drive behavior change when delivered."